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the role of sourcing agents in global apparel supply chains

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orientation is <strong>the</strong> impetus for creat<strong>in</strong>g new <strong>supply</strong> cha<strong>in</strong> options. Once manufacturers and<br />

marketers shifted to giv<strong>in</strong>g consumers control <strong>of</strong> product assortments and began<br />

respond<strong>in</strong>g to consumer demands ra<strong>the</strong>r than <strong>the</strong>ir <strong>in</strong>ternal resources as <strong>the</strong>y did with<br />

mass production l<strong>in</strong>es, manufacturers and marketers needed new and vary<strong>in</strong>g resources to<br />

meet demands. Many retailers lack adequate <strong>in</strong>ternal resources to change and shift<br />

production, product categories or promotional materials on <strong>the</strong> whim <strong>of</strong> consumer<br />

behavior. The capital required would subsequently harbor massive risk and <strong>in</strong>vestment<br />

by <strong>apparel</strong> firms. As a result, many firms have developed complex <strong>supply</strong> cha<strong>in</strong>s and<br />

opted to look outside <strong>the</strong>ir own <strong>in</strong>ternal resources to contractors who can meet <strong>the</strong><br />

chang<strong>in</strong>g demands <strong>of</strong> consumers, <strong>in</strong>clud<strong>in</strong>g lower prices. With<strong>in</strong> <strong>the</strong> <strong>apparel</strong><br />

manufactur<strong>in</strong>g <strong>in</strong>dustry, <strong>sourc<strong>in</strong>g</strong> <strong>agents</strong> serve as third party liaisons <strong>in</strong> <strong>the</strong> <strong>supply</strong> cha<strong>in</strong><br />

fill<strong>in</strong>g <strong>the</strong> gap between <strong>the</strong> outside resources <strong>of</strong> <strong>of</strong>f shore factories and U.S.<br />

manufacturers and marketers. The follow<strong>in</strong>g section will fur<strong>the</strong>r discuss <strong>the</strong> development<br />

<strong>of</strong> market orientation <strong>in</strong> <strong>the</strong> <strong>apparel</strong> <strong>in</strong>dustry and how <strong>the</strong> <strong>role</strong> <strong>of</strong> <strong>sourc<strong>in</strong>g</strong> <strong>agents</strong> <strong>in</strong><br />

<strong>apparel</strong> production developed dur<strong>in</strong>g <strong>the</strong> rise <strong>of</strong> market orientation.<br />

The domestic economy <strong>of</strong> <strong>the</strong> United States follow<strong>in</strong>g <strong>the</strong> Industrial Revolution<br />

was focused on <strong>the</strong> production <strong>of</strong> commodities such as <strong>apparel</strong>. Once goods and services<br />

produced <strong>in</strong> <strong>the</strong> United States became more market oriented, retailers realized greater<br />

sales and pr<strong>of</strong>its <strong>in</strong> cater<strong>in</strong>g more effectively to consumers (Shiffman & Kanuk, 2009).<br />

Market orientation is <strong>the</strong> philosophy <strong>of</strong> market<strong>in</strong>g products <strong>in</strong> response to consumer<br />

needs and a retail firm’s external environment (Shiffman & Kanuk, 2009). Prior to<br />

market orientation, retailers built <strong>the</strong>ir sales and pr<strong>of</strong>its on simple production l<strong>in</strong>es and<br />

<strong>the</strong>n sold <strong>the</strong>ir products through sales pitches to consumers who had few options or little<br />

6

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