Textile Trade is the most competitive indusrtry amongst others. We believe there is a real data exploration opportunity for new generation textile supplychains. The indusrty should have the flexability to adjust itself according to demand, not by the supply. In contrast to Industrial Age, now we are living through the Information Age which is more focused on demand. Thus, only new generation trade models going to survive.
But, if you think about, what is trade?According to Camridge, the first definition is "The buying and selling of large numbers of goods or services, especially between countries." Why does it have to be large and international? We disagree about that. definition of "Trade" which should include the value too. Unlikely, second definition is more accurate "To give something to someone and receive something else in exchange".
The trade happens where a buyer and seller agrees on the same contract, where both sides are happy to work with each other. These money pin points are the traders hub who brings a lot of money to your business also.
Following steps are the natural trade points;
Farm to Raw Material
Raw Material to Yarn
Yarn to Fabric
or Raw Material to Fabric
Fabric to Product
If you know why these are the natural pin points, please make a comment.
If you don't know why, here is the answer: Becasue, machinery industry is built on that. There are certain machines that completes certain tasks. These machines are huge, one could be a 100 meters long. These are the enormous industrial machines which could weave 1000 meters of fabric in a day.
Information Age is happening now! Here is the value of it; When machines are used, products becomes cheaper. Any one who desires to create affordable supplychain have to have a consistant machinery use. This effect becomes really obvious when you check tier 1,2 and 3 suppliers. Supply chains works by the two main domains; design oriented and price oriented. One could only choose one, not both. Because, they require totally different infrastructures of trade points for the final product. This trade network is so complicated that it only includes 58.000 different ready made garment CMT manufacturers in Turkey. ITA prepares itself to be the hub of this community, so that every design could have equal opportunity to exist. The system of classificating the trade get its support by this phylosophy.
5 above is the Trade Points of Textile Industry.
Let's look at the customer end of the supplychain.
Consumers only buy the products with labels, nice finishes and packed, right? You need to know how to bring design idea to reality. Or, a business model can do a part of the job for you. These manufacturers are also known as CMT (Cut-Make-Trim) Suppliers what can gather all materials for you and can also make the labour/muscle force to bring all together, so there could be the Final Product which is later traded on retail shops.
CMT Businesses trades human labour and some machinery for the profit. So, trade is shaped around time and capacity. These kind of companies are profitable when they are only manufactures over a certain amount of pieces in a day. That's where MOQ (Minimum Order Quantity) is born. Let's say, Mike is a CMT business owner, and want to make a profit. Mike hires employees, rents an factory and starts production for private labels. So he creates a value of man power and time perpective. If Mike can't make profit there won't be trade either. So, there will be no final products for people to wear casually. If the trade happens, one side's business is not sustainable and will crush eventually. That's bad for all traders.
Below is the trade points of the textiles. Any textile dominated business should build its supplychain around these cost points also.
If you'd like to read more about this topic, please leave a comment and let's discuss about it in deatilly. What do you say?