1. Vendor Management

2.  After selecting what to why? and how much to buy? There is a need to select from where to buy? i.e. the source of merchandise supply.  The source is called the vendor, supplier or manufacturer

3. Objective  To get the best bargain for the buyer  Maximize overall value for the purchase

4. Factors

5.  Skill  Product  Quality  Delivery  Cost  Capacity  Govt. regulation

6. Factors  Political and economical environment  Buyer to vendor relation  Human Rights or CSR

7. Cost  Primary issue for most of sourcing company is cost  Its very important to analyze the tradeoff between domestic costing and global costing  With costing other factors like efficiency needs to be include

8. Cost Its also important to consider the below factors with the cost  Risk(political,econimical,political,social)  Control (quality and production)  Investment(management and support)

9. Capacity  Capacity is an important consideration when a potential sourcing alternative is being evaluated  A good sourcing executive should carefully evaluate for potential partner on the basis of capacity

10. Basis of Capacity  Financial Capacity  Plant Capacity  Workforce capacity

11. Minimums  Not only must a company be considered about how much volume a contractor can handle but also about the minimum Order quantities  Most of the contractors do not accept the orders below the specified quantity

12. Labor Skills  Garment manufacturing is a labor intensified sector so it’s a big advantage to have a skilled manpower for both supplier and buyer  As a merchandiser you must evaluate the true capacity of your supplier  Work on a tradeoff between cost and labor skills

13. Infrastructure  Many international or domestic contractor can provide low cost labor, sufficient capacity and good skill  However if there country or factory doesn't have a adequate infrastructure, choosing them as a sourcing partner may be prove costly

14. Infrastructure  When an apparel company is considering for a global sourcing partner it must carefully analyze the infrastructure and the other factors which are as follows:  Availability of quality raw material  Trim and packaging materials  Testing laboratories  Reliability of electric power, material supplies and shipper  Good roads for transportation and good connectivity

15. Throughput time

16. Factor effecting throughput time

17. Throughput time

18. Quality

20. Assignment