Right now the Asian textile sector is experiencing a major shift in the existing trends. With the rise in cost and other socio-economic developments that are underway in China, other Southeast Asian countries such as India and Bangladesh are emerging as appealing outsourcing destinations. Although these countries are stealing the limelight at the moment, we cannot downplay the outsourcing advantages that China offers, and thus, these emerging countries have a long way ahead of them before they can become attractive destinations for sourcing from Asia. However, as per new reports, the situation can favor the emerging countries, if the production continues to fall in China.
A report by DHL- International Supply Chain reveals the countries that can become major textile sourcing destinations are Bangladesh, Vietnam, India, Cambodia, Myanmar, Indonesia, and Thailand.
Now, if you want to know how some of the latest trends that major sourcing agencies are witnessing, and what are factors they are considering, then take a look at these points.
4 Factors Considered by Top Sourcing Agency While Sourcing Textiles
Let’s check them out below;
Raw materials, production times, and accessories
Before sourcing materials, one of the vital factors that are considered by leading sourcing agencies is which country has the requisite source to host a complete chain for manufacturing a product. This implies that the country you choose must have the provision of requisite raw materials and infrastructure that are required to manufacture the products till the products are finally made. As sourcing from countries that import raw materials can affect the cost, and also, prolong the production time and so is not considered ideal.
Location and production capacity
The location and production capacity of an outsourcing country is very important and must be considered. This is because, they not only impact the direct costs of materials but also, they extend the production time if the raw materials need to be imported from other places. Further, efficient use of production materials also plays a vital role, as the fewer the complexities in the material engineering, the lesser the cost the sourcing agent has to bear.
Logistics costs
The government of the countries from where you are sourcing must have the ideal infrastructure to ensure the best transport facilities, have relaxed tariffs, clear policies, and also, offer low logistics expenses.
Profit
It is important to choose a country where you will have better competitive advantages. So, while deciding on the sourcing country all the above points must be taken into consideration. Plus, to improve your chances you must have the capacity to work in total cooperation and collaborate with the country you are sourcing from significantly as when the need arrives, you can optimize materials.
Conclusion
So, as the scenario is changing gradually in the Asian textile sector, one must clearly consider important factors before selecting a sourcing destination. A minor mistake can cost you a fortune and thus, to avoid such a situation you can consider the above-mentioned factors.