Wholesale costs are a major determining factor behind the offshoring decisions of apparel makers. This is believed to be a win-win situation where companies minimize their overheads and diminish employee management problems through offshoring their production. The countries accepting those offshored tasks gain more labor opportunities.
Deciding whether or not to offshore the production activities can be done based on the total costs and many other factors involved in both the processes. A crucial step in apparel making is converting the prototype of a fashion designer's creativity into a quality garment. When manufacturing process is off-shored, innovative designers would have no outlet for their ideas.
Offshoring can be considered in situations where plants are in proximity to the customers; thereby shortening the lead times. In cases, where domestic manufacturing is more expensive, even than the offshore related supply chain costs, the manufacturer can opt for offshoring.
Deciding whether to keep their production offshore or not will help the apparel makers to achieve a competitive edge that sets them 'out of the box' in the market.
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Fibre2fashion News Desk - India
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