Lesson 3 Chapter 3 Trends in global sourcing Prof.

Transcript:Lesson 3 Chapter 3 Trends in global sourcing Prof.:
Lesson 3 Chapter 3 Trends in global sourcing Prof. C. Ioele Learning objectives Current trends in global sourcing Leading textile and apparel importers and exporters Differences between old and new market environments Textile complex and soft goods industry North American Industry Classification System to analyze business activities within the industry Impact of global sourcing on manufacturing, wholesale, and retail 2 Global Sourcing in the Textile and Apparel Industry Recall the definition of SOURCING and GLOBAL SOURCING from Lesson1 Sourcing: a set of business processes and activities by which businesses acquire and deliver components or fully finished products or services from outside of the organization, with the objective of: Finding, evaluating, and engaging suppliers for appropriate goods and services to achieve long-term competitive advantages. Sourcing is a B2B activity Global sourcing: same as sourcing, in a global marketplace Global Sourcing in the Textile and Apparel Industry 3 Watch..the «old Silk road» https://www.youtube.com/watch?v=vn3e37VWc0k The Silk Road and Ancient Trade: the first “World Wide Web“ Of history Global Sourcing in the Textile and Apparel Industry 4 Watch..the «new Silk road» https://www.youtube.com/watch?v=EvXROXiIpvQ China's trillion-dollar plan to dominate global trade Global Sourcing in the Textile and Apparel Industry 5 New market environment Annually, the world exports over U.S. $800 billion worth of textiles and apparel (WTO). In the beginning developed countries used to be the suppliers of textiles and apparel in 1960s. Today China, Bangladesh, and Vietnam are the leading apparel suppliers/exporters. Turkey is steadily growing. United States and Japan are the major importers (or sourcers) of textiles and apparel. 6 Global Sourcing in the Textile and Apparel Industry Watch.. https://www.youtube.com/watch?v=aKWURy4vXjM TOP 10 TEXTILE MANUFACTURING COUNTRIES (1963-2019) - Top Textile manufacturing countries 2019 Global Sourcing in the Textile and Apparel Industry 7 Watch.. https://www.youtube.com/watch?v=1xkeaGpIyS0 World's Top 10 Exporting Countries [1960-2019] Global Sourcing in the Textile and Apparel Industry 8 New market environment Industry has been transformed from the “old” to the “new” market environments. 9 Figure 3.5 Global Sourcing in the Textile and Apparel Industry Nature of global sourcing Textile complex vs. soft goods industry The traditional view of the textile and apparel industry focused on manufacturing activities: the Fiber-Textile-Apparel (FTA) complex describes the overall picture of the textile and apparel manufacturing industry (fiber, yarn, fabric and apparel productions) as core business. As manufacturing activities moved from developed countries to developing countries, FTA complex has been associated with “dying industry,” “plant closing,” and “domestic job