Answer to Question #180962 in Management for Shaun

Question

Q.1.1 Suppose you work at a clothing manufacturing company. When developing a sourcing strategy, it is important to consult the strategy sourcing mix.  

To better understand the strategic sourcing mix in relation to the clothing manufacturing company, provide original examples for:

• Routine items

• Leverage items

You are required to explain why each of your examples justifies the respective categorisation.  

Answer 1

1.Routine items-

Establishing the purchasing data. Before procurement of trims and accessories, it is necessary to develop specifications for the items to be purchased.

Evaluation of vendor and preparation of approved vendor list. The organization should establish a suitable system for evaluation of vendors based on certain criteria with suitable weightage, which may include, but are not limited.

Updating the approved vendor list. Based on the above-mentioned criteria, the organization may prepare an approved vendor list item-wise and may update the list at regular intervals.

Verification of the purchased product. Like garments, trims are not checked by 100% inspection. However it is required to confirm that bulk trims are sourced as per the required specifications.

2.Leverage items

he concept of Retail Leverage refers to the desire that most challenger brands have to maximize their influence on the assortment, pricing, promotions, merchandising, and advertising that support their value propositions and deliver maximum returns in an environment controlled almost entirely by the more powerful.