SUPPLY CHAIN CONCEPT - COMPANY GAUGE - SCAD by Ilina Tewari

Gauge LXFM | 720

Supply Chain Management LXFM 720 | Prof. Grace Canepa

Bhuvi Kalra | Ilina Tewari Rohan Srivastava | Supriya Dhaka

CONTENTS GLOBAL SUPPY CHAIN

14 4

EXECUTIVE SUMMARY INTRODUCTION

COMPANY OVERVIEW MISSION AND VISION CORE VALUES

TARGET CONSUMER

PRODUCT ASSORTMENT 2

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SOURCING GUIDELINES ENVIRONMENTAL IMPACT COMMUNITY IMPACT ETHICAL IMPACT

SOURCING STRATEGY COUNTRY ANALYSIS PERU HONDURUS INDIA BANGLADESH

126

PLACEMENT STRATEGY WAREHOUSING, LOGISTICS AND DISTRIBUTION SUPPLY CHAIN PROVIDER SELECTION

FINAL STRATEGY SUMMARY

140

PRODUCT CLASSIFICATION

CONCLUSION

COUNTRY SELECTION

APPENDIX

SUPPLIER SELECTION

BIBLIOGRAPHY

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01. EXECUTIVE SUMMARY This book brings together our efforts to develop a global sourcing strategy for Gauge – a sustainable womenswear t-shirt company designed by Bhuvi Kalra, Ilina Tewari, Rohan Srivastava and Supriya Dhaka at the Savannah College of Art and Design. Inspired and Created with the main objective of providing clothing to young and urban women in line with latest trends –to meet their daily and occasional needs, with quality garments at an affordable price. The company’s main obejective is to maintain quantity over quality and ensure ethical practices are visible at every step within supply chain. Over ten weeks, we formulated an extensive approach to manufacturing four styles of women’s t-shirts in Peru, Honduras, India and Bangladesh. The exercise involved an in-depth research into each country’s economic, political and social conditions along with the state of their apparel and textile industries. The on-going trade relations were a focal point into deciding tariffs and schedules and overall costs of each style of

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t-shirts. Risks were analyzed and contingency plans were formulated to help us understand how we can better manage them; without compromising manufacturing cycles, timely shipments and com m itm ent to the cus tom er. Picking the right supplier in every country was a decision made keeping in mind several factors – their capabilities, services offered, risk management abilities, current clientele and adherence to our sourcing guidelines. We based our headquarters in Atlanta, Georgia with our distribution centre based in Savannah, which holds home to one of the biggest port in U.S.

This helps in making our supply chain management effective as they utilize direct routes from respective supplying countries ( Pe r u , H o n d u r a s , I n d i a ) t o Savannah. In addition, our selection of global logistics and transportation services that ensure timely flow of product from ncept to consumer. With sustainability as Gauge’s guiding light, our company strivesto create best womenswear t-shirt in the industry by building strong and long-term relationships with our global suppliers.

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02. INTRODUCTION Our supply chain strategy for Gauge will take you through our Brand Overview, Strategy Development Process, Strategy Development, Sourcing Strategy and Distribution Strategy. The Brand Overview will discuss our values, mission and vision, our ideal customer, price points and product details. Following this is our Strategy Development process that will include country reports and ranking of Peru, Honnduras, India and Bangladesh. Followed by a detail cost analysis undertaken to identify best country to manufacture the four styles of t-shirts in. Next we jump on to Sourcing strategy, outlining explainantions of our chosen country and suppliers with a detailed line plan and placement strategy. Lastly, we include our Distribution Strategy that showcases our channels of distribution along with our selected logistics companies.

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COMPANY

03.

OVERVIEW

Created with the main objective of providing clothing to young and urban women in line with latest trends. The main objective is to meet their daily and occasional needs, with quality garments at an affordable price. Our products are available through e-commerce worldwide with a clear mission - to be present in all cities in the world. This was decided after an intensive market research as it was not feasible to open a brick and mortar storefor our intial limited product line. It speaks to our target consumer and helps our company to value its mission and vision by maintaining sustainability and building a loyal customer base.

“We never want to settle for less, with qualilty. But our designing speaks, less is more”

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The success of the company is built on creativity, innovation and the

excitement of making immediate impact by using organically sourced natural fibers. Although we’re new and growing in the industry, breaking new ground is important. We’re competing for every single customer’s heart, and we work hard to be their first choice. Every day. Everywhere. Intial product line is focused on four essential t-shirt silhouettes form tank top to full sleeves. A classic t-shirt is a must-have in every women’s wardrobe that can be dressed-up or down according to the occasion or personal style. Hence we decided on launching our company with a product assortment focused on daily essentials and making casualwear interesting and fun.

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AGE 28 YEARS OLD STATUS UPPER MIDDLE CLASS INCOME $60,000 PER ANNUM

VISION

MISSION

VALUES

Our vision centers to be first choice in retail women clothing and create a truly global brand through ecommerce that provides sustainable clothing at affordable price. We envision in bringing Simplicity, Longevity and Quality through our products which allow our consumer to have sense of belonging along with comfort.

We use the power of fashion to help consumers express their individuality and fit in—while standing out. Our brand has an incredible eye for what’s next in fashion and to accelerate the advent of sustainable clothing at an affordable price to exceed our customer’s expectations.

We as a brand highly value our value system & abide by it in every way possible whether it is encouraging farmers to stick to organically grown fibre or being transparent to their customers and making sure they are part of the community and contribute to it in whatever way possible. Gauge is not only ethically responsible but also trendy and minimalistic in designing approach thus creating their own niche in the market

EDUCATION MASTERS IN MASS COMMUNICATION EMPLOYMENT LIFESTYLE BLOGGER INTERESTS TRAVELLING, COOKING, GARDENING AND PAINTING TECHNOLOGY USAGE IPAD, IMAC, IPHONE MEDIA CONSUMPTION HIGHLY ACTIVE ON SOCIAL MEDIA - INSTAGRAM

SHOPPING HABITS REGUALR E-COMMERCE SHOPPER, FIRST ONE TO TRY NEW PRODUCTS

TARGET

CONSUMER

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We as a brand target forward thinking contentious and loyal consumers that are ethically conscious and wouldn’t compromise on quality, design and comfort.

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PRODUCT ASSORTMENT

04. Gauge product assortment encapsulates two ranges â&#x20AC;&#x201C; Perennial (Everyday Wear) and Fashion (Minimalistic Designs with Smart Detailing). At the beginning of the product launch, Gauge wishes to primarily focus only on perennial range and gradually moving into the fashion. We have chosen four essential silhouettes to begin with â&#x20AC;&#x201C; V neck T-shirt Full Sleeve & Half Sleeve, Tank Top & a A-line Quarter Sleeve variation. All the products are manufactured using organic cotton that are grown from non-genetically modified plants and minimal use of fertilizers and chemicals. Since we believe in premium quality and Longevity of product, Gauge would be using long fiber cotton to minimize pilling and maintain a longer life cycle of the garment. And, also focus on reducing waste in contributing to the society.

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05.

SOURCING

GUIDELINES Sourcing guidelines reflect companyâ&#x20AC;&#x2122;s mission, vision and core values. We strictly abide by our guidelines to ensure complete transperancy and provide high-quality products. In order to sustain our supply chain efficiency we will audit all collabarating suppliers twice ayear. Gauge undertakes to have its business conducted in an eco-friendly manner, encouraging the preservation of bio-diversity and the sustainable management of the natural resources. We abide by our guidelines and strive to ensure complete transparency. In order to make our supply chain efficient and glitch free we would be auditing our supply base twice a year. Our supplier base is strictly regulated by our third-party auditors â&#x20AC;&#x201C; D&B, SEDEX and SECU.

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AUDIT Sustainability Our all business partners are contractually required to adhere to our Vendor Code of Conduct. Sourcing Subcontractors to the factories are included in this process. Quality Assurance Before production, a factory must go through a rigorous Quality Assurance inspection. Social Audit Initial social audit takes place prior to production

FACTORY APPROVAL PROCESS We partner with suppliers who respect local laws and share our dedication to utilizing the best practices in human rights, labor rights and workplace safety. AUDIT FREQUENCY Any new production facility will undergo an audit before we developÂ product at the new facility. Any facility with which we have an existing relationship typically undergoes a semi-annual ,while an audit date is not provided to factories ahead of time, we would typically offer a two-week window during which the audit will take place.

ETHICAL

IMPACT

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CHILD LABOUR Gauge will not tolerate the use of child labor by its vendors .For us we don’t accept anyone to be below 16 years INVOLUNTARY FORCED LABOUR Gauge will not tolerate the use of convict, indentured, slave, bonded, or other forced involuntary labor, including human trafficking, either directly or indirectly, by its vendors, or by any subcontractors utilized by its vendors HARASSMENT OR ABUSE Vendors shall treat each of their employees with respect and dignity. HEALTH AND SAFETY Vendors must provide employees with a safe, clean, and healthy working environment, including living and eating facilities WORKPLACE Drinking water should be available 24/7. Safety equipment should be worn at all times (i.e. gloves). Broken windows/glass will not be accepted . Obstruction of emergency exits. First aid kit violations. Exposed electrical wiring/damaged wiring. Fire hydrants not properly charged and/or expired. HOURS OF WORK/OVERTIME Employees work hours must be reasonable and in compliance with local laws and standards with no regularly scheduled work weeks in excess of 60 hours.

SOCIAL

IMPACT

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ENERGY AND CARBON LEED certification for key supplier facilities Increased use of renewable energy in facilities by key factories, including the use of environmental boilers and other practice. WATER Striving to contribute to the ongoing industry-wide goal of zero discharge of hazardous chemicals Increased use of recycled water. MATERIAL Recycling programs and address issues related to hazardous chemicals Nontoxic dyes to be used for dyeing All fabric composition has to tested by TUV All are suppliers are required to incorporate Fair Trade Certification for the natural fibers they are using.

ENVIRONMENTAL

IMPACT

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06.

SOURCING STRATEGY Gaugeâ&#x20AC;&#x2122;s global sourcing strategy is foundation for our companyâ&#x20AC;&#x2122;s success as our core value is to provide complete transparency from concept to consumer. We will ensure that each step of the strategy is taken into account, be it cost, feasibility, benefit and risk. Our sourcing strategy comprises of country analysis, supplier analysis, placement and ranking of these countries and suppliers. Then moving on to final strategy formation with deciding on logistics, warehousing and distribution.

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COUNTRY

ANALYSIS

Gauge aims to serve the consumer the best quality T-shirts in the market. In order to achieve that, we need to partner with the very best suppliers and vendors. The first step to build our sourcing strategy is to determine which countries to conduct business with. We researched several countries globally and narrowed it down to three. Peru, Honduras, India and Bangladesh were evaluated based on quality of sourcing fabrics, manufacturing abilities and country stability. The analysis is an essential part to understand the future outlook of apparel industry in each country to make the best suited choice to create a long-term partnership with our suppliers.

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COUNTRY PROFILE

PERU

Peru is located in the west central part of South America. It encompasses an area of 1,280,000 km. It is the 19th largest country in the world and bordered to the north by Ecuador, to the south by Chile and Bolivia, to the east by Colombia and Brazil and to the west by the Pacific Ocean. Lima is Peru’s capital, as well as the country’s most populous city. The city of Lima is located on the coast of the Pacific Ocean with the largest seaport of Callao Peru’s rich and varied heritage includes the ancient Incan capital of Cuzco and the lost city of Machu Picchu. The Peruvian Sol (SOL) has been the currency of Peru since 1991, when it replaced the inti. The nuevo sol (symbol S/.) is divided into subunits called céntimos, much like the US cent or the British pence, with S/.1 equal to 100 céntimos. As of 2019, Current exchange rate for SOL is S/. 3.29 which equals to one dollar. Spanish is the main language throughout Peru, although most highland Indians are bilingual, with Quechua being their preferred language and Spanish their second tongue. The predominant religion is Roman Catholic consisting of 81.3% , but there is a scattering of other Christian faiths.

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PERU: PEST-ANALYSIS POLITICAL

ECONOMY

Peru is a Presidential Republic led by President

Peru’s GDP has been steadily increasing since 2014

Martín Vizcarra who is the 67th President

which was fluctuating past five years before that.

of Peru appointed on March 2018 after the

Despite the political challenges, GDP growth is

resignation of Pedro Pablo Kuczynski amid

expected to reach 4.1% in 2019 because of a rebound

allegations of corruption, Along side recently

in manufacturing production and a recovery of

appointed in 2019, Prime Minister Salvador del

public and private investment and consumption.

Solar. Under the new governance, Political risks

Progress in social and transport infrastructure

are diminishing due to low unemployment. In

projects will remain a policy priority together

the beginning of this year unemployment fell

with the control of inflation, which will remain

to 5.7% , a five-year low , leading to improved

within the central bank’s target of 2.0% plus or

social stability in Lima and other major cities

minus 1.0 in 2019. Peru’s Government has decided

in Peru. President Martín Vizcarra support

to take a bold action by taking a part in the UN’s

towards public referendum(December 2018)

2030 Agenda for Sustainable development. Peru

against anti-corruption has lead to improving

is one the 192 countries taking on the challenge

public sentiments towards the government. In

by implementing all of sustainable development

addition, Due to accusation of corruption and

Goals (SDG) by 2030. Part of this challenge is

collusion with the Brazilian company Odebrecht,

incorporating sustainability throughout different

The Office of the Attorney General is continuing

industries. The tourism industry is said to be

with the prosecution of officials connected to

heavily benefit Peru as eco-tourism which has

the Odebrecht scandal. Vizcarra is a part of the

become a massive revenue driver because tourists

political party – The Popular Force / Peruvians

enjoy travelling in Peru without compromising

for Change

which supports higher foreign

the environment. The influx in tourism means

investments , cuts in government subsidies and

more jobs will be created for Peruvians, these SDG

open trade which works well for the textile

goals benefit both industry and locals

exports. The United States and Peru share a strategic partnership based on the shared values and interests of democracy, security, mutually beneficial trade, and human rights.

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PERU: PEST-ANALYSIS SOCIAL

TECHNOLOGICAL

As of 2019 , Peru comprises of 32.2 Million people

Peru’s Economic Growth is Impressive, But Tech-

- 49.9% female and 51.1% male. Social classes in

Industry is Still a Toddler. It has decided to

Peru are segregated into three major classes –

contribute 0.8% of its GDP towards technological

High , Middle and Low. The middle class is largest

advancement as compared to neighboring country

formed by 60% of the population and also expected

Chile which is contributing 3.8%. According to

to be fastest growing class by 2030. Unfortunately ,

The Economist Intelligence Unit’s Technological

Peru’s largest Issue is income inequality between

Readiness Ranking It moved from 73rd position

classes. As stated by Lima’s Chamber of Commerce

(out of 82 countries) to 69th place in the forecast

(CCL) - Informal work in Peru accounts for

period. Peruvian Government is taking measures

73% of employment and the government wants

to reduce the risk of bringing new technological

to tackle this issue with providing more formal

developments to market by developing a

employment opportunities for Peruvians.

comprehensive regulatory framework .After governments law approval in 2012 on electronic money (e‑money) Usage of E-commerce & M-commerce has seamlessly increased over the years, driven by young population(18-25 years.) with an internet usage rate of 77% . Movistar major telecommunications brand also invested 1.4bn (US$434m) last year to improve its fixed internet and mobile networks in Peru.

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PERU: LEAD TIME Peru has an advantage of easy accessibility from the Head office (Atlanta) to Lima which is about 6 hours (air transit time), minimum 9 days 14 hours (sea transit time) from the port of Callao (Lima) and 6 days (rail and road transit time). There are a few Peruvian holidays like Christmas Day, New Year’s Day, Peru’s Independence Day (July 28) and Battle of Anagamos (October 8) – The factories would be shut down which would also affect the lead–times. Transportation of goods is challenging during Peru’s monsoon season which is from November through April causes Landslides , Mudslides and Flooding. Peru is located in a seismic zone which is a part of the Earthquake zones hence it is very prone to frequent tremors as well as Volcanic Eruption which could lead to delays.

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PERU: CULTURAL INSIGHTS There are many cultural insights about

appreciate their business partners to

Peru - The most distinctive one is that,

dress smartly in business attire and be

People is Peru have a very ‘relaxed’

conservatively dressed. Greeting someone

attitude to time-keeping hence they are

in Peru is very informal – At the beginning

always late for meetings. In addition,

it might restrict to handshake which

Normal business hours in Peru are from

would eventually evolve in hug or kiss

8am until 6pm which might seem long

on cheek as the relationship strengthens.

but they tend to take extended lunch

Addressing with titles is also one of an

which lasts around 1- 2 hours - This is

important factor that needs to be kept in

very much a part of Peruvian culture

mind and calling them by their proper

and needs to be expected and tolerated.

title such as use señor/señora in business.

Peruvian are inquisitive people they tend

Peruvians also appreciate eye contact when

to pay a great deal of emphasis on building

having a conversation because it creates

relationships hence the meeting might

an atmosphere of trust and respect. They

be lengthy, They would personally want

might also offer to have the their tradition

to know you and then extend to building

drink Pisco Sour post business meeting as

business relationship. Business in Peru,

a sign of gratitude.

majority case will be conducted in Spanish. Although many manager would be able to speak in English but It would be ideal to learn the language or use an interpreter to create stronger business bonds. Just like in most of the world, Peruvian also

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PERU: STATE OF APPAREL AND TEXTILE INDUSTRY Peru is an ideal destination for producing high-quality apparel. In addition to its 5,000-year history in textiles, the country continues to evolve to address current sector needs like speed to market and maintaining exceptional quality. Peru is an extremely resourceful and easy partner for the U.S. given its similar culture and little time difference. Moreover, Peru is a member of 19 free trade agreements including one with the U.S

and it continues to improve its processes

National Industry leader Martin Reano

and infrastructure. One of the major

placed a Seven year plan in 2017 to increase

competitive advantage of the Peruvian

and double the apparel export to $3 Billion

apparel industry which supports 350,000

and generate 200,000 jobs by 2025. The

jobs - Is its level of integration. The apparel

government also wants to incorporate and

production chain - starting with the fiber

business zones that would highlight duty

to the yarn and fabric manufacturing and

cuts and other incentives for foreign and

the making of garments, is fully integrated

local companies wanting to grown .Overall

making it easier for buyer looking for rapid

the Industry is growing because of internal

response. Peru’s export within apparel and

as well as government investment to

textile industry has been slowly growing

inject value into the chain in developing

major contribution for its growth goes

its animal fiber sector which includes

to its exceptional reputation for locally

vicuna and alpaca herds producing some

grown Pima cotton and Alpaca Yarn, safe

of the softest fiber in the world. Along with

working condition and livable wages for

that , government also tends to preserve

factory employees. Apparel Industry of

the traditional methods of creating yarn

Peru is the 6th Largest exporter after

through CTTC – Centro De Textiles

Mineral , Precious Metal , Metals , Vegetable

Tradicionales Del Cusco , It is an NPO that

and Animal Meals & pellets contributing

helps in preserving indigenous textile

1.35 Billion to the total exports of $44.8

industry of Peru. Cost of manufacturing

Billion. Out of which Knitted T shirt

is constantly increasing over the year and

solely contributes $346 Million which is

currently labor cost is 750 Peruvian nuevos

26% to the overall apparel Export followed

soles ($294) monthly and $2.08 hourly.

by Knitted Men’s Shirt 13% and Knitted sweater 8.6%. Peru’s textile committee of

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PERU: TRADE AGREEMENTS Peru and the United States have always had close proximities , They signed a bilateral free-trade agreement into law in February, 2009 called the Peru Trade Promotion Agreement (PTPA). This allows both parties to import and export goods between the countries duty-free. The qualify for PTPA a company must comply with Rule of origin which high lights that the garment must be manufactured and produced in one of the free trade countries Yarn fiber must originate in Peru or the United States to qualify for preferential tariff treatment. Dutyfree trade helps apparel companies in united states because it make the the cost of raw material sourced low. It would be highly advantageous for our company because Peru produces superior quality cotton at low cost. PTPA doesnâ&#x20AC;&#x2122;t have termination date which could lead to long-term stable relationship with U.S.

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PERU: TRANSPORTATION The Peruvian Port System has more than 100 port facilities, which are classified as marine, river and lake ports. In spite of such port facilities, maritime commerce in Peru is mainly concentrated on eight major coastal ports: Callao, Talara, Paita, Salaverry, Chimbote, San Martin (Pisco), Ilo and Matarani. Among these ports, Callao is the most important in terms of cargo movement, since 70 per cent of the total cargo in Peru is loaded and discharged in this port , It is also known for transporting ample of products including dry goods. For Shipment Iâ&#x20AC;&#x2122;ve shortlisted three top freight companies â&#x20AC;&#x201C; Maersk , Mediterranean Shipping company and CMA CGM. Maersk takes 16 days to reach compared to MSC 20 days and CMA CGM takes 21-23 days which looks to be the best option. .

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PERU: RISKS AND BENEFITS There are numerous risks and benefits that needs to kept in account, Although benefits clearly supersedes the risks with greater margin. PTPA trade agreement between United states and Peru which ensures 100 percent duty-free import and exports between these two countries. Many renowned brand are solely working with Peru because of the superior quality of Pima cotton and vertically integrated solution which helps in building long term relationship along with receiving high quality fabric at lower cost. Also, geographical distance of Peru and Atlanta as compared to countries like , India , Bangladesh and China which saves a lot of transit time. On the contrary , Although the cotton quality is highly superior which is attained at lower cost due to PTPA , In comparison to other countries like Honduras , Bangladesh , India and China is still substantially more. Also, the threat of volcanic eruption and it being a part of earthquake prone zone, It also has about 6 months monsoon season (November â&#x20AC;&#x201C; April) which increases the risk of landslide and flooding that might affect lead times that needs to be taken in consideration while doing business .

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PERU: CONCLUSION In conclusion, Peru should be the top most option for Gaugeâ&#x20AC;&#x2122;s - apparel production because it clearly outshines considering all the important factors that includes the Free trade agreement, Seamless Quality, Country stability, growing technological advancement and strategical geographical positioning.

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COUNTRY PROFILE

HONDURAS Honduras is a country in Central America (Tegucigalpa as the capital) with over 9 million people in population. Currency used in Honduras is lempira. Most part of Honduras is covered with mountains. Sex distribution ratio 50:50 with literacy rate touching 89%.

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HONDUR AS: PEST-ANALYSIS POLITICAL

ECONOMY

Being regarded as the murder capital of the world

Being the second most poorest country in Central

with the highest murder rate,the political unrest

America income inequality and unemployment

is a common scenario in this Central American

are some of the major concerns that the Honduras

country. Following the 2009 crisis and political

economy is facing at the moment. GDP per

turmoil Juan Orlando Hernandez took office in

capita has been only 2210 although the GDP

2014 with promises of zero tolerance approach

showed modest growth rate from 3.1% to 4%

towards organized and drug related crimes .To

from 2010-2017 .The economy relies heavily on

curb all these issues Mission to Support the Fight

US investment , as much as 15%cof the foreign

Against Corruption and Impunity(MACCIH)

direct investment is from US firms. Amid all this

was setup ,the main agenda of this reform was

Honduras has received a credit line from IMF for

to provide stability to the countries current

economic prosperity and stabilizing the county

scenario. A report claimed that around 17,500

structure Honduras 2020 in collaboration with

small business were closed due to extortion

McKinsey is one such move to boost the economic

threats ,with extortion and gang war being a

reform .The main agenda of the proposal is

major problem to deal with and because of that

to target four sectors mainly textile, tourism,

the number of immigrants moving to USA have

manufacturing and business and generate jobs

been on an increase which has has created the

as many as 600,000 and help them get a strong

tension between the two nations .Trumpâ&#x20AC;&#x2122;s take on

footing amongst their competitor. Appreciation of

the current scenario has been straight and has

dollars against the Honduras Lempira will be an

threatened to stop negotiations over NAFTA and

added advantage for us in getting the cost in place

cut down the financial aid which is estimated

and getting that extra edge over our competitors

to be around $180 million .However CAFTA has

,as of now the exchange rate stands at $1 is equal

been a plus for the country. All in all Honduras

to 24.53 Honduras Lempira.

political system has been on a rocky road and their relations with US in recent times is worsening but them being a part of renowned organizations such as WTO ,UN help them stabilize their international relations.

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HONDUR AS: PEST-ANALYSIS SOCIAL

TECHNOLOGICAL

A country with over 9 million people ,the

Honduras is undergoing a rapid emergence as an

population growth has been steady accounting

important technology ecosystem with startups

for 1.7% with a balanced male to female ratio of

dominating the market place .Being in the middle

99.41 males to 100 females. Honduras is a low

of the American continent this geographical

middleincome country that faces major challenges,

position gives it a competitive advantage

with more than 60 percent of the population living

compared with other countries. Honduras has

in poverty (2018). In rural areas, approximately

access to important interconnection points thus

one out of 5 Hondurans live in extreme poverty

increasing the internet connectivity. 4 Energy

,they have long been a victim of unemployment ie

generation in Honduras is largely done through

6.70 % due to poor infrastructure and extortion

thermal sources but as of now the solar energy

being the main problems surfacing the economy.

is gaining importance due to the reforms passed

The Honduras 2020 plan has been set in place to

by the government for renewable energy making

generate jobs and tackle the issues that have for

them the second largest market for renewable

long weakened the economy as a whole and place

energy in Latin America. All these factors will

Honduras as one of the fastest growing nation in

hold key importance for industries such as

the world.

apparel where in they can maximize the the benefits with the advanced technology they have at their disposal.

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HONDUR AS: LEAD TIME Honduras is prone to many natural disaster such as hurricanes, flooding and earthquakes. Drought and forest fires are also common. Holidays also play a major role in the ascertainment of the lead time and as far s Honduras is concerned national holidays (Americas day, Holy week etc.) and the extended holiday week in October are of great importance to be considered while planning the delivery of the shipment. However because of the strategic location of Honduras over its Asian competitors the lead time to ship a product is comparatively low i.e.48-72 hours and via air transport its 3 hours. For Gauge the lead time of Honduras works out perfectly in this dynamic and fast movingenviornment and hence the production can be planned closer to the consumption thereby having a competitive edge.

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HONDUR AS: CULTURAL INSIGHTS

Hondurans are hospitable and gracious

placing more emphasis on relationships

hosts and like most American counter

than conducting a business transaction.

parts they shake hand and hold an eye

Building personal rapport holds key for

contact to greet while in the country side

any business organization and dealing

men tends to lower their heads as a sign of

with vendors in Honduras it is important

respect and two women patting each otherâ&#x20AC;&#x2122;s

for gauge to have there personal rapport set

upper arm with both hands as a greeting.

so that they have an assurance of long term

Hondurans are very expressive and may

business relation. As far as punctuality and

touch with an elbow to pay attention.

business etiquette, Hondurans tend to be

There is significance of hierarchy and

more relaxed than Americans. Waiting for

an authorization style is used in most

meetings is not unusual, but this approach

business ventures. Titles plays a major role

to scheduling should not necessarily be

in addressing .A person with a doctorate

taken as discourtesy or disinterest. The

needs to be addressed as Dr or professor

best way to communicate is through email

in order to avoid to be less offensive .These

and text because most companies donâ&#x20AC;&#x2122;t

conducts have to be kept in mind by Gauge if

pick up unidentified numbers so for Gauge

they are planning to source with Honduras

personal email and text are two most

for a healthy relation. Honduras are quite

efficient means to communicate .Although

social so generally before a business deal is

Honduras and American share many

closed it is important to have preliminary

similarities and differences but its in the

discussions for building rapport. Hence,

common interest of both to respect each

business negotiations tend to be slower

others etiquette for building long term

and more drawn out in Honduras,

relationships.

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HONDUR AS: STATE OF APPAREL AND TEXTILE INDUSTRY Hondurasâ&#x20AC;&#x2122; textile and apparel sector is one such sector that has been growing despite of the political and economic turmoil and has been able to generate international investment. Honduras is a very successful exporter of textiles and apparel, and has developed quite a competitive and complete cluster of companies in that industry. With Honduran exports accounting for 3.4 percent of the total U.S. import market by value, the country is the seventh largest provider textiles and apparel to the U.S., after China, Mexico, Vietnam, Indonesia, India, and Bangladesh. US is Honduras leading destination for trade with 58%of the export going to USA and exporting $2.6 billion and thus agreements such as CAFT-DR holds great importance. Associations such as AHM have played a key role in the maturing of the the textile industry by vertically integrating the industry and helping them to work parallelly with the market. The two key factors for Gauge for shipping the products in US is the cheap labor rate ie $1.5 in comparison to $21.35 in USA and the shipping time when compared to their competitors ie 48-72 hours.

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HONDUR AS: TRADE AGREEMENTS The Dominican Republic-Central America

the product should come from the member

FTA (CAFTADR) is the first free trade

country and if possible a document to

agreement between the United States and

solidify the proof. The yarn forward rule of

a group of smaller developing economies

origin sates that the yarn from which the

.Combined, the countries in the CAFTA-DR

fabric is made should be from the member

would represent the United States’ 16th

state. The De Minimis rule states that up to

largest goods trading partner, with $53

10% of weight of fibers or yarns in apparel

billion in total (two way) goods trade

articles can be non 10 originating without

during in 2015. Exports totaled $29 billion

loosing its original state. Short supply list

while imports totaled $24 billion. The

states that if a fabric stated is not available

U.S. goods trade surplus with CAFTA-DR

in the member country then it can be

countries was $5 billion in 2015. According

outsourced CAFTA DR is important to both

to the Department of Commerce, U.S.

the countries as it will help Honduras to

goods exports to CAFTA-DR supported an

increase there trade with developed nations

estimated 134 thousand jobs in 2014. The

like USA and thereby increasing their GDP

trade agreement helped countries to get

whereas from the perspective of USA they

foreign direct investment, strong trade and

would be able to get cheap imports . Gauge

economic stability for the foreign countries.

will benefit from this as they will allow

CAFTA removes tariffs and merchandise

them to be cost effective and efficient at the

processing fees on trade. Though the main

same time because of the strategic location

criteria for countries under this agreement

of the Ports of Honduras.

to be eligible is to follow the “Rule of Origin” which states that the main component of

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HONDUR AS: TRANSPORTATION In Honduras there are a total of six international ports. Puerto Cortes port in Honduras is the only deep water port in Central America Puerto Cortes is the only deep water port in Central America and is the regions largest and best equipped ports. It is ranked 36th in terms of volume of trade It has 24 hour service, with modern roll-on and roll-off and containerized facilities. The portâ&#x20AC;&#x2122;s sophisticated container handling equipment ensures efficiency and competitive shipping costs to the US. For the purpose of shipping the goods from Honduras: Maersk line, Mediterranean Shipping Company and Libra are the best options available . Taking into account everything Maersk is the best option available with a price point of $1735.

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HONDUR AS: RISKS AND BENEFITS There are various risk and benefits that have to be taken into consideration while deciding whether to produce t- shirts in Honduras or not. Honduras as a country has been taking initiative to strengthen the market standing amongst their competitors and one such initiative is Honduras 2020 that plans on uplifting the economic reforms and strengthening the whole system. But Honduras has many drawbacks that needs to be considered such as extortions,corruption,low level citizen security and political unrest. The second most prominent risk that can be controlled are the natural disasters and the norms of having extended holidays that can delay the delivery schedule. Lastly the threats that are being imposed by Trumpâ&#x20AC;&#x2122;s administration because of the alarming rise in the number of immigrants and Honduras to a large depends on the US economy for its growth and GDP generation. But despite of all this Honduras can be considered as one of the most apt country for importing T shirts for Gauge because of majorly two reason: cheap labor wage rate and the strategic geographical location. One major point that needs to be considered is CAFTADR that helps Honduras to provide duty free goods to USA.

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HONDUR AS: CONCLUSION Honduras should be considered as Gauge vending partner majorly because of the cost effectiveness due to labor wage rate and CAFTA-DR, ethical supply chain sourcing guidelines -Honduras 2020 and finally the geographical location that helps us to work closely with the delivery dates we have.

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COUNTRY PROFILE

BANGLADESH

Bangladesh is a combination of the Bengali words, Bangla and Desh, meaning the country or land where the Bangla language is spoken. The country formerly was known as East Pakistan. Bangladesh straddles the Bay of Bengal in south Asia. To the west and north it is bounded by India; to the southeast, it borders Myanmar. The country emerged and holds the position of being worlds second largest textile and apparel exporter while enjoying the status of least developed country. The report highlights characteristics of Bangladesh and gives the viewer an insight of the overall conditions in Bangladesh mainly for considering it for manufacturing of apparel and textile goods.

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BANGLADESH: PEST-ANALYSIS POLITICAL

ECONOMY

In spite of having favorable for RMG sector with

The Bangladeshi focuses on textiles, which

having low labor cost, duty free export facilities

represented USD 31 billion in 2018. A risk factor

to 27 European Union countries and 10 developed

for the clothing industry is the gap between local

countries, this sector is facing negative impact

supply and demand of cotton (Dhaka Tribune) the

in business operations due to unstable political

inflation rate closed at 6% in 2018 and is projected

state.Moreoever , owing to some industrial

at 6.1% in both 2019 and 2020 In the last financial

accidents and deserters in recent years like April

year, FY18, the Export Promotion Bureau (EPB)

2005- 64 workers killed in Savar etc. showing

states that Bangladeshâ&#x20AC;&#x2122;s overall exports grew by

the corruptions involved in the entire structure.

5.81%, reaching $36.67 billion, owing to the growth

The US duty free trade privileges order suspends

in apparel exports. The garment exports as per

Bangladeshâ&#x20AC;&#x2122;s under the terms of trade program

EPB registered an 8.76% growth in this fiscal

called GSP, designed to promote economic growth

year, which was 1.51% higher than the set target.

in developing countries suspecting Bangladesh not

The average applied tariff rate is 10.7%.

taking steps to afford internationally recognized rights to workers. The sector is gaining bad image in international platforms making it hard to get aids and trade agreements positions.

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BANGLADESH: PEST-ANALYSIS SOCIAL

TECHNOLOGICAL

Bangladesh has been facing social instability in

The manufacturing technology of garment

recent years. No doubt there is very or negligible

production has been changing from labor intensive

communal rights, but mass strikes and crime

to more sophisticated and capital-intensive

rate is increasing. Since the rise in prices, the

production. This change creates dissatisfaction

general public has become conscious towards

for the lower skilled workers because of their

their spending and is facing a decrease in their

inability to adapt to the new manufacturing

disposable income. They are saving less and as a

process. Work dissatisfaction reduces the work

result the growth in the bank deposits has slowed

performance and in turn company performance is

down. Due to the political, economic and law &

negative .On the other hand the positive relation

order situation being very uncertain, there is lack

to technology change include improvement of

of trust found in the people of Bangladesh on the

task significance, salary increase and the quality

financial institutions. Another aspect that adds to

of supervision

it is that people are less educated and unaware of how system works so rumors create great panic that result in problems in financial sector.

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BANGLADESH: LEAD TIME The topography is predominantly a low-lying floodplain. About half the total area is actively deltaic and is prone to flooding in the monsoon season from May through September. It is subjected to a variety of natural disasters including hurricanes, earthquakes. Also, the industry is largely dependent on agricultural produce which further is dependent on various natural factors thus making it more volatile. The Textile sector is fully depended on gas and electricity. The issue of gas-power crisis is very old for the industry. The entrepreneurs are backtracking due to the crisis of gas supply, one of the fundamental utilities for production. New industries are not expanding. The pace of investment has slowed down. If uninterrupted gas-power supply is not guaranteed, it will be difficult to achieve the export target of $ 50 billion by 2021 and moving further. Due to the gas crisis, the factory boiler is being run by diesel. It costs too much. Diesel based boiler unit costing is 46 Taka. On the contrary for gas run boiler maximum unit cost is three and a half Taka. In addition, Bangladesh business operations also experience delays due to celebration of multiple holidays (21+ Holidays a year) including Durga pooja, Eid ul-fitr, Buddha Purnima etc. The company would have to account for extra time within the lead time of production because both natural disasters and holidays would disrupt the business pipeline. However, the growth of the apparel sector and technological advancement in Bangladesh along with development in infrastructure is a sign of improvement in the lead time making it a country to be considered for importing from. Moreover, availability of abundant cheap labor and cost affective methods of production makes it attractive for many global houses like H&M, Walmart etc. for their product manufacturing.

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BANGLADESH:

CULTURAL INSIGHTS

The citizens of Bangladesh embed

serve as guidelines. There is a significance

their cultural values in all aspects

of hierarchy in business culture and

of communication, negotiation and

decisions are only made from top down.

presentation within their business

Many Bangladeshi business people

operations. Bangladeshis are quite

have a fair knowledge of English. In the

implicit/indirect communicators. They

presence of foreigners, Bangladeshis may

tend to communicate in long, rich and

unintentionally converse in Bangla. This is

contextualized sentences which only

not usually intended to appear exclusionary

make sense when properly understood in

or discourteous. Educational qualifications

relation to body language. It is important

are highly valued in Bangladesh. Be sure

for people who come from implicit/

to let your counterparts know (in a humble

direct cultures to understand that their

manner) of your qualifications should you

communication styles may be seen as rude

have any. Social and business customs

and the information provided inadequate.

in Bangladesh tend to be more strongly

Meetings in Bangladesh are generally the

observed and formal than in Australia.

place where decisions are disseminated

Avoid having a â&#x20AC;&#x2DC;know-allâ&#x20AC;&#x2122; approach

rather than made. They will usually be led

towards your Bangladeshi counterpart.

by the most senior present who sets the

Bangladeshis will most likely be wary of

agenda, the content, and the pace of the

expatriates who push strong opinions and

activities. Meeting structures are not very

may interpret this as a belief that their

linear in Bangladesh. There may be an

customs and methods of doing business are

agenda and a starting time, but they only

superior to those of Bangladeshis.

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BANGLADESH: STATE OF APPAREL AND TEXTILE INDUSTRY As global demand for cheap clothing rises rapidly,

RMG sector is going to play a major role

Cambodia, India, and Vietnam. Out of

Bangladesh’s position as the second biggest exporter in

in it. Bangladesh has set itself a target

Bangladesh’s 166 million people, 31 percent

the world continues to hold strong, which is mainly due

of achieving apparel exports worth $50

live below the national poverty line of two

to its large population and low labor costs. Bangladesh

billion by 2021, and it seems to be on the

dollars per day. There are a number of issues

plans to get the middle-income country status by 2021, and

right track. In the last financial year, FY18,

at play, including lack of unity among the

the Export Promotion Bureau (EPB) states

16 trade unions, political pressure by the

that Bangladesh’s overall exports grew by

industry owners, loopholes in the national

5.81%, reaching $36.67 billion, owing to the

labor laws and misunderstanding about

growth in apparel exports. The garment

practical living wages and theoretical

exports as per EPB registered an 8.76%

minimum wages. 14 to 16% growth is

growth in this fiscal year, which was 1.51%

seen in the textile exports and the growth

higher than the set target. Bangladesh

is even more predicted in the future as

Knitwear Manufacturers & Exporters

well. More and More emphasize is laid on

Association, BKMEA; the Apex Trade

agricultural productivity so that the raw

Body to represent solely the Knitwear

material procurement is done domestically

Sector of Bangladesh which supports the

which future leads to shorting of lead time

empowering of the industry. Many aids

and better control over the supply chain.

are also provided to the textile industry

Thus Bangladesh textile and apparel

for making the working condition better

industry is still seeing growth but still

and also for the growth of the industry.

there are certain loopholes that need to be

The biggest strength that Bangladesh

looked after as these are the things that

has over its competitors is its cheap and

are pulling the industry backward and also

vast workforce. The minimum wage in

affecting the productivity of the sector.

Bangladesh is lower than that in China,

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BANGLADESH: TRADE AGREEMENTS Bangladesh’s textile industry has been part of the trade versus aid debate. The encouragement of the garment industry of Bangladesh as an open trade regime is argued to be a much more effective form of assistance than foreign aid. Tools such as quotas through the WTO Agreement on Textiles and Clothing (ATC) and Everything but Arms (EBA) and the US 2009 Tariff Relief Assistance in the global clothing market have benefited entrepreneurs in Bangladesh’s ready-made garments (RMG) industry. The United States introduced the Tariff Relief Assistance for Developing Economies Act of 2009 designated Bangladesh as one of the 14 least developed countries (LDC), as defined by the United Nations and the US State Department, eligible for “duty-free access for apparel assembled in those countries and exported to the U.S.” from 2009 through 2019. The Bangladesh Garment Manufacturers and Exporters Association (BGMEA), an industry lobby group, claimed that in 2008 alone Bangladesh paid US$576 million as duty against its export of nearly $3 billion, mainly consisting of woven and knitwear. Bangladesh Knitwear Manufacturers & Exporters Association, BKMEA; the Apex Trade Body to represent solely the Knitwear Sector of Bangladesh, most of the trade agreements done by Bangladesh are closely reviewed by this body for the empowering the sector. Bangladesh enjoys a good country relation with most of the countries and Not only have trade agreements with them but also receives aids from the countries like United States.

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BANGLADESH: TRANSPORTATION Bangladesh offers wide range of transportation and logistics services from air cargos to sea cargos etc. The port of Chittagong handles 90% of Bangladeshâ&#x20AC;&#x2122;s export-import trade, and has been used by India, Nepal and Bhutan for transshipment. Turnaround time of feeder vessels in Chittagong Port is now seven to 10 days while it is two days in Bangkok and one day in Singapore. The maritime transport costs account for 14 per cent of the cost of Bangladeshi textile exports to the US, compared to less than eight per cent for countries like India, Thailand, China and Taiwan. So, improving the turnaround time and to redesign the maritime transport costs are essential. Improvement of feeder vessels and port management will certainly contribute towards improvement of lead time. Considering many facts about the whole scenario, specialists have finally selected Sonadia as the appropriate location of deep-sea port. The mother vessels that cannot enter the Chittagong port at present will anchor at the deep-sea port. The present volume of 30 billion US$ export-import business will be doubled by 2020. Deep-sea port will play a vital role for the economic development of Bangladesh like Singapore, Hong Kong and Sri Lanka. China and other development partners have already expressed interest in helping Bangladesh regarding a building of deep-sea port. A deep sea port will definitely reduce the lead time to a great extent. Mongla is yet another important seaport which has trade links with the major seaports of the world and vessels from Australia, Europe, North America, Middle East and Asia arrive here. There are 149 shipping companies, agencies, logistics in Chittagong alone. Shipping rates in Bangladesh are economical and affordable.

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BANGLADESH: RISKS AND BENEFITS Bangladesh has a well-established textile industry which also has surplus labor at a cheaper wage rate. Moreover, the technologically advancement in the industry has greatly helped in efficiency in production and also less wastage of fabrics. Moreover, the increase in GDP and economic growth has also increase the investment in this sector. Thus, helping in empowering the textile and apparel industry largely. Bangladesh is no doubt the second largest exported of the apparels and textile yet there are large number of risks involved in exporting and manufacturing the goods from Bangladesh. The natural disasters like flooding and low agricultural productivity affects the raw material procurement. Also, the instability in the labor unions and large number of strikes held in the textile industry can largely affect the supply of the goods. Moreover, the increasing demand for increase in wage rate can also increase the production cost as well.

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BANGLADESH: CONCLUSION Bangladesh seen as growing economy and the rapid increase in the textile and apparel industry along with technological advancement should be considered by our company for getting our products. No doubt Bangladesh has its own flaws, yet improvement is seen in every aspect of the country making it a potentially ideal country for being manufacture of our companyâ&#x20AC;&#x2122;s products. Moreover, the lower labor cost along with quality of products should be considered as we are emerging brand thus costs matters a lot.

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COUNTRY PROFILE

INDIA

An in -depth analysis of social, economic, political and technological state of India, in order to select India as a potential manufacturing hub for our company, Gauge. India, located in South East Asia surrounded by Arabian Sea, Bay of Bengal and Indian Ocean from three sides. It is a vast country and among the top developing nations in the world. It has a lot of diversity in languages, customs, traditions, and many other things. It is the 7th largest country by area and 2nd most populated country. India is in a period of unprecedented opportunity, challenge and ambition in its development. The main reason for growth of the country’s economy is its growing working class and their increasing income and increase in exports. ‘Make in India’ initiative by government aims to increase manufacturing sector in the country and create 100 million jobs in the coming years. It aspires to better the lives of all its citizens and become a high-middle income country by 2030.

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INDIA: PEST-ANALYSIS POLITICAL India is one of the most powerful countries in the world. Social tensions due to religious, caste and linguistic differences are common in India. Major area of concern is corruption, country suffers from a high level of corruption. It is not only money focused, there is lack of transparency in the system. In 2016, Government and Central Banks demonetized INR 500 and INR 1000 currency notes to stop the black money circulating in the market, however, the problem still continues as the government lacks strict policies to implement it and enforce change. In 2017, when the country was recovering from the shock of demonetization, a new bill was passed by the BJP, Goods and Service Tax (GST). The bill unified indirect taxes and made the process simpler and standardized the process. It is expected to increase consumption and contribute to an 8.2 percent growth in India’s GDP. GST has turned all 29 states and 7 union territories of India into one common market. It also reduced the cost of local production. It is expected to bring more businesses from the unorganized to the organized sector, thereby increasing efficiency and productivity and attracting more foreign direct investment (FDI). Paying taxes has become easier in India because of introduction of GST and digitization of processes. A fact that is captured

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succinctly in the World Bank Doing Business Report 2018. India improved its ranking on the Paying Taxes indicator in the report by 53 places. India is working towards building foreign relations and to grow the economy. “Make in India”, an initiative launched in 2014, by Prime Minister Modi, helped to grow different sectors like technology and manufacturing, and also promoted trade relations. India’s wealth lies in its urban population, but the majority of its voting power comes from rural areas which are most populated. India has great hopes to unite its people and create a sense of united nationalism in the coming years. The initiative is aimed to boost the Indian economy and the standards of living of the Indian population on a large scale. This involves the development of the traditional as well as the modern infrastructure, inauguration of new sectors to build grounds for foreign investments and to foster a mutual relationship with the government and the small or large-scale industries.By 2022, the government hopes to grow economically and empower 580 of its 640 million people with basic needs (Make in India, 2018). The act is also said to empower people who are below poverty line, as well as give the existing party voting power in the coming election.

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INDIA: PEST-ANALYSIS ECONOMIC India has the second largest workforce in the world

its another initiative called Digital India. India

after China. It is the hub for sectors like IT and

is also shifting its focus on renewable sources

business process outsourcing (BPO) because of its

to generate energy.. It is planning to achieve 40

well-educated and English-speaking population.

per cent of its energy from non-fossil sources by

The strongest asset for India is its young working

2030 and plans to increase its renewable energy

age population, which is expected to grow up to

capacity from to 175 GW by 2022. The economy is

67.51% in 2026, providing significant and sustained

rooted in its agricultural sector, which employs

economic growth. It remains one of the fastest

almost 50% of the workforce, and is considered the

growing and the least affected by global turmoil. The

second largest producer of cotton. Indiaâ&#x20AC;&#x2122;s form of

growth is projected to be in 7.2 to 7.5 percent range

currency is called the Rupee, and as of April 15th,

for the FY 2018-2019. India has already become the

2019, 69.17 Indian Rupees are equal to one USD

sixth largest economy shifting France below in

(Bloomberg, 2019). The Indian Rupee has been

the list and is expected to become the third largest

continuously depreciated against the USD and

in 25 years. The Make in India initiative made

has become the worst performing currency from

numerous foreign companies set up their facilities

the best performing one. RBI is taking measures

in India. The initiative is aimed not to only benefit

to stabilize the currency, but experts predict the

the investors, but to boost the manufacturing sector

rupee to slide more and get closer to 70 Indian

as well, which would increase the buying power of

Rupee per USD (Eurasia Review, 2018). A weaker

an average consumer, eventually increasing the

rupee is a good sign for manufacturing growth

demand and development. The expected growth of

and exports, as price of the exportable goods

manufacturing sector is 25 percent of GDP, currently

would be lower, the competitiveness of Indian

being 17 percent. Government is also focusing

products in foreign market would increase. For

on three main components i.e. creation of digital

our company, Gauge, it would work as a plus point

infrastructure, delivering services digitally and to

as the manufacturing cost

increase the digital literacy in the country through

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INDIA: PEST-ANALYSIS SOCIAL

TECHNOLOGICAL

India, known for its gigantic consumer market

India is one of the most technologically advanced

with a population of 1.2 billion people. It is a multi-

countries in the world. More and more tech giants

ethnic, multi-lingual and multi-religious country.

like Facebook, Microsoft, and Apple are investing

It faces a lot of communal and regional tensions.

in the country. With an advanced IT infrastructure

Caste system divides people based on their skin,

and highly skilled IT work force, India offer

family and location, creating a gap between the rich

enormous opportunities for entrepreneurs to

and poor. Accessible and affordable labor force is

embark upon technological projects such as

the major factor for many multinational companies

software development and upgrades, e-commerce,

moving their business operations to India. Textile

mobile apps, business solutions, and many more.

industry is the second largest industry to generate

India has already taken steps towards becoming

huge employment for skilled and unskilled

e-government by introducing Aadhaar, world’s

labor. Employs more than 45 million workers

largest biometrics database, with 1.2 billion

and contributed 15 percent to export earnings of

Indian residents enrolled till now. More than

India in year 2017-2018 (Brand India, 2018). It is

56% of financial services industry aim to engage

largest producer of jute, and second in silk and

into blockchain and make it a part of their core

cotton production. It is also at second number in

business, claiming to bring transparency and

global textile manufacturing.. India has number of

greater efficiency to their financial transactions.

problems like modern slavery, underage workers,

Government also aims to double farmers income

child labor, low wages, fixed term contracts, unequal

by 2022, introducing drone technology. Agriculture

pay and poor working conditions, which shows a

and public health are the two main areas where

lack of transparency in the textile business sector.

drone could make a lasting impression. In addition,

Even though India’s “Make in India” initiative will

delivery drones would help bring vaccines to

bring manufacturing jobs to millions of citizens, the

remote clinics to support public health campaigns

low wage nature of these jobs is cause for concern

on a just-in-time basis while maintaining necessary

for the future. However, Modi’s government is

temperature conditions.

coming up with new labor laws and reforms in 2019, but it is a slow process.

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INDIA: LEAD TIME India is second-most populated country with over 1.33 billion people, and the seventh largest country by area. It is a vast, populous and diverse nation with many different identities, languages, cultures and religions, vast differences can be seen between North and South India. India hosts six major climatic subtypes. The monsoon season begins from July and ends near September, which can affect the production lead time by hindering production, transportation and storage. Other natural causes include severe heat, droughts, earthquakes, floods and cyclones. India’s rich cultural diversity can also be seen through its festivals and holidays, which change region to region and religion to religion. Primary festivals are Diwali which is a Hindu celebration in October-November, Holi – the festival of colors celebrated in March and Eid celebrated by Muslims in May. National public holidays include Republic Day (26th January), Independence Day (15th August) and Mahatma Gandhi’s Birthday (2nd October). Although not government official holidays, Christmas Day and New Year’s Day are observed nationally. Workers are entitled to paid days-off during Festival (public and religious) holidays. These include memorial holidays and religious holidays. The main holiday season is usually October or November, depending on the dates for Diwali. Work can be shut for a week in some places during this festival.

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INDIA: CULTURAL INSIGHTS A flexible approach is important keeping

and usually love to indulge in small and

in mind how diverse the country is.

personal talks for relationship-building.

Business practices can vary by community

India and its people are accommodating

and region as India changes when we move

and flexible, they are less direct in their

from North to South. The work timings

communication style and would be

are similar everywhere, which is typically

hesitant to say what won’t work. Break

Monday through Saturday from 10 am to

timings are generally longer than US

5:30 pm, for lower level factory workers

standards, one-hour lunch break and two

and for corporate level, it is Monday

15 minutes tea breaks are must, which they

through Friday. Hindi and English are

end up compensating by working overtime

the official languages and the business is

and late nights as they consider work first

conducted using these two as they are the

priority, even over their personal life. India

most widely spoken languages amongst

follows a hierarchy system, which defines a

the communities. For workers, who are

person’s prospective role and status. They

generally local people, they speak in local

follow a more formal relationship between

language and it’s difficult to communicate

managers and staff. Workers in a team may

with them in English. Although punctuality

not even be aware of a deadline on a project,

is appreciated,meetings generally start and

as this is considered the responsibility of

end up late. Mostly because of the traffic

their supervisor. Business decisions won’t

jams, which is very common in India. The

happen unless a senior manager or member

meetings will be interrupted several times

is present. It is regarded as disrespect if

and the negotiations can be slower than US

a senior person/member is not greeted

standards. When meeting someone for the

first in a meeting. When negotiating

first time, it is common to be introduced to

agreements, expect a little delay. Decision

them by the third party. Being introduced

making is slow in India, decisions are

by a mutual acquaintance will place you in

never made quickly or lightly.

a good level. Indians are a very good host

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INDIA: STATE OF APPAREL AND TEXTILE INDUSTRY Indian textiles and apparels have a history of fine craftsmanship

textiles and clothing and the third largest

manufacturing, generate jobs and attract

and global appeal. Cotton, silk and denim from India are highly

producer of cotton (IBEF, 2018). The Textile

more FDIs. By coming up with projects like

appreciated internationally. With 45 million people employed

sector in India is dominated by women

‘Make in India’, Government is promoting

directly and 60 million people indirectly, the textile sector is the

workers, with 70% of the workforce being

FDI in the country. They are coming up

second largest source of employment generation in the country

women. Textile and apparel industry

with number of export policies. In May

after agriculture. India is also the second largest exporter of

are a major contributor to India’s GDP,

2018, textile sector in India recorded

contributing up to 7% of industry output in

investments amounting to US$ 4.19 billion.

value terms, 2% of India’s GDP and to 11%

The tariff war between US and China has

of the Country’s export earnings. India’s

benefited India and its exports. In June

overall textile exports during FY 2017-18

2018, US increased custom duties on many

stood at US$ 39.2 billion and is expected

Chinese goods, in reaction to which China

to reach US$ 82 billion in 2021. The size

did the same, increasing India’s export

of India’s textile and apparel market

to US by 12 percent. This increased the

recorded USD 108 billion in 2015 and is

exports from India, especially in apparel

expected to reach USD 223 billion by 2021

and textile industry. The future of the

(IBEF, 2018).Being the largest producer of

Indian Textile Industry looks promising,

jute and second largest producer of silk,

demands for export are increasing and

India has emerged as one of the largest

India has one of the largest Textile

producers and exporter of cotton in the

industry. It is also a source of low cost and

world with US$ 6.3 billion. It helps in

cheap labor, as half of its population is of

sustaining livelihoods of 5.8 million

working age. Majority of them are engaged

farmers and millions of people engaged in

in unorganized sectors or manufacturing

other activities like processing and trading.

units. China was perceived as a low-cost

India’s government is focusing various

production country, which is shifting to

policies on development of its textile sector

India now.

as it wants to make India a global hub for

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INDIA: TRADE AGREEMENTS India does not fall under any free trade agreement with United States. It falls under the U.S. trade preference programs such as the Generalized System of Preferences (GSP), which provides opportunities for many of the worldâ&#x20AC;&#x2122;s developing countries to use trade to grow their economies. GSP promotes economic development by eliminating duties on thousands of products when imported from one of the designated beneficiary countries and territories. India has benefited from GSP the most with representing 11% share of U.S. merchandise imports in 2018. However, as far as textiles are concerned, there arenâ&#x20AC;&#x2122;t any duty-free entries that would apply. One policy that India and U.S. have is the U.S-India Trade Policy Forum (TPF). It helps in moving towards a balanced trade relationship between both the countries. The objective is to increase trade between the two countries and decrease the deficits. It was established in 2005 to expand bilateral trade and investments. Both the countries emphasize on importance of having a transparent and predictable policy environment. Both countries simplified the requirements for imports and exports to facilitate cross border trade. Increased employment opportunities as well as stable exchange rate this year, helped India benefit through FDI.Both the countries recognized that legal, financial, information technology and accountancy services can be assets to Indian and U.S. companies and can facilitate growth in trade and investment. India has several bilateral trade agreements with other countries and within World Trade Organization (WTO). It is a part of AIFTA, ASEAN-India Free Trade Area. It allows tariff liberalization over 90% of products. India also is a part of SAFTA (South Asian Free Trade Area) and with the Modi government coming in, bilateral trade ties with Europe and Canada have become stronger.

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INDIA: TRANSPORTATION India has 13 major sea ports, 12 are government owned and one is corporate. Gujrat has two ports, The Kandla Port situated on Gulf of Kutch and another port is Mundra port. It is India’s largest private port. These are the hubs of major imports like petroleum, chemicals and iron. They also export grains, salt and textiles. Mundra port is the best port for transporting goods as it has distance advantages over other ports to most destinations like Rajasthan, Haryana, Punjab, Delhi-NCR, Uttar Pradesh, Madhya Pradesh, Jammu and Kashmir, Himachal Pradesh and Uttarakhand. It is closer to all the three suppliers chosen. It also offers inland connectivity via rail track, road network, airport and cross-country pipelines. Shipping Companies that operate from Mundra port to US ports (Savannah Port) – iContainers – a platform to compare rates for importers and exporters, manage maritime shipments quickly and easily from beginning to end. iContainers is headquartered in Barcelona, Spain. Our US office is located in Miami, Florida. Direct Shipment from Mundra port to Savannah port would take 24 days start to finish with cost around US$ 2364. (iContainer, 2019). Sreeji Coastal Shipping Pvt Ltd. – pioneers in field of coastal transportation by sea, serving the communities through fast, efficient and reliable cargo transportation. Direct Shipment from Mundra port to Savannah port would take 40 days start to finish with cost around US$ 2800. (Sreeji Coastal Shipping, 2019) APL – World’s leading ocean carriers, offers more than 120 weekly services, ports in over 70 countries all over the world. High quality intermodal operations with advanced technology, equipment and e-commerce. APL is part of CMA CGM Group, leader in worldwide shipping, founded in 1978, headquartered in Marseille. Direct Shipment from Mundra port to Savannah port would take 30 days start to finish and cost around US$2900. (APL, 2019)

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INDIA: RISKS AND BENEFITS India’s textile and apparel industry specializes in various textile products, which include t-shirts, knitwear, handicraft textiles, scarves, organic cotton, etc. Suppliers are not only diversified in specializations, but also in reputation. The Arvind Mill factory is known for manufacturing high-quality knits and denim and has won a variety of certifications and awards for sustainability. Most of the manufacturing units use high quality machines and equipment to produce goods. India has the second-largest labor force in the world. The workers are well-trained in their sectors. Growing number of young and working population implies abundance of potential and active workforce. This can lead to increase in savings in an eCommerce business by increasing profit margins. The “Make in India” initiative puts a lot of attention on uplifting manufacturing industry by investing in it significantly. Lack of developed infrastructure, especially in rural areas, could make transportation difficult. Rural areas have low power availability, which is a major drawback. Power is not available 24 hours and is expensive, which eventually decreases productivity and efficiency. Transportation is also fairly expensive and slow in India. Lack of transparency within India’s manufacturers is missing. It is often found that manufacturers pay workers unfair wages, working conditions are bad, and workers are exploited. Corruption is another main issue. It makes the ‘ease of doing business’ turn difficult. Another risk would be depreciation or appreciation of the currency. But 2019 shows a stable exchange rate which a plus point for the company in U.S. The exchange rate is favorable for USD as the most value of money is achieved.

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INDIA: CONCLUSION It is important to consider the political, social and economic status of India, understand the strengths of its apparel manufacturing and textile industry before choosing to manufacture the products. Country is taking its steps towards development, by cracking down corruption, standardization, new trade agreements and strict enforcement of policies. It is already in the process of becoming a global manufacturing powerhouse with the introduction of â&#x20AC;&#x153;Make in Indiaâ&#x20AC;? initiative. Manufacturing in India is a good option, as the cost of labor is comparatively cheaper, raw materials are easily available and accessible, the government is highly supportive as well. But one should also consider the points, that the infrastructure in the rural area is still not developed and transportation is an issue between the factory and the port. Country is moving towards transparency but there is still a long way to cover. Corruption is not uprooted completely and still exists in many sectors. These factors should be considered diligently as to before setting up a global supply chain in India.

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07.

PRODUCT

CLASSIFICATION

Gaugeâ&#x20AC;&#x2122;s harmonised tariff schedule code (HTS) for knit T-shirtâ&#x20AC;&#x2122;s is 6109.10.00. This specifically highlights cotton T-shirts, singlets, tank tops, and similar garments, knitted or crocheted. There is generally a 16.5% duty tariff on these types of garments, but since Peru has the PTPA with the United States that duty tariff is eliminated. Gauge will be producing four types of cotton blend t-shirts under the 6109.10.00 HTS code (Figure 5, appendix). The products include a sleeveless A-line tank-top, short-sleeve V-neck t-shirt, ribbed jersey quarter sleeve t-shirt with round neck and then a full-sleeve V-neck t-shirt.

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08. COUNTRY

SELECTION guage COUNTRY RANKING

CRITERIA

PERU

INDIA

HONDURAS

BANGLADESH

Business Climate

Apparel Labor Costs

Transport Time & Cost

Government

Location

Risks

Social Stability

Sourcing Guidelines

Textile Industry

7.5

Trade Agreements

8 8 7 8 7 6.5 7 7.5 8 4

3.5

Trained Work-force

7.5

Socio-eco-political

8.5 98.5 9.0

7 92 8.4

6 73.5 6.7

Total Average

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7.5 8

86.5 7.2

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COUNTRY SELECTION After researching each of the countries, it is important to see how they compare to one another. This is the best strategy to determine which will be the best fit for manufacturing our products. By ranking each country in different categories on a scale of 1-10, we were able to get a better understanding of where the countries fell short by quantifying qualitative topics. Peru and Honduras were the best contenders for Gaugeâ&#x20AC;&#x2122;s sourcing strategy. Their respective free trade agreements with USA eleminate tariff costs of 16.5% that would need to be paid if imported from India or Bangladesh. Another factor is the neaeshoribg advantage which enables shipments to the U.S. within three days from Honduras and five days from Peru. This mitigates risk and gives Gauge a competitive edge above others to service consumers during high demand.

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In addition, same day communication gives Peru and Honduras the upper hand over its growing global competitor, Asia, which allows them to react to unforeseen manufacturing mishaps at a faster pace and thus reduce gaps within their supply chain. Honduras is the largest exporter of textiles and apparel in the America. Peru is the only country whose trade agreement with the U.S. instills environmental and working benefits for workers. Even though India and Bangladesh are successful with their growth in revenues and annual production, lack of transparency, child labour, poor working conditions and modern slavery are still present and do not abide by our guidelines. However, India does cater to key customers in USA which highlights an opportunity for us to manufacture in India by creating training programs that will help in building long-term relationships for them to reach our benchmarks and goals.

Our main focus is to be cost effective and reinvest the savings towards developing technology to produce a higher quality products and expand our product lines. Labour cost is cheapest in India and Bangladesh, while Honduras meets our all sourcing standards. With Peru we need to manage our production lines strategically to ensure our overall margin is balanced. Overall, Peru is the most beneficial choice of the four countries, followed by Honduras as a close contender. India and Bangladesh are being considered due to their future initiatives.

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09.

SUPPLIER

SELECTION

After completing the country analysis, we delved into researching the potential manufacturers in each country. Out of the three manufacturers researched one was identified as the most ideal. Comparison of the top manufacturer of each country was based on various factors such as lead time, sourcing guidelines, services offered and strategic outlook that would help the company reach its profits and goals set for the years ahead. The supplier ranking helped in identifying the top three choices that will maximise opportunities and minimise risk.

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SUPPLIERS

PERU

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SUPPLIERS

HONDURAS

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SUPPLIERS

BANGLADESH

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SUPPLIERS

INDIA

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SUPPLIER SELECTION

The leading supplier that ranked highest in all categories was

Ranking second was Elcatex in Honduras. They solely specialises

Hialpesa manufacturer in Peru. There focus is on quality more than

in knitwear and produces 280,000/day. They have implemented

quantity as they are known for organic Pima and Tanguis cotton.

ample technology across their supply chain. Most importantly

Their sourcing guidelines match with our ethical standards.

manufacturers are supported by Hondurasâ&#x20AC;&#x2122;s government. Arvind

Hialpesa The leading supplier that ranked highest in all categories was Hialpesa manufacturer in Peru. There focus is on quality more than quantity as they are known for organic Pima and Tanguis cotton. Their sourcing guidelines match with our ethical standards. Hialpesa focuses on women empowerment and Gauge as a company is impressed by factory being predominantly run by women. Their services focus on shrinkage control and are up to date with technological advancements.

Mills from Indian and Square Fashion Ltd. from Bangladesh ranked third and fourth respectively. As mentioned in the country analysis Indiaâ&#x20AC;&#x2122;s economy is booming and textiles and apparel sector is the fastest growing. The supply base in India is advanced as they produce organic and BCI cotton. Even though there are advancements in quality the future outlook of Bangladeshâ&#x20AC;&#x2122;s suppliers, they are yet to have strict regulations that eliminate child labour, unfair wages and unsanitary work conditions. In conclusion the next step is to come up with a sourcing strategy towards Peru, Honduras and India.

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PLACEMENT

10.

STRATEGY

After weighing the possibilities of conducting business in Peru, Honduras, India and Bangladesh, researching their top suppliers and calculating how many units we plan to manufacture in each country specifically. The final placement plan aims to minimise risk and maximise opportunities. The country and supplier ranking analysis helped us to build a solid foundation to decide where to product Gaugeâ&#x20AC;&#x2122;s T-shirts. The margin analysis further reiterated that Peru and Honduras have performed well consistently throughout each step to get to our final decision. As these two countries governments are focused to growing their respective textile industries which speak to our core values of quality. In order to determine the third country in the mix the third analysis ranked India higher than Bangladesh as they both have low labour costs but Indiaâ&#x20AC;&#x2122;s future outlook within their manufacturing infrastructure is working towards mirroring our sourcing guidelines.

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Honduras and Peru have very little

Honduras to be our largest sourcing

difference between them and both are

country involves a lot of risk and may

ideal for sourcing in their own way but

hamper the functioning of the business

considering everything into account Peru

and given the fact Gauge has just started

stands out for Gauge. Political stability,

their operations its a risky proposition.

better infrastructure, close proximity and PTPA trade agreement make them ideal sourcing location but giving this they have few short comings too such as high labour cost,taking into account everything still Peru stand out and as result 40% of our requirement is going to fulfilled by them. Honduras on the other hand have a lot of lucrative offerings such as CAFTADR,closest proximity and cheap labour . However the current scenario is not stable at the moment with extortion being very high,the extended holiday season and

India and Bangladesh are both on the similar lines with the textile industry still in its growing stage and political stability a major concern for businesses to invest ,but what makes India more suitable is there infrastructure and better code of conduct. After analyzing all the scenarios we have chosen Peru to do 40%, Honduras 35% and India to do 25%. This distribution strategy will not only ensure risk deduction but will also help us to keep the cost in check without compromising the quality.

prone to natural disasters thus keeping

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WAREHOUSE, LOGISTICS & DISTRIBUTION

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Warehouse, logistics and distribution is

customer returns. They should ensure the

the last step for our sourcing strategy

quality of the product is not tempered while

that will help Gauge in being cost effective

transporting. They should be excellent in

and help us provide customers with right

vendor-inventory management. As we are

product at right time. Gauge is currently

only focusing on e-commerce we want a

focusing only e-commerce and the service

company with strong infrastructure and

has to be on-point to serve the consumer.

vast placed distribution centres in the U.S.

To manage the predicted flow of product

as we would be producing in three different

with the constantly changing marker we

countries. The distribution company should

have to choose a logistics supplier that

be investing in advanced technology like

will support us from the point of origin to

RFID and OCR capabilities. It should have

purchase. The supplier must be strong in

a sustainable approach, high inventory

receiving goods, identification, inspection,

automation and mobile transparency in

verification, delivery and most importantly

order to suit Gaugeâ&#x20AC;&#x2122;s guidelines.

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They take control with precision based forecasting that helps with informations such as product availability, time in transit, customerâ&#x20AC;&#x2122;s shopping behaviour, eliminating excess inventory and supply chain planning, inventory remarketing and digitized handwriting.

Radial Services Radial services luxury apparel brands such as Levis, Guess, Kate Spade, Adidas, Aeropostale, Club Monaco, Huda Beauty, Marc Jacobs, Nine West, Spanx, Zara and Urban Outfitters. They use dynamic supply with demand function and forecasting and an inventory tracker.

Their order turn around is 2.4 average days intransit. 90% of North America has has deliveries in 3 days. They offer pick and pack services for customers based on their personal requirements. Some of their value added services are: customized packaging and gift wrap, personalization, marketing inserts, custom blending, embroidery, and kitting.

XPO logistics is an ideal company proving a 360-degree service to meet all client needs. They offer complete inventory management, crossing-docking, order management, D2D e-fulfillment, omnichannel optimization, reverse logistics, pick and pack, ticketing and labeling.

The cost per outbound carton for pick and pack is $2. Radial has warehouses typically in 11.7 mil sq feet in area, shipping to 85 plus countries from US fulfillment centers. Radial operates 26 fulfillment centers globally in 4 countries - USA, Canada, Germany, UK. Within US, it has 21 centers in the states of Kentucky, Nevada, California, Atlanta, Ohio, Illinois, New Jersey, Virginia

XPO Logistics XPO logistics Inc. is one of the worldâ&#x20AC;&#x2122;s ten largest providers of transportation and logistics services, headquartered in Greenwich, Connecticut. They are an international logistics, warehousing and distribution company currently in 1466 locations in 32 countries.

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Most importantly they have 24-hour visibility of product movement on an online service which would ensure even a newly established company like Gauge will be looked after with the focus and service needed. XPO have a wide variety of range of services to fit specific requirements such as storage, handling, flows, brokerage , safety and security. They success speaks to their turnover of 160,000 shipments and over seven billion of inventory units handled each day.

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UPS One of the biggest global supply chain provider. They provide transportation and freight services along with contract logistics, customs brokerage and consulting. Its headquarters in Atlanta, Georgia in the United states,and has an international presence with a footprint in 120 countries and 1000 locations. With a strong presence within the United states they provide 2,300 operating facilities. UPS boasts of three ground distribution centers-placed strategically in each costal area. Along with that, they own Worldhub airline hub and sorting facility located in Louisville, Kentucky.

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This helps them to strategically position the product close to their customers, which helps with speed Transit and lower overall transportation costs to ensure right amount of product to the right places at the right time to meet demand. They also boast of for inventory management, they provide bestin-class technology to improve inventory warehousing accuracy, centralized control across multiple facilities, perpetual inventory and replenishment schedules and multichannel distributions, e-fulfillment and direct-to-consumer services. Additionally, they offer value added services like EDI, price ticketing and product labeling among few others. These factors tie in with our brandâ&#x20AC;&#x2122;s requirements by providing VMI model, cross-docking, inspections, returnhandling and streamlining stock. With future expansion plans, UPS is a good choice for our brand as they provide site analysis and selection, supply chain modeling and network optimization, comprehensive logistics and distribution services. Theyâ&#x20AC;&#x2122;re a strong established supply chain provider with a success rate of $19.1 million daily global delivery volume, with same day delivery option and customers like Destination XL group and Endo International.

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SUPPLY CHAIN PROVIDER SELECTION Once completing our extensive country

they focus on quality over quantity as they

analysis we delved into reaching three

are known for organic Pima and Tangius

potential manufacturers in each country.

cotton. Their sourcing guidelines speak to

Of the three manufacturers researched

Gauge’s ethical standards as they provide

one was identified as the most ideal. By

onsite daycare for the children of working

comparing the top manufacturer of each

mothers as well as providie scholarship to

country based on essential factors such

their employees. They focus on shrinkage

as lead time, sourcing guidelines, services

control, and are constantly updating

offered, and strategic outlook that would

technological advancements inline with

help Gauge obtain its five and ten year plan

Peru government’s 2022. Squarefashion

. The supplier ranking aided to identify

ltd from Bangladesh ranked fourth and

the top three choices that will maximize

Arvind Mills from India ranked third. As

opportunities and minimize risks. The

highlighted in the country analysis its

leading supplier that ranked highest in

production capabilities are so vast and so

all categories was Hialpesa based in Peru.

spead across the country we did not feel

This vertically integrated supplier solely

the focus of specialization that we specified

specializes in knitwear across all product

in our sourcing guidelines. The supply

categories and produces 5500000/month.

base in India is advancing as they produce

In terms of innovation and sustainability

organic and BCI cotton. Even though

they have implemented ample technology

there are advancements in the quality the

across their supply chain which includes

future outlook of India ‘s suppliers are yet

Dyeclean. Most importantly Peru’s

to have strict regulations that eliminate

Government supports their manufacturers

child labor, unfair, wages, and unsanitary

initiatives and motivates them to obtain all

working conditions. In conclusion this next

objectives for Peru 2022. Ranking second

step has directed Gauge’s sourcing strategy

was the Elcatex manufacturer in Honduras.

towards Peru, Honduras and India.

Even though they produce 280000/day

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11.

FINAL STARTEGY

S U M M A RY

Sustainability as a concept has been enormously accepted and implemented by the apparel industry into their company. But Gauge aspires to inculcate a sustainable supply chain management starting from concept to consumer. We have chosen a supply chain strategy that is not only our mission and core values, but also meets every stringent aspect of our sourcing guidelines, so we can cater a high quality knitted T-shirt to our consumer. Our product range focuses on minimalistic designs that are assembled using knitted fabrics made from natural and organic fibers that are not only environment friendly but also cost effective.

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Gauge is committed to only sourcing ethical and responsible partners, After an extensive country and supplier research and analysis we have chosen to work in countries whose government support their textile industry and that have strong ethical practices within their company’s code of conduct & manufacturing process. Also, Have considered countries distance from Gauge’s Home Office situated in Atlanta. Finally, Gauge’s strategy focuses to partner with global logistics and distribution companies who best meet our company’s objective and thus act as a catalyst for us to excel at e-commerce.

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12. CON CLUSION Gauge, as a company has incorporated every aspect of design, sourcing, manufacturing, transportation and distribution to come up with a strong and responsible supply chain strategy. An extensive research and analysis is done to understand the importance of each step of supply chain. We began by choosing raw materials to produce the T-shirts. Organic cotton is a very important component for us and betterment of the environment and is a fundamental base to build our sourcing guidelines. Our aim is to be cost effective and innovative. We aim to reduce the waste sent to landfills and work for betterment of environment. We researched and analyses four countries, Peru, Honduras, India and Bangladesh and all are equally strong contenders. We examined all aspects including business climate, cost of manufacturing and labour, location and proximity to the U.S., sourcing guidelines, overall status of the apparel and textile industry, trade agreements and the socio-eco political environment.

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Peru, Honduras and India were selected as our final countries. Suppliers from each country were analysed and the strongest suppliers were selected . Selection was based on their abilities, production capacity, short leadtime, quality, globally acclaimed customers, certifications, compliance with our sourcing guidelines and positive strategic outlook. Final suppliers selected were Hialpesa in Peru, Elcatex in Honduras and Arvind Mills in India. To minimise risk and maximise opportunities we have divided production in

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Peru, Honduras and India strategically. All suppliers have strong infrastructures within their manufacturing and they strongly believe in producing high quality products like Gauge.

Today the fashion industry is riddled with fast-fashion brands and we aim to shift this trend towards providing high-quality T-shirts with sustainable approach. We believe our business practices would not mitigate

Our T-shirts would be packaged in sustainable

harmful environment impacts. Our sourcing

style and boxed in 20*20*20 inches cartons to

guidelines ensure to raise working standards

be loaded onto 40 feet high cube containers that

for workers and fair wages. We look forward

would be shipped to U.S. We selected UPS as our

to top the apparel market with our ethically

logistics and supply chain solution provider.

produced and manufactured high-quality and

They have warehouses and distribution centres

sustainable T-shirts for women.

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APPENDIX

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Placement Strategies

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Line Plan Gauge - Line Plan Peru LINE PLAN

STYLE #

NAME

SS20001 SS20002 SS20003 SS20004 TOTAL

QUANTITY 300000 300000 250000 150000

JAN Quantities 12500 13750 25000 12500 63750

FEB Quantities 15000 15000 22500 12500 65000

SUMMER SPRING / SUMMER MAR APR Quantities Quantities 17500 30000 17500 20000 17500 12500 7500 7500 60000 70000

MAY Quantities 30000 25000 17500 8750 81250

JUN Quantities 30000 40000 17500 8750 96250

JUL Quantities 30000 35000 17500 10000 92500

4/29/2019

DATE

AUG Quantities 25000 35000 20000 12500 92500

Fall/ Winter SEP OCT Quantities Quantities 35000 30000 35000 25000 25000 20000 15000 17500 110000 92500

HOLIDAY NOV Quantities 25000 25000 25000 17500 92500

DEC Quantities 20000 13750 30000 20000 83750

90% - Mark Up

TOTAL 300000 300000 250000 150000 1000000

$ $ $ $ $

Wholesale Per Unit 55.00 35.00 65.00 60.00 53.75

$ $ $ $ $

Wholesale Total 16,500,000.00 10,500,000.00 16,250,000.00 9,000,000.00 52,250,000.00

Cost Per Unit $ 4.77 $ 3.86 $ 5.47 $ 3.80 $ 4.47

$ $ $ $ $

Cost Total 1,430,400.00 1,157,160.00 1,367,500.00 570,000.00 4,525,060.00

Average

Margin $ $ $ $ $

Margin %

50.23 31.14 59.53 56.20 49.28

91.3% 88.98% 91.58% 93.67% $ 0.91

Average

Wholesale/Retail and costs should be based on the country where the product was first costed

Gauge - Line Plan Honduras

LINE PLAN

STYLE #

NAME

SS20001 SS20002 SS20003 SS20004 TOTAL

QUANTITY 300000 300000 250000 150000

JAN Quantities 12500 13750 25000 12500 63750

FEB Quantities 15000 15000 22500 12500 65000

SUMMER SPRING / SUMMER MAR APR Quantities Quantities 17500 30000 17500 20000 17500 12500 7500 7500 60000 70000

MAY Quantities 30000 25000 17500 8750 81250

JUN Quantities 30000 40000 17500 8750 96250

JUL Quantities 30000 35000 17500 10000 92500

AUG Quantities 25000 35000 20000 12500 92500

Fall/ Winter SEP OCT Quantities Quantities 35000 30000 35000 25000 25000 20000 15000 17500 110000 92500

NOV Quantities 25000 25000 25000 17500 92500

4/29/2019

DATE

HOLIDAY DEC Quantities 20000 13750 30000 20000 83750

90% - Mark Up

TOTAL 300000 300000 250000 150000 1000000

$ $ $ $ $

Wholesale Per Unit 55.00 35.00 65.00 60.00 53.75

$ $ $ $ $

Wholesale Total 16,500,000.00 10,500,000.00 16,250,000.00 9,000,000.00 52,250,000.00

Cost Per Unit $ 4.26 $ 3.42 $ 4.90 $ 5.40 $ 4.49

$ $ $ $ $

Cost Total 1,278,420.00 1,025,520.00 1,225,000.00 810,000.00 4,338,940.00

Average

Margin $ $ $ $ $

Margin %

50.74 31.58 60.10 54.60 49.26

92.3% 90.23% 92.46% 91.00% $ 0.91

Average

Wholesale/Retail and costs should be based on the country where the product was first costed

LINE PLAN

STYLE #

NAME

SS20001 SS20002 SS20003 SS20004 TOTAL

QUANTITY 300000 300000 250000 150000

JAN Quantities 12500 13750 25000 12500 63750

FEB Quantities 15000 15000 22500 12500 65000

SUMMER SPRING / SUMMER MAR APR Quantities Quantities 17500 30000 17500 20000 17500 12500 7500 7500 60000 70000

MAY Quantities 30000 25000 17500 8750 81250

JUN Quantities 30000 40000 17500 8750 96250

JUL Quantities 30000 35000 17500 10000 92500

Gauge - Line Plan India AUG Quantities 25000 35000 20000 12500 92500

Fall/ Winter SEP OCT Quantities Quantities 35000 30000 35000 25000 25000 20000 15000 17500 110000 92500

NOV Quantities 25000 25000 25000 17500 92500

4/29/2019

DATE

HOLIDAY DEC Quantities 20000 13750 30000 20000 83750

90% - Mark Up

TOTAL 300000 300000 250000 150000 1000000

$ $ $ $ $

Wholesale Per Unit 55.00 35.00 65.00 60.00 53.75

$ $ $ $ $

Wholesale Total 16,500,000.00 10,500,000.00 16,250,000.00 9,000,000.00 52,250,000.00

Cost Per Unit $ 4.84 $ 4.60 $ 5.52 $ 4.60 $ 4.89

$ $ $ $ $

Cost Total 1,452,720.00 1,380,930.00 1,380,000.00 690,000.00 4,903,650.00

Average

Margin $ $ $ $ $

Margin %

50.16 30.40 59.48 55.40 48.86

91.2% 86.85% 91.51% 92.33% $ 0.90

Average

Wholesale/Retail and costs should be based on the country where the product was first costed

Gauge - Line Plan Bangladesh

LINE PLAN

STYLE #

NAME

SS20001 SS20002 SS20003 SS20004 TOTAL

QUANTITY 300000 300000 250000 150000

JAN Quantities 12500 13750 25000 12500 63750

FEB Quantities 15000 15000 22500 12500 65000

SUMMER SPRING / SUMMER MAR APR Quantities Quantities 17500 30000 17500 20000 17500 12500 7500 7500 60000 70000

MAY Quantities 30000 25000 17500 8750 81250

JUN Quantities 30000 40000 17500 8750 96250

JUL Quantities 30000 35000 17500 10000 92500

AUG Quantities 25000 35000 20000 12500 92500

Fall/ Winter SEP OCT Quantities Quantities 35000 30000 35000 25000 25000 20000 15000 17500 110000 92500

NOV Quantities 25000 25000 25000 17500 92500

4/29/2019

DATE

HOLIDAY DEC Quantities 20000 13750 30000 20000 83750

90% - Mark Up

TOTAL 300000 300000 250000 150000 1000000

$ $ $ $ $

Wholesale Per Unit 55.00 35.00 65.00 60.00 53.75

Average

$ $ $ $ $

Wholesale Total 16,500,000.00 10,500,000.00 16,250,000.00 9,000,000.00 52,250,000.00

Cost Per Unit $ 4.61 $ 3.83 $ 5.38 $ 4.70 $ 4.63 Average

$ $ $ $ $

Cost Total 1,383,600.00 1,149,360.00 1,345,000.00 705,000.00 4,582,960.00

Margin $ $ $ $ $

Margin %

50.39 31.17 59.62 55.30 49.12

Average

91.6% 89.05% 91.72% 92.17% $ 0.91 Average

Wholesale/Retail and costs should be based on the country where the product was first costed

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Peru

guage SUPPLIER RANKINGS SUPPLIER RANKING

CRITERIA

HIALPESA

Comment

TEXTIL DEL VALLE

Abilities

BASIC TO FASHION Tshirt , Polo , sweatshirt , hoodies , dresses and pants

Capacity

8 10

550,000 pcs per month Competive and flexible

9 8

Very Informative Website includes all important information - Could simplify the structure for better understanding

Costs

Customer Service

PERU

Comment

BASIC Basic t-shirt, tank tops, henleys, through polo shirts, dresses, jackets and pants.

651,000 pcs per month Competitive - High Extremely Well organanized and up-to-date website.Provide all the important information

6 8

Customers

North Face , Guess Inc , Eastern Mountain Sport , Vince LLC

Vineyard Vines , Armani Exchange, Calvin Klein , Ralph Lauren , Lacoste , Lulu Lemon , Burberry

Lead-time

FLEXIBLE LEAD TIMES 40-60 Days

45-60 Days

Forward looking - Fully vertically intergrated sustainable practices Around 2085 employees including highly skilled engineers and technicians

Forward Looking and focus of technology innovationAround 2,377 employees including highly skilled engineers and technicians

Management

Quality

Services Offered

Strategic Outlook

Sourcing Guidelines

Total Average

102 8.5

First Suppliers to grow and offer organic cotton includes long organic tanguis and extra long staples organic pima. Primarily work with cotton fiber but also spin blends with polyester , viscose , alpaca and rayon. Fully Vertically Intergrated - Fiber , Spinning , Knitting , Dyeing & Manufacturing. Also , Screen Printing , Embroidery service Strong Custome Base, Sustainable and esteemed Knitwear manufacturer, Promoting women empowerment by hiring more women workers , Constantly improving product quality and cost effectiveness and Controlled Union certified for Organic cotton - OE 100 Certification & WRAP Certification for responsible business practice - Excellent to fulfill our brands expecttions

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Comment BASIC TO HIGH-END FASHION Knitwear Basic to highly specialized draped or design oriented T-shirts , Dresses , Tank Top & Jumpers , pullovers and cardigans. 125,000 pcs per month High Simple and very streamlined website although doesn't share adequate information certification , machinery used etc. Theory , Kate Spade , Free People, Chicco's Anthropologie , Mark Jacobs , Kenneth Cole , Rag & Bone , Tory Burch , Guess Inc , Armani , 75 - 105 Days Fast , Innovative and flexible - Established in 1990 but still a small scale manufaturer with 497 Employees but create focused design driven garment using superior quality

CRITERIA

Garments made with Tanguis & Supima Cotton (long length staples) , Alpaca , Modal and Silk

Vertically Interegrated garment manufacturing - Inhouse dyeing yarn and fabric , Knitting , Cutting , Laundary , Sewing , Embroidery , Finishing

Strong Custome Base , Good Reputation , technology innovationg - being in highly advanced machinery . Focuses on innvation rather than sustainability

WRAP & BASC Certification , IS0 9001 , ISO 14001 , Business School Complaince Initiative

Comment

GILDAN

Comment

PINEHURST

Comment

Abilities

T Shirts,underwear programs ,fleece sweatshirts ,pique shirts for men ,women and children

Knit tops,t shirts,vests,activewear,com pression garments,atletic apparels ,socks

T shirts,Knit tops and activewear

Capacity

280,000 per day

25000 per day

Costs

Deals with medium to high end consumers

Deals with mid to high level price ranged brands

Customer Service

Very informative website with all the essentials informations layed out.Great use of virtual tours to give an overview of the space.

Simple web layout with necessary information,although a more detailed version is required for better undersatnding

Customers

Lead-time

Management

Cut & Sew Garment Manufacuring

Strong Custome Base . Good supplier for creating highly designed oriented garment with using high quality fabric 70/1 pima cotton (fine counts)

7.5

Passed Social Responsibility audits by bureau veritas , intertek , fast retailing group and cerint but doesn't mention any information about certifications on the website

86.5

8.166666667

7.208333333

7 8 10

Extremely well organised with all the information required ,great use of video to explain the functioning of the organisation American apparel,Gildan,Under armour and Silks 30-45 days 51,000 employees globally with over 30 maufacturing plants in 7 countries

Adidas,Nike,Armani,Kennet h cole,Calvin Klein,Under armour 30-45 days More than 1000 dedicated worker lead by a team of experts

7.5 8 7

Garments are made out of organic cotton ,recycled polyester,cotton and polyester blends burnout and printed farics ,special fabric wahses

Highly advanced cutting and printing facility,they offer silk screening sublimation printing and heat transfers.All the cutting they perform is lazer for high level precision and have an embroidery unit in house

Vertically integrated unit with statof the art cutting facility with bierribies for efficient cutting ,printing facilities -r burnout, discharge ink ad glow out effect.Moreover they provide cut pieces and a variety of performance fabrics

Innovation and sustainability,focusing on dye clean using the biomass technology for dyeing.Working towards the betterment of the skills of workforce ,thereby increasing productivity and quality.

Sourcing Guidelines

Code of conduct ,WRAP cetifies,Oeko tex standard 100

Total

Average

7.583333333

6.75

Very fine counts - 70/1 in Pima Cotton. Fabrics made of 100% Peruvian cotton . And , also bend it with cotton, polyester, modal , alpaca , silk , linen and others.

JC Penny,Nordstorm,SanMar,Dickies and HBI 30 days More than 10,000 employees including highly skilled engineers and technicians.

100,000 per day Deals with retailers and and mid level price ranged brands

Garments are made with organic cotton ,cotton and polyester blends

Services Offered

HONDURAS ELCATEX

Quality

Scale of 1 to 10 with 1 being the worst and 10 the best

156

TEXTIL LIVES

Honduras

SUPPLIER RANKING

Strategic Outlook

Garments are made with US grown certified cotton

Vertically integrated unit with in house dyeing and spinning facility

Working towards the reduction of wastage and believing in recycling and reuse.Major emphasis is paid on scholarships to community and training employees for better performance .

7.5

Focus on workers well being and providing health benefits.Investment on technology for reducing lead time (state of the art computerized shipping department)

Code of conduct,WRAP certified,Standard 100,National Cotton Council,International Labour Organisation

Code of conduct,WRAP cdrtified

Scale of 1 to 10 with 1 being the worst and 10 the best

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India

SUPPLIER RANKING INDIA

CRITERIA

ORIENT CRAFT LIMITED

ARVIND MILLS

SHAHI EXPORTS PVT. LTD.

Abilities

Knits t-shirts, Blouses, Shirts, wovens, denims, sweaters, embroidery and laces

Knits, Wovens - Shirts, Trousers, Suits and Jackets, Denims, and Voile

Denims, Twill bottoms, Soft wovens, and Knitwear

Capacity

200,000 pieces per day

150,000 pieces per day

450,000 pieces per day

Costs

Medium to High

Low to Medium

Lead-Time

40-50 Days

30-40 Days

70-90 Days

Management

40,000 employees, 30 factories all over the country and more than 50 clients all over the world.

42,000 employees across verticals ranging from retail to advanced materials, environmental and social solutions to real estate, apparel to agriculture.

Operates in 65 state-of-the-art manufacturing facilities across 9 Indian states with a diverse workforce of over 100,000 people.

Quality

Organic Cotton, Recycled Polyester

Organic and BCI cotton, PCW and rope-dyed yarns processed sustainabil, tensel, nylon blends, modal, linen, multi-fibre blends, viscose, polyester

Organic, GOTS and BCI cotton, rayon, linen fabric and blends; from lightweight tops fabric to heavy bottoms fabric

Excellence in Cost Management and Quality Mgmt Award. Founded India’s most modern textile manufacturing units at Santej, near Ahmedabad. Spread over 450 acres and an investment over Rs. 1,000 crores, the plant was designed to produce high-value cotton shirting, bottoms and knitted fabric for international markets. Beginning 2011, Arvind has brought in some of the biggest global fashion brands like Calvin Klein, Tommy Hilfiger, Gap, Ed Hardy, Hanes, Nautica and Elle to India

Their vertically integrated operations, diversified product range, and a strong commitment to ethical operations and environment helps them serve their customers better. They have been awarded Best Supplier (Flexibility Provided and Growth Achieved) by Decathlon, Top-Factory Award by Carbon Performance Improvement Initiative, Germany, Excellence in Sustainability Award by H&M, Development Fair Product Innovation Award by Kohl’s and many more.

Aeropostale, GAP, Nautica, Tommy Hilfiger, Calvin Klein, U.S. Polo Assn

Works with local farmers to promote sustainable cotton, five year plan to improve organic cotton seeds, educate local members in community about negative effect of child labor, zero child labor ithin company, treatment and recycling of water, afety standards taken very seriously, and weekly inspections conducted. Good Business Certifications - First Indian company to be awarded the ISO-50001:2011 certification in the 'Composite Textile Industry-Denim Fabric' category, ISO14001:2004 (Environmental Management Systems) certified, ISO-9001:2008 (Quality Management Systems) certified, OSHAS 18001:2007 certifications, Member of The Sustainable Apparel Coalition (SAC), Adopted Social Accountability Management System as per the SA8000: 2008 Standard, Global Organic Textile Standard: received the GOTS Standard 3.0 certification for their fabrics, fibers and yarns products.

SUPPLIER RANKING INDIA

CRITERIA

Customer Service

Customers

Sourcing Guidelines

Services Offered

Gold winner for the highest Exports in Knitter Garments for the year 2008-09 & 2009-10 by AEPC, Ministry of Textiles, GoI. Highest exports in Blended Fabric Garment for the year 20122013, Manufacturer Exporter – Gold category winner for the highest exports in 2008-09 & 2009-10 by AEPC, Ministry of Textile, GoI.

J.Crew, GAP, Anthropologie, Old Navy, Polo Ralph Lauren, Urban Outfitters, French Connection, Hugo Boss, Marks and Spencer’s

Adheres to the Industrial HSE norms & instil the same in staff by communicating with them regularly. The safety and compliance teams conduct periodic audits, execute workshops and training to reach out to the staff. Emphasis on reducing wastage through supply chain. Female empowernement within the company in future. Good Business Certifications IGBC Green Building Certificate, ECO Factory Accreditation, ISO 9001:2008 from UKAS, ISO 14001:2004 Certification, C-100 (Factory Energy Reduction Program), Effective Worker Management Gold Standard 2012-13

Dye, cut and sew knit, embroidery, design, finish garments

Focus on quality and ways to improve product efficiency, great reputation with clients

vertically integrated, spin, design, cut and sew knit, finish garments, dying, washing techniques to reduce water consumption

More emphasis on farming methods to reduce use of chemicals, creation of more easy wash fabrics, methods to cut costs, focus on innovation and sustainability

Strategic Outlook

TOTAL

AVERAGE

7.8

8.2

8.0

Walmart, GAP, H&M, JC Penny, PVH, Target

Environmental Sustainability by investing resource conservation and efficiency across water, energy, chemicals and waste. Supporting female workforce to reach their potential professionally and personally through holistic support and soft-skills training. Strengthening human rights at the workplace through awareness programmes and a robust grievance-redressal system. Good Business Certifications - The Sarla Fabrics Limited (SFL) plant in Ghaziabad is Organic Content Standard (OCS), Global Organic Textile Standard (GOTS) certified, ISO14001:2004 (Environmental Management Systems) certified, ISO 9001:2008 (Quality Management Systems) certified.

vertically integrated, spin, design, cut and sew knit, finish garments, yarn and fabric dying, single-line layout from singeing to finishing which optimizes material flow distance. internal laboratories conduct performance testing and color approvals at various stages on raw materials, fabrics, garments and trims in accordance with international test standards

Constatntly working towards women empowernment and upliftment, aims to improve the lives of low-income workers by economic research, better social welfare for workers, excellent reputation and focus on timely delivery with clients

DBL Group

Bangladesh

DK. Knitwear

Square fashion ltd

Knitwears, appareils, womenwear, kids wear, mens wear, Knits t-shirts, Blouses, Shirts, woven, denims, sweaters, embroidery and laces

Knits, Woven - Shirts, Trousers, Suits and Jackets, Denims, and Voile, embroidery and laces

Men’s, women’s & children, knitwear, apparels, embroidery and laces

105000 pcs/ day

Abilities

Capacity

13m units per month

471,000 pcs monthly

Costs

Competitive—low to medium

Lower to medium

Competitive to high

Lead-Time

Good lead time and close proximity 30-45 days

good lead time and close proximity. 45-60 days

Not very quick-response. Close proximity. 60-75 Days

Management

Vertically integrated, experience of 28years. One of the largest and most diversified

more than 15 years’ experience. Vertically integrated, management. Good R&D team

Vertically integrated. good working environment.

Quality

Medium to High quality to fulfill Guess standards, Organic cotton

Medium quality

Customer Service

Do not Offers phone number frequently. website is informative, email response is quick.

Excellent website, email. Do not disclose much over calls

Excellent website, phone, email. Quick to respond back

Customers

H&M, Walmart, Esprit, Puma, Tom Tailor, Gymboree, Guess, Lidl, G-star

EROSKI, Agora, Walmart, color Apparel.

Puma, G-star, Mexx, Esprit, H&M, S. Oliver, P&C, Marks&spencer, Hugo Boss, Bonita

Sourcing Guidelines

Excellent technology, constantly working for improving quality, adding new services frequently. UN global Compact & Business call to Action (BCTA)

Exceeds air & water quality restrictions, many certificates collected. Constantly upgrading technology. WRAP & BASC CERTIFATION ISO 9001, ISO 14001, UkAS quality management.

Focus on sustainability and workers welfare. have many awards. Constantly upgrading to eco-friendly methods of production. PSO 14001:2004 certified BCI, Fair Trade certified, Iso 9001:2008 certified

Services Offered

Full package, washing, dyeing, Allover printing, screen printing, embroidery, textile testing

Pre-production, washing, spin, design, cut and sew knit, finish garments, dying, washing techniques to reduce water consumption

Full package, weaves fabric, design, preproduction, cutting, finishing, sewing, warehousing, logistics

Strategic Outlook

Technological upgradation and along with water treatment plant

Technological advancement

Sustainability is the major advantage, worker benefits

TOTAL

AVERAGE

7.8

7.3

7.9

High Quality- Cotton, Ramie, Viscose, Rayon, Flax (Linen), Polyester, organic cotton. Known for quality.

Scale of 1 to 10 with 1 being the worst and 10 the best

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BIBLIOGRAPHY “Brand India.” IBEF, www.ibef.org/economy/indiasnapshot/about-india-at-a-glance. India Population 2019, www.indiapopulation2019.in/. India Government Profile 2018, www.indexmundi.com/india/government_profile.html. India Geography Profile 2018, www.indexmundi.com/india/geography_profile.html. “MarketLine Country Profile: India.” India Country Profile, Jan. 2018, pp. 1–103. EBSCOhost, search.ebscohost.com/login.aspx?direct=true&db=buh&AN=129091783&site=bsi-live.

Supply Chain Provider Rankings CATEGORY

Inventory Management

SCORE

XPO Logistics

Omni-channel fulfillment, warehousing and distribution , returns management and processing , vendor managed inventory , demand planning and procurement , e-commerce fulfillment information, automated RFID tracking ,just in time inventory management ,real-time transaction processing , mobile and web based tracking.intergrated status reporting in houe proprietory software.

Order Turn Around

Pick & Pack

Value Added Services

Factory support-kitting and sub assembly, design and development for packing solutions, aftermarket support with cost saving solutions, transportation management with 4PL solutions, rfid

9.5

10 9

8.5

UPS Inventory Control, Inventory visibility, Unique inventory storage environment and management, Data and Physical security, Reporting, measurement and compliance Foreign Trade Zone and bonded 24 Hours Consolidation, Pick and pack, and pre-distribution service

SCORE

RADIAL SERVICES

They use dynamic supply with demand function and forecasting and an inventory tracker. They take control with precision based forecasting that helps with informations such as product availability, time in transit, customer's shopping behaviour, eliminating excess inventory and supply chain planning, inventory remarketing and digitized handwriting.

6 10

Some of their value added services are: customized packaging and gift wrap, personalization, marketing inserts, custom blending, embroidery, and kitting

The cost per outbound carton for pick and pack is $2.

Costs

Based on dimension , weight & miles driven for transportation cost

Sizes

173 million square feet of

Over 35 million sq feet distribution and warehousing facilities in the US

7.5

Aerospace, Omni-Channel Retail, Food and Beverage, Government, Consumer-Packaged, Healthcare, Technology. Customers include- Home Depot, Whirpool, Lowes

For goods/retailAdidas, Crown Premium, Deer Stags, Fabricut, G3 Genuine Guide Gear, Kingsdown, LUSH, Nikon, Skirts Plus, Teddycrafters

Multiple Location

Location TOTAL AVERAGE

8 82 9.1

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845 in North America

Greenwhich, CT

Over 1000 sites, located in over 120 countries

Office- Alpharetta, GA. Warehouse- East Coast, Middle and West Coast, including nationwide services

77 8.6

2-4 days They offer pick and pack services for customers based on their personal requirements

Designing and planning, Consulting, Custom Brokerage, Trade Management, Configuration and customization, Product Labelling, Price ticketing, Inspection Testing $1.95 per outbound carton, Shipping over 25-30 times per week may lower the price. Depends on number of times shipping and using the service

Customer

160

24 Hours chose the box , pickinh the cusion for inside the box , sealing and labelling the package ,palletize or crate depending upon size and shape

SCORE

8.5 75 8.3

Warehouses typically in 11.7 mil sq feet in area, shipping to 85 plus countries from US fulfillment centers

Radial services luxury apparel brands such as Levis, Guess, Kate Spade, Adidas, Aeropostale, Club Monaco, Huda Beauty, Marc Jacobs, Nine West, Spanx, Zara and Urban Outfitters Radial has warehouses typically in 11.7 mil sq feet in area, shipping to 85 plus countries from US fulfillment centers. Radial operates 26 fulfillment centers globally in 4 countries - USA, Canada, Germany, UK. Within US, it has 21 centers in the states of Kentucky, Nevada, California, Atlanta, Ohio, Illinois, New Jersey, Virginia Headquarters in Pennsylvania

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