Most people who think of the fashion industry assume most of the clothing is made in the home country where it's sold, but in reality companies commonly outsource their fashion duties to offshore enterprises. There are some good reasons for that, some obvious, some a bit more hidden. If you own a fashion company, here are just a few reasons you might want to follow the leaders and outsource your manufacturing.
Lower Costs and Risks
For over 50 years, Mexico shelter companies and similar organizations in other countries around the world have been helping clothing designers get ahead in the unforgiving fashion industry. These types of companies help up-and-coming garment makers set up operations without having to create an actual business footprint in a foreign country, thus lowering their costs and allowing them to provide great value to their customers. The manufacturing facility - called a maquiladora in Mexico - sets up everything for the company who's outsourcing and handles the business end of things. Thanks to trade agreements, a company using this method of outsourcing will enjoy nearly duty-free import/export.
Handle Demand
If you have a surge in demand for your fashion product, it might be time to outsource and slash your costs. Since labor and risks are generally reduced when you outsource to other countries, you immediately save dollars and take fewer risks than setting up a domestic manufacturing plant.
Efficiency
When you've got a large business in operation, such as a fashion business, you've got a lot of internal duties to tend to. When you outsource, you wash your hands of many things that contribute to inefficiency. The manufacturing plant you outsource to will have a better grasp on manufacturing and producing than internal resources within your own business, allowing for the manufacturing company to increase efficiency for you.
Quality
In modern times, outsourced products are being manufactured in a way that is just as quality as western manufacturers. So not only do you save a significant amount of money, but you're getting a product that is just as high quality as a western-made fashion product. And in some cases, the outsourced companies even manufacturer higher quality products than their western counterparts. Why? Well, they've been at this for a long time now. It fuels their economies and gives people work to do. As a result, they've refined the process and know how to turn out a quality product.
Delivery Schedule
Thanks to advances in delivery software, outsourced manufacturers have an amazing amount of capability to make sure your deliveries get there on time. This is true across the board for all kinds of industries, but the fashion industry especially needs a delivery schedule that sticks to its schedule. New advances in this type of software allow delivery companies to track their operations from beginning to finish, leaving you with your product when you need it most.
The fashion industry outsources a lot of their work to China and India, but there are other countries getting into the mix as well. It benefits other countries, gives fashion industry business more time to focus on internal operations, and the customers are happy in the home country because they're getting a high-quality product delivered on time. As long as these advantages exist, it's reasonable to assume that outsourcing fashion industry manufacturing will be a continuing trend that powers the industry and creates a higher quality product produced for less. And this makes fashion businesses much more prosperous.
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