Functions Supply Chain Department in the Apparel Industry
The supply chain department focus especially in procurement (Supplier selection, price quotation, auction and negotiation, contract management, shipment, and payment monitoring) in the Garments Industry. They are leveraging continuous supplier development and vendor management by win-win strategy Cost Analysis of existing vs new suppliers and making successful bid Documentation of L/C, payments, shipments, etc. They work to Optimize product cost & maximize profit by developing huge alternative items (raw materials). In this article, we discuss the Functions of the Supply Chain Department in the Apparel Industry.
The supply chain team sources raw materials like fabrics, trims, and buttons. They find reliable vendors who can meet quality standards and deliver materials on time and within budget. The objective of the Supply Chain Department To improve the overall organizational performance and customer satisfaction by improving product and service delivery to the customer, maximizing overall value generation, looking for the source of revenue and cost like cost quality improvement, replenishment of material when required, cost reduction optimize pre and post-production, etc.
Functions of the Supply Chain Department in the Apparel Industry
These are the key Functions Supply Chain Department in the Apparel Industry:
- Sourcing yarn, thread, fabrics, trims, and accessories from different suppliers to support the operation.
- Obtain quotations and conduct cost analysis, negotiate best terms
- Handling procurement and confirming the Pre Shipment Inspection (PSI) to ensure the best product
- Have expertise in LC-related activities, CNF & Banking Functions.
- Calculate landed cost & analyze Duty Structure of material.
- End-to-End Supply Chain (Fulfilment, International Trading, Logistics, Materials Management)
- Proper material requirements planning and regular safety stock analysis to ensure production availability.
- Continuous supplier development & Vendor Management.
- Develop & Optimize Processes for Continuous Improvement.
- Manage suppliers to meet objectives related to cost, delivery schedule & quality.
- Benchmarking and assessment of current suppliers according to price, quality, and production lead time.
- Coordinate with others for maximum utilization of resources.
- Commercial Documentation
- Maintain regular contact with the suppliers after the opening of L/C for ensuring on-time shipment of the consignments.
- Follow-up and supervise bank-related matters, especially L/C opening, the release of shipping documents payment of import bills, etc.
- Work closely with the finance department and production department for overall coordination.
Supply chain departments in the apparel industry are constantly evolving to meet these challenges. New technologies, such as artificial intelligence and blockchain, are being used to improve efficiency and transparency in supply chains.