University of Chicago
Type of paper: Thesis/Dissertation Chapter
Global Sources of Cotton Pajamas from Potential Sources
Global sourcing has always been an effective strategy in drawing cost effective sources to improve and re-evaluate one’s purchasing responsibilities. Problems encountered such as trade embargo as a result of international dispute may arise and thus, other areas must be considered to obtain products. Cotton is a very important textile fiber in the world having an approximately 40% share in the total world production (USDAERS, 2007). Cotton has constantly been a part of our daily lives from the soft cotton towels in the morning, to jeans, shirts shoe laces and bed sheets up to the fresh cotton pajamas people wear during bedtime.
Cotton pajamas are famous clothing for being comfortable. Hence, its production is important as. Cotton nightdresses or pajamas are primarily imported from China at $39. 20 per dozen. At this rate, we are being cost-effective in sourcing. But since Chinese goods are no longer allowed by the Customs Service, the selected top suppliers of cotton pajamas were considered as potential alternative for China. Among these are Italy, Peru, Indonesia, Sri Lanka, Philippines, Thailand, Vietnam, India and Bangladesh.
Ocular inspection of the data and considering the high cost of the commodity, those from Italy and Peru are excluded from the choices. High pricing of goods is prohibitive for potential buyers in local markets. Bangladesh could have had the cheapest cotton pajamas however, the quality is not assured. India, Vietnam, Thailand and Philippines have comparable price to that of China at $32. 80, $42. 14, $43. 82 and $46. 50 per dozen respectively (USDA OTEXA, 2007). Interestingly, India can sustain 1/9 of what China has provided the pervious market.
Moreover, the price is pleasant as it is lesser by 16. 32% to that of the previous supplier. India had a decrease in shipments by 28. 38% and probably, they will be more than willing enough to accept purchases and further increase and expand their production. Vietnam can back up imports coming from India. At a slightly higher price than China, Vietnam could be a fair support. Their increase in shipment at 8. 52% (USDA OTEXA, 2007) is a good indication that factories in Vietnam are open for increase in their production.
These two countries, India and Vietnam are potential sources of cotton pajamas as alternative to China. However, they can only meet 4. 78% and 11. 3% respectively of what China has provided for the past eight months. It is recommended that factories in Thailand and Philippines should also be assessed regarding their capability to produce cotton pajamas. On the average of eight months, they have sold cotton pajamas in the price that is close to that of Vietnam. It should also be noted that they had a decrease in shipment by 19. 15% and 10. 31% respectively (USDA OTEXA, 2007).
United States Department of Agriculture Economic Research Service. (2007, June 13). Cotton. Retrieved October 30, 2007, http://www. ers. usda. gov/Briefing/Cotton/ U. S. Department of Commerce Office of Textiles and Apparel. (2007, October 25). Major Shippers’ Report by Category. Retrieved October 30, 2007, http://otexa. ita. doc. gov/msr/cat351. htm U. S. Department of Commerce Office of Textiles and Apparel. (2007, October 25). Major Shippers’ Report by Volume. Retrieved October 30, 2007, http://otexa. ita. doc. gov/msr/catV351. htm