The practice of having certain job functions that are performed outside the company instead of having an internal department or an employee that develops them is what is known as outsourcing or subcontracting.
Although it has currents and collectives against it, subcontracting has become an important trend in human resources in recent years. In the fashion industry it is a common practice and we can differentiate it into four main themes.
First of all we must talk about design and innovation. By outsourcing, a great brand can rely on a company that helps anticipate trends for major retailers around the world. In addition, this outsourced company can design clothes in a personalized way according to the needs, objectives and aspirations of the brand. Even, being focused on the task, reduces the risks and expenses that may arise and improves the collections following the trends of each season. Some companies dedicated to outsourcing promote basic collections through innovation helping to differentiate themselves from the competition.
In second place, it is worth mentioning the speed of the market. With subcontracting, inventory and working capital are reduced while direct sales are optimized. Thanks to this practice, it is possible to reduce purchase quantities and achieve a rapid adaptation to changes in the pattern of consumer behavior. The logistics costs that the brand should directly address are simplified and reduced. And it achieves that there are different collections in the same collection, thus reducing risk and maximizing consumer satisfaction. An entire generation of competitive advantage.
In the third instance, the aspect of production can be included. The outsourced companies and the clothing brand become production partners basing their relationship on trust and reliability. When outsourcing, a meticulous quality control is carried out and developed in the processes and in the delivery and online times. Many companies whose reason for being is outsourcing are completely respectful of international standards and audits at the hands of accredited third parties such as Accord, BSCI, ISO and GSV. And they make a firm commitment to sustainability, ethics, efficiency and welfare of workers.
And as a fourth section, but no less important, we have the quality control so associated with the corporate social responsibility of the companies. The subcontracted companies must control that the production moves according to the delivery times, the costs, the availability of raw materials and the specific needs of each client. This is how they adapt totally to the needs, objectives and problems of the brand. By basing the focus on problem-solving you get the right product at the right price.
As you can see, more and more companies are betting on outsourcing, which is slowly becoming a trend in more countries and sectors.