• Title/Summary/Keyword: Sourcing Activities

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A Global Sourcing Model for Apparel Companies (의류 기업의 글로벌 소싱 모형)

  • Park, Bye-Jung
    • The Research Journal of the Costume Culture
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    • v.16 no.4
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    • pp.595-608
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    • 2008
  • Although Korean apparel companies have transformed dramatically from contractors to sourcing companies thanks to the rapid growth of local market, relatively little work has been done identifying the determinants and the patterns of global sourcing activities of Korean companies. The purpose of this study was to outline a conceptual model that may be used to organize and guide global sourcing activities of Korean apparel manufacturers and retailers. The conceptual model identified four important factors, cost factor, strategic non-cost factor, firm's internal factor, and global factor, which affect global sourcing strategies and help predict how companies conduct various sourcing activities. The model also identified two sourcing patterns, outsourcing and intra-firm sourcing. In developing the model, literature review on how manufacturers and retailers in diverse areas including global apparel sourcing was conducted. Managerial implications and directions far future study were offered as well.

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Sustainability Criteria Identified in the Global Sourcing Practices of Global Fashion Retailers (글로벌 패션 기업의 해외 소싱 프로세스에서 나타난 지속 가능성 기준)

  • Lee, Ji Yeon
    • Fashion & Textile Research Journal
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    • v.24 no.2
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    • pp.206-216
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    • 2022
  • This study sought to examine the sustainability criteria found in the global sourcing practices of global fashion retailers. Sustainable supply chain management, with a particular focus on the sustainability criteria of global sourcing, was analyzed. This qualitative study was based on a focus group interview and corporate social responsibility (CSR) annual reports. Eight master categories, 18 middle categories, and 37 bottom categories were extracted. The key categories and their middle categories were as follows: (1) Social compliance (working conditions, employment, safety); (2) Environment concerns (environmental pollution management, eco-friendly production, supply chain environment); (3) Energy efficiency (energy saving program, store environment); (4) Consumer protection (restricted substances management, consumer product safety improvement); (5) Management system (code of conduct, triangle audit system); (6) Community social activities (local community service, voluntary activities, charitable activities); (7) External stakeholder engagement (media & non-governmental organization management, maintenance of relationship with local authority); (8) Brand protection (respect for companies' intellectual property). The findings of this study offer academically significant insights into the sustainability criteria that can be encountered by companies under diverse global sourcing scenarios, revealing that global sourcing by fashion retailers is not merely a means of reducing costs, but a way of generating new jobs and making a social contribution to developing countries. The study's findings also have practical significance, offering guidelines for general CSR activities in the global sourcing process.

A Comparative Study of European and Japanese Multinational Firms' Global Sourcing Strategies (유럽과 일본 다국적기업들의 글로벌소싱 전략간의 유사점자 차이점에 대한 연구)

  • 이상식
    • Journal of Korea Society of Industrial Information Systems
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    • v.4 no.4
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    • pp.130-136
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    • 1999
  • During the last decade global sourcing has been widely practiced by multinational firms. While the importance of global sourcing has grown rapidly, there have been ralatively few empirical studies on this issue Thus, this study empirically investigates the commonalities and differences between European and Japanese multinational firms sourcing patterns. Especially, this study focuses on two dimensions of global sourcing activities: inter-firm sourcing and intra-firm sourcing.

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Suggesting the Curriculum Contents of Clothing and Textiles by Understanding Jobs related to Global Sourcing (글로벌 소싱 관련 직무 이해를 통한 의류학 교과내용 제안)

  • Kim, Soo Kyoung;Park, Minjung
    • Fashion & Textile Research Journal
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    • v.17 no.5
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    • pp.754-769
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    • 2015
  • Global sourcing refers to activities performed to acquire materials, finished products and apparel production all around the world. The purposes of the study were to examine basic job requirements and primary skills of sales team and supporting team in global sourcing companies, to investigate educational programs provided by the companies or other educational institutions, and to examine courses to be newly established in the curriculum of clothing and textile majors. The results of the study found that the ability to use English and communication skills were important to perform their tasks (sales and supporting teams). The results revealed that fabric and textile, sewing, and apparel production process were the most frequently taken educational programs provided by global sourcing companies and English classes were the most frequently taken educational programs in the other educational institutions. The results also found that the clothing and textile curriculum need to add classes that help sales and supporting teams perform global sourcing tasks, such as fashion practical English, fabric and textile, apparel production processes, textile and apparel trades, fiber and fabric testing, and presentation skills. The study suggested educational directions for developing curriculum contents of clothing and textiles and cultivating professionals in the global sourcing industries.

Exploratory Analysis on the Global Sourcing and Implications for Competitiveness of the Korean Apparel Firms (국내의류업체의 글로벌 소신 현황과 경쟁력 강화방안)

  • 이윤숙;육심현;최원경;이수경;진병호
    • Journal of the Korean Society of Clothing and Textiles
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    • v.26 no.6
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    • pp.751-762
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    • 2002
  • Korean apparel industry is facing critical moment due to shortage of labor, wage increases and intensive competition among domestic manufactures. In addition, international production has been shifting to China and the other low-wage countries from established locations such as Korea, Hong Kong and Taiwan. Global sourcing has been received considerable attention since firms can enhance their competitive advantage as well as comparative advantage by coordinating their sourcing activities global]y. This studs regarded global sourcing as one of the strategic tools to achieve competitive advantage of Korean apparel firms, and explored the current status by literature reviews and series of in-depth interviews with managers of korean apparel firms. The findings of this study were as follows: 1) Due to geographical advantage, China was the most favored nation for outsourcing for domestic markers. However, exporting firms preferred Latin America (including Mexico) to take advantage of duties, quotas and geographical proximity to the US market. 2) In selecting the global sourcing country, productivity, technical ability, local government regulation, and culture were considered important. 3) Most Korean apparel firms sources production globally, and followed by raw materials and trims. 4) Cost and quality were the most important factors in deciding subcontractors, and experience, productivity, equipment and finances were the next concerns. Academic implications and future directions were suggested based on findings.

South Korea as a Global Sourcing Site for Textile and Apparel Produce (글로벌 소싱 기지로서의 한국 섬유.의류산업의 현황)

  • 박혜정;이영주;임숙자
    • Journal of the Korean Society of Clothing and Textiles
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    • v.27 no.7
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    • pp.819-830
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    • 2003
  • Korea is facing great threat from other countries as a major global sourcing site for textile and apparel products. The threat has been augmented by changes in external environment such as advents of Trading Blocs and Free Trade Area(FTA) as well as internal environment such as hikes in labor cost and lack of flexibility in accommodating international buyers' needs. This study analyzed international buyers' sourcing activities in Korea for the purpose of developing strategies to enhance competitiveness of the Korean textile and apparel industries in the global market. The data used in this study were gathered by surveying 52 non-Korean textile and apparel product buyers with cooperation of the Korea Federation of Textile Industries (KOFOTI). The data were analyzed by mean, frequency, Pearson correlation coefficient, and x$^2$ analysis. The results indicated that Korea is still attractive to many international buyers especially to those who have been engaged in global sourcing for longer periods of time with bigger purchasing budgets. However, in order to expand and solidify their customer bases, Korean companies should focus more on developing competitively priced value added products a step ahead of their foreign competitors, diversifying their marketing channels including internet.

A Study on Global Sourcing Based on Information Technology (정보기술을 기반으로 한 글로벌 소싱에 관한 연구)

  • Cho, Suk-Whan
    • The Journal of Information Technology
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    • v.5 no.3
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    • pp.65-80
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    • 2002
  • A key concern at these days is where to find a suitable location for their business activities, bearing in mind that they must find the right balance between global integration and local responsiveness. This article suggests that globalization may be enabled by Information Technology. It focuses on the sourcing process, an area where globalization is often claimed to be the case. Re-examination of empirical evidence shows that global sourcing is not as generally predominant as is claimed. Consequently inhibitors to global integration exist and these inhibitors are classified into three categories: geographical, relational and environmental inhibitors. The role information technology plays in reducing these inhibitors and formulate propositions that are then illustrated in two case studies. Information technology is proposed to reduce the geographical and relational inhibitors, but it will have no effect on environmental inhibitors. However, the latter category of inhibitors will become more prominent in the future. Information technology thus shifts the balance towards global integration, but simultaneously creates new problems in managing internationalization.

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When Does Auto-Parts Suppliers' Innovation Reduce Their Dependence on the Automobile Assembler?

  • Kang, Jihoon;Choe, Soonkyoo
    • Journal of Korea Trade
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    • v.24 no.3
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    • pp.37-54
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    • 2020
  • Purpose - This study is to investigate the determinants of suppliers' dependence on buyers in the home country by developing a theoretical model of innovative activities. The high dependence of auto parts suppliers on a single local buyer in South Korea due to firm ownership issues and incremental innovation is examined using data from a set of organizations that supply intermediate goods to this automotive manufacturer. Furthermore, we tested the moderating effect of FDI and global knowledge sourcing on the relationship between firm ownership and suppliers' dependence on the local buyer. Design/methodology - To test the hypotheses, we examined a sample of 101 suppliers over 10 years in the Korean automobile parts industry. In this empirical analysis, we utilized a fixed-effects generalized least squares model using panel data. Findings - In this study, domestic firms (automobile parts suppliers) were more dependent on a single local buyer (automobile assembler) than foreign-owned suppliers operating in Korea. In addition, incremental innovation was the mediating mechanism between domestic firms and dependence on the local buyer. To reduce this dependence on the buyer, we suggest two different international strategies: geographical diversification through FDI and global knowledge sourcing. Originality/value - Previous studies showed that asymmetric dependence between firms has many adverse effects. This study proved that domestic and foreign-owned suppliers have different levels of dependence on local buyers due to their heterogeneous characteristics and business strategies. We distinguish two different types of innovation - radical innovation and incremental innovation - that previous studies have often treated as equal when it comes to firm autonomy. Finally, we propose that both FDI and international knowledge sourcing as global strategies to weaken suppliers' asymmetric dependence on a single buyer.

Criteria for Supplier Selection in Textile and Apparel Industry : A Case Study in Vietnam

  • NONG, Nhu-Mai Thi;HO, Phong Thanh
    • The Journal of Asian Finance, Economics and Business
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    • v.6 no.2
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    • pp.213-221
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    • 2019
  • The study aims to investigate some criteria of supplier selection in the textile and apparel (T&A) sector in Vietnam. Most research on supplier selection criteria for T&A sector was mainly conducted based on the review of literature. Therefore, the purpose of this study is to explore these criteria based on a framework in which an integrated approach of qualitative and quantitative was employed. First, an in-depth interview was used to explore what supplier selection criteria T&A companies were utilized after the literature on supplier selection criteria had been reviewed. Next, a prequestionnaire was built and sent to some practitioners and experts for their revision. Then, a pilot survey of 31 T&A companies with numerous statistical tests was conducted to validate the questionnaire. Finally, an official study of 282 respondents was conducted to determine supplier selection criteria which are best suited for T&A companies through exploratory factor analysis. The findings of the study suggest that there are eight supplier selection criteria including Quality, Cost, Delivery, Service, Capability, Company's image, Relationship, and Sourcing country. Each criterion comprises certain sub-criteria to make the supplier selection criteria set more comprehensive. The findings will be a contribution to the selection process of T&A companies as they can utilize these criteria to select capable suppliers.