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2.2 The supply chain in apparel industry
The phrase "supply chain" denotes the activities associated with the drive and conver-
sion of goods from their origin to the end customers, together with the accompanying
data flows (Seuring and Müller, 2008). It serves as a conduit connecting suppliers, man-
ufacturers, distributors, and end customers. The apparel industry's supply chain com-
prises three primary entities: the manufacturer, responsible for design, production,
packaging, and transportation; the distributor, a critical channel for product sales; and
the brand owner, who outlines the distinctive attributes of various brands. The supply
chain comprises additional components. The agriculture sector, as the initial component
of the supply chain, supplies raw materials like fiber and yarn for clothing production,
while certain small and medium enterprises convert these raw materials into fabric
through textile processing (Şen, 2008).
Apparel companies use diverse business strategies; hence, an apparel company may in-
clude two or all three major roles due to considerations of financial expenditures, such
as labor expenses, and available resources, resulting in varied supply chain topologies.
Fung et al. (2021) classified the apparel supply chain into three primary categories. A
vertically-integrated structure denotes that the corporation maintains complete control
over the entire supply chain, encompassing raw material production to product launch.
This framework enables organizations to enhance their oversight of product sales and
suppliers, acquire comprehensive marketplace and supplier evidence, and expand prof-
itability. ZARA workouts control over various phases of its supply chain through wide
vertical combination and a just-in-time approach, hence minimizing time and financial
expenditures (Berbiche et al., 2020).
Simultaneously, certain brands, for example Nike, Puma and Hugo Boss employ a pro-
duction outsourcing framework. Through this structure, corporations outsourced certain
manufacturing activities to external professionals to optimize resource utilization, hence
reducing costs and enhancing their attractiveness in the international market. The for-
mation of this structure is driven by organizational changes within the fashion industry,
prompted by shifts in the marketplace environment, including globalization and altera-
tions in client socioeconomic class. The conventional method in the fashion business has