How Does A Small Clothing Factory Surpass A Big Factory?
China has always maintained the title of a major clothing exporter, but in recent years, block chains and bitcoin have emerged one after another, causing many investors and business owners lose money. It also affects the economic development of small businesses and factories, which have withdrawn from the market one after another. For small and medium-sized importers, they are increasingly not sure how to choose factories. Can those small factories be trusted?
However, importers do not know the current operating situation of small factories in China. Take garment factories as an example, with the rise of labor costs and industrial chain costs, the garment factory production management is becoming more and more difficult and the factories are facing a difficult situation. We can first find out the root cause and how small factories should be improved before they can be ” chosen” by importers.
1. The " Three Difficulties" of Small Factory
Difficulty in employment
Clothing processing profit is small, and the difference between the off-peak season season and the peak season is obvious. Workers’ wages are generally not high and it is difficult for workers to hire due to the shortage of local labor. At present, most of the factories are piecework workers, of which skilled workers account for about 70 % and ordinary workers for 30%. However, some processes must be operated by skilled workers. The ordinary workers need more than one year of work experience to achieve the level of proficiency, but now even ordinary workers are hard to recruit. Obviously, for garment factory production management, production efficiency is beginning to decrease and it is a problem whether the delivery date can be completed on time.
Difficult management
If there are not many local factories for garment processing, there will be fewer skilled workers. In addition, factories in other industries around are hiring everywhere, so workers will not worry about not having jobs, which results in factory owners not daring to dismiss skilled workers at will. Over time, these workers thought they were the backbone of the factory and did not obey the management very much. Moreover, if the management does not always understand the working status of the workers and only orders blindly, the garment factory production management will gradually lose its effectiveness.
Difficult sales
The turnover of factory owners is slow and they have many debts. All raw materials need to be purchased in cash, but it takes 1 – 3 months for the product to be sold to receive the money, and some old customers still have to hold down several batches of goods, so the funds are often very tight. More and more importers are coming to China to buy clothes and their prices are also uneven. The products of small factories are generally on the low end and the price is also low.The competition is becoming more and more cruel and the sales channels are becoming more difficult.Garment factory production management is also stagnated due to sales difficulties.
2.How do small factories " transform"
Order Equalization
The factory basically sets its output on the basis of sales volume and the ability to obtain orders rests with the sales business.The number of received orders in a year can basically be predicted, so the factory owner should analyze his orders and try his best to balance them.According to the specific situation, set the position of the factory so as to find the survival of the fittest. With the improvement of efficiency, the cost will decrease and the garment factory production management will play its role.
Make the products to the ultimate
The factory owner must pay attention to the product, personally lead the development of a main product, make it the best and make it different from others. Too many products of many domestic enterprises are basically industrial level,which just can be used, but the market for such products is getting smaller and smaller in the trend. However, some products are of artistic quality, and the key is that this is the trend in the future. From the industrial level to the artistic level is too difficult. Even if it is a small detail, I don’t know how much effort it will take. However, in any case, it must be stepped up.
Solve the short board as soon as possible
It is not necessarily true that employment is difficult. People all have feelings. Some brands of employee well-being are very high. In addition to salary and accommodation,more still need to care for each other. Sales are difficult in market and capital flows. How do you sell clothes? In addition to reliable product quality, the design should also meet the needs of consumers. Every consumer is a product manager, which means a good product is judged by consumers, not what the factories think. At the financial level, we can consider the existing financial model of some small amount of funds. The difficulty of management,learn it from other people’s garment factory production management mode and form a set of management processes suitable for your own factory.
When choosing a clothing factory, importers should not only consider the size and scope of the factory, but also consider the degree of garment factory production management, because the latter is an important factor affecting product quality. After the ” transformation” of the small factory, a third party inspection should be arranged to conduct the factory audit. In the Factory Audit tells importers how CLI inspection provides valuable audit services.
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