Evaluating sourcing options is the vital step of the process; therefore you need to carefully research all the possible combinations. The first question would be “Is it going to be domestic or overseas production?” To answer this question you first need to understand all the pros and cons of both sourcing choices:
Advantages of Domestic Sourcing
- Easier and faster to develop partnership
- Easy communication
- Same time zone
- Less costly inspections
- Shorter transportation lead time
- No risk involved with customs
- Political and currency stability
- Low shipping costs
- Small production and re-orders possible
- Easy to control product development and production
- Low traveling costs
- Security over designs
Advantages of Offshore Sourcing
- Highly skilled workforce
- Lower labor cost
- Variety of fabric and trims
- Shorter lead time for raw materials
- Production capability
- Vertical facilities
- Craftsmanship options
- Labor-intense production
To make the right decision designers need to carefully examine their sourcing options. Successful sourcing means finding a balance of capacity, value, flexibility, efficiency and higher profits.
Good post and valuable info especially for products. For services, I wanted to add that it’s important to manage the people who are working for you so that you have control over what they are producing. I just spoke with two entrepreneurs who have outsourced a logo to a company in Central America. The price was right but the company didn’t understand the market and what these entrepreneurs needed.