Sourcing, Process, Types, Vendor Management

This chapter details the information regarding sourcing process. The detailed information about sourcing process, different types of souring methods and the factors affecting sourcing also discussed. Along with this information, the vendor management and evaluation methods also described for the better understanding of sourcing process.

Key word: Sourcing, Process, Types, Vendor management, Vendor evaluation

Introduction

Sourcing is defined as the process of determining how and from where manufactured goods or components or raw materials will be procured. The main motivation of the sourcing process is to obtain high satisfaction with the low cost. Materials essentially incorporate piece products that will be cut and converted into the garments.

- The form uses this method must invest lots of money on inventory

- This system motivates to achieve maximum production capacity in terms of labor and machine in any firm.

- The important factor which decides the effectiveness of the system is the accuracy of the forecasting process and their result.

b) Make to order

Make to order is one of the strategies generally a process of demand management. In this strategy product is specifically manufactured for a sale order or customer order. There is no forecasting involved. Sale order or customer order will be the trigger point for production. The fundamental aim of this strategy is not to maintain any inventory in the firm. The fatory should have zero inventories at the beginning and end of any order. This Make or order strategy reduces the risk of creating unwanted inventory. This strategy is useful or applied in the following situations in the industries. 1. Product is very slow moving product in the market.

2. You cannot anticipate the future forecast of the product

3. Product is newly launched in the market

4. Product is very costly product and you cannot keep the inventory or stock in the

to get right fabric/trims at right place on correct time and with right cost. During this order execution process, merchandiser handles whole order form the initial stage and thus he is a key individual in sourcing process compared to the sourcing department. Since, the merchandiser know all about the particular order, merchandiser is the decision making authority in sourcing process, whenever a critical situation is faced. The responsibilities of merchandiser in sourcing can be depicted as follows,

• In small scale industry merchandiser bares the maximum responsibility of sourcing process throughout the order processing.

• In large scale industry sourcing team coordinates merchandiser to source the fabric and trims in all aspects.

• Merchandiser’s major responsibility is to calculate the requirement of fabric and trim per garment and coordinate it with sourcing department.

• To get the approvals related to fabric i.e. lab-dips, desk-loom, print-strike-off, dye-lot, thread run, needs to get from buyer within time frame.

• The art work, trim card need to get approved from buyer which is responsibility of merchandiser.

• To maintain the proper buffer time for every stages of sourcing process in Time and action calendar is the responsibility of merchandiser.

Even though the merchandiser along with the sourcing