Firstly we learnt about audits,  and how important they are to enable the company to work with the supplier to make improvements and not just let them go if something isn’t up to standard. It was also interesting to learn about a suppliers KPI’s as they are different to what we would see as buyers. 

The next think we learnt about was how suppliers cost their garments. The costing is made of up of both direct and in-direct costs. Direct costs include Types of fabric, how much fabric, trims, labels, packaging, hangers/over bags, transport costs and Standard Minute Value, which is how long it takes the machinist to make the garment. In-Direct costs are the overheads, such as rent etc. The supplier then adds a profit margin to this cost, but expect it to be eroded by errors or negotiation. The manager also explained that the factory will work with the company to make adjustments to garments to make it cheaper to produce. 

We were also given some of the key areas to look for when visiting or researching a factory to work with. Some examples of this include, who does the supplier work with? Will it impact your orders?. Move-ons was another area, we spoke about which will be relevant when doing the range plan for the assignment. 

Finally, we were shown a system called Optitex, which is a digital system. It enables, design, pattern cutting, stitching together the garment and trying it on a virtual avatar. This is a great sustainable initiative which helps with speed to market as well. It is enabling more efficient communication between the company and the supplier whilst being more sustainable.