Avoiding Pitfalls in the Performance Apparel Supply Chain
Navigating Complex Logistics and Avoiding Risk
In the apparel business there are three important steps to get a product from idea to commerce: sourcing, marketing, and selling. The first step, sourcing, is just the beginning of the supply chain which can be sprawling, complex and fraught with risk. With 25+ years of experience navigating this complicated world, Sport Casuals International (SCI) has helped a range of clients, from startups and midsize to established global brands, meet their supply chain needs while avoiding costly mistakes. It’s important to remember mistakes go beyond margin and include brand reputation and loyalty. Here are some common pitfalls in the performance apparel supply chain to help you navigate.
Factories Are Potential Partners
It might surprise you, but even the Nikes of the world don’t own their factories. This is because factories can be expensive to run, operationally challenging, and tend to be specialized. It is much more common for a company to enter a relationship (like a partnership) with an existing factory. The pitfall here is thinking this relationship is a short-term engagement. SCI doesn’t own any of the factories we work with, but we do enter all our factory relationships with the proposition of a long-term arrangement. Our commitment to this philosophy manifest in partnerships that are 5, 10, and 15+ years. We do not shop around our factories and have deep relationships with factory owners and managers, resulting in strong connections and great workflows. And because we’ve worked with many of our factories for multiple years, factories are motivated to deliver great products on time, because they know we can (and will!) bring them new business. So, when making decisions about apparel sourcing, be sure to understand the relationship structure with a factory that is likely independent.
Balancing Both Quality and Price
Selecting a factory of course, is more than just the relationship. It’s extremely important that capabilities match desired final product, inclusive of cost and quality. Looking for a factory partner with a focus on absolute lowest cost may make you an organizational hero in the short term, but a disappointment to your consumer in the long term. That’s because achieving a specific cost target may mean giving up a product feature or sacrificing product quality. That’s not to say cost is not important. It’s very important, but sourcing factories that have the capabilities to deliver to desired specs, and then negotiating cost will ultimately deliver a product right for your merchandising assortment. The proof is when you receive the first product samples, and they exhibit the craftsmanship expected with the right quality at the right cost. Because of SCI’s deep relationships with factory partners, we work closely as a liaison between client and the factory during the entire product development process. Sure, this step-by-step approach is time intensive, but when working across a complex supply chain it’s the only way to ensure the final product meets all expectations.
A Fair and Equitable Supply Chain
You hear about it. You read about it. You wonder about the conditions your product may be produced in and if you’re doing the right thing for the workers and the environment. These are big and timely issues. When considering doing business with a new factory an independent company may not have the right resources to evaluate. Social compliance is a crucial piece in SCI’s supply chain considerations and all factories must pass a global standard test that is conducted by a third party. This standard puts our clients at ease knowing they won’t be the face of a corporate crisis. Sport Casuals International, with offices in China and Thailand, strategically works with factories in six different countries to help mitigate potential problems such as geopolitical issues or labor shifts. We’re invested in the factory communities and continuously build rapport to keep client, factory owner, and manager satisfied. When making your decision on a factory, we consider this to be the greatest ethical and reputation risk you will face.
Obviously, avoiding these pitfalls can be challenging given time zones, independent factories, potentially uncertain quality, and compliance issues. Finding the right partner for either your entire performance apparel line, or select categories, is crucial for your company, brand, and ultimately end-user.
Let us help with your supply chain issues, contact us here for more information.