Global sourcing has become increasingly complicated, and is likely to become more so.
For example, where most apparel once was sourced from within NAFTA — the North America Free Trade Agreement countries of Mexico, the United States and Canada — today it can be sourced not only in China but also in Bangladesh, India, Honduras, Guatemala, Vietnam and a host of other low-cost nations.
That change makes the supply chain, the logistics infrastructure, the warehousing more complicated — and more important. It also forces companies of all kinds, from apparel to technology, to decide whether to handle the more complicated logistics themselves or outsource it.
Ryder Supply Chain Solutions has created a “white paper” on the topic that can be downloaded here.
“Download the report”:http://18.104.22.168:8080/worldcityweb.com.php5-2.dfw1-1.websitetestlink.com/uploads/Ryder-Optimizing-DC-Networks-for_Global-Sourcing_.pdf
One example: An apparel company saw its cost of processing drop from 33 cents to 19 cents per unit when they switched to an outsourced distrution center operation, while increasing its ability to move product from 19 million pieces to 26 million pieces annually.
Their delivery to stores improved and with its more streamlined product flow, the company”™s buyers are better able to gauge consumer reaction and adjust orders accordingly, which is critical in a business as trendy as teen fashion.