Upstream Focus is Sourcing Journal’s series of conversations with suppliers, associations and sourcing professionals to get their insights on the state of sourcing, innovations in manufacturing and how to improve operations. In this Q&A, Chris Parkes, president of performance textile sourcing firm Concept III, discusses how innovation can support better margins for mills and why suppliers’ response to problems is a key differentiator.
Name: Chris Parkes
Title: President
Company: Concept III
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What’s the number one question you get from your clients now that was never really a consideration before?
There is little to no margin; mills have had to carry a lot of increases—whether it be added testing costs, costs for upgrading a facility to meet a specific requirement, migrant worker costs, etc.—and they are not getting the price increases. Now the ask is to help with the tariffs. If we do not innovate, then we are running the same materials, and when we run the same materials the belief is that costs should continue to go lower. If a product has been run for the past three to four years, then our efficiencies should go up, per the brand, so therefore their price should go lower. This is not the case because it seems every year costs are going up. When we innovate a new product, then we can charge the price for that innovation, and in turn the brand should be able to offer a higher price for a new product with the hope that all parties can gain a margin that works for all.
How are you evaluating potential brand and retail clients? What do you look for in a customer now, compared to a few years ago?
We continue to look for partners that value a relationship versus just a transaction and brands focused on textile innovation supported with a marketing plan.
As the apparel industry tries to overcome its stock issues, how can supply chain partners improve inventory management?
That is a continued challenge, but we need more transparency and collaboration from the brands.
Weather is so hard to predict, and that influences a lot of the consumer purchasing—especially in fall and holiday. Shorter lead times are hard because someone needs to commit to yarn, greige or finished goods and there is a cost involved with this and no one wants to pick up the tab.
What should be brands and retailers’ top lesson from last year? How can they address this in their operations?
We need to innovate; customers are done buying the same things, so we need new product. This is the same mantra we have said for years. We are starting to see a little of it, though.
How are you working with your factories to support quick-turn, small run orders?
It is a fine line, because we continue to get squeezed on price and then customers want small runs, so it is a challenge to work on small margins plus run small dye lots, which have higher costs.
Which new sourcing regions are you either considering or ramping up today?
We are waiting for the dust to settle a little bit. I am not ruling out a pivot back to China, but that depends on how the negotiations work out. One also must look at India, but tariffs are currently an issue there.
As you’re considering where to source, what are your top considerations today?
There are factories all over the world, and some are good, and some are not. When we look to find a good source, quality and communication are what we feel are most important. The quality in the product is of course important, and the factory needs to be able to deliver a product that is consistent and within the standards that have been set. But communication is just as important because problems will happen as they always do in manufacturing, and it is how those problems are handled that is key. Communicating professionally, honestly and in a timely manner makes a lot of the difference. When things are good, there are no issues, but when problems arise, it is how those are handled that separate factories and suppliers.
What keeps you up at night?
That varies from day to day. We know that sustainable, environmentally responsible protocols and practices are very important, but these need to be accompanied with innovative performance textiles that can drive new business, consumer engagement and enable improved textile margins.
What makes you most optimistic?
That brands are starting to look at innovating, and brands realize that prices need to be raised.
What’s in store for Concept III for the rest of 2025?
Continue to push new product and ideas for the future.
