Module 4 The Role of Sourcing in the Fashion Supply Chain

Question 1

Audit fatigue

Answer 1

a challenge factories face: being audited multiple times with only slight differences in the standards being addressed

Question 2

Code of conduct

Answer 2

guidelines for contractors and subcontractors regarding workplace environment and operations

Question 3

Corporate social responsibility (CSR)

Answer 3

a philosophy whereby a company takes into consideration human rights, labor conditions, and environmental implications when making business decisions

Question 4

Country of origin

Answer 4

country where the last step that added value (i.e., substantial change) to the product happened

Question 5

Customs broker

Answer 5

assists fashion brand companies in gaining customs clearance to import goods manufactured in another country

Question 6

Domestic sourcing

Answer 6

procurement of materials and/or manufacturing finished products in the country where the merchandise will be sold at retail

Question 7

Duty

Answer 7

tax assessed by governments on imports

Question 8

Factory auditing

Answer 8

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

Question 9

Fair trade

Answer 9

international trade networks that provide fair and equitable wages, transparency, and attention to human rights and environmental impact

Question 10

Infrastructure

Answer 10

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

Question 11

Local sourcing

Answer 11

sourcing strategy whereby companies procure materials within a specified radius of the site where their products are produced and/or distributed

Question 12

Nearshoring

Answer 12

sourcing contract manufacturing in nearby countries

Question 13

Offshoring

Answer 13

procurement of materials and/or manufacturing finished products outside the country where the merchandise will be sold at retail

Question 14

Onshoring

Answer 14

moving manufacturing to a domestic factory

Question 15

Partner-shoring

Answer 15

contracting production in countries with which your country has free trade agreements

Question 16

Quality assurance

Answer 16

a fashion company’s overall policies and systems for assuring their desired level of quality across the supply chain

Question 17

Quality control

Answer 17

inspection of textiles, materials, and/or finished goods to assure that they meet specified standards

Question 18

Quota

Answer 18

limits on the number of units, kilograms, or square meters equivalent in specific categories that can be imported from specific countries

Question 19

Reshoring

Answer 19

sourcing strategy of moving production back to the domestic market

Question 20

Social responsibility

Answer 20

see corporate social responsiblity

Question 21

Sourcing

Answer 21

decision process of determining how and where a company’s products or their components (including textiles and materials) will be procured and/or manufactured

Question 22

Sourcing fair

Answer 22

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

Question 23

Supply chain transparency

Answer 23

effective communication of where, how, and by whom all aspects of a fashion product are made and distributed

Question 24

Tariff

Answer 24

tax assessed by governments on imports

Question 25

Triple bottom line

Answer 25

sourcing strategies by which people, planet, and profit factors are all considered equally important

Question 26

Yarn forward rule of origin

Answer 26

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