2.Language and Communication Differences: message speed and level of content.

3. Legal Issues: Legal systems differ country to country.

4.Currency Risk: due to currency prices fluctuation.

5.Increase Lead time requirement due to location distance.

2.   Sustainability is a challenge-market which is changing everyday so the drivers are changing as well. To hit lower lead times and still remain price competitive is the tough call now. It is tough for manufactures to remain sustainable and having long lasting relationship.
3. Changing Customer-As shoppers turn to the internet for information and shopping for price comparisons, and to social media for opinions, the industry's response becomes more service- and price-sensitive.
4.Inventory Level- Customer preferences change faster, which speeds up inventory turnover requirements. Suppliers then must adjust to smaller orders placed by retailers and wholesalers, and improve turnaround times. This puts pressure on their raw material, transportation, quality control and labor costs
5.Product Sourcing-The ability of other countries, such as Bangladesh, to handle the production being moved from higher-cost China can affect critical delivery schedules.

5 CHALLENGES OF WORLDWIDE TEXTILE INDUSTRY : 

 

1. A professional or a team of professionals with updated knowledge in terms of production costs in each country, the specialization of each productive region, the cost of materials and production times in each area are essential for the company to create value in its supply chain and to stand out from the competition. This is where competitive advantages are born. 

 

2. Logistisc support. Timely movement of materials, parts and the finished product is the major part of logistics. the basic goal is to achieve maximum cost-effectiveness while maintaining service requirements. International logistics generally cover longer distance than domestic logistics. the longer the ditsnce, the longer the lead time, which requires more inventories and creates more opportunities for things to go wrong. 

 

3. Cultural differences. Culture is an integrated system of learned behavioral patterns that distinguish the characteristics of members if any society. Values, attitudes, manners, customs, religion and language are the components of culture. Differences in these factors can cause miscommunication and create further problems in global sourcing. 

 

4. Regulations. Several government regulations influence global sourcing directly and indirectly and often make it complicated. The most directly influential trade regulations and tariffs and quotas. 

 

5. Security. Many developing countries identified for low cost global sourcing are subject to political uncertainty or even internal political. that risk needs to be assessed in terms of whether your offshore will be ablle to provide the products successfully. 

 

1. Logistics in global sourcing refers to plenty of additional problems such as transportation delays, border-crossing procedures and longer inventory management. Lack of holistic logistics knowledge in low-cost developing countries would trouble the procurement executives when implementing global sourcing. Low-grade infrastructure of logistics in developing countries influences the efficiency of global sourcing.

2. Language barriers always threaten cultural communication and even technology transfer in global sourcing. Although many suppliers from developing countries have technical staff and sales people with English skill, difficulties still arise when they need to interact with Western experts to discuss professional technical issues.

3. Local and regional economic environment can be a primary risk factor for global sourcing. Due to the cheap-labor and other factors, developing countries may be experiencing uncertain economic situation.

4. In global sourcing, the money has to be moved between domestic countries and foreign partners. Stability of currency enables the international trade to be easier while instability makes it more complex and introduces risk.

5. Due to the various phases of industrialization in different countries, industrial standards vary among different countries in the world. Therefore, evaluating the situations and clarifying the differences are highly important and necessary before the companies share designs with their suppliers who may use different technical standards. In addition to the different standards, the special regulations promulgated by governments also influence global sourcing directly and indirectly and often make it complicated.

1.Sustainability - To hit lower lead times and still remain price competitive is the tough call now. It is tough for manufactures to remain sustainable and having long lasting relationship. The need of the hour is further innovation from the brands. 

2.Balancing cost, capacity and compliance - Cost and speed are particularly important and the same time quality, compliance and capacity cannot be compromised while sourcing. The biggest challenge lies in balancing all these factors. 

3.Location of production - A professional or a team of professionals with updated knowledge in terms of production costs in each country, the specialization of each productive region, the cost of materials and production times in each area are essential for the company to create value in its supply chain and to stand out from the competition. 

4.Different time - it is hard to deal because of different time. So, need to set up the proper time which fair for both related company. 

5.Different languages – It make the communication become harder and sometimes can misunderstood. 

1. The lack of research & development (R&D) in cotton sector. Its happened because of low profitability in cotton crops. Therefore, not many of them use cotton crops as the main income. So, it becomes difficulties to make appropriate R&D to develop the textile industry 

2. Lack of modernize equipment. Old fashion of technology makes cost of productions higher and unable to produce the product right on time and in large quantity.  Ineffective production will make it difficult to compete with the international textile industry.

3. Increasing cost of production. High interest rate of raw materials and maintenance will increase the cost of production. High cost production will minimize the opportunity for textile industry to compete in international market.

4. Lack of investment.  The textile industry needs a high investment to produce effective production. One of the factors in the shortage of investors in the textile industry is that long-term returns. Meanwhile the cost of raw material and equipment is also expensive to produce the textile product.

5. Raw material prices. The main problem is the cotton price increases. It happens when the requirement of raw material resources are limited. In this situation, suppliers take an opportunity to increase their income. So the raw material prices are rising at high prices.

1. Fabric Wastes

Even under the conditions of the most productive and efficient production, there is still a waste of fabric that will end up being thrown away. The United States textile recycling industry removes approximately 2.5 billion pounds of post-consumer textiles each year from the waste stream. Unfortunately, millions of tonnes of textiles are discarded every year. 

 

2. Sustainability

 

The unsustainability of the production, as mentioned, is a relevant problem for all industries, but the textile industry overall has its unique place within the whole matter. The Apparel industry pollutes the environment in significant amounts of natural resource usage. 

 

3.Recycling

A lot of natural fibers and materials, such as cotton, for example, are almost impossible to recycle. 

 

4.Balancing cost, capacity and compliance

 

Due to the ever going evolution which this industry is undergoing this pattern is going to change further in the time to come. Both the brands and manufactures are facing serious challenges while sourcing these days due to the versatile and dynamic nature of the industry. Cost and speed are particularly important and the same time quality, compliance and capacity cannot be compromised while sourcing.

 
5. Consumer choice and demographic variability

Their choice is unstable and unpredictable, and there is wide variation in their demographics and physiographics. Consumers of recent times are becoming more selective, multidimensional and complex due to increased awareness and readily available information on the products and designs.

Fabric Wastes

Even under the conditions of the most productive and efficient production, there is still a waste of fabric that will end up being thrown away. The United States textile recycling industry removes approximately 2.5 billion pounds of post-consumer textiles each year from the waste stream. Unfortunately, millions of tonnes of textiles are discarded every year. 

 

·         Sustainability

 

The unsustainability of the production, as mentioned, is a relevant problem for all industries, but the textile industry overall has its unique place within the whole matter. The Apparel industry pollutes the environment in significant amounts of natural resource usage. 

 

·         Recycling

A lot of natural fibers and materials, such as cotton, for example, are almost impossible to recycle. 

 

·         Balancing cost, capacity and compliance

 

Due to the ever going evolution which this industry is undergoing this pattern is going to change further in the time to come. Both the brands and manufactures are facing serious challenges while sourcing these days due to the versatile and dynamic nature of the industry. Cost and speed are particularly important and the same time quality, compliance and capacity cannot be compromised while sourcing.

 

·         Consumer choice and demographic variability

Their choice is unstable and unpredictable, and there is wide variation in their demographics and physiographics. Consumers of recent times are becoming more selective, multidimensional and complex due to increased awareness and readily available information on the products and designs.

-Consumer demand for fashionable items and frequent style changes has necessitated reduction in the design and product cycle time.
2. Challenges related to supply chain

-

Even under the conditions of the most productive and efficient production, there is still a waste of fabric that will end up being thrown away. The United States textile recycling industry removes approximately 2.5 billion pounds of post-consumer textiles each year from the waste stream. Unfortunately, millions of tonnes of textiles are discarded every year. 

 

2. Sustainability

 

The unsustainability of the production, as mentioned, is a relevant problem for all industries, but the textile industry overall has its unique place within the whole matter. The Apparel industry pollutes the environment in significant amounts of natural resource usage. 

 

3.Recycling

A lot of natural fibers and materials, such as cotton, for example, are almost impossible to recycle. 

 

4.Balancing cost, capacity and compliance

 

Due to the ever going evolution which this industry is undergoing this pattern is going to change further in the time to come. Both the brands and manufactures are facing serious challenges while sourcing these days due to the versatile and dynamic nature of the industry. Cost and speed are particularly important and the same time quality, compliance and capacity cannot be compromised while sourcing.

 
5. Consumer choice and demographic variability

Their choice is unstable and unpredictable, and there is wide variation in their demographics and physiographics. Consumers of recent times are becoming more selective, multidimensional and complex due to increased awareness and readily available information on the products and designs.

- Consumers are difficult to understand their choice is unstable and unpredictable.
- There is wide variation in their demographics. Difference of age, household income, education level, occupation and ethnicity affect their choice.
- Consumers’ choices and expectations within a target market. Demand moderate pricing and frequent style changes and latest fashion trend.
2. Challenges related to supply chain.
- The apparel supply chain is complex and demanding due to global outsourcing, longer lead times and shorter seasons.
- Difficult to forecast the changing styles, and the supply chain is complicated by hard-to-model constraints, costs and lead times.
3. Challenges in design and production.
- Enormous design changes in a season whereas the later undergoes few changes even for many years.
- Therefore, the apparel manufacturers have to handle an extraordinary amount of design changes.
4. Stiff competition. 

- Apparel manufacturing is highly competitive. There are competitor that sells similar clothing items to the same market segment, consumers or store types. Can see competition in term of price, quality and service.
5. Environmental or Ecological challenges.
- Contributed by wet processing, which pollutes water. The toxic effluents that are harmful to aquatic lives.  
- Use recyclable materials and reduced chemical finishes. The demand is shifting to develop eco-friendly products. 

2.      CUSTOMER DEMANDS-They must meet the demands of an increasingly demanding consumer in terms of transparency of production processes, rational and proper use of resources, environmental protection and the strict compliance with corporate social responsibility policies.

3.      LOCATION OF PRODUCTION -As textile sourcing is now more global than ever, a topic that gains great relevance is the sourcing strategy with regard to optimum location of each model for its production.

4.      OMNICHANNEL MODEL AND SOURCING Very interesting challenge that they face as textile sourcing professionals is to provide support to the omnichannel model.

5.       SUPPLY CHAIN -They have to focus on improving the speed of the supply chain and to add suppliers who can manage the largest possible amount of processes so that the product shipped from origin arrives to destination ready in all its variations.

1.Intellectual Property-The proprietary knowledge regarding design, materials and other elements in the textile can be exposed to the light of day easily. So the textile enterprise will expose to the risk of losing intellectual property.

 

2.Fluctuation of currency exchange rate in global sourcing- the money has to be moved between domestic countries and foreign partners. Stability of currency enables the international trade to be easier while instability makes it more complex and introduces risk

 

3.Supplier selection complexity in global sourcing- Supplier selection is a vital aspect in the performance of global sourcing implementation. Unlike dealing with domestic suppliers, the costs involved in identifying, selecting, and evaluating foreign suppliers can be prohibitive 

 

 

4.Location of production- the cost of materials and production times in each area are essential for the company to create value in its supply chain and to stand out from the competition

5.Complicated logistics in global sourcing- international management of logistics is definitely a necessary and crucial procedure. Lack of holistic logistics knowledge in low-cost developing countries would trouble the procurement executives when implementing global sourcing of textile

1. Consumer choice and demographic variability

- Consumers of recent times are becoming more selective, multidimensional and complex due to increased awareness and readily available information on the products and designs. However, a manufacturer cannot directly transfer consumers’ choice and preferences in different product styles to satisfy their needs. 

2. Challenges related to supply chain

-.The major aspect of the supply chain is responsible sourcing, which takes into account factors such as sustainability, compliance, chemical safety and product safety. In modern clothing manufacture, the emphasis on quality is increasing and more intelligence and agility in the supply chain is expected. 

3. Challenges in design and production

- Manufacturers have to handle an extraordinary amount of design changes. Traditionally, the apparel manufacturing process has been performed by production workers who perform the cutting, sewing and other operations in an assembly line. One of the major global concerns in apparel production is rising labour cost.

4. Stiff competition

- An apparel competitor sells similar clothing items to the same market segment, consumers or store types. Merchandisers perform comparison shopping to analyze the price, quality and service of their competitors.

5. Environmental or Ecological challenges

- The demand is shifting to develop eco-friendly products from materials derived from sources other than petroleum, which is a limited resource

2.Increase Lead time requirement due to location distance.

3. Cultural Understanding: such as religion, attitudes, customs, etc. 

4.Language and Communication Differences: message speed and level of content.

5. Legal Issues: Legal systems differ country to country.

2.Sustainability is a challenge-market which is changing everyday so the drivers are changing as well. To hit lower lead times and still remain price competitive is the tough call now. It is tough for manufactures to remain sustainable and having long lasting relationship.
3. Changing Customer
As shoppers turn to the internet for information and shopping for price comparisons, and to social media for opinions, the industry's response becomes more service- and price-sensitive.
4.Inventory Level Customer preferences change faster, which speeds up inventory turnover requirements. Suppliers then must adjust to smaller orders placed by retailers and wholesalers, and improve turnaround times. This puts pressure on their raw material, transportation, quality control and labor costs
5.Product Sourcing
The ability of other countries, such as Bangladesh, to handle the production being moved from higher-cost China can affect critical delivery schedules.