Module 4 The Role of Sourcing in the Fashion Supply Chain Flashcards
Audit fatigue
a challenge factories face: being audited multiple times with only slight differences in the standards being addressed
Code of conduct
guidelines for contractors and subcontractors regarding workplace environment and operations
Corporate social responsibility (CSR)
a philosophy whereby a company takes into consideration human rights, labor conditions, and environmental implications when making business decisions
Country of origin
country where the last step that added value (i.e., substantial change) to the product happened
Customs broker
assists fashion brand companies in gaining customs clearance to import goods manufactured in another country
Domestic sourcing
procurement of materials and/or manufacturing finished products in the country where the merchandise will be sold at retail
Duty
tax assessed by governments on imports
Factory auditing
evaluation process of factories that reviews efficiency, working conditions, worker compensation, freedom of association, labor laws, compliance with environmental law, quality assurance, security, and subcontractor arrangements
Fair trade
international trade networks that provide fair and equitable wages, transparency, and attention to human rights and environmental impact
Infrastructure
basic facilities and systems that allow a city, country, or region to function in today’s economy including roads, power sources, bridges, water and sewer systems, communications systems, airports, and ports
Local sourcing
sourcing strategy whereby companies procure materials within a specified radius of the site where their products are produced and/or distributed
Nearshoring
sourcing contract manufacturing in nearby countries
Offshoring
procurement of materials and/or manufacturing finished products outside the country where the merchandise will be sold at retail
Onshoring
moving manufacturing to a domestic factory
Partner-shoring
contracting production in countries with which your country has free trade agreements
Quality assurance
a fashion company’s overall policies and systems for assuring their desired level of quality across the supply chain
Quality control
inspection of textiles, materials, and/or finished goods to assure that they meet specified standards
Quota
limits on the number of units, kilograms, or square meters equivalent in specific categories that can be imported from specific countries
Reshoring
sourcing strategy of moving production back to the domestic market
Social responsibility
see corporate social responsiblity
Sourcing
decision process of determining how and where a company’s products or their components (including textiles and materials) will be procured and/or manufactured
Sourcing fair
trade shows that bring contractors and companies together. At these fairs, contractors have booths with samples of their merchandise and information about their expertise and capacities
Supply chain transparency
effective communication of where, how, and by whom all aspects of a fashion product are made and distributed
Tariff
tax assessed by governments on imports
Triple bottom line
sourcing strategies by which people, planet, and profit factors are all considered equally important
Yarn forward rule of origin
stipulation to a trade agreement that requires yarn production and all operations “forward” – fabrics and production – of merchandise to be in one of the member countries or the trade agreement
