PREFERRED SUPPLIER
PREFERRED SUPPLIER
THE DEBATE CONTINUES...
A
fter a decade, Apparel Online
is again bringing together
retailers, brands, buying agencies in
the complex debate of – What makes
a ‘Preferred Supplier’? In an effort
that included an industry survey
of sourcing offices and one-o-one
interaction with 10 buying houses,
the results were on expected lines,
though the tone and tanner was
different. While earlier the buyers
talked only about their expectation
from the suppliers, this time around
they openly admitted that the key
word today is ‘Partnerships’ and that
sourcing offices can no longer sit on a
pedestal and take no responsibility!
All agree that the question is not
simple, but quite a complex matrix,
and the methodology applied by each
individual customer, buying office
or agency reflects the needs of the
overseas customer that they service.
The needs are further dependent on
the customer profile – retail, catalogue
or wholesale – the brand name, price
and product positioning, buying
volumes, order size, product category
and lead time available, to name a few
influencers.
82 %
respondents
agree that
preferred
supplier would
be defined on
the basis of –
1. Performance
(Shipment
Reliability/
Product Quality/
Compliance)
2. Upfront Attitude
of Management
(Transparency/
Partnerships)
attitude, quota holdings, price
competitiveness, location and
compliance, etc. With so many
variables…, what are the most
important elements that guide the
buyer through the matrix?
In a survey involving over 53 sourcing
offices of various sizes and customer
profiles, the top five requirements (not
in order of preference) are – Positive
Approach to Business, which includes
reliability of delivery; Speed to Market;
Product Development Skills; Prices;
and Flexibility of Operations. These
five factors have been top picks for
over 82% of the respondents. Factors
like effective communication, country
specific knowledge and more than just
compliance also feature in the list.
3. PD Skills/
Innovation
4. Speed to Market
5. Product Price/
Quality Ratio
The considerations for evaluation
and consequent selection of a
supplier would include sampling
and product skills, customer base,
financial strength, infrastructure
and machinery, quality procedures,
merchandising efficiency, management
20 Apparel Online India | JULY 1-15, 2017 | www.apparelresources.com
Interestingly, 98% of the buyers are
confident that India will remain
a preferred destination…, but
only for India-specific and small-
quantity orders. As one buyer puts
it, “India is a preferred supplier
for international brands owing
to strong raw material source,
abundant labour, political stability,
innovation, design orientation
and flexibility.” Typical for India,
most agree that small and medium
enterprise factories with a good sub-
contract conversion eco-system for
non-sewing value-added operations
like embroidery, printing, washing,
etc., will grow.
Another respondent felt that India
is losing ground on high volume,