Outsourcing sewing contracts has become commonplace in the manufacturing industry, with businesses both large and small taking advantage of possible cost-saving opportunities. However, outsourcing sewing contracts, or offshoring when utilizing overseas labor, is not always a value-added business solution.
Types of Outsourcing
There are two primary types of outsourcing. These categories are:
Process work: Jobs that generally tend to be highly repetitive, that require a relatively short time frame, and whose output can be easily standardized and measured. Sewing contracts generally fall into this category.
Project work: Jobs that are generally more thought-intensive and thus require skilled-workers, involve a long time frame, and whose output is creative in nature and not easily measured.
There are also three degrees of scale in outsourcing: strategic, tactical and contracting. Outsourced sewing contracts fall into the contracting category. This is the least integrated type of outsourcing and simply involves employing an overseas workforce in order to accomplish a singular sub-function of the business process. This is opposed to strategic and tactical outsourcing, which actually transfer an entire function or business department overseas.
Applications of Outsourcing Sewing Contracts
The advantages of outsourcing aren’t limited to clothing manufacturing or specialty stitching and embroidery; book binding, canvas stitching, foam and rubber apparel, and other industries make use of sewing skills.
Advantages and Disadvantages of Outsourcing Sewing Contracts
The main advantage of outsourcing sewing contracts is reduced manufacturing costs. Not only can outsourcing lower wage expenses, but it can save money in legal costs and benefits packages, especially in countries with low competition and less restrictive trade laws. Outsourcing can also free up management and other departments’ time to focus on business needs other than day–to-day production. By moving production abroad, a company can use its space in U.S. facilities for other needs, or sell it altogether.
The potential for cost-savings is a huge motivator for outsourcing sewing contracts, but there are potential downsides to consider. For instance, language and cultural barriers might pose communication problems. This, coupled with an inexperienced labor force, could cause production mishaps and delays. Also, legal concerns can cause difficulties in clearing customs, which can result in lost sales and increased shipping costs.
Other Things to Consider When Outsourcing Sewing Contracts
To avoid production problems, there are several steps used to establish partnership with a reliable and cost-effective outsourcing sewing contractor. Here are some guidelines to aid in selection:
Ask for references: Gain insight into expected turnaround time, quality of merchandise and reliability by talking to past or previous business partners.
Request a portfolio or record of work: View products created from past outsourcing sewing contracts firsthand so that you can gauge the quality and capabilities of each contractor.
Discuss availability: Make sure your needs can be met by the contractor’s availability. Examine their schedule in terms of their internal workers and other contracts they are handling.
Talk price: Discuss cost.
Consider running a trial: Request the outsourcing of a single project to determine if your needs can be properly met before signing a long-term contract.
Once you have selected the best outsourcing sewing contractor for your company, it's important to continue regular two-way communication. This will ensure that your business process remains integrated even though sub-functions may be performed at opposite corners of the globe. Make a plan to speak directly with your contractor on a regular basis—daily, weekly, monthly or however frequently the intensity of your production requires. Maintaining a strong line of communication will minimize the possibility of production errors and maximize the trust on both sides of the outsourced sewing contract.
Alternatives to Outsourcing Sewing Contracts
If the uncertainties of outsourced sewing contracts are too troubling, you have other options: bring production in-house or partner with a U.S.-based sewing contractor. Both options provide the ability to oversee production more directly, with in-house production being more hands-on than hiring a contractor. While both options may not seem cost-efficient, the reduced risk for errors, insufficient quality and long turnaround time may be better suited to your unique business needs, and therefore more profitable.
