Research On The Effect Of Garment Enterprises' Value Chain Management Based On Production Outsourcing

With the rapid evolution of economic globalization,the development of the Internet,cloud computing,and big data,value chain management has become a strategic weapon for the garment manufacturing industry to gain new development in the fierce global competition.Through the outsourcing of non-core businesses,apparel manufacturing companies save their resources and focus on the core value chain to create more value.On the other hand,they also make the outsourcing business operate in a more specialized and large-scale external economy.Get higher business efficiency and lower costs.Hailan Home Co.,Ltd.was originally a traditional clothing enterprise engaged in the R&D,production and sales of high-grade worsted fabrics,high-end suits and professional wear design,production and sales.In 2012,Hailan Home officially launched an expansionary business strategy and conducted value chain management based on production outsourcing.From 2012 to 2016,Hailan Home carried out a large-scale production outsourcing reform,cutting all of its original 312 production plants and focusing on its brand building and sales management.Hailan Home has become the leading player in China's garment industry through its value chain management based on production outsourcing.Based on the value chain model of production outsourcing,this paper explores the financial characteristics of the enterprise under the production outsourcing model,as well as the impact on the financial performance of the company and the non-financial impact,and summarizes the reasons for these effects.By exploring the production outsourcing effect of Hailan Home,we found that Hailan Home has formed an innovative management model.The transformation of value creation into its own operation due to production outsourcing,that is,the development of brand and marketing,has promoted the realization of corporate strategic management objectives.Thereby its core competitiveness has been further enhanced.But there are also many drawbacks caused by production outsourcing,such as high inventory and high debt.It is hoped that through the research of this paper,the comprehensive evaluation of the effect of the value chain model based on production outsourcing can provide some inspiration for the management and operation improvement of China's production outsourcing garment enterprises,and it is intended to shift from “manufacturing economy” to “China's garment industry”.Enterprises that serve the economy provide a certain reference.