WINTER 2018 // PROFESSOR LEVY
FASM 420 // GLOBAL SOURCING
SHELBY MOORE // DARBY SIMKINS // NADIA EGIPCIACO // MADDY MULVIHILL
01 06 08 -
10 14 17 -
20 23 -
26 31 35 38 40 -
44 46 -
- 13 Country Ananlysis - 16 Country Selection - 19 Country Ranking
- 22 Supplier Analysis - 25 Supplier Ranking
- 30 Strategy Publication - 34 Strategy Conclustion - 37 Cost Strategy - 39 Line Plan - 43 Final Sourcing Strategy
- 45 Conclusion - 48 Sources
- 05 Introduction/Overview - 07 Company - 09 Products
An outerwear brand speci performance clothing. We clients with supreme and re that protect and prepare t activities done in the most tions. We strive to be the b dependable upscale outd on the market.
A P E X expects the compan with and secures products laws and regulations, to tr dignity and respect respon and communities in which our customers with high sta behavior.
ializing in high e provide our eliable products them from any extreme condibest and most door company
What we stand for Our values are the foundation of how we want our customers to view the business and products we offer. These values are a list of deliverables that we promise to work by and execute for our consumers.
nies with whom it does business s and services from applicable reat their employees fairy, with nsible citizens in the countries h they operate, and to provide andards and transparent ethical
Where we are now A P E X operates as a global business, we are an omni channel brand committed to conducting our business products and services around the world in a manner which is exemplary of outstanding, well as enhancement of the Companyâ€™s reputation , image, and commercial success. Our products are sold in over 20 stores throughout the United States as well as online. An assortment of our products can also be found in specialty retailer R.E.I.
/Functionality Protection/ /Durability Technology/ /Reliability Practicality/ /Resourceful
our customer Income :
25 - 45 yr old
85K - 1M
Location : around the Four Corner Monument ; Colorado, Utah, Arizona & New Mexico
Outdoorsmen / Mountaineer Adventurous / Explorer / Daredevil
Escapers / Relaxers
Physically Fit, Healthy, Active Practical / Efficient
our APEX suit - - One suit set you can wear various different ways, market it as modular, you can take parts off & attach others, innovative - - Totally customizable and personal with add ons & accessories - - A bunch of different shapes that when zipped, tied & put together can make cool different shapes to the set - - Buy it once, buy it for life - - Design not to be trendy, but still made with a sleek look in mind, natural/neutral design and colors, timeless
Top retail price : $200 Lightweight thermal material that allows the wearer breathability & wicking when wet, convertible Long-Johns retail price : $200 Lightweight, thermal, can be connected to outer pant with attachments or alone, convertible Outer Pant
retail price: $450
retail price: $650
Thicker material yet still lightweight & movable, impenetrable, wicking, thermal, breathable, convertible
Thicker material yet still lightweight & movable, impenetrable, wicking, thermal, breathable, convertible
retail price: $350
Thinner material, thermal, wicking, can be worn as a body wrap or untied and pulled up around the neck for scarf
total pieces 12
Front facing zipper on hood allows wearer to completely cover lower face in the event of needed protection from elements. Can be zipped down to reveal lower jaw.
FABRIC PROPERTIES -
WICKING BREATHABLE LIGHTWEIGHT EXPANDABLE THERMAL
Hood can be detached and stowed away in one of the many pockets inside of the jacket or pant.
cape / poncho can be scrunched up and worn around the neck as an extra layer of scarf or detatched and used as a blanket at night. Made of lightweight easily compactable fabric, can be bundled up into a ball the size of a fist and stowed away during non use.
S.Café® Innovation continues with a cutting-edge fabric printing technology P4DRY™. Already a world renowned invention, P4DRY™ is a winner of multiple prestigious awards from 2013 Outdoor Trade Fair in Germany, to 2014 Taiwan Excellence Award in Taiwan. Using repurposed coffee grounds making a print layer that has four principle functions: quick-drying touch, odor control, reduces condensation rate, and a tremendously sustainable product.
Our main focus when choosing our countries was to focus on a manufact urer that can produce specialty fibers specifically made for outdoor active wear. We evaluated our countries based off of our sourcing locations capability of producing well made and high quality special fibers while also having the ability to completely asse mble within one supplier. We found that Taiwan has the resources to prod uce our one of kind fibers at our top ranked sourcing destination, Singtex. They are a vertical sourcing company that produces our needed speciality textile in their Taiwan house, later shipping them to their manufacturer in Vietnam and then sent to our facility.
r t s e s s d o
d d p . y y r r .
Thailand is a country that is actively trying to build out their infrastructure in order to accommodate larger manufacturing power. They are leaders in silk production, but fall short when it comes to technological innovation within the textile developing economy. They thrive at assembly and production, which is why they are our back up choice in product manufacturing. The US has good relations with this country as well, even though there are no trade agreements between the two.
Taiwan is a hub for producing specialty made fibers from industrial fabrics, medical textiles, functional fibers and polyester fabric. Their textile industry is continuously focusing on upgrading technology and innovation. Even with a large range of high quality speciality textiles they provide the chance to source at a low cost giving us a chance to increase our profitability.
Vietnam is located in South Eastern Asia, bordering the Gulf of Thaland, the Gulf of Tonkin, and the South China Sea. The country currency is the Vietnamese Dong and workers ear around $169 per month. With the extensive growth of South Korean they have become one the most attractive foreign investment destination. The growth in foreign investment is an indication of the confidence that foreign investors have in the country. Global giants have invested hugely in Vietnam because of the presence of relatively cheap labor and attractive tax incentives. The expanding foreign invested sector ensures economic growth and provides an important buffer from the countryâ€™s intrinsic problems.
Location Taiwan of the Republic of China, is an isla in East Asia in the Western Pacific Ocean It is surrounded by a few bodies of wat like the East China Sea, Philippine Sea, a the Taiwan Strait. China, Japan, and Philippines surround Taiwan.
Currency & Labor cost & Attractive Destination : The country currency is the Vietnamese Dong and workers ear around $169 per month. With the constant increase in international trade, the trade to GDP ratio is 187.6% in Vietnam. The country serves as the most attractive foreign investment destination in South-east Asia.
Labor laws In Taiwan as of right now they do not ha an strong labor laws in effect.They start placing an Amendments to the Labor Sa ty and Health Acts, but has yet not go through the government.
Growth The growth in foreign investment is an indication of the confidence that foreign investors have in the country. The expanding foreign invested sector ensures economic growth and provides an important buffer from the country’s intrinsic problems.
Technology The country is a hub for specialty and dustrial fabrics, medical textiles functio fibers and polyester fabric. They invest re ularly in technology and are very interest in innovation.
Location Vietnam is located in South Eastern Asia, bordering the Gulf of Thailand, the Gulf of Tonkin, and the South China Sea.
Sustainability Overall they do not have a well-develop initiative to increase their sustainable mov ment. At this time they are just trying to co trol the indoor policies “...(EPA), the avera citizen in the country spends around 90% each day indoors and hence is exposed toxic substances like toluene, formalin a volatile organic compounds....”
Human Rights The country as a whole has poor human rights and labor laws. Suppression of expression, peaceful assembly and association are a few things workers have to encounter. The government persecutes those who expose official corruption, question government policies or voice their opinion for multi-party rule is still persistent. Harassment and intimidation of activists continues with the full support of the government, which includes arbitrary arrests, torture, denying access to legal counsel and prosecution by courts that lack independence. The Ministry of Labor, War Invalids, and Social Affairs administers welfare in the country and oversees a social insurance system with provisions for old age, disability, and death, sickness and maternity, and workplace injury. Coverage is mandatory for state employees, non-state enterprises with more than 10 employees, and foreign-invested enterprises. Sustainability In 2015, a new $4.13 million project called Strengthening Capacity and Institutional Reform for Green Growth and Sustainable Development (CIGG) was launched to provide assistance in capacity building and policy development for the proper implementation of the country’s green growth strategy, at both national and provincial levels. Technology According to the Ministry of Science and Technology, they have strategically aimed to increase the value of hi-tech products and smart textiles to around 45% of the GDP by 2020. The strategy sets an ambitious target of increasing the speed of technology and equipment innovation at 10–15% for the 2011– 15 period over 20% per year for the 2016–20 period. International Co-operation has improved the development of science and technology due to globalization. Trade Agreement The signing of the Trans-Pacific Partnership (TPP) free trade agreement is likely to strengthen the economic relationship between the two countries. The only source of bilateral tension between them is likely to be The US’ concerns over the status of human rights and religious freedom in Vietnam.
Trade agreements Taiwan does not have any trade agreeme with the United States.
Cost Their country currency is called the New T wan Dollar. For every 1 taiwan dollar = .0 us dollars. Labor cost 97.83 index point
ped veonage % of d to and
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Thailand is a Southeast Asian country, located at the center of the Indochinese Peninsula. It is heavily influenced by Indian culture & religion with 90% of its inhabitants following Buddhism. Its official name is the Kingdom of Thailand and is a middle power state with Bangkok as its capital. The country currency is the Thai Baht. It is 198,000 sq mi in size and is the 50th largest country in the world with 69 million people. Thailand borders Cambodia, Laos, Burma and Malaysia by land & Indonesia, India and Vietnam by sea.
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The Thai economy is the worldâ€™s 20th largest by GDP ($395B GDP overall in 2015) and is the 20th largest exporter in the world. In 2015 did $231 billion in Exports and $190 billion in Imports. Textiles make up 7.8B (3.4% out of whole) in Export value overall. The country excels in eco-friendly finishing, dyeing, and printing services which meet global standards.
There is a major gender gap in labor force participation due to traditional beliefs. A higher female labor force participation would help offset the impact of the decline in the working-age population (Women at 60.8% participation, Men at 77.6% participation, 2016).
the government is trying to become more involved with the industry by providing export credits and development of vocational training.The government is activly trying to boost innovation in the textile industry and to bring in modern technology into weaving, finishing, printing, knitting and dyeing.
Thailand does not currently have trade agreements with the US. The United States and Thailand launched Free Trade Agreement negotiations in 2004 but the United States suspended them in 2006 following the dissolution of the Thai Parliament and the subsequent military-led coup.
The country has a low unemployment rate at 1.1% in 2017. The national minimum wage rate that was established in 2013, whereby all workers would be paid 300 baht per day ($9.53) regardless of the province in which they were employed
A P E X is comitted to helping our suppliers create and improve the work environment, by focusing on labor, health, and safety conditions. We want to drive our suppliers from standard practices into exceeding our code of conduct. We understand that we are a key factor that is required to improve our suppliers and employeesâ€™ need, by providing outstanding training for all levels of employees, to help integrate our values into each suppliers factories.
When working with APEX, we looked for suppliers that had the capability of fulfilling exceptional demand of 6000 units annually. Between Singtex, Acotex, and Erawan, we chose Singtex for our number one supplier due to their well known clientel and transparency. They have worked with top leading brands from Nike, UnderArmour, Adidas and Mountainwear. Acotex and Erawan fell short due to the inability to produce the speciality made fibers that we needed as well as lack of transparency and information. They will produce our specialty made fibers in Taiwan than ship those
textiles to their personal manufacture in Vietnam to then assemble our garment completely. We chose Singtex because they have in house pattern drafting, product assembly and have been trusted by leaders in the industry for years. Since APEX is a multifunctional fashion brand, not mass- market, the total number of units produced per year is 6000. Five styles will be manufactured, The APEX Jacket, Everest Pant, Andes Cape, Rocky Long John, and Appalachian Shirt. Out transitional pieces are best suited for those who enjoy adventurous outdoor activities, regardless of the time of season.
The supplier in Taiwan we chose is called Singtex. The reason why we chose them is because they specialize in special fibers and textiles which is what we are focusing on within our products. They work for large brand names like Nike, Adidas, Under Armour, etc. They are always working on new technology and special fibers so that they can expand their range. They create their innovative speciality textiles at the Taiwan factory in Taipei, then ship to Vietnam where the textiles are then manufactured into their given products.
We chose Erawan for a backup plan supplier because they have the ability to start and finish the product all at the same location. They pride themselves on quality and always try to reach the demanding global requirements. They lacked transparency and CRS requirement information, forfeiting their chance to be our #1 choice.
This manufacturer is a leading producer and marketer of premium fabric and garment for activewear, sweaters and legwear. They even offer durable waterproof and windproof textiles combined with optimized breathability. Their fabrics are developed and especially ideal for various activities like skiing, mountaineering or water-sports. Also with the ability to start and finish the product all at the same location.
Target Costs: $777,000 Target Retail: $1,110,000 (average stock) Target Mark Up %: 60-70%
Our strategy was to choose a company (Singtex) tha manufacture our APEX suit under one umbrella. Our su our high standard expectations and are very sim
Environmental protection, Talent Cultivation, Charities, a corporate social responsibility and their supply chain de maximize quality so we decided to source from on
Already having a low inventory count we focus our atten travel to Vietnam from Taiwan in order to be assembled. specialty APEX fiber, through
Although APEX strives to be model for a conscientiou working with some suppliers. BUT we are planning on ta from through philanthropy, working closely with governm enhance to country economic
at could supply our specialty made textiles and then uppliers align their values and sourcing guidelines with milar when it comes to corporate responsibility.
and Team Assessment Events are the main focus for our emands. We needed to sacrifice our margins in order to ne of the top leading sourcing companies, Singtex.
ntion on reducing lead times, since our textiles have to . In the later future we see ourselves developing our own our already chosen suppliers.
usly responsible company, we have fallen short when aking the steps to improve the country we are sourcing ment aided projects and local high-end entrepreneurs to cally, socially and responsibly.
https://www.businesswire.com/news/home/20170726006537/en/Innovative-Taiwanese-Textile-Products-Launched-U.S.-Outdoor http://www.taitra.org.tw/ http://www.acotex.net/garment/service.html#service_drafting http://www.erawantex.co.th/ http://www.singtex.com/en-global/about/index https://cus93.trade.gov.tw/FSCE020F/FSCE020F https://vimeo.com/60772746 http://www.fabriclink.com//Presentations/velcro/StickyBack/home.cfm https://factory45.co/6-new-innovative-fabrics-for-sustainable-fashion https://startupfashion.com/qmilch/ https://www.vtgvietnam.com/