Abstract
The textile sector is one of the major economic pillars in Ethiopia. The sector is generating foreign currency by exporting textile and finished garments. However, the competitiveness of this sector is not as per the expectation due to the long delivery time and excessive manufacturing cost. This study aims to assess the main approval processes in handling garment samples between manufacturers and buyers. The study also examines the effect of physical sample approval process on export performance and competitiveness of the industry. The study employed an explanatory and exploratory multiple-case study research approach in four apparel exporting companies. Both primary and secondary data were collected using questionnaires, semistructured interviews, and observation. Result from this study showed that the export performance and competitiveness of apparel industries are mainly affected by the traditional sample approval system due to long delivery time, unnecessary approval process cost, and poor inventory management of the sampling department. The result also indicates that long lead time and costly process system made the sector incompetent in international market. Therefore, it can be concluded that the apparel manufacturing and exporting industries in Ethiopia should modify their approach to nurture better speed and comparably lower process costs. Ethiopia’s apparel sector needs also to invest in creating a reliable quality manufacturing system to grow and meet government targets for expanding export sales.
Highlights
Introduction eEthiopian textile and apparel industries have a huge potential and have grown an average of 51% over the last 56 years [1]. ese sectors have received a greater emphasis from the government policy to become a significant economic pillar in Ethiopia. e country has a comparative advantage in exporting textile and garments, leather and leather products, and processed agricultural products as a result of its natural resource grants [2]. e export potential of apparel products in Ethiopia is projected to increase annually by 35% to reach in 2020 US$320 million
Garment sample development and its approval process is the most important task Journal of Engineering during the preproduction phase of an apparel manufacturing process, by which the buyers used to evaluate the skill of the factory to determine whether they can meet the desired requirement or not [7, 8]. is process is serving as a means of business communication which is regularly carried out between the manufacturers and buyers to execute the full order for bulk production agreement
Even if the conceptual and methodological scope is incompatible with this paper, Yimam [14] conducted a study on the factors influencing export performance of garment and textile industry in Ethiopia. e scope of this study focuses on the evaluation of external factors including local industries expansion, foreign direct investment (FDI), and availability of electricity and trade capacity building programs as the major influencing factors for the industries export performance
Summary
Introduction eEthiopian textile and apparel industries have a huge potential and have grown an average of 51% over the last 56 years [1]. ese sectors have received a greater emphasis from the government policy to become a significant economic pillar in Ethiopia. e country has a comparative advantage in exporting textile and garments, leather and leather products, and processed agricultural products as a result of its natural resource grants [2]. e export potential of apparel products in Ethiopia is projected to increase annually by 35% to reach in 2020 US$320 million. Is projection plan shows that export-oriented garment production will become one of the driving forces of the Ethiopian economy and a central pillar of its industrialization policy [3]. For this reason, companies operating within this industry specially those currently working for the export market must be able to apply proficient approaches that would help to sustain the growth of the clothing sector competitively and profitably [4]. E first footstep to effectively carry out an apparel product line for manufacturing is the development of sample garments that meets the specifications fit and the desired look of the client requirement [6]. Most of the Ethiopian apparel manufacturers export their products to different whole sellers’ and big retailers located in North America
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