The long-lead manufacturing model that is prevalent with offshoring means that companies end up holding more safety stock. If these goods don’t sell, retailers may resort to deep discounting to make room for new products, shrinking margins in the process.
Situated closer to the United States, Peru offers an alternative. Through a combination of location, technology and vertically integrated manufacturing, Peru-based factories can offer quick turns. During a conversation with Sourcing Journal president Edward Hertzman, Luis Antonio Aspillaga, CEO of World Textile Sourcing (WTS), and Rizal Bragagnini, executive director of the Peru Textiles Exporters Association, explained how the country’s independent supply chain leads to greater adaptability for clients.