Large companies have discovered, that the in-house vertical model has four serious impediments such as; increase in upstream cost, increase in economies of scale with each upstream, failure of in-house operations in reducing the lead times, and lack of or less flexibility of in-house operations.
These constrains have lead to CLUSTER, a new and revolutionary definition of the manufacturer. In this process, a manufacturer is solely involved in the FOB garment, and is located in close proximity to his close material suppliers.
CLUSTER is an initial attempt to define the supplier as a FASCTORY+, where the manufacturers owns the factory and also has access to material suppliers. These system posses all the advantages of in-house integrations and unlike the vertical model involve any issues.
Here, the manufacturers become a vertically integrated collective of independent producers to join together for supplying the customers with a range of services. This edits the conventional customer-supplier relationship and increases the sales figures.
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Fibre2fashion News Desk - India
marketing@alchempro.com
