Answer to Question #180990 in Management for Awakhiwe

Question

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

Answer 1

Leverage in supply management is often portrayed as something akin to either a silver bullet or the Holy Grail, with establishing leverage in negotiations considered paramount to just about everything else. I disagree with this perspective and will spend the next few columns discussing why. 

The Good

In my mind there are two “good” scenarios relative to the use of leverage in negotiations. The first is with “economies of scale.

Leverage as Supply Management Strategy: The Good, the Bad and the Ugly

Leverage is a tool that rarely produces optimal results, unless the result you want is antagonizing your suppliers.

The Bad

The difference between the “good” and the “bad” in use of leverage often involves answering the question, “What is a commodity?” Customers like to characterize as commodities as many product types as they can since this both simplifies transactions and gives them the leverage. 

Examples of Routine items. Scouring/cleaning

Fabrics received as gray cloth have a lot of impurities naturally present in them. These may be oils, waxes and dirty stains acquired during construction of the fabric. Complete removal or cleaning of these impurities is important before applying any other finish. This cleaning is called scouring and is done to all fabrics with the help of soap solutions and chemicals. After cleaning, the fabric becomes smooth, neat and more absorbent

Bleaching

When fabrics are made, they are not white in color, due to impurities and coloring material present in them. To make them white or to dye them in light colors they are bleached. Suitable bleaching agents are used to removing the color from the fabric. Bleaching is done for cotton, woolens and silks. Man-made fabrics do not need bleaching as they are naturally white.

Bleaching has to be done very carefully as the chemical which can destroy the color may also damage the fabric to some extent. Hydrogen peroxide is a universal bleach which can be applied to all kinds of fabrics.

Stiffening

The stiffening means the fabric which is generally limp becomes stiff when a stiffening agent is applied. For stiffening silk, gums are used.

Stiffening gives body, smoothness, and luster to the fabric. This practice is sometimes used to cheat the customer. You must have observed that sometimes if you rub a fabric between your hands, some white powder comes out. It is because the fabric has been over-starched. Interior fabrics are over-starched to look dense and better.