Understanding Common Sourcing & Production Issues
In the market today, it is quite common for both clothing manufacturers and buyers to source production. It is a great challenge to learn to source successfully, and especially when sourcing internationally, awareness of the politics, atmosphere, trade system, business culture, overseas shipping, and international finance are absolutely important.
Sourcing comes with a price and quality; sometimes a heavy one. Sourcing firms have to consider their financial options, and they also need to determine whether production will be sourced internationally or domestically. And probably one of the biggest and most made-aware-of social concerns of production is fair and equal treatment of workers.
Options for manufacturers and buyers include:
- Cut-make-trim or CMT (purchase resources and have work done by contractors).
- Full package program or FPP (contractors source materials and produce finished goods).
- Half package program or HPP (purchase or provide materials and have development and production done by contractors).
- Shared production (do part of production and contract the rest [807/9802])
- Wholesale (purchase goods from manufacturer).
- License production.
- Own manufacturing capacity.