During the last twenty years, businesses migrated from vertical integration to a virtual model, outsourcing all their non-core functions. This has created challenges in aligning the strategies and activities of all these functions dispersed across the supply chain, each in separate legal entities. The next phase of evolution to emerge is the "dynamic federation", or federated supply chain which is governed differently than both vertical and virtual businesses.
apparel industry outsourcing methodolgies
function. For example, some apparel brand owners, who don't own factories, reach all the way back to the raw materials suppliers, selecting cotton from specific locations, deciding which of myriad outsourced manufacturing firms and locations are going to spin, weave, cut, sew, store, move, etc. These decisions are made in a coordinated and cohesive way to support the goals and specific needs of the brand, the specific product, and ultimately of the end customer. And in terms of the chain of