Choosing the right supplier involves much more than scanning a series of price lists . Your choice will depend on a wide range of factors such as value for money , quality , reliability and service . How you weigh up the importance of these different factors will be based on your business ’ priorities and strategy . As a sourcing company , we are responsible for two French children retail chain of stores – SERGEANT MAJOR and DU PAREIL AU MEME , which were initially competitors , but in December 2015 came under the umbrella of the same Group GENERALE POUR L ENFANT ( GPE ), the original owners of the brand SERGEANT MAJOR . The retail basket is also shrinking and it is increasing important to have a very strong vendor base to stay relevant . We are positioned in Tirupur because a major number of our suppliers are based out of the city .
With so many companies manufacturing seemingly similar products , a strategic approach to choosing suppliers can also help to understand how your own potential customers weigh up their purchasing decisions . In my view , the search for a ‘ preferred supplier ’ rested on the base of six core requirements , as they cannot be compromised in a global business .
Reliability : Remember – if they let you down , you may let your customer down , which directly means not only loss of business but also loss of reputation .
Quality : The quality of your supplies needs to be consistent – your customers associate poor quality with you , not your suppliers .
Value for money : In today ’ s world ‘ Value for money ’ is of prime importance …; low price by itself is meaningless , as the lowest price is not always the best value for money . If you want reliability and quality from your suppliers , you ’ ll have to decide how much you ’ re willing to pay for your supplies and the balance you want to strike between cost , reliability , quality and service .
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If they are looking only at the price point , then we have no choice but to look for only the low-end factories who can offer us low prices . Here I do not use the word competitive price as this word carries no meaning since competitive price also carries with it the product value .
Strong service and clear communication : You need your suppliers to deliver on time , or to be honest and give you plenty of warning if they can ’ t . The best suppliers will want to talk with you regularly to find out what needs you have and how they can serve you better .
Financial security : It ’ s always worth making sure your supplier has sufficiently strong cash flow to deliver what you want , when you need it . A credit check will help reassure you that they won ’ t go out of business when you need them the most .
Strong partnership : At the end of the day , it ’ s about building mutually satisfying partnerships , where the interest of all parties is discussed and executed to perfection .
However much we may wish otherwise , India is a preferred destination only for brands that need lower quantities and better product choices .
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VF Corporation is uniquely positioned with self-owned manufacturing units backed by a global supply chain . The vision is to have same standards in all factories , in all parts of the world , we combine 115 years of manufacturing expertise with the flexibility of our supplier network in what our Chairman calls the ‘ Third Way ’, where we leverage our knowledge and technology to control costs so that our partners can achieve the kind of labour efficiency that we have in our own factories . And we hold our suppliers to the same high standards of environmental and social responsibility found in our own facilities . The word that best describes our global sourcing strategy is ‘ balanced ’. We ’ re not overly dependent on any given region or country . This allows us to competitively manage cost , as well as source closer to end markets . India accounts for just 3 % of total sourcing while Vietnam and Bangladesh account for 15 % each . With a set of powerful brands that has made us a global leader in branded lifestyle apparel , footwear and accessories with more than US $ 12 billion in revenues , our major emphasis is on Speed to Market , Pricing and Innovation – innovation in product and manufacturing . These three elements are the key factors that we look from every supplier
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Our major emphasis is on Speed to Market , Pricing and Innovation – innovation in product and manufacturing .
As a country , to stay competitive I think FTA can help , or we are going to be another China , with increasing preference on domestic market rather than exports . Exporters nowadays also see lot of future in other ventures ( other businesses than garment exports ).
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