Sade Global Sourcing

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Pronunciation : sah-de Meaning “ray of light”

Claudia Aguilar Carissa Hanley Sierah Stanley

Säde At Säde, we provide beautiful and safe apparel in store and through e-commerce. We believe you should have good quality clothing made by team of high esteemed designers.

We create minimal designs that leave you with everything from a dreamy delicacy to an empowering lifestyle. We care about what materials and steps are involved in making our one of a kind garments, along with our efforts to lesson carbon-footprint.

Private Company - Minimal -

Eco-friendly - Nature aesthetic - Pearlescent - Empowering

Säde Mission Säde’s mission is to lead our consumers as we create a more mindful, and sustainable world together.

We vow to do better than anyone before us, and to leave the world a better place than we found it, while making beautiful clothing you love to wear.

In an effort to minimize our environmental impact and achieving fair, safe and healthy working conditions throughout our supply chain, we seek to partner with suppliers who share a common vision on sustainability, accountability and transparency.

Säde Code of Conduct - In compliance with the AIPA conduct, we strive to create a better workplace for all our employees, whether in the showroom or the factory. We seek to partner with suppliers who share a common vision on sustainability, accountability and transparency.

- Employment must be freely chosen. There must not be any use of forced, bonded or prison labor. Suppliers must agree not to use any facilities that employ forced or coerced labor.

- Child labor must not be in use. Workers must be above the age of 15 years or above the compulsory school leaving age.

- There must not be any discriminatory action in the hiring process. Equality of opportunity and treatment regardless of race, gender, ethnicity, political affiliation, sexual orientation, or any other distinguishing characteristics.

- The right to an effective consultation between employees and employers must be respected. This includes any request to change labor, wages, or current working conditions.

Säde Code of Conduct - All workers must be provided with written and understandable information, including the particulars of their pay, about the conditions in respect of wages before they enter employment. Employees must also receive overtime wages equal to their regularly hourly pay or the overtime premium rate specified in that country, whichever is higher. Work hours must not be excessive. Hours must comply with applicable laws and industry standards. All working hours must be in accordance with the International Labor Organization (ILO) laws.

- Full-time employees must receive vacation time and any other impending benefits. In select countries, employers are legally required to offer additional benefits, such as health insurance and vacation pay.

- A safe and hygienic working environment must be provided and best occupational health and safety practice must be promoted, considering any knowledge of the industry and of any specific hazards that may occur. Physical abuse, threats, unusual punishments, harassment, and intimidation by the employer are strictly prohibited.

All workers must be treated with respect, no matter their ranking. A coercive, collaborative environment is to be established. Workers must be allowed to participate in any training, and learning opportunities as they arise, upon request of the employee.

Store Location

San Francisco, California

Target Consumer A millennial woman around 25-45 years of age.

Säde ultimately targets toward the social conscious consumer who enjoys treating herself to quality, minimal everyday pieces. Consumer is typically educated and interested in current events.

An Experiencer & Innovator

Customer Profile Kallie Andrews 27 years old Lives in San Francisco, California MFA in Interior Design at the Academy Art University Annual income of $90,000 Kallie is a trend savvy, and social conscious consumer.

She has an interest in sustainable fashion and is willing to pay a little more for quality and ethical practices.

Strategy Goal

At Säde, we believe you should have good quality clothing made by team of high esteemed designers, all while putting in the efforts to lesson carbon-footprint.

By creating minimal designs, and including made-to-order products, our team hopes to ensure quality care in all departments of our supply chain.

By using man-made natural fibers like hemp, and raw cotton, we care about what materials and steps are being used, and strive to lead a social conscious lifestyle and empower our consumers to grow with us.

We provide lightweight, long lasting products made with the idea of being a staple piece in your wardrobe. We show and explain an honest brand and product transparency on all media platforms to ensure our focus on ethical and eco-friendly practices. Our brand has an evolving sense of corporate and social consciousness with the understanding of corporate affairs and social issues, so we intend to share our journey with our community and keep close relations with our supply chain and consumers alike.

Our Products

Women’s Apparel: Including tops, bottoms, dresses, night gowns, kimonos, and outerwear Fabrics include: Hemp, cotton, and linen as our core fibers, with select products made-to-order.

The Katie Kimono Long slim-fit outerwear jacket made with linen & poly china silk interlining

We provide product personalization on our kimonos with highly esteemed silk painters on site at our studio headquarters.

Product Line

The Jessica Jacket

Long slim-fit outerwear jacket made with linen & poly china silk interlining

The Sierah Shirt

Simple long-sleeve shirt made of linen

The Carissa Collar

Slanted half-long button down collar blouse made of woven linen

The Betty Blouse Simple zip-up blouse made of cotton

Line Plan

Cost & Retail Pricing

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Katie Kimono Sierah Shirt Carissa Collar Jessica Jacket Betty Blouse

Final Placement Strategy

Supplier Grading List

Peru Creditex (Cotton) Philippines FTN garments CORP. India Hemp Fortex Industries Ltd. (Hemp)

Philippines Analysis BENEFITS

Benefits of working the Philippines is the overall stability of the social, economic, and political climate. There is also a large workforce in the apparel and textile sector.

The industry itself is also a benefit with its growth rate and it becoming increasingly focused on eco-friendly textiles since the demand for sustainability has increased over the years. The Philippines have vast trade agreements with other Asian countries and strong relationships and TPP discussions with US present benefits in terms of tariff and country duties.

RISKS Risks include natural disasters and other weather conditions, like monsoons and typhoons. Such conditions could impact lead time and negatively affect production time.

The recent 2016 election caused unrest for the country but quickly balanced out and is now stable.

The reliability of technology outside of cities could be a potential risk, as communication is vital to supply chain management.

The small presence of Muslim extremist groups could impact the business climate, however, the government is fully aware of the issue and is working towards resolve.

There is no current agreement with the US which causes a 14% duty rate to be paid.

Philippines Analysis

Based on social, environmental, and political analysis, the Philippines has great potential for manufacturing for Sade. The country is politically stable, with minimal threats to this stability. While there are small issues, the government is working towards peace which makes the social stability relatively high. There are strong Spanish and US influences present, which reduce any challenges of doing business. Economically, the country is stable and its predicted to grow through the years due to the strong textile and apparel industry. Technology within the larger cities is prominent and expected to grow through technological improvements to better communication throughout the country. The biggest issue is that there are no free-trade agreements with the US currently, and with the president’s goal to pursue China instead may lead to disharmony between the US and the Philippines.

BENEFITS Benefits of production in India include the inexpensive labor costs, where as of today, 1 INR (Indian Rupee) equals $0.015 in US dollars. The labor force is vast and highly skilled in their sectors of work. There is an easy and cost-efficient procurement of raw materials due to its abundance in the country.

The Prime Minister supporting the “Make in India� concept campaign will help the selected domestic companies who are having innovative ideas in field of manufacturing, so that they all can be given necessary help and facilities to expand their business, and create high business initiative.

India Analysis India’s workforce involves more than 65 million in the apparel and textile industry.

Based on a social, environmental, and political analysis, India has high potential.

With low government instability, and new initiatives supported by the Prime minister to advance the country, India shows great sourcing potential for production for Sade. The Indian spinning sector is highly advanced and globally competent in terms of price, standards and quality. Although, India has no current trade agreements with the US, there is high feasibility for one in the future, especially with the Make in India campaign. There is a vast amount of natural and raw materials/fibers which will continue to advance as the country itself does.

RISKS Risks include changes in currency value and the exchange rate. There continues to be a high amount of competition from neighboring countries due to the fact that India has no current trade agreements with the US. Natural disasters like monsoons in the rainy season can affect lead-time as well as unforeseen public events, and cultural holidays like Diwali, Navratri, etc.

Peru Analysis Peru was ranked as the 30th largest export market in 2017. Due the natural abundance of raw material, Peru is a vertically integrated country, starting from the supply of materials ot the production.

BENEFITS

RISKS

Benefits include the ease of growing and developing materials, such as cotton, pima cotton, and wool, due to climate. Peru is one of the few countries that can grow pima cotton due to the specifics this cotton needs to flourish. Peru has established 19 trade agreements, which includes the PTPA, which eliminates tariffs and barriers to the US which allows for duty-free entry. Being on the coastline, Peru has access to many different ports to import and export goods.

Risks of production include the presence of rebel groups that terrorize the country, the government is working towards control but has not yet succeeded.

Labor Union controversies are also a threat. There is a high percentage of employment which could entail less skilled workers.

Peru hosts potential. Having a large quantity of raw goods and manufacturers makes them a vertically integrated country.

Peru continues to be a respected partner of the United States with multiple agreements in place to make production and shipments an ease. The extensive coastline allows for multiple ports and the weather poses no imminent threat to production. There are multiple factories that focus on ethical treatment and safety of workers rights.

There is a large labor force and many without work which could be a benefit or a risk for production of Sade products.

Supplier Choice FTN Garments Corporation, Philippines FTN Garments Corp. is a manufacturing company with a global production network and a consumer-centric focus.

Address: Central Blvd, Brgy. Maguyam, Silang, Cavite, Philippines Contact: Phone: +63 46 430 1845 Fax: +63 46 430 0100 Email: ftngar@cavite.ph.inter.net Top Departure Port: Manila, Philippines Abilities: Pants, Skirts, Tops, Dresses, Jackets/Coats Capacity: 150,000/month Quality: Internal Quality System, Certified Local Laboratories Customers: Gap Canada, Banana Republic, Stella McCartney Additional Services: Fashion Trend Analysis, Market Research, Quality Control, Product Development, Administration Services Strategic Outlook: Growth has been steady with sales and shipments growing since 2002.

However, recently their shipments have been in decline but they are working towards growth yet again.

Supplier Code of Conduct

FTN Garments Corporation has no official posted code, although is a leader in the industry, placing high emphasis on quality control and offering many beneficial value-added services such as product development and administration services.

In Conclusion: Our Goal When creating Sade, it was essential that production was done in countries that upheld our needs in terms of product costs and values. It was critical in our selection that the countries we chose had strong values in their manufacturing processes and had expertise with our fabric of choice, hemp and flax.

Peru, the Philippines, and India all have a highly skilled and large workforce. Each country has reliable and safe export routes and predictable lead times. In each country there is room for improvement and that is where Sade comes in. In order to determine the best production levels for all three countries Sade thoroughly reviewed and analyzed the traits, feasibility, and stability of each.

Sade has developed a sourcing strategy by utilizing a thorough country and supplier analysis that goes through the risks and benefits of producing in each country. Through this plan, Sade has developed a well-researched strategy for our one-of-kind garments.

In Conclusion: Our Strategy Based on extensive research Sade has developed a sourcing strategy that minimizes risks and enhances the company’s growth opportunities.

While developing this plan, Sade conducted a thorough analysis on India, the Philippines, and Peru as our sourcing options. We have compared our values with those of each supplier and have decided to source from the Philippines.

This country is stable in all aspects and has great growth potential in terms of sustainability and slow fashion production.

Our factory choice, FTN Garments Corporation is placed near a river, making exporting products predictable. This also can enable the future implementation of a hydroelectric power source to lessen the carbon footprint of the factory, which Sade values. The Philippines is already making great strides in terms of ethical factory practices and sustainable fibers, like manila hemp, also known as abacĂĄ, as well as pinatex/pineapple leather.

Sade values high quality, commitment to the environment and ethical business practice. We develop our products that leaves our consumers feeling good when buying and wearing our products. We hope to communicate luxury aspects while inspiring for a better fashion foot forward.

Thank You