The importance of logistics services for the economical efficiency in the garment industry Cover Image

The importance of logistics services for the economical efficiency in the garment industry
The importance of logistics services for the economical efficiency in the garment industry

Author(s): Dariusz Milewski, Beata Milewska
Subject(s): Economy, Business Economy / Management
Published by: Wydawnictwo Naukowe Uniwersytetu Szczecińskiego
Keywords: global supply chain; efficiency of logistics processes; logistics costs; costs of lost sales; garment industry

Summary/Abstract: The paper deals with the problem of the importance of the performance of logistics processes and services for the economic efficiency of sourcing strategies (local or global) in the garment industry. It presents the results of the research studies conducted by the authors in the Polish companies from the garment industry. Based on the results of the studies the electronic model of a supply chain has been made in order to estimate, what are the structure of the logistics costs what is the share of them in sales. The simulations conducted with the use of the model shown, that in present conditions, the sourcing strategies have strong impact the logistics costs. Yet relatively higher level of logistics costs in global sourcing (from low cost countries) don’t make it less profitable than in sourcing locally. However even small change of purchase costs can make global supply chains unprofitable.

  • Issue Year: 27/2018
  • Issue No: 3/2
  • Page Range: 299-305
  • Page Count: 7
  • Language: English