@MASTERSTHESIS\{IMM2007-05605,
    author       = "C. F. Eskebaek",
    title        = "Outsourcing in the Danish Fashion Industry",
    year         = "2007",
    school       = "Informatics and Mathematical Modelling, Technical University of Denmark, {DTU}",
    address      = "Richard Petersens Plads, Building 321, {DK-}2800 Kgs. Lyngby",
    type         = "",
    note         = "Supervised by Prof. Jens Clausen, {IMM,} {DTU}.",
    url          = "http://www2.compute.dtu.dk/pubdb/pubs/5605-full.html",
    abstract     = "Purpose Improve the competitive performance of Danish fashion companies with tools for profit analysis, cost estimates, and supplier comparisons. Suggest management decision support tools for outsourcing through scenario analyses.

Design/methodology/approach - Use of statistical analysis, operations research methodologies, and reviews of trends in global sourcing patterns. 

Findings - We see a trend towards increased Freight-On-Board production rather than Cut-Make-Trim. Macro-economic qualitative measures can be quantified to better support outsourcing decisions. Operations research have
relevance to the fashion industry; it provides more profitable suggestions
for decision-making companies of all sizes.

Research limitations/implications - Access to more data than available for this report could lead to an interesting analysis for matching competitive goals and supplier types. Confirmation lacks on the precision of quantifying macro-economic impacts on sourcing decisions, using the Business Environment Ranking (developed by the Economist Intelligence Unit). No comparison between model recommendations and the judgement of an experienced, sourcing professional.

Practical implications - The simple tools put forward in this report are suggested for inclusion in daily business routines to support outsourcing and
purchasing decisions. Fashion companies are advised to investigate new suppliers, under the consideration of macro costs, indirect costs, and direct costs in that order.

Originality/value - This report examines global fashion business practices from a Danish perspective. Using the Economist Intelligence Unit’s Business Environment Ranking, the impact of macro-economic perspectives are included in an outsourcing-decision evaluation. Methods are proposed for estimating costs of delays, errors, wrong deliveries, etc. Price quote structures in the fashion business leave great opportunities for cost savings."
}