OMISSION
1
company background
logistics Mexico our Canvas Field Pant will be manufactured at the Novalink INC factory in Tamaulipas, Mexico. in order to get our shipments from the factory in Mexico up to San Francisco we will transport them by road 590 miles in Tamaulipas over to the main Western Mexican port of Puerto Vallarta. from Puerto Vallarta our shipment of ‘Canvas Field Pants’ will be loaded onto a 40 meter container provided by YMC Transport shipping. the ship will depart out of Puerto Vallarta and trek 4 days by sea approximately 1400 miles to San Francisco where the products will be offloaded, put through customs, and eventually taken over to our warehouse. China our knit beanies and scarves will be manufactured at NC Accessory in Guangzhou, China. shipments of our beanies and scarves will be loaded onto a truck in Guangzhou, China and travel a relatively short distance from factory to port. at the port all beanies and scarves will be loaded onto a 40 meter shipping container. we will use an Orient Overseas Container Line ship will reach San Francisco in around 18 days after departure traveling over 6000 miles across the Pacific Ocean. our canvas field jackets will be manufactured at Polartec China in Shanghai. In order to get our shipment of jackets from the manufacturer to the port, they will travel by truck. once our shipment of jackets reach the port, they will be loaded onto a 40 meter container that will be placed onto an Orient Overseas Container Line ship. the ship will then travel out of the port of Shanghai and travel around 5500 miles over the course of 16 days to reach San Francisco. from the port of San Francisco our shipment of jackets will then be transferred to our warehouse in the area.
store locations San Francisco, California Seattle, Washington
India Omission’s cotton sweaters will be manufactured at the Prathibha Syntex LTD factory in Mahdya Pradesh, India where they are Fair Trade Certified and use rainwater recycling for production. our sweaters will travel from the factory in Mahdya Pradesh 17 hours by truck to the port of Ahmedabad, India. at the port our shipment of sweaters will be loaded from the truck onto a 40 meter container. we are using Global Container Shipping Company which will travel 10,000 miles from India to San Francisco taking around 30 days at a rate of $1400.
2
products
pants made out of heavy cotton canvas, our field pant is ready for whatever you question could come at you. work is never so demanding on clothing as it is in the field, so we designed the Canvas Field Pant to protect the most common failure points and to serve with versatility. oxford canvas resists snags and abrasion in the brush, while rivets and double-needle stitching add strength where it is needed most.
jackets we pick up where our heavy waxed cruiser leaves off. this jacket is built for three seasons of wear and tear, and decades of immunity from the elements. English moleskin collar, pockets, and trim, reinforced brass shanks, locker hang loop, six pockets including back game pockets, and breathable cotton. perfect for layering up underneath, or just throwing on over a button down.
scarves sweaters for the brisk weekend getaway there is no point in questioning the necessity for a good scarf. with focus on warmth and quality our scarf was created with the customer in mind to provide comfort wherever your adventure takes you. the infinity scarf offers and easy on and off with great easiness in packing. if you’re hitting the coast grab an Omission scarf and feel confident wherever the road takes you.
beanies our cotton knit beanie is made to bare the elements and keep our customers warm throughout any conditions. constructed with the top of the line quality we send our ambassadors out into the elements to test our products. whether you’re heading up to the mountain to grab first chair or hitting the coast to check the surf our cotton knit beanie will keep you warm.
our wool pullover draws from generations of outdoor and military convention, and is designed for the vigorous schemes and adventures of today. cut and sewn exclusively for us, finished throughout to our exacting demands with two flapped breast pockets, elegant reinforced elbow patches, and double needle stitching. made from ecowise cotton, sourced for sustainability and environmental stewardship, the Wool Pullover offers maximum comfort, warmth, and durability. the cut delivers a roomy shoulder, an ample neck with room to move, and the warmth and durability of a jacket.
3
country selection
mexico
location located in southern North America. it borders the USA, Guatemala, and Belize sustainability around 77% of mexicans live in urban areas, therefore the capital is notorious for bad air quality. due to poor urban planning, public transportation cannot reach all parts of major cities, therefore there is an increasing amount of private vehicles ommitting harmful greenhouse gases labor laws Mexico has a few fair labor laws. Presumption of Permanent Employment allows an employee who works for at least for a month, is presumed to be a permanent employee. Work Week does not allow employees to work for more than eight hours in the daytime; seven hours for night work, and seven-and-a-half hours for a shift that is both day and night technology Mexico is behind on recent technology advancements; still being a third world country, Mexico is playing catch up in the attempt to apread new advancements in the technological field trade Mexico has a few trade agreements, such as the FTA and the NAFTA (North American Free Trade Association) cost Mexico has an umployment rate of 3.6%, while having a manufacturing wage of $2.60/hour
china
location Eastern Asia, bordering Russia, Mongolia, Vietnam, and North Korea sustainability a framework for urban sustainability focused on Chinese cities is being applied. the Asia Development Bank created by China would lend capital according to green principles. China is addressing the issues of contamination related to health and environment labor laws have laws that disallow independent trade unions and limit the right to strike. China does not meet international labor law standars. “Labor Contract Law of the People’s Republic of China” entitles contracts to employees of at least 10 years standing to protect them from being dismissed without any cause; it also contributes to employee’s social security accounts and sets wage standards for employees on probition and working overtime. technology has a large number of R&D institutions, indicating that the country is well equipped for advanced research; international influece has impacte China’s field of science and technology trade China has several trade agreements among different countries: China-ASEAN FTA, China-Chile FTA, China-Peru FTA, China-Costa Rica FTA, and China-USA WTO cost China has rising wages and an increasing number of strikes and labor disputes which can become challenges to the manufacturing area; this would elevate labor costs. other countries with lower wages in the region are becoming more attractive for employers. China is on 53.1 out of 10 for labor costs
india
location India is separated from mainland Asia by the Himalayas; it is surrounded by the Bay of Bengal to the east, the Arabian Sea to the west, while the Indian Ocean surrounds the country from the south. the country borders Afghanistan, Pakistan, China, Bhutan, Nepal, Myanmar and Bangladesh. sustainability overall, India has made progress on sustainability, making it one of the few countries with a separate ministry dealing with renewable energy. despite this, India has been a poor performer ont the Environmental Performance Index (EPI). labor laws India is prone to having problems of unemployment in rural areas, therefore the government launched the Mahatma Ghandi National Rural Employment Guarantee Scheme; it protects employee wages, factory standards, and women’s rights technology India has a low level of high technology, which points to weaknesses in high end manufacturing; it also has weak intellectual property rights regime. India is currently working on integrating R&D into all sectors of the economy. trade it has over 14 trade agreements worldwide such as India-Gulf Cooperation Council Free Trade Area, India-ASEAN, and the Asia-Pacific Trade Agreement cost wages in India have increased from 322.07 INR/day to around 347.30 INR/day; this proves that India’s future plans are taking effect into their government and the country’s residents
4
supplier analysis
mexico novalink inc 196A Prolongacion Calle Industrial, Tamaulipas, Mexico
produces lightweight fleece and midweight baselayer garments have a designates manager for social resposibility and provides benefit beyond what the law requires have a recycling program in place; fabric scramps from pattern cutting are collected and sent to an outside vendor to be converted into post-industrial recycled fibers
china NC Accessory JIangsu asian sourcing co.
No. 2 Guangzhou South Rd, Huai’an, Jiangsu, China
one of the three factories in China that produce knit beanies and scarves most workers live in the surrounding community, so they are able to work close to home; not having to commute allows employees more time with their families factory organizes annual company trips, leadership and teamwork trainings; it has cultivated a close-knit community among their employees
china polartec
india pratibha syntex ltd
No. 1918 Ting feng Rd, Tinglin Town, Shanghai, China
No. 4, IGC Kheda Pithampur Industrial Area, Mahya Pradesh, India
they create stretch woven fabrics for outerwear shells and some knit fleece materials as well
produces sweaters that are Fair Trade Certified
committies to producing technical materials that balance innovative performance and environmental responsibility produce bluesignÂŽ approved fabrics, which eliminate and manage harmful chemicals, reduce resource use and maximize environmental performance
vertical supplier, which means they carry out the entire manufacturing process from the organic cotton fiber to the finished garment have a water management program, which includes sourcing 95% of their water from rainwater and recycling 92% of the wastewater in the dyeing process
5
strategy conclusion
china
China is the most developed Asian country in garment production. Unlike most third world countries that joined the garment production industry with little knowledge and almost no regulation, China has been in the business for decades. The quality of the clothing produced is high, while the workers are skilled and guaranteed to be working on an acceptable living wage with ethical companies and benefits. This supports our company morale without leaving any part of the supply chain out of the loop. The specific factory we are sourcing from is Bluesign certified, making it easier for us to assure that this company’s goals on environmental friendliness line up with Omission’s.
india
Omission chose India because it has made progress in terms of environmentally sustainable production. Due to the fact that India is assertively working towards becoming a leader in industrialization and technological development, it will be easier to integrate Bluesign certification in the factories we are working with as we produce garments in the most environmentally friendly way possible. Agriculture will also be transforming due to the government considering more technology-driven Green Revolution. India is aspiring to be placed among the world’s top five scientific powers.
the countries we selected suit our high standards for ethical practice, attention to detail, regulations, labor laws, quality and environmentally conscious production
mexico Mexico is very easy to ship to and from, being on the same continent as Omission’s home offices. The NAFTA Agreement makes trading with Mexico duty free, lowering our cost of sourcing without compromise. Mexico is also very skilled in producing pants and denim, especially for american companies. These skill sets will help Omission create the best quality pant while minimizing the lead time on production and the cost of duty/freight.
6
cost strategy
jackets target cost: $137.50 target retail: $250 target MU: 45% sweaters target cost: $44 target retail: $80 target MU: 45% pants target cost: $55 target retail: $100 target MU: 45% scarves target cost: $27.50 target retail: $50 target MU: 45% beanies target cost: $22 target retail: $40 target MU: 45%
7
line plan
unit breakdown
AUGUST QUANTITIES
SEPTEMBER QUANTITIES
OCTOBER QUANTITIES
DECEMBER QUANTITIES
JANUARY QUANTITIES
FALL/WINTER TOTAL
Jacket 1
15
20
35
30
25
25
150
Jacket 2
15
20
35
30
25
25
150
Sweater 1
15
20
30
40
50
45
200
Sweater 2
15
20
30
40
50
45
200
Scarf 1
0
0
5
20
30
35
80
Scarf 2
0
0
5
20
30
35
80
Pants 1
25
25
30
35
40
45
200
Pants 2
35
25
30
35
40
45
200
Beanie 1
0
10
20
20
25
25
100
Beanie 2
0
10
20
20
25
25
100
STYLE
NOVEMBER QUANTITIES
TOTAL
150 150 200 200 80 80 200 200 100 100
monthly line plan
STYLE
DESCRIPTION
% TO TOTAL
TOTAL UNITS
AVERAGE MONTHLY UNITS
TOTAL RETAIL
COST PER UNITS
TOTAL COST
TOTAL MARGIN $
MU %
#01-1
Jacket
11
150
$250.00
$ 37,500.00
$ 137.50
$ 20,625.00
$ 16,875.00
45%
#01-2
Jacket
11
150
$250.00
$ 37,500.00
$ 137.50
$ 20,625.00
$ 16,875.00
45%
#02-1
Sweater
8
200
$80.00
$ 16,000.00
$ 44.00
$ 8,800.00
$ 7,200.00
45%
#02-2
Sweater
8
200
$80.00
$ 16,000.00
$ 44.00
$ 8,800.00
$ 7,200.00
45%
#03-1
Pants
9
200
$100.00
$ 20,000.00
$ 55.00
$ 11,000.00
$ 9,000.00
45%
#03-2
Pants
9
200
$100.00
$ 20,000.00
$ 55.00
$ 11,000.00
$ 9,000.00
45%
#04-1
Scarves
7
80
$50.00
$ 4,000.00
$ 27.50
$ 2,200.00
$ 1,800.00
45%
#04-2
Scarves
7
80
$50.00
$ 4,000.00
$ 27.50
$ 2,200.00
$ 1,800.00
45%
#05-1
Beanies
15
100
$40.00
$ 4,000.00
$ 22.00
$ 2,200.00
$ 1,800.00
45%
#05-2
Beanies
15
100
$40.00
$ 4,000.00
$ 22.00
$ 2,200.00
$ 1,800.00
45%
tech packages COMPANY
COMPANY
Omission
Omission
INFORMATION
INFORMATION
style
#1
style
#2
description
jacket (british millerian cotton)
description
sweater (cotton)
care
wipe or brush clean
care
hand wash, lay flat to dry
DELIVERIES
DELIVERIES
#1
tan
#1
grey
#2
navy blue
#2
beige
MEASUREMENTS
MEASUREMENTS GRADE
XS
S
M
L
XL
TOLERANCE
GRADE
XS
S
M
L
XL
TOLERANCE
chest
2”
36”
38”
40”
42”
44”
0.25”
chest
2”
34”
36”
38”
42”
44”
0.25”
waist
2”
30”
32”
34”
36”
38”
0.25”
waist
2”
28”
30”
32”
34”
36”
0.25”
sleeve
1”
32”
33”
34”
35”
36”
0.25”
sleeve
1”
32”
33”
34”
35”
36”
0.25”
COMPANY
COMPANY
Omission
Omission
INFORMATION
INFORMATION
style
#3
description
pants (cotton)
care
machine wash warm, hang dry
DELIVERIES #1
khaki
#2
olive
style
#4
description
scarves (cotton knit)
care
hand wash, lay flat to dry
DELIVERIES
MEASUREMENTS GRADE
XS
S
M
L
XL
TOLERANCE
chest
2”
28”
30”
32”
34”
36”
.125”
waist
1”
30”
31”
32”
33”
34”
.125”
#1
black
#2
navy blue
MEASUREMENTS ONE SIZE
TOLERANCE
chest
10”
0.25”
waist
72”
0.25”
COMPANY Omission INFORMATION style description care DELIVERIES #1 #2 MEASUREMENTS chest
#5 beanies (cotton knit) hand wash, lay flat to dry
black grey
ONE SIZE 22.8”
TOLERANCE 0.25”
cost sheet
china
Jackets
Beanies
Scarves
duty rate: 19% CMT: $20 fabric: $78.95 shipping: $3 MU 45% retail price: $250 wholesale: $137.50 landed duty rate: $137.50 first cost: $108.95
duty rate: 19% CMT: $7 fabric: $6.39 shipping: $3 MU: 45% retail price: $40 wholesale: $22 landed duty rate: $22 first cost: $15.39
duty rate: 19% CMT: $8 fabric: $8.85 shipping: $3 MU: 45% retail price: $50 wholesale: $27.50 landed duty rate: $27.50 first cost: $19.85
mexico
india
Pants
Sweaters
duty rate: no duty (NAFTA) CMT: $22 fabric: $25.12 shipping: $4.20 MU: 45% retail price: $100 wholesale: $55 landed duty rate: $55 first cost: $42.12
duty rate: 18% CMT: $24 fabric: $15.21 shipping: $5 MU 45% retail price: $80 wholesale: $44 landed duty rate: $44 first cost: $33.21
8
country& supplier ranking
country ranking
supplier ranking
this chart compares countries such as Mexico, China, and India in terms of business climate, costs, government, location, risks, social stability, sourcing guidelines, textile industry, trade agreements, trained force work, and socio-eco political factors.
this chart compares suppliers from Mexico, China, and India in terms of abilities, capacity, lead time, quality, customers, sourcing guideliness, services offered, and strategic outlook
Mexico 76 % China 77% India 69%
Novalink Inc. 58% Polartec China 68% Pratibha Syntex LTD 54%
conclusion
Omission is proud to be an outerwear company that strives to produce stylish garments which can easily translate to the outdoors and be just as functional as chic. With adventurers in mind, our first collection will be introduced for Fall/ Winter 2018. With environmental friendliness and ethics at our core, we plan to leave the environment in a better condition than we found it over the course of our production. This will be attained by using Bluesign certification on all factories in our supply chain (Mexico India, China) working hard to fine tune our internal and external monitors, and holding true to our core values and ethics in every bit of work that we do. Making fashionable, quality outerwear in an ethical and environmentally conscious manner is our end goal.
Ryan Castelli Camila Yerovi Aidan Toohey FA S M 4 2 0