How Do the Fashion Industries Make the Supply Chain Design Strategy? A Case Study in Bandung

Abstract

The fashion industry in Bandung cannot be separated from various risks that will disrupt its supply chain. For the supply chain to endure risks, the fashion industry should develop a Supply Chain Design Strategy (SC Design Strategy) so that the supply chain is resilient to possible risks. SC Design Strategyis the ability to recover from disruptions by developing responsive capabilities, through redundancy and flexibility. So, this research aims to find out what form of SC Design Strategyis currently being implemented by fashion industry entrepreneurs in Bandung so that it can be used to create approaches towards resiliency. Data collection techniques were carried out through observation and interviews with company owners, managers, and employees of the enterprises. Data analysis uses a scoring rubric technique to measure the company's condition. Based on the results, the sourcing strategy dimension is the dimension that is most widely applied by ten fashion industry business actors in Bandung. Business actors said that they implemented strict supplier selection indicators to produce good quality products from suitable raw materials. Few business actors implemented global sourcing indicators, especially about supplying raw materials from abroad.  In the redundant strategy dimension, most business actors use multi-sourcing indicators, namely alternative strategies for more than one supplier. For the flexible strategy dimension, several business actors use flexible transportation indicators to minimize transportation risks. Most business actors do not apply factory redesign indicators because most of them do not have their factories, so it will be hard to change the production system.