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dc.contributor.authorCrede, Christopher
dc.contributor.authorRuiz Lopez, Diana Carolina
dc.date.accessioned2021-04-27T19:02:09Z
dc.date.available2021-04-27T19:02:09Z
dc.date.issued2018
dc.identifier.urihttp://hdl.handle.net/20.500.12127/6921
dc.description.abstractThe aim of this report is to provide an overview of the textile and apparel industry in Central America and the Caribbean on a country-by-country basis, as well as identify manufacturers that show potential as future garment suppliers for B&C. The report answers two key questions: Firstly, what countries in the region are an attractive destination for promotional wear manufacturing, and secondly, what suppliers could be contacted in the near future for further negotiations. The analysis focused on identifying sourcing opportunities for the 2 primary product categories, or "runners", in the promotional wear garment catalogue of B&C. These are 100% Cotton knit t-shirts, and 100% Cotton knit polo shirts. The analysis focuses on three stages. First, regional countries are evaluated on the basis of their existing production of cotton t-shirts and polo shirts; the average price per unit according to custom declarations in the EU and US; access to tariff exemptions; and competitor presence. Secondly, a comprehensive overview was conducted on the political, economic, and business environment of the shortlisted countries whilst also paying close attention to the logistics & infrastructure capabilities, trade deal implications, and the state of the local textile and apparel industry. To conduct the analysis of each country, data was gathered from industry reports, government agencies, trade associations, and various international agencies that specialise in economic and sector-specific data. Countries were ranked accordingly. The third stage of analysis focused on the evaluation of manufacturers in the region. Data was obtained from company websites, company profiles, and industry reports that were publicly available online. Structured, but open-ended telephonic interviews were conducted with suppliers to further evaluate their potential. Questions were structured to obtain further information on theoretical capacity, pricing, production lead times, yarn quality, tubular production capacity, and quality certifications. The results indicated that of the 9 regional countries, Guatemala and Costa Rica were not considered feasible destinations for promotional wear manufacturing due to low production volumes, high prices, and a focus on value-added apparel manufacturing. Further analysis of the 7 remaining countries indicated that Haiti, Nicaragua, and Honduras remain the most attractive sourcing destinations for low-cost apparel. Haiti offers the cheapest labour but strategically, it should be considered together with the Dominican Republic as its neighbour is the source of fabrics for many of the CMT factories in Haiti. The supplier analysis yielded minimal insights into the criteria considered as most manufacturers were hesitant to share detailed information on their production profiles without receiving the product specifications from B&C. subsequently, the results provide a high-level overview of potential suppliers based on theoretical production capacities greater than 500'000 pieces per month. A list of 23 potential manufacturers across the region were listed. As expected, the majority of these manufacturers have sites in Nicaragua, Honduras, and Haiti. While the analysis indicated 3 potential countries as destinations in Central America for promotional wear sourcing, the study faced certain limitations. Time constraints; language barriers; the inability to conduct interviews face-to-face with suppliers in the region; a resistance to share more in-depth information pertaining to manufacturers' operational set-up, volumes, pricing, and available capacity; and failure by manufacturers to respond within the allotted time-period of the study have compromised the quality of the data gathered. Due to the sensitive nature of the technical specification packs for each of the 3 products included in this study, it was not possible to share this information with manufacturers to obtain further details on their target pricing, volumes, and production lead times. As a result, the analysis could not make supplier-specific recommendations. Future studies on sourcing opportunities in the region should consider country visits to gain more detailed insights into the regions potential as an alternative to existing Asian manufacturing countries.
dc.language.isoen
dc.titleSourcing in the promotional-wear industry: Assessing the feasibility of production in Central America
dc.source.numberofpages209
vlerick.knowledgedomainOperations & Supply Chain Management
vlerick.supervisorBoute, Robert
dc.identifier.vperid102358
vlerick.companynameThe Cotton Group
vlerick.companysupervisorPinxten, Luc
vlerick.programmeFT MBA
vlerick.typebusresprojectIn-Company Project


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