PLACEMENT & SOURCING STRATEGY
EXECUTIVE SUMMARY FIT is a sustainable men’s underwear brand dedicated to producing and selling quality products that better both the planet and the people on it. Our Placement and Sourcing Strategy seeks to analyze and evaluate various sourcing alternatives that align with our mission and values. We aim to partner with countries and suppliers that share our focus on quality, workmanship, and the drive to make sustainable initiatives and practices. This strategy details the core of our company and brand as well as analyzes several country and supplier options for our manufacturing process.
CONTENTS
about us
company overview
our products
4
6
9
country analysis
country selection
supplier analysis
11
14
15
strategy
conclusion
appendix
16
18
19
ABOUT US Shandy Frey
Taylor Miller
C.F.O.
Marketing Director
Ashlee Scott
Kristin Terrana
Design Director
Vice President
OUR MISSION FIT strives to create exceptionable sustainable quality underwear for the everyday man who wants to look and feel good.
4
“
OUR VALUES
Teamwork Communication Respect Creativity Hardworking Dedication Innovative Aesthetic Athletic Motivated
OUR VISION
“
FIT inspires the man to want to conquer the world while feeling comfortable in his underwear. 5
COMPANY OVERVIEW OUR STORES FIT headquarters is located in the heart of Portland, Oregon. Portland, known for its sustainable and eco-friendly initiatives, is also a strategic location for its relatively low energy costs, accessible resources, and various transportation benefits including international air terminals, marine shipping facilities, and transcontinental highways and railways. Currently, FIT has three brick-andmortar locations: Portland, Oregon; Seattle, Washington; and Ventura, California. In addition, FIT also has an e-commerce platform for sales.
OUR PRODUCTS FIT is a specialty men’s underwear and loungewear brand. We specialize in producing quality underwear that provides a perfect fit that is comfortable and easy to wear. Our items range from briefs to boxer shorts as well as including undershirts and lounge pants. Additionally, FIT is a sustainable company that seeks to better the environment we live in. All of our products are sustainably sourced and made. We use both organic cotton and Lyocell (made from wood pulp) for our product materials. 6
OUR CUSTOMER TARGET MARKET FIT is a male-centric brand that aims to provide men with a unique underwear shopping experience. Our target market tends to be men aged 26-34 who tend to lead an active life. Typically single, our target market is still focused on career goals before starting a family life. This market tends to have a bachelor’s degree or higher with an annual income around $60,000 to $90,000. More so, the FIT customer enjoys and appreciates the outdoors, and therefore, protecting the environment is an important cause.
PROFILE • Name: Nyle • Age: 29 • Education: Bachelor’s Degree in Computer Science • Occupation & Income: Web Developer; $75,000 • Location: Denver, Colorado • Hobbies: Working out, playing video games, camping, playing guitar, hiking • Why he wants FIT: Wants a higher quality underwear and easy, male-centric shopping experience 7
OUR LOOK Inspired by the environment that drives the cause of our brand, the FIT look is natural and rustic while staying modern and refined.
Modern Rustic Strong Original Refined Natural
8
OUR PRODUCTS MCKINLEY BOXER
DESCRIPTION: Woven Modern Fit with Low Rise Cut and Elastic Waistband MATERIAL: Lyocell SIZE RANGE: XS-XL RETAIL PRICE: $20
DENALI LOUNGE PANT
DESCRIPTION: Ribbed Knit Pant with Soft Stretch and Drawstring Waist MATERIAL: Organic Cotton SIZE RANGE: XS-XL RETAIL PRICE: $35 9
OUR PRODUCTS EVEREST BRIEF
DESCRIPTION: Classic Fit with Soft Stretch and Elastic Waistband MATERIAL: Lyocell SIZE RANGE: XS-XL RETAIL PRICE: $25
MITCHELL T-SHIRT
DESCRIPTION: Classic Fit Crew Neck Short Sleeve T MATERIAL: Organic Cotton SIZE RANGE: XS-XL RETAIL PRICE: $30
10
COUNTRY ANALYSIS SRI LANKA LOCATION
Located in Southeast Asia at the southern tip of India, Sri Lanka is an island nation in the Indian ocean. It takes about 30 days to ship from Sri Lanka to California.
SUSTAINABILITY
Beginning in 2009, Sri Lanka has joined with the UN to establish the Ten Missions of Haritha (or Green) Lanka. These missions are as follows: Clean air everywhere, Saving the Fauna, Flora and Ecosystems, Meeting the Challenges of Climate Change, Wise Use of the Coastal Belt and the Surrounding Sea, Responsible Use of the Land Resources, Doing Away with Dumps, Water for All, Green Cities for Health and Prosperity, Greening the Industries and Knowledge for Right Choices.
FAIR LABOR LAWS
TRADE AGREEMENTS
Sri Lanka currently does not have any free trade agreements with the United States. Other trade agreements include ISFTA (the Indo-Sri Lanka Free Trade Agreement) with Indonesia and a Preferred Trade Agreement with Pakistan.
COST
The cost of shipping a 20’ intermodal container from Colombo Port in Sri Lanka to Long Beach, CA is $1339. Duty on apparel and textiles entering the U.S. is 19.7%.
In 2013, Sri Lanka reinstated the National Steering Committee (NSC), which launched a project to create a child labor free country by 2016. To date, Sri Lanka has been successful in creating 755 Child Protection laws and regulations throughout the country. Additionally, only 9.2% of all children between the ages of 5 and 14 are currently employed.
TECHNOLOGY
Only 19% of the population uses the internet in Sri Lanka, or roughly 4.4 million people. 2015 reported only a 2.7% growth in industrialization throughout the country. Sri Lanka relies heavily on agricultural products and services.
11
COUNTRY ANALYSIS SINGAPORE LOCATION
Located in Southeast Asia between Malaysia and Indonesia. It takes roughly 23 days to ship from Singapore to California.
SUSTAINABILITY
The Blueprint for a Sustainable Singapore has six main goals: Green and Blue Spaces, Public Mobility, Resource Sustainability, Air Quality, Drainage, and Community Stewardship. Two sustainable projects that Singapore is currently working on are “Eco-Smart” Towns and creating a “Car-Lite” Singapore.
FAIR LABOR LAWS
Singapore has strict labor laws against children under the age of 13 working. Children between the ages of 13 and 16 are allowed to work, but can only carry out light duties in a non-industrial setting. Children between 15 and 16 are allowed to work in industrial settings, but extensive medical reports must be submitted to the Ministry of Manpower to authorize the labor.
TECHNOLOGY
Similar to Sri Lanka, about 4.5 million people use the internet daily. However, this constitutes about 80% of the population, making Singapore a more technologically developed country. With no natural agricultural exports, Singapore relies heavily on exports and industrialization, even though their industrial growth rate is at a -3.5%. 12
TRADE AGREEMENTS
Unlike Sri Lanka, Singapore does have a free trade agreement with the United States, which was formed over ten years ago in 2004.
COST
The cost of shipping a 20’ intermodal container from the Port of Singapore (one of the largest ports in the world) to Long Beach, CA is $882.Duty on apparel and textiles entering the U.S. is 19.7%.
COUNTRY ANALYSIS TURKEY LOCATION
Situated in Southeast Europe, Turkey is surrounded by Greece, Syria, Bulgaria and Georgia. Turkey has borders on the Black, Agean and Mediterranean Seas. It takes 30 days to ship from Turkey to California.
SUSTAINABILITY
“We are going through a process, in which global problems need global solutions.” This is the opening line of the introduction given by the Prime Minister of Turkey for their Sustainable Development plan, which shows their interest in becoming a globally recognized country. The plan for Turkey encompasses seeking to make better labor laws, responsibly taking care of the environment for future generations by minimizing degradation and improving technology for efficiency.
FAIR LABOR LAWS
Due to the amount of Syrian refugees in Turkey (roughly 2.6 million IDPs in 2016), many companies are prone to subcontracting with unregistered refugees for cheap labor. As far as child labor is concerned, the government prohibits anybody younger than 15 from working, with the exception that children between the ages of 13 and 14 can work in light, non-industrial situations.
COST
TECHNOLOGY
TRADE AGREEMENTS As of 2015, Turkey is waiting to sign the TTIP (Trans-Atlantic Trade and Investment Partnership) to enable free trade with the US and the European Union.
The cost of shipping a 20’ intermodal container from Ambarli, Turkey to Long Beach, CA is $1563.
36 million people in Turkey use the internet, which accounts for only 46% of the entire population. With a 4.5% industrial growth rate, and a pretty evenly dispersed economy, Turkey is making great strides in technology. 13
COUNTRY SELECTION
SRI LANKA
SINGAPORE
LOCATION SUSTAINABILITY LABOR LAWS TECHNOLOGY TRADE AGREEMENTS COST
14
FIRST CHOICE
SINGAPORE
SECOND CHOICE
SRI LANKA
THIRD CHOICE
TURKEY
TURKEY
SUPPLIER ANALYSIS
DOUBLE DRAGON INTERNATIONAL PTE. LTD.
SINGAPORE Cotton Knit Boxers
YESIM SATIS MAGAZALARI VE TEKSTIL A.S. TURKEY
Men’s Cotton T-Shirts Hugo Boss, Burberry
MAS ACTIVE TRADING PVT. LTD. SRI LANKA
Men’s Knits Patagonia, Lululemon
CHOOSING OUR SUPPLIERS
Double Dragon International PTE LTD in Singapore is a great “fit” for our company because of its options for men’s briefs and boxers. Their high customer approval makes it an ideal company to work with, as communication with the factory is integral to a good business relationship. Yesim Satis Magazalari Ve Tekstil in Turkey works well with FIT because of their other clientele and product assortment, which includes Hugo Boss, Burberry, and cotton men’s t-shirts, respectively. As a company, we value the quality of our men’s undergarments, and this factory produces the quality we desire. Our final factory, Mas Active Trading (Pvt) Ltd., in Sri Lanka, specializes in men’s knits. Their clientele, including Patagonia and Lululemon, proves that they produce garments of a high standard that we will be happy with.
15
STRATEGY PUBLICATION COUNTRY SELECTION 1
SINGAPORE Benefits: Free Trade, Good Sustainability Initiatives,
2
Lowest Cost, and Fastest Shipping
SRI LANKA Benefits: No Child Labor, Better Fair Wage, and Good Factory Standards
3
TURKEY Benefits: Cheap, Decent Trade Agreements, and Sustainability
SUPPLIER SELECTION
16
1
MAS ACTIVE TRADING PVT. LTD. Best Because: Clientele, Factory Ratings, Analytics
2
YESIM SATIS MAGAZALARI VE TEKSTIL A.S. Second Best Because: Clientele & Product Quality
3
DOUBLE DRAGON INTERNATIONAL PTE. LTD. Third Best Because: Product Assortment & Customer Service
STRATEGY PUBLICATION COST & PROFITABILITY SINGAPORE Singapore works diligently to leverage profitability in a few very efficient ways. Firstly, they have a free trade agreement with the United States. The United States-Singapore Free Trade Agreement was initiated January 1, 2004. This was formed through discussion in order to strengthen practices carried out by each country and agreement on a better business relationship. In addition to their free trade agreement, Singapore has a high quality, high speed shipping port. There are about 1,000 ships in the port at all times, with one arriving or leaving every 2-3 minutes. Up to 10,000 ships can be tracked at once through the Port Operations Control Centre. Singapore is connected to 600 ports in over 120 countries. Further, shipping costs are incredibly low with a relatively fast lead time, at $882.00 USD for a 20 foot container taking 25 days to ship to Los Angeles. This level of quality and efficiency keeps profitability high.
SRI LANKA Sri Lanka does their best to leverage profitability in a number of ways. The best feature of Sri Lanka’s profitability and quality is their employee wages. Although this fair wage makes manufacturing costs slightly higher, it creates an ethical quality that is unbeatable. There is also no child labor, making it a desirable country to source from for companies looking to keep production ethical. Shipping costs are slightly higher at $1338.00 USD, with a 33 day lead time to Los Angeles.
TURKEY A country on the verge of better profitability, but still a viable country to source from, Turkey is on it’s way to creating efficient factory and shipping processes. On December 22, 2015 The Turkish Minister of Economic Affairs Nihat Zeybekci announced that Turkey is showing interest, and plan on joining the Transatlantic Trade and Investment Partnership. The TTIP is a free trade agreement between the United States and the European Union. Turkey joining the TTIP will lower prices significantly, and with excellent factory standards, this addition will create a very profitable country to source from. However, it is still in progress, and currently, shipping from Turkey is $2000.00 USD with a lead time of 30 days.
17
STRATEGY CONCLUSION The countries selected are very efficient in cotton production as well as manmade fibers. Each country has the potential to create our product at the right price point at the right time with the correct fibers. Turkey has sustainable fabrics for production and Singapore and Sri Lanka have the resources via imports to create our product at a low cost.
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APPENDIX
costing
line plan
tech packs
20
25
28
rankings
guidelines
resources
44
47
51
19
UNIT COST STRATEGY MITCHELL Sales %: 25% Cost: $3.35 MU%: 88% Margin $: $16.65 Retail: $20
EVEREST Sales %: 25% Cost: $2.65 MU%: 89% Margin $: 22.35 Retail: $25
DENALI Sales %: 15% Cost: $5.05 MU%: 85% Margin $: 29.95 Retail: $35
MCKINLEY Sales %: 35% Cost: $3.79 MU%: 81% Margin $: 16.21 Retail: $20
20
COST SHEETS
MCKINLEY BOXER FABRICS Woven Lyocell
$3.50/yard
0.5 yards
$1.50
$0.06/meter
0.762 meters
$0.04
COMPONENTS Elastic
LABOR Sewing
$1.00
SHIPPING Packing
$0.25
Shipping
$0.50
Duty
$0.50
Total
$1.25
TOTAL COST $3.79 21
COST SHEETS
DENALI LOUNGE PANT FABRICS Organic Cotton
$0.55/yard
4 yards
$2.20
Drawstring Cord
$0.08/meter
1.143 meters
$0.09
Elastic
$0.06/meter
0.172 meters
$0.01
COMPONENTS
Total
$0.10
LABOR Sewing
$1.50
SHIPPING Packing
$0.25
Shipping
$0.50
Duty
$0.50
Total
$1.25
TOTAL COST $5.05 22
COST SHEETS
EVEREST BRIEF FABRICS Woven Lyocell
$3.50/yard
0.25 yards
$0.88
$0.06/meter
0.337 meters
$0.02
COMPONENTS Elastic
LABOR Sewing
$0.50
SHIPPING Packing
$0.25
Shipping
$0.50
Duty
$0.50
Total
$1.25
TOTAL COST $2.65 23
COST SHEETS
MITCHELL T-SHIRT FABRICS Organic Cotton
$0.55/yard
2 yards
$1.10
LABOR Sewing
$1.00
SHIPPING Packing
$0.25
Shipping
$0.50
Duty
$0.50
Total
$1.25
TOTAL COST $3.35
24
LINE PLAN MCKINLEY $20
DENALI $35
EVEREST $25
MITCHELL $30
25
MONTHLY UNIT PLAN MONTH
MCKINLEY
DENALI
EVEREST
MITCHELL
JANUARY
35
25
20
15
FEBRUARY
50
30
30
10
MARCH
40
20
20
15
APRIL
40
20
15
30
MAY
45
15
30
35
JUNE
30
10
35
40
JULY
35
10
35
45
AUGUST
50
25
40
45
SEPTEMBER
45
30
35
35
OCTOBER
50
20
40
45
NOVEMBER
65
45
60
50
DECEMBER
75
60
70
60
560
310
430
425
YEARLY TOTAL 26
MONTHLY % PLAN MONTH
MCKINLEY
DENALI
EVEREST
MITCHELL
JANUARY
6.2%
8%
4.6%
3.5%
FEBRUARY
8.9%
9.6%
7%
2.3%
MARCH
7.1%
6.4%
4.6%
3.5%
APRIL
7.1%
6.4%
3.4%
7%
MAY
8%
4.8%
7%
8.2%
JUNE
5.3%
2.7%
8.1%
9
JULY
6.2%
2.7%
8.1%
45
AUGUST
8.9%
8%
9.3%
45
8%
9.6%
8.1%
8.2%
8.9%
6.4%
9.3%
45
NOVEMBER
11.6%
14.5%
13.9%
50
DECEMBER
13.3%
19.3%
16.2%
60
560
310
430
425
SEPTEMBER OCTOBER
YEARLY TOTAL
27
TECH PACKS
MCKINLEY BOXER STYLE
DATE CREATED
Men’s underwear/boxers
3/7/2016
DESCRIPTION
Lyocell boxers with an elastic waist band
SKETCH
28
TECH PACKS
MCKINLEY BOXER STYLE
DATE CREATED
Men’s underwear/boxers
3/7/2016
DESCRIPTION
Lyocell boxers with an elastic waist band
COLORS
SKETCH
Mocha
Forest
Taupe
Slate
29
TECH PACKS
MCKINLEY BOXER STYLE
DATE CREATED
Men’s underwear/boxers
3/7/2016
DESCRIPTION
Lyocell boxers with an elastic waist band
MATERIALS LYOCELL
SWATCH
DESCRIPTION: A sustainable form of rayon that is man made from cellulosic materials, like wood or bamboo pulp. COLORS: Mocha, Forest, Taupe and Slate
ELASTIC
30
DESCRIPTION: Used in the waist, the elastic is used to allow the waistband to stretch. COLORS: White
SWATCH
TECH PACKS
MCKINLEY BOXER STYLE
DATE CREATED
Men’s underwear/boxers
3/7/2016
DESCRIPTION
SAMPLE SIZE
Lyocell boxers with an elastic
Medium (M)
waist band
SIZE SPECIFICATIONS
All measurements are in inches XS
S
M
L
XL
Waistband (relaxed)
24-26
26-28
30-32
34-36
38-40
Waistband (stretched)
26-28
28-30
32-34
36-38
40-42
12
13
14
15
16
20.25
20.63
21
22.8
25.13
Fly length
4
4.5
5
5.5
6
Fly width
2
2
2
2
2
SIZE
Length Leg opening
31
TECH PACKS
DENALI LOUNGE PANT STYLE
DATE CREATED
Men’s loungewear/sleepwear
3/7/2016
DESCRIPTION
Slim-straight lounge pants with a draswtring waist and cinched leg openings.
SKETCH
32
TECH PACKS
DENALI LOUNGE PANT STYLE
DATE CREATED
Men’s loungewear/sleepwear
3/7/2016
DESCRIPTION
Slim-straight lounge pants with a draswtring waist and cinched leg openings.
COLORS
SKETCH
Taupe
Slate
33
TECH PACKS
DENALI LOUNGE PANT STYLE
DATE CREATED
Men’s loungewear/sleepwear
3/7/2016
MATERIALS ORGANIC COTTON
SWATCH
DESCRIPTION: Woven cotton that is responsibly grown, doesn’t use pesticides and provides fair wages to workers. COLORS: Taupe, Black
DRAWSTRING CORD
SWATCH
DESCRIPTION: A woven cotton cord used for securing the waistband of the pants. COLORS: White, Gray
ELASTIC DESCRIPTION: Used in the waist, the elastic is used to allow the waistband to stretch. COLORS: White 34
SWATCH
TECH PACKS
DENALI LOUNGE PANT STYLE
DATE CREATED
Men’s loungewear/sleepwear
3/7/2016
DESCRIPTION
SAMPLE SIZE
Slim-straight lounge pants with a draswtring waist and cinched leg openings.
Medium (M)
SIZE SPECIFICATIONS
SIZE
XS
S
M
L
XL
Waist
28
32
34
36
40
Length
30
34
34
36
42
Leg opening
3
3.2
3.4
3.6
3.8
35
TECH PACKS
EVEREST BRIEF STYLE
DATE CREATED
Men’s underwear/briefs
3/7/2016
DESCRIPTION
Classic fit with a soft stretch and an elastic waist band.
SKETCH
36
TECH PACKS
EVEREST BRIEF STYLE
DATE CREATED
Men’s underwear/briefs
3/7/2016
DESCRIPTION
Classic fit with a soft stretch and an elastic waist band.
COLORS
SKETCH
Black
Forest
Taupe
Slate
37
TECH PACKS
EVEREST BRIEF STYLE
DATE CREATED
Men’s underwear/briefs
3/7/2016
DESCRIPTION
Classic fit with a soft stretch and an elastic waist band.
MATERIALS LYOCELL
SWATCH
DESCRIPTION: A sustainable form of rayon that is man made from cellulosic materials, like wood or bamboo pulp. COLORS: Forest, Taupe, Slate, Black
ELASTIC DESCRIPTION: Used in the waist, the elastic is used to allow the waistband to stretch. COLORS: White 38
SWATCH
TECH PACKS
EVEREST BRIEF STYLE
DATE CREATED
Men’s underwear/briefs
3/7/2016
DESCRIPTION
SAMPLE SIZE
Classic fit with a soft stretch
Medium (M)
and an elastic waist band.
SIZE SPECIFICATIONS
SIZE
XS
S
M
L
XL
Waist
11.25
12.25
13.25
14.25
15.25
Crotch width
5.375
5.375
5.375
5.375
5.375
Leg Opening
8.375
9
9.375
10.25
10.875
39
TECH PACKS
MITCHELL T-SHIRT STYLE
DATE CREATED
Men’s lounge shirt
3/7/2016
DESCRIPTION
Classic fit crew neck short sleeve tee.
SKETCH
40
TECH PACKS
MITCHELL T-SHIRT STYLE
DATE CREATED
Men’s lounge shirt
3/7/2016
DESCRIPTION
Classic fit crew neck short sleeve tee.
COLORS
SKETCH
Stark
Forest
Taupe
Slate 41
TECH PACKS
MITCHELL T-SHIRT STYLE
DATE CREATED
Men’s lounge shirt
3/7/2016
DESCRIPTION
Classic fit crew neck short sleeve tee.
MATERIALS ORGANIC COTTON DESCRIPTION: Woven cotton that is responsibly grown, doesn’t use pesticides and provides fair wages to workers. COLORS: Stark, Taupe, Forest, Slate
42
SWATCH
TECH PACKS
MITCHELL T-SHIRT STYLE
DATE CREATED
Men’s lounge shirt
3/7/2016
DESCRIPTION
SAMPLE SIZE
Classic fit crew neck short sleeve tee.
Medium (M)
SIZE SPECIFICATIONS
SIZE
XS
S
M
L
XL
Chest
40
41
42
43.5
45
Length
27.25
28.25
29.25
30.25
31.25
Armhole
4.5
5
6
6.5
7
Bottom hem
39.5
40.5
41.5
43
44.5
Sleeve Length
7.75
8
8.25
8.5
8.75 43
COUNTRY RANKING
SRI LANKA TOTAL: 73 AVERAGE: 6.63
44
SINGAPORE TOTAL: 90 AVERAGE: 8.18
TURKEY TOTAL: 76 AVERAGE: 6.90
SUPPLIER RANKING
DOUBLE DRAGON PTE. LTD. TOTAL: 59 AVERAGE: 7.38 MAS ACTIVE TRADING PVT. LTD. TOTAL: 71 AVERAGE: 8.86 YESIM SATIS VE TEKSTIL A.S. TOTAL: 65 AVERAGE: 8.13
DOUBLE DRAGON PTE. LTD. (SINGAPORE) ABILITIES (8): Well-established import and export company for sourcing for a variety of garments and apparel since 1986. Works with a range of woven and knitted products. CAPACITY (7): Sales volumes of around $5 million and cooperates with more than 20 supplier factories. Minimum order of 2,000 units required for underwear products. LEAD TIME (9): 23 Days to L.A. QUALITY (7): 100% guarantee on quality, provides experienced quality controllers at each factory. CUSTOMERS (6): Variety of customers as their products include menswear, womenswear, children’s clothing, red wine, and more
SOURCING GUIDELINES (8): Honor human rights and promote ethical trade standards; bans use of unsafe chemicals, specifically in underwear products, and bans animal testing. Also have Protect Our Planet initiative which focuses on responsible use of chemicals, minimizing waste, and encouraging recycling. SERVICES OFFERED (7): In addition to manufacturing, offer design unit, quality unit, and merchandising unit which covers labeling and packaging. STRATEGIC OUTLOOK (7): Overall, has good social responsibility initiatives, a variety of services, and shorter lead times. However, such large portfolio of production could affect overall quality / concentration on product.
45
SUPPLIER RANKING MAS ACTIVE TRADING PVT. LTD. (SRI LANKA)
YESIM SATIS VE TEKSTIL A.S. (TURKEY)
ABILITIES (10): $1.6 billion conglomerate and one of the world’s most recognized Design-to-Delivery Solution Providers in the realm of Apparel and Textile Manufacturing.
ABILITIES (9): Employs over 2,000 people, carried out over a total of 325,000 square meters; One of the four largest fully integrated yarn to finished product facilities under one roof in the garment sector anywhere in the world.
CAPACITY (9): 48 manufacturing facilities placed across 15 countries and with over 76,000 people involved in the operation; 160 million pieces and partnering in 24 launches in 2014
CAPACITY (8): 50 tons of knitted products; 60 tons dyed; 100,000 meters of printed f a b r i c ; 1 5 0 , 0 0 0 pieces of garments; and 100,000 pieces of home textiles.
LEAD TIME (7): 30 Days to L.A.
LEAD TIME (7): 30 Days to L.A.
QUALITY (9): High quality, top products; integrated use of updated technology and innovations; creates pieces for top brand names
QUALITY (7): High quality, and timely delivery; SA 8000 Certificate approved.
CUSTOMERS (9): Variety of customers including Nike, Chico’s, Lululemon, Hanesbrands, The Gap, Calvin Klein, and Victoria’s Secret
CUSTOMERS (9): Includes Burberry, The Gap, Banana Republic, Levi Strauss, and many more top industry brands.
SOURCING GUIDELINES (10): Global reputation for ethical and sustainable working environment. Tireless effort towards women’s empowerment. Works with Thurulie- the world’s first purpose build eco manufacturing plant. Rated LEED Platinum by the US Green Building Council and has been profiled as a Global Best Practice in Sustainability. Community growth.
SOURCING GUIDELINES (8): Has Green Factory initiatives- prevent and reduce sources of pollution, and implement industry best practices and standards. Also focuses on minimizing health risks, and promoting health and safety standards within factory settings. Also has programs in place to train personnel for quality work experience and knowledge.
SERVICES OFFERED (8): Creates intimate wear, active wear, and swim wear. Additionally, offers fully integrated supply chain from design to delivery. Has own fabric division.
SERVICES OFFERED (9): Knitting, Dyeing Printing, Finishing, Apparel, and Home Textiles; Apparel includes sewing, ironing, quality control, packing, and the packaging process.
STRATEGIC OUTLOOK (9): Overall, well recognized with top industry customers as well as great initiatives that align with social and environmental guidelines. However, lead times are longer and no free trade agreements exist with this country.
STRATEGIC OUTLOOK (8): Overall, the supplier is reputable and provides good quality products. Additionally, features strong guidelines dealing with social and environmental issues. However, there are longer lead times and higher costs.
46
GUIDELINES: OUR CSR
ENVIRONMENT Recently, Corporate Social Responsibility (or CSR) has evolved to encompass a number of categories, from being socially responsible for people in communities where companies do business to finding the best way to become completely sustainable and leave no carbon footprint. In an effort to create a more socially responsible company, FIT is starting with the basics of CSR and finding innovative ways to be not just environmentally friendly – but environmentally respectful and sustainable. There are three major components to our Environmental Policy at FIT: Products, Practices and Innovation.
PRODUCTS
INNOVATION
FIT products are made with careful consideration to the environment. We use materials like Lyocell (a type of rayon derived from cellulosic wood pulp), Modal (another type of rayon made partially from wood pulp as well as synthetic materials) and Organic Cotton. But ensuring that our products are made from responsible materials is just the beginning. We ensure that the manufacturing process is as environmentally stable as possible by keeping close communications with our factories.
By creating environmentally sustainable products and ensuring that our selling practices are as responsible to the environment as they are our customers, there’s only one more aspect to be concerned about: the future. Making sure that there is an environment for future generations to enjoy is one of our top priorities. Following Patagonia’s 1% initiative, FIT will donate 1% of our annual revenue to various research and development agencies to ensure that future environmental problems have real life solutions today. 47
PRACTICES We at FIT don’t believe in Greenwashing. We’re not just creating “Green” products for the sake of being trendy. We genuinely care about the environment. To prove this, we’re making all of our facilities as sustainable as possible with the end goal to have the first retail business with zero Carbon Footprint. To take our company in the right direction, we plan on taking the following steps: 1. Sustainable energy: Our corporate headquarters as well as our retail operations will be powered by wind turbines and solar energy. Any excess energy we generate can be sold to electric companies to help offset additional carbon footprints. 2. Recycling Programs: We want to recycle as many recyclable materials as possible - and that includes our products! All or our retail operations will have collection places for any unwanted FIT products and clothes that can be reused or recycled. 3. Employee Transportation Initiatives: To increase interest in decreasing air pollution, FIT offers a 5% bonus every month for employees who use public transportation or carpools.
WORKPLACE FIT cares that our workplace is safe, equal, and free of unfair treatment and discrimination. All genders are to receive equal pay, benefits, and treatment in our work place. The positive and secure environments in which our product is developed, produced and marketed are crucial to creating a product of superior quality and ware for our consumer. FIT believes our workplace and employee happiness is directly connected with our consumers’ happiness.
SAFETY
EQUALITY
FIT guarantees that its workplace environment is as safe for our workers both physically and personally as possible. In our factories, FIT ensures that all safety regulations are enforced and promotes weekly audits to verify the factories ongoing safety. Corporately, FIT cares about its employees’ safety from sexual harassment and poor treatment. All employees must follow a strict code of conduct to ensure a well ran operation.
We feel that all employees should be treated equally. Race, gender, and sexual orientation have no place in deciding how a person should be treated or paid.
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PAY & BENEFITS All employees of FIT receive fair and just wages that allow quality of life. All overtime will be paid for and follow local guidelines.
TRANSPARENCY BUSINESS FIT strives to make sure the factories we do business with are not only sustainable but also completely ethical in all their practices.
RELATIONSHIPS FIT strives to create long-lasting, personal relationships with the factories and the owners.
HONESTY FIT also wants our customers to get what they pay for and to see why each item costs as much as it does.
COMMUNITY FIT strives to actively engage and interact with the world around us. We believe, as a company, it is our responsibility to give back and make a difference. We seek to not only partner with charities that are bettering people, the planet, and the community, but to also encourage and provide the opportunities for our employees and customers to take an active stance in doing good. FIT aims to better people, the planet, and the community. Being a men’s underwear brand, we seek to improve men’s wealth and well-being. We partner with the Movember Foundation, a global charity committed to men living happier, healthier, longer lives, by sponsoring special events and opportunities. Since FIT emphasizes sustainability, we seek to better the planet we live in. We work with the Conservation Fund to protect the land, water, and wildlife around us. To give back to the community, FIT also partners with charities like Project Home and Feeding America that seek to improve lives with needs like shelter and food which we so often take for granted. Not only do we as a company seek to make an active difference, FIT also encourages our employees and customers to become involved as well. We host multiple charity events at our headquarters, as well as provide paid volunteer days for our employees. To allow our customers to become involved and to help those in need, FIT donates gently used underwear to people in developing nations. Additionally, FIT underwear that is returned to us and unable to be donated is recycled and reused for other purposes instead of entering a landfill. 49
CONCLUSION Strong, stylish and sustainable. In brand, aesthetic and production, FIT revolves around these words. Through quality designs, a confident set of values, and a carefully selected group of countries and factories, FIT works its hardest to create a line of men’s underwear and loungewear that is comfortable, tailored, well made and stylish for a man who wants more than a plastic package of boxers.
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RESOURCES Ministry of Manpower: Singapore. http://www.mom.gov.sg/employment-practices/young-persons-andchildren. Web. March 6th 2016. Sri Lanka’s Middle path to Sustainable Development. United Nations Conference on Sustainable Development. June 20th 2012. https://sustainabledevelopment.un.org/content/documents/ 1013SriLankaRio+20.pdf. Web. March 5th, 2016. Sustainable Singapore Blueprint. http://www.mewr.gov.sg/ssb/. Web. March 6th 2016. Turkey Human Rights Report. http://www.ncbuy.com/reference/country/humanrights. html?code=tu&sec=6d. Web. March 6th 2016. Turkey’s Sustainable Development Plan: Claiming the Future. 2012. https://sustainabledevelopment. un.org/content/documents/853turkey.pdf. Web. March 6th 2016. Yesim Textile History. http://english.yesim.com/icerik/8/General-Profile/. Web. March 6th 2016. 2014 Findings on the Worst Forms of Child Labor in Sri Lanka: Moderate Advancement. http://www. dol.gov/ilab/reports/child-labor/sri_lanka.htm. Web. March 5th 2016. https://www.cia.gov/library/publications/the-world-factbook/geos/ce.html. Web. March 5th 2016. https://www.cia.gov/library/publications/the-world-factbook/geos/sn.html. Web. March 6th 2016. https://www.cia.gov/library/publications/the-world-factbook/geos/tu.html. Web. March 6th 2016. https://www.searates.com/. Web. March 6th 2016. http://www.noobstore.com/boxers-size.shtml. Web. March 8th 2016. http://www.calvinklein.com/shop/en/ck/customerservice/men-size-guide. Web. March 8th 2016. http://www.masholdings.com/overview.html#overview. Web. March 5th 2016. http://www.doubledragonintl.com/index.php?mod=index&act=Main&nid=9. Web. March 3rd 2016. https://www.searates.com/reference/portdistance/?A=ChIJE9on3F3HwoAR9AhGJW_fLI&D=15873&G=12117&. Web. March 4th 2016. https://www.cia.gov/library/publications/the-world-factbook/. Web. March 5th 2016. http://www.worldfreightrates.com/ https://panjiva.com/shipment_search/company?permanent_id=28446479&type=all_profile http://sg104081757.fm.alibaba.com/ https://panjiva.com/Yesim-Satis-Magazalari-Ve-Tekstil-Fabrikalari-A-S/28330538?q=underwear. WEb. March 1st 2016.
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Shandy Frey, Taylor Miller, Ashlee Scott, & Kristin Terrana FASM 420 / Winter 2016 / SCAD