MAS Holdings: Providing Design to Delivery Solutions

2. In recommending this action, what would be your immediate objectives? What would be your longer range objectives?

VF also uses a “package sourcing” model in production where a single supplier is responsible for the entire garment, from raw material procurement to packaging and shipping finished goods to the market. “Package sourcing” has the benefit of low cost, as companies can choose between various suppliers all over the globe based on economic factors, such as labor and transportation costs, and trade quota or tariff considerations to get the cheapest price for finished goods. It also allows VF

Global sourcing is a technique of strategic sourcing in the global strategy, which is an effective approach as a part of organization’s procurement section. The objective of global sourcing is to develop global efficiencies in the delivery of a product or service for the firms achieving a sustainable competitive advantage and this is an important weapon have been focused in the 21st Century. The well-known organization, Hennes and Mauritz (H&M) is one of the largest international fashion retail and production house with the great deal of businesses all over the world. In the today’s competitive market and

A decision to reinstate employees by the NLRB, regarding a retailer engaged in unfair labor practices by a judge in the case of Design Technology Group, LLC (Bette Page), et al., has been settled. The company terminated three employees who engaged in a concerted activity that was protected through discussions on Facebook. The issue occurred when the manager was away and found that the business was closed an hour early based on the following reasons safety, harassments by local street people, these issues were previously brought to human resources. The employees closed the business early with permission from the owner. The store manager angrily scolded employees over the phone upon hearing this.

In today’s business world, production cost was an increasing concern for companies working to stay competitive in the global marketplace. The top management must search for a global solution to drive down costs and reduce difficult activities associate with inventory management and production management. Global sourcing aimed to exploit global efficiencies in the delivery of services and goods across geopolitical boundaries, including low cost skilled labor, low cost raw materials, tax benefits, and price breaks. Whelan Pharmaceutical was the best example to illustrate how the company chose the best manufacturing site for global sourcing from different perspectives.

With the elimination of U.S. government subsidies, cotton textile manufacturers will pay more for cotton. As the leading buyer of cotton, the Chinese apparel industry’s profitability will be reduced due to their inability to pass on increased cotton prices to their buyers. China’s manufacturing costs had already increased by as much as 40% due to higher market wages and costs with complying with worker and environmental protections. Although China has substantial labor and is accused of utilizing sweat shops to keep their costs extremely low, their increasing manufacturing costs have opened the door to other countries with cheap labor such as Vietnam and Pakistan.

This trait can be leveraged to build systems on par with the new technologies. An addition of 25% of personnel, expert in modern technologies and equipments would enhance the ability of the firm to start an e-business system that would enable LBS Textiles make a global presence, capture the national and international markets. Increase in the number of clients that LBS Textiles can reach out to will increase the volume of trade. The increase in trade brings in direct returns to the company. The expansion of markets and increase in clients indirectly increases the volume of sales and aid in boosting the returns to LBS Textiles. The company needs to evaluate the demand of the various demographics across the globe and develop newer attractive designs. The Research of newer technologies or designs to attract newer markets and wider demographics will incur expenses but the successful outcomes when channelized through the development teams produce the actual product for direct revenue generation.

In 2007, Victoria’s Secret was found to be using textile factories in Sri Lanka, which have been known for bad working conditions with employees working 14 to 15 hour days. Sri Lanka has a competitive advantage of Low cost labor and a literate work-force. “The workers’ wages amount to less than 3/10ths of one percent of the 14 dollar retail price of a Victoria’s Secret bikini” (Tasini). Victoria’s Secret has also been caught in exposing exact fallacy when using a factory that was supposedly considered free trade.

The global manufacture chain is helpful to reduce the cost because the apparel production is highly labour-intensive (Z02). For example, a jacket was produced among many countries to make a good use of the price advantages of different areas.

* The MMDC project will be moving in another product category (fashion) and may create a brand name

SUPPLIER POWER – MEDIUM: Many producers of textiles, raw materials for apparel, large apparel companies would catch their attention. However some apparel in this industry is

In order to have higher profit margin, one of the most effective ways is to cut down production costs. In view of the low labor cost in developing countries, global sourcing seems to be a good choice to reduce costs. With the development of global production networks and the increasing competition, fast all fashion clothing firms have shifted their manufacturing operations to low lost locations over the past decades.

We are all aware about the importance of supply, manufacturing and operations chain for any business. It becomes even more important if we are crossing the borders and entering international marketplaces as we are

Global companies source their raw materials and outsource manufacturing of their products to many countries to take advantage of lower costs or high quality production, and/or lower costs of

Faruqui, M. (2014, July). Nobody can beat Bangladesh in price and quality. Retrieved from http://www.textiletoday.com.bd/magazine/873