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SOURCING PARAMETERS

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THE CONCEPT

Themostsignificantpartoftheentireprocessofsourcingistheidentificationandevaluationof
thesourcefromwheretoprocurethemerchandise.
Oftenasourceisshort-listedonthebasisofhowcompetitiveitisinrelationtoothersources
whenevaluatedagainstspecificsourcingparameters.
Varioussourcingparametersare:

SOURCING
BUSINESS CLIMATE

IntermsofBusinessClimatethefactorsthatplayanimportantare:

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INFRASTRUCTURE AND PROXIMITY TO MARKETS
Thesalientworthconsideringinthispartare:
Roads, ports, rail, and airports for moving goods into and out of the country
Shipping and other transportation times and costs
Proximity to major markets
Access to reliable sources of energy, water, and telecommunications

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MARKET ACCESS
Itimpliestheduty-freeand/orquota-free(intheerstwhilequotarestrictedera)accesstotheUS
andtheEUmarketsunderpreferentialtradeagreementssuchas
Caribbean Basin Trade Partnership Act (CBPTA)
North American Free Trade Agreement (NAFTA)
African Growth and Opportunity Act (AGOA)

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LABOUR AND MANAGEMENT
Thesalientpointsworthconsideringinthiscontextare:
Availability of workers and competition for workers from other sectors
Compensation rates
Labour skills and productivity
Availability of qualified managers, including middle management

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RAW MATERIAL INPUTS
The availability of cost-competitive, quality fabrics and trims in a country or region is a vital
factor in determining sourcing strategies for apparel.
The availability of fabric, trim, and accessories (e.g., zippers and buttons) is considered
one of the many advantages of sourcing from China, because almost all the raw materials
needed to make a garment are produced there.
If fabrics are not available locally, then shipping times and other logistics (such as customs
issues) can affect lead times and costs. Shipping times and the frequency of shipping are
important factors in determining the availability of fabrics in cases in where local fabrics
are not available in the quantities or styles required.

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SUPPLIER REPUTATION
Thesalientpointsworthconsideringinthiscontextare:

Reputation for quality and on-time delivery

Existing business networks (supply chain linkages, relationship with customers)
Level of service provided (e.g. Complete solution provider, Full-package versus assembly)
Flexibility and variety in styles or products and lot sizes offered
Lead time and flexibility to respond to quick turnaround orders