CAHS 5600/6600 Global Sourcing in Textiles and Apparel

Outsourcing Decision Factors

Dr. Sang-Eun Byun Auburn University

Outsourcing Decision Factors

Decision Stage 1
What to outsource (product selection)

Decision Stage 2
Where to outsource (country selection)

Decision Stage 3
To whom to outsource (vendor selection)

Basic vs. Fashion products (Kunz, p. 66)

Basic Products Product characteristics
standardization utilitarian/ functional infrequent changes in styling

Fashion Products Product characteristics

Individualized (differentiated) hedonic/symbolic frequent changes in styling

Inventory control
steady predictable demand automated replenishment

Inventory control
ever changing stock zero to zero inventory

Selection process
price is major factor comparative shopping

Selection process
value, fashion image impulse buying

Firm characteristics
large size automated process

Firm characteristics
small size labor intensive work

Chapter Summary Extra Credit Opportunity

Read The Choice by Russell Roberts (Chps.2~15) Submit one page summarizing two chapters
Earn up to 5 points for each summary paper Each student can submit up to 3 summary papers and can earn up to 15 points in total.

Evaluation: 1) delivery of key points, 2) compliance of writing requirements One full page, Times New Roman, 12 font point, 1.5 spaced!!!
Do not summarize a story. Do not plagiarize. Do not use bullet points (Form sentences). Include your name and chapter number in the header.

Submit one file with all summaries together (due: Midnight, Feb 05). No late submission will be accepted.