For most of the past fifty years, the garment factory existed solely to make the product. The customer specified the quality, the delivery and the price. Of these quality and delivery were both fixed. If your factory was unable to meet your customer’s delivery or quality requirements you would not receive the order. On the other hand, the factory that could provide higher quality and/or faster delivery received no advantage. Price was the only area open to negotiation. To be eligible at all, your factory had to meet the customer’s target price. In the old model, the factory that offered the lower price was by definition the better factory, just as the factory that offered the lowest price was the best factory and would invariably receive the order.
In the old model, factory marketing was totally passive with the customer or his agent approaching potential factory suppliers. Those deemed reliable — able to ship a decent product on time at a reasonable price — received orders. Business developed by attrition as customers discarded unreliable factories, distributing their orders among the remaining reliable factories. Provided your factory shipped a decent product on time, at a competitive price you could count on greater future business.
That model no longer exists. Today, the ability to ship a decent product on time, at a reasonable price is no longer an asset. It is an entry level requirement which at best allows a More...
