Global Supply Chain in the Apparel Industry

Global Supply Chain in the Apparel Industry

Contents Page

Introduction                                                                                3

What is the global supply chain                                                        3

Supply chain processes                                                                        4

The key components within the global supply chain                     4 & 5

Garment production systems                                                        5

1. Introduction

This report will focus on the global supply chain in the fashion and apparel industry, highlighting the key components and crucial players within the apparel supply chain.  In addition, the text will provide examples of lean versus agile production in the fashion industry as well as different garment production systems.

1. What Is The Global Supply Chain?

Supply chain refers to the concept of closely coordinated, cooperative networks, competing with other networks (Christopher, 2005).  Supply chains include all the companies that are involved with a particular product.  The supply chain for most products will include all the companies manufacturing parts for the product, assembling it, delivering it and selling it (Investopedia, no date).  It is crucial that companies engage with other firms as partners and develop and strong relationship in order to perform the activities necessary to fulfil the process (Schary et al. 2001).  According to Schary’s ‘Managing The Global Supply Chain’, ‘no firm alone can accomplish the complete process of meeting the demands of the market in the face of intense competition, rapidly changing technologies, and evolving customer requirements…’ (2001) which is exceptionally accurate in the fashion and apparel industry, especially taking into consideration the wide range of choices consumers have today.  

Companies such as Zara, Topshop and H&M revolutionised the fashion industry becoming what is known as “fast fashion” strategy, in which retailers respond to shifts in the market within 2-4 weeks, as opposed of the entire process taking six months (Sull and Turconi, 2008).  Companies that consider themselves to be providing fast fashion aim to obtain fabrics, manufacture prototypes and samples as well as having to start shipping products with very short lead times (Doeringer and Crean, 2006).  For such companies to have these products displayed on their shelves on time, it is crucial they have a strong supply chain management to ensure all the products arrive on time and there are no faults in the products.

1. Supply Chain Processes

According to Schary, the main focus is on a complete supply chain, starting with the final user and going back to sourcing of materials to the production (2001).  The following are five operating processes Schary believes describes the supply chain (Schary, 2001:30):

• Demand management – Demand management includes several related activities related to the market: forecasting, customer service, customer order processing, market coordination and sales support activities. (Schary, 2001:30)
• Distribution – Distribution provides the link between production and the market.  It influences logistics through market requirements for service and efficiency. (Schary, 2001:30)
• Production – Production and related processes add value to product flow.  How production takes place also influences inventory, transport, and time for delivery. (Schary, 2001:30)
• Procurement – Procurement or purchasing links stages of manufacturing together.  In effect, purchasing departments become managers of outside production. (Schary, 2001:30)
• Returns – Close the supply loop by remanufacturing products and components, and reuse or recycle resources in the production process.  How returns are organised influence value creation, transport, and waste in the reverse supply chain. (Schary, 2001:30)

1. The Key Components Within The Global Supply Chain

It is evident that suppliers, manufacturers, distributors, retail processes and the customer are all part of the supply chain and play a key role in the manufacturing in order to produce a successful product.  According to online source Slide Share on Global Supply Chain, the following are some of the global supply chain components (no date):