The Apparel Production Process in Iran
Unlike Japan, Iran has no large-scale firm that organizes smaller contractors for actual production in the apparel-producing system. The procurement of raw materials and machinery serves as a crucial but weighty task for each firm, which operates independ
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The Apparel Production Process in Iran
Abstract Unlike Japan, Iran has no large-scale firm that organizes smaller contractors for actual production in the apparel-producing system. The procurement of raw materials and machinery serves as a crucial but weighty task for each firm, which operates independently, especially given the presence of rather strict import restrictions imposed by the government. The namāyande system functioned as a cure for this difficult situation encountered by small-scale firms. The lack of knowledge in firms for collecting and analyzing the information that a namāyande provided made him necessary for firms. Business management based on personal relationships is another factor making the namāyande a necessary player for firms, who seek to strengthen their external information channels by developing reliable relationships through extremely personal ties with their namāyande to survive in Iran’s fluid business environment.
Keywords Work flow of apparel production Procurement of machinery and raw materials Namāyande system Personal business relations
4.1
Process from Production to Sale
The previous chapter clarified the typical pattern of apparel-producing firms in Iran based on firsthand interviews and questionnaire surveys conducted by the author. Over the course of the interviews, the concrete process that firms used to produce apparel goods was also revealed. This chapter will discuss the flow of operations from the production to sale of apparel goods and will subsequently pay special attention to the procurement of raw materials and machinery through specialized agents. These discussions will clarify the manner in which the apparel firms produce their goods. According to interviews, the flow of operations from production to sale can be depicted as in Fig. 4.1. The important point is that some firms omit phase 2 of the process, and phases 3 and 4 often occur in reverse order. Some firms manufactured a limited quantity of a © IDE-JETRO 2017 Y. Iwasaki, Industrial Organization in Iran, SpringerBriefs in Economics, DOI 10.1007/978-981-10-4579-0_4
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4 The Apparel Production Process in Iran
Fig. 4.1 Work flow from apparel production to wholesaling. Source Prepared by the author
certain model by way of an initial trial, gradually shifting to full-capacity production in keeping with regular costumers’ feedback. Other firms produced a certain quantity of a certain model from the beginning and put all the products for sale on consignment. The smaller a firm’s scale, the more a firm was likely to employ the latter way of production. Of course, they could accept additional orders after the first production run.
4.1 Process from Production to Sale
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In any of these cases, however, the contracted distributors never tended to specify product standards (such as design, color, and size). Distributors only selected some of a firm’s designs and notified the firm of the quantity they would purchase. A firm like Firm T, which was one of the informants in the 1998 interview survey (see Table 3.1), was i
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