FA I + tH
contents
1. Introduction 2. Sourcing Guidelines 3. Country & Supplier Analysis 4. Line Plan, Tech Pack & Cost Sheets 5. Final Strategy & Conclusion 6. Sources
overview faith is an all-inclusive sustainable denim brand. we aim to give back to the planet and community through fairtrade practices and sourcing. all our fabric and materials are recycled and produced without any toxic chemicals or dyes. we love you and your body, so welcome to the family. our denim is for people of all color, sizes, abilities and more!
ownership founders: trisha bhavnani, abby bible & hyewon jeong founded: 2019 ownership: private headquarters: seattle, wa retail operations: e-commerce & nordstorm
co r p o r at e
ceo
coo
sustainability
vp of design
production
vp of merch
vp of marketing
buying
promotions/ media
advertising
pr
cfo
it
csr
e-commerce
technology
current merchandise
denim jackets denim dresses denim shorts denim accessories such as bags, belts, caps etc.
va l u e s t a t e m e n t
faith is an all-inclusive sustainable denim brand offering sizes from 00 to 26. our process is fair-trade and makes uses of non-toxic recycled fabrics.
m i s s i o n s tat e m e n t
we’ve created faith to be the change in the industry that is long overdue. beauty isn’t measured by the size of your waist, which is why we’re dedicated to producing quality denim for all bodies. while we care about you and your body, we also care about our environment. our fair-trade process and sustainable initiatives will help form a better tomorrow.
v i s i o n s tat e m e n t
faith aspires to enhance everyday comfort for people of all backgrounds, while protecting the planet. in the future we aspire to expand our size range to 30 and introduce men’s denim, in addition to a functional line for disabilities.
future merchandise
men’s denim kid’s denim expanding size range from 00 to 30 developing a functional line suitable for disabilities
the collection $150
$170
$185
$140
$125
68% price markup
fa b r i c
recycled crosshatch indigo denim 70% organic cotton, 30% recycled plastic $5/yard size: 66� weight: 12.50 oz
s u s ta i n a b i l i t y i n i t i at i v e s bottle recycling program: simply bring in your used plastic bottles to nordstrom or ship them to us to be repurposed into our denim. for donating, customers will receive 20% off their next order. free repairs for life: every pair of jeans comes with a promise of free repairs. just send them to us and we’ll fix them up for you. mending tutorials: free mending tutorials are available online for our customers to perform at-home repairs.
unique selling points initiatives that will extend the denim’s product life cycle recycled denim, non-toxic dyes and production process size-inclusive range 00-26 everlane: sizes 00-16 reformation: sizes 0-12 patagonia: sizes 00-18 able: sizes 00-14 plantable packaging & tags
ta r g e t m a r k e t - P r i m a r y sarah clark 31 environmental lawyer $130,000 seattle, wa VALS innovators / achievers determined, passionate, objective
ta r g e t m a r k e t - S E CO N D A R Y jessy chen 23 graphic designer $40,000 nyc, ny VALS experiencers / thinkers enthusiastic, optimistic, diligent
code of conduct Faith is committed to conducting business in an ethical and legal manner that protects the environment, as well as the community. Our Code of Conduct references the Global Social Compliance Programme’s (GSCP) Code of Conduct and International Labor Organization (ILO) standards which represents international standards for fair labor conditions and fundamental labor rights. All our suppliers must commit to adhering to our Code of Conduct. Requirements in our Code of Conduct apply to the whole supply chain, including sub-suppliers, subcontractors and other third parties. Standards comprised in our Code of Conduct equally apply to permanent, temporary, and agency workers, as well as piece-rate, salaried, hourly, part-time, night workers, homeworkers, young workers and migrant workers.
CO N TA C T U S 6
While we expect all our suppliers to meet our Code of Conduct, we recognize that this can be a work in progress. If suppliers are violating any of these Code elements, we would like to know about it. Please email us at info@faith.com and feel free to write in your local language. All information that we receive will be kept in strict confidence and your identity protected.
i n t e r n a l m o n i to r s Faith values global supply ​​partners who share our commitment to quality and value, but who also operate under a philosophy that focuses on integrity and ethical practices. To support that philosophy, Faith has a Supplier Scorecard and Sourcing Grid to specifically state and measure the work ethic of its suppliers based worldwide. The supplier code outlines the company’s expectations that all suppliers will comply with certain business and ethical standards and to the laws of their respective countries, all other applicable laws, rules and regulations. The code applies to all businesses that produce goods or provide services for Faith and any of our subsidiaries, joint ventures, divisions or affiliates.
supplier scorecard Supplier Name: Buying Category: Buyer Name: Area
Overall Rating: Scorecard Criteria
Rating Scale for Expectations
Below, 3 = Meets 5 = Exceeds
1=
3.00 Comments
Management commitment and responsiveness
3
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Appropriate technical capabilities and skills
3
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Provides ideas that help buyer's organization achieve desired solutions Demonstrated compliance with specifications and quality requirements Committed to process performance and continuous improvement
3
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3
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3
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Maintains industry standard certifications for testing and audits Provides effective and timely communication Support regarding changes Proactive supplier response to meet the Responds to requests in a timely and effective needs for qualit y, service, cost and manner t echnical support Able to access expert resources to find best practice solutions On time delivery to meet scheduled materials or Delivery service requirements The ability to meet delivery Manages end to end supply chain needs (e.g. requirement s. The ease of doing business inventory and transportation) t o support supply chain needs. Utilizes effective systems to meet procure to pay needs
3
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3
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3
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3
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3
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3
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3
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Health and Safety
3
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3
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Regular and recorded health and safety training
3
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Goods or services are price competitive
3
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Cost reduction ideas are shared and resourced
3
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Price changes and contract terms are documented and transparent
3
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Innovation Application of creative ideas, best pract ices and t echnology t hat result s in increased effectiveness for Buyer
Quality The compliance t o buyer's specificat ions and indust ry st andards
Providing healt hy and safe work enviornment for workers inlcuding medical assists and training.
Cost / Contract Ability to provide total least cost solutions to buyer's organization
Safe and clean conditions in all work Access to adequate medical assistance and facilities
Area Weight
Area Rating
Wtd. Rating
20%
3.00
0.60
16%
3.00
0.48
16%
3.00
0.48
16%
3.00
0.48
16%
3.00
0.48
16%
3.00
0.48
100%
3.00
SOURCING GRID Standards & Policies TOPICS CODE OF ETHICS
GOAL 1. 2.
ACTIONS
RESULTS
To operate with complete transparency to our consumers, employees, and any future stakeholders. To uphold company standards through the supply chain
Listed code of ethics on website Description available under as well as releasing through sustainability on website and annual report will be as downloadable pdf
To control the supply chain’s sustainable inputs to ensure the best outcome at every level from production to corporate. To be transparent in sustainability internally and externally.
Using recycled denim fabric. Bottle recycling program. Offering Free repairs and mending tutorials Release bi-annual sustainability report.
Stories regarding sustainability at any level will be on sustainability tab on website as well as downloadable pdf Detail instructions about recycling, repair, mending tutorials program will be on website
Investigating supply chains randomly and often to examine human rights standards.
Human rights practices will be recorded on supplier scorecard for review from corporate once a week
SUSTAINABILITY COMMITMENT
1.
HUMAN RIGHTS POLICY
1.
To protect the rights of employees through the supply chain at every level in terms of fair labour, health and safety and etc.
ANIMAL WELFARE AND MATERIAL ETHICS
1.
To promote sustainability in sourcing materials, regarding the Exploring recycled fabric animal rights, environmental effects while keeping the quality of sources to offer diverse range products of fabric for products
CHEMICAL RESTRICTIONS
1.
To prevent abuses of chemical usage in production for both company and community standards in sustainability.
Work with chemical specialist to Investment in sustainable find the best option to minimize chemical equipment for jeans the chemical usage for jeans production
SECURITY POLICY
1.
To preserve the privacy for our employees using data protection and security services.
Invest in IT & Data to develop data encryption standard
2.
Release products using different types of recycled fabric
Becoming secruce company platform for employees to review any performance internally.
e x t e r n a l m o n i to r s Faith expects its suppliers to comply with the conditions of the Supplier Scorecard and maintain a system to monitor compliance. Suppliers must take the necessary steps to ensure that its employees understand and comply with the code. We will have a 3rd party supplier that will asses vendor compliance and analyze how we can improve as a company.
vendor assessment Faith will hire a 3rd party vendor management and assessment monitor that will complete annual compliance reports for all suppliers to ensure Faith’s company standards are being met. The report will complement completed internal monitors to ensure unbiased performance measures are being used to evaluate our company’s supplier goals. Potential 3rd party monitor service: Fair Labor Association The FLA contracts with accredited monitors to conduct independent monitoring of the companies’ contract facilities, requires companies to remediate problems identified in their facilities, and independently verifies and accounts for company internal compliance programs.As a participating company, Faith submits to unannounced, Independent External Monitoring Audits. The FLA posts the results of its random audits on its website for everyone to see as part of its commitment to transparency. Being a fully accredited member of the FLA is important for our brand’s identity and mission for ethical sourcing.
GUIDELINE SUMMARY
• We have an end goal of complete vertical integration within the supply chain. • We want to work towards utilizing more technology in our manufacturing and production processes to increase our sustainability initiatives. • We want to implement eco-friendly workplace initiatives to promote a more sustainable lifestyle to all our employees. • We want to always stress the importance that everybody within our supply chain is treated respectfully and earn a fair living wage.
C O U N T R I E S : T E X T I L E & A P PA R E L INDIA
• Top Categories: • T-Shirts, Singlets and Other Vests, of Cotton, Knit (HS92 ID: 610910) • Cotton, Not Carded or Combed (HS92 ID: 520100) • Toilet or Kitchen Linen, of Cotton Terry Toweling (HS92 ID: 630260) • Women’s, Girls Blouses, Shirts, Man-made Fiber, Not Knit (HS92 ID: 620640) • Mens, Boys Shirts, of Cotton, Not Knit (HS92 ID: 620520) • Number one producer of cotton • Denim dominates 60% of the textile industry • Specialized skill & technology
BANGLADESH VIETNAM
• Top Categories: • Knit Sweaters (HTS: 6110) • Knit Women’s Suits (HTS: 6104) • Non-Knit Women’s Suits (HTS: 6204) • Non-Knit Men’s Suits (HTS: 6203) • Knit Men’s Shirts (HTS: 6105) • According to Otexa, denim manufacturing in Vietnam has reached a value of $60.3 million. • In recent years, Vietnam has emerged as one of the world’s largest textile suppliers with a total export of more than $36 billion. • Vietnam holds one of the most sustainable factories, producing for Everlane, Reformation and PVH corp.
• Top Categories: • Men’s Or Boys’ Trousers Etc, Not Knit, Cotton (HS Code 620342) • T-shirts, singlets and other vests, of cotton, knitted or crocheted (HS: 610910) • Women’s Or Girls’ Trousers Etc Not Knit, Syn Fiber (HS Code: 620463) • Sweaters, Pullovers Etc, Knit Etc, Cotton (HS Code: 611020) • Sweaters, Pullovers Etc, Knit Etc, Manmade Fibers (HS Code: 611030) • Bangladesh is the third largest exporter of denim products to the US (14.2% market share).
Country RANKINGS India
Explanation
8
Stimulating local economy and inviting FDI Low labor costs, varies by state Better, promoting business relations, local economy, gender equality, education Nearing China, multiple ports, efficient air and frieght shipping
7
Fluctuating tariffs, unstable political environment
Social Stability
6
In progress, improving for a developed country
Sourcing Guidelines
5
Needs to be monitored for violations and child labor
Textile Industry
9
All-rounded, number #1 producer of cotton
Trade Agreements
4
No FTA or agreements with other countries even though they are a top exporter
Trained Work-force
7
Specialized Skill
5
Unstable, but improvement in progress
Business Climate
7
Costs
9
Government
5
Location Risks
Socio-eco-political
Vietnam
Explanation
7
Strong FDIs
9
Cheaper than India
Bangladesh
3 10
6
Centralized one-party government Nearing developed countries, by the ocean (easy frieght shipping)
8
Corruption, global warming
6
Improving
8
Ethical, in line with brand
2
9
Specialized in denim & knits
7
6
No FTA, part of WTO
7
7
Young work force, skilled
7
Corruption, one party rules, improving stability
6
4 7 9 4
5 2
Total
72
79
60
Average
6.5
7.2
5.5
Explanation
Agriculture based, corruption, unethical climate Lowest labor costs Political corruption, security challenges Near China, by the waters (good for frieght), East of India Corruption, poor human rights and working conditions (e.g. Rana Plaza) Poor gender equality, poverty, high birth rate, low mortality rate Unethical working condiitons (e.g. Rana Plaza) Textile industry produces basic quality products doesn't specialize in a particular category No FTA, LDC status - access to duty free market in some countries, reduced tariffs No Specialization or particular training Corruption, poor human rights and working conditions (e.g. Rana Plaza)
SUPPLIER RANKINGS India
Vietnam
Arvind Ltd
Abilities Capacity Lead-time Quality Customers
Sourcing Guidelines
Services Offered Strategic Outlook
Total
Average
Bangladesh
Saitex Int. Dongnai Shasha Denims Ltd.
8 7 7 8 9 8 9 8 64 8
9 7 7 8 9 9 8 9 66 8.25
7 7 8 8 7 8 7 8 60 7.5
S T R AT E GY C O N C LU S I O N Supplier: Saitex International Dongnai, Vietnam. Planet • 98% recycled water + 2% evaporated = zero discharge • 1 Saitex denim = 1.5 liter; but 1 traditional denim = 80 L • Reduced CO2 emissions by 80% • 85% of the jeans are air dried Innovation • Utilize latest manufacturing techniques which have transformed a 20-30 minute manual process down to 90 seconds • Embrace industry 4.0 - combination of cyberphysical systems and the internet of everything
People • Have installed their very own hydroponic and clean farming system facilities • Support gender equality (58% W, 42% M) • 1% of revenue is deployed into sustainable development goals • Support for orphanages by offering children 18 and above the opportunity to be trained Action • Built an organic farm inside an old shipping container • Provides 4000 workers free organic meals (in partnership with Everlane) • Puma Re-Cut collaboration (from discarded fabric remains)
S T R AT E GY C O N C LU S I O N • Saitex Int. Dongnai and Faith’s values align holistically. • The supplier is sustainable and cares about its workers, the environment and actively gives back to the community as we do. • Saitex is also continually implementing technology to reduce environmental harm and improve efficiency. • In the future, Saitex and Faith can collaborate to minimize environmental impact and improve worker productivity and safety. • We care about everyone involved in our supply chain and Saitex will help us achieve our sustainability goals.
C O S T S T R AT E GY & L I N E P L A N
F I N A L S O U R C I N G S T R AT E GY 1. Skinny Jean Cost: $16.45 Retail: $150 MU%: 812% Volume: 40,000
2. Wide Leg Pant Cost: $19.39 Retail: $170 MU%: 777% Volume: 30,000
3. Tapered Pant Cost: $20.21 Retail: $185 MU%: 815% Volume: 45,000
4. Flare Skirt Cost: $15.08 Retail: $125 MU%: 729% Volume: 35,000
5. Mini Skirt Cost: $12.43 Retail: $125 MU%: 906% Volume: 40,000
Saitex will help us achieve a fair-trade cost and enable us to have a high margin so that we can give back to the community, as well as increase our sustainability goals and prospects. With a high profit margin, Faith has more income to invest into technology, zero-waste initiatives and the community. Additionally, with Saitex being home to many sustainable brands, Faith can continue to grow and implement larger sizing, ethical resources and more.
K E Y T A K E AWAY S Benefits of the overall strategy & why it makes sense • Relying on the factory which has established a reputation for sustainable practices • Factory is located near the prime port in Vietnam, which optimizes lead time within the country and decreases freight time • Fabrics coming from nearby countries and fast production make up for the time to ship from Vietnam to U.S.A • Our company being located on the coast cuts time from port to warehouse Minimization of risks and maximization of opportunities • The factory has built a reputation for providing consistent and high-quality results • Vietnam and America’s ties are continuing to strengthen
co n c lu s i o n Our strategy enables us to grow and collaborate with partners who share the same values as us on sustainability and corporate responsibility. Sourcing from Saitex International Dong Nai in Vietnam will ensure fair trade and ethical production, quality products, and environmental-safe procedures. As we progress, we will work towards expanding our sizing and assortment, whilst continuing to minimize our environmental impact. We are proud to work with a factory in Vietnam that emphasizes the importance of ethics and sustainability in every step of the manufacturing process. We love you and your body, as well as our planet. Welcome to the family.
THANK YO U
SOURCES
• www.slideshare.net/apparelresources/indian-textile-clothing-industry-95101853 • www.atlas.media.mit.edu/en/profile/country/ind/ • www.minimum-wage.org/international/india. • www.iitd.ac.in/content/smart-and-innovative-textile-materials-smita • https://www.sai-tex.com/ • https://www.thereformation.com/pages/sustainable-practices • https://www.everlane.com/about • https://www.dhakatribune.com/opinion/special/2018/05/08/bangladesh-takes-global-denimmarkets • https://cleanclothes.org/news/2018/09/21/outrageous-new-minimum-wage-announced-inbangladesh • https://medium.com/@stitchdiary/what-makes-bangladesh-a-hub-of-garment-manufacturingce83aa37edfc • https://shashadenims.com/ • https://0-sourcingjournal.com.library.scad.edu/denim/denim-mills/bangladesh-talks-denim-2019and-beyond-132684/ • http://stitchdiary.com/bangladesh-garment-industry/ • https://www.export.gov/article?series=a0pt0000000PAtGAAW&type=Country_Commercial__kav • https://carvedinblue.tencel.com/shasha-denim-bangladesh/ • www.vietnam-briefing.com/news/port-infrastructure-vietnam.html • www.atlas.media.mit.edu/en/visualize/tree_map/hs92/import/usa/vnm/show/2017/.w • www.tradingeconomics.com