FIT

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PLACEMENT & SOURCING STRATEGY


CONTENTS EXECUTIVE SUMMARY FIT is a sustainable men’s underwear brand dedicated

about us

company overview

our products

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6

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country analysis

country selection

supplier analysis

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to producing and selling quality products that better both the planet and the people on it. Our Placement and Sourcing Strategy seeks to analyze and evaluate various sourcing alternatives that align with our mission and values. We aim to partner with countries and suppliers that share our focus on quality, workmanship, and the drive to make sustainable initiatives and practices. This strategy details the core of our company and brand as well as analyzes several country

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and supplier options for our manufacturing process.

strategy

conclusion

appendix

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18

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ABOUT US OUR VALUES Shandy Frey

Taylor Miller

C.F.O.

Marketing Director

Teamwork Communication

Ashlee Scott

Kristin Terrana

Design Director

Vice President

Respect Creativity Hardworking Dedication Innovative Aesthetic Athletic Motivated

OUR MISSION OUR VISION FIT strives to create exceptionable sustainable quality underwear for the everyday man who wants to look and feel good.

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FIT inspires the man to want to conquer the world while feeling comfortable in his underwear. 5


COMPANY OVERVIEW

OUR CUSTOMER OUR STORES FIT headquarters is located in the heart of Portland, Oregon. Portland, known for its sustainable and eco-friendly initiatives, is also a strategic location for its relatively low energy costs, accessible resources, and various transportation benefits including international air terminals, marine shipping facilities, and transcontinental highways and railways. Currently, FIT has three brick-andmortar locations: Portland, Oregon; Seattle, Washington; and Ventura, California. In addition, FIT also has an e-commerce platform for sales.

OUR PRODUCTS FIT is a specialty men’s underwear and loungewear brand. We specialize in producing quality underwear that provides a perfect fit that is comfortable and easy to wear. Our items range from briefs to boxer shorts as well as including undershirts and lounge pants. Additionally, FIT is a sustainable company that seeks to better the environment we live in. All of our products are sustainably sourced and made. We use both organic cotton and Lyocell (made from wood pulp) for our product materials. 6

TARGET MARKET FIT is a male-centric brand that aims to provide men with a unique underwear shopping experience. Our target market tends to be men aged 26-34 who tend to lead an active life. Typically single, our target market is still focused on career goals before starting a family life. This market tends to have a bachelor’s degree or higher with an annual income around $60,000 to $90,000. More so, the FIT customer enjoys and appreciates the outdoors, and therefore, protecting the environment is an important cause.

PROFILE • Name: Nyle • Age: 29 • Education: Bachelor’s Degree in Computer Science • Occupation & Income: Web Developer; $75,000 • Location: Denver, Colorado • Hobbies: Working out, playing video games, camping, playing guitar, hiking • Why he wants FIT: Wants a higher quality underwear and easy, male-centric shopping experience 7


OUR PRODUCTS OUR LOOK Inspired by the environment that drives the cause of our brand, the FIT look is natural and rustic while staying modern and refined.

MCKINLEY BOXER

DESCRIPTION: Woven Modern Fit with Low Rise

Modern

Cut and Elastic Waistband

Rustic

SIZE RANGE: XS-XL

MATERIAL: Lyocell RETAIL PRICE: $20

Strong Original Refined Natural

DENALI LOUNGE PANT

DESCRIPTION: Ribbed Knit Pant with Soft Stretch and Drawstring Waist MATERIAL: Organic Cotton SIZE RANGE: XS-XL RETAIL PRICE: $35 8

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OUR PRODUCTS

COUNTRY ANALYSIS EVEREST BRIEF

SRI LANKA LOCATION

Located in Southeast Asia at the southern tip of India, Sri Lanka is an island nation in the Indian ocean. It takes about 30 days to ship from Sri Lanka to California.

DESCRIPTION: Classic Fit with Soft Stretch and

SUSTAINABILITY

Elastic Waistband

Beginning in 2009, Sri Lanka has joined with the UN to establish the Ten Missions of Haritha (or Green) Lanka. These missions are as follows: Clean air everywhere, Saving the Fauna, Flora and Ecosystems, Meeting the Challenges of Climate Change, Wise Use of the Coastal Belt and the Surrounding Sea, Responsible Use of the Land Resources, Doing Away with Dumps, Water for All, Green Cities for Health and Prosperity, Greening the Industries and Knowledge for Right Choices.

MATERIAL: Lyocell SIZE RANGE: XS-XL RETAIL PRICE: $25

FAIR LABOR LAWS

MITCHELL T-SHIRT TRADE AGREEMENTS

DESCRIPTION: Classic Fit Crew Neck Short Sleeve T MATERIAL: Organic Cotton SIZE RANGE: XS-XL RETAIL PRICE: $30

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Sri Lanka currently does not have any free trade agreements with the United States. Other trade agreements include ISFTA (the Indo-Sri Lanka Free Trade Agreement) with Indonesia and a Preferred Trade Agreement with Pakistan.

COST

The cost of shipping a 20’ intermodal container from Colombo Port in Sri Lanka to Long Beach, CA is $1339. Duty on apparel and textiles entering the U.S. is 19.7%.

In 2013, Sri Lanka reinstated the National Steering Committee (NSC), which launched a project to create a child labor free country by 2016. To date, Sri Lanka has been successful in creating 755 Child Protection laws and regulations throughout the country. Additionally, only 9.2% of all children between the ages of 5 and 14 are currently employed.

TECHNOLOGY

Only 19% of the population uses the internet in Sri Lanka, or roughly 4.4 million people. 2015 reported only a 2.7% growth in industrialization throughout the country. Sri Lanka relies heavily on agricultural products and services.

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COUNTRY ANALYSIS

COUNTRY ANALYSIS TURKEY

SINGAPORE LOCATION

LOCATION

Situated in Southeast Europe, Turkey is surrounded by Greece, Syria, Bulgaria and Georgia. Turkey has borders on the Black, Agean and Mediterranean Seas. It takes 30 days to ship from Turkey to California.

Located in Southeast Asia between Malaysia and Indonesia. It takes roughly 23 days to ship from Singapore to California.

SUSTAINABILITY

The Blueprint for a Sustainable Singapore has six main goals: Green and Blue Spaces, Public Mobility, Resource Sustainability, Air Quality, Drainage, and Community Stewardship. Two sustainable projects that Singapore is currently working on are “Eco-Smart” Towns and creating a “Car-Lite” Singapore.

SUSTAINABILITY

“We are going through a process, in which global problems need global solutions.” This is the opening line of the introduction given by the Prime Minister of Turkey for their Sustainable Development plan, which shows their interest in becoming a globally recognized country. The plan for Turkey encompasses seeking to make better labor laws, responsibly taking care of the environment for future generations by minimizing degradation and improving technology for efficiency.

FAIR LABOR LAWS

Singapore has strict labor laws against children under the age of 13 working. Children between the ages of 13 and 16 are allowed to work, but can only carry out light duties in a non-industrial setting. Children between 15 and 16 are allowed to work in industrial settings, but extensive medical reports must be submitted to the Ministry of Manpower to authorize the labor.

TECHNOLOGY

Similar to Sri Lanka, about 4.5 million people use the internet daily. However, this constitutes about 80% of the population, making Singapore a more technologically developed country. With no natural agricultural exports, Singapore relies heavily on exports and industrialization, even though their industrial growth rate is at a -3.5%. 12

FAIR LABOR LAWS

Due to the amount of Syrian refugees in Turkey (roughly 2.6 million IDPs in 2016), many companies are prone to subcontracting with unregistered refugees for cheap labor. As far as child labor is concerned, the government prohibits anybody younger than 15 from working, with the exception that children between the ages of 13 and 14 can work in light, non-industrial situations.

COST

TECHNOLOGY

TRADE AGREEMENTS

TRADE AGREEMENTS

Unlike Sri Lanka, Singapore does have a free trade agreement with the United States, which was formed over ten years ago in 2004.

As of 2015, Turkey is waiting to sign the TTIP (Trans-Atlantic Trade and Investment Partnership) to enable free trade with the US and the European Union.

COST

The cost of shipping a 20’ intermodal container from the Port of Singapore (one of the largest ports in the world) to Long Beach, CA is $882.Duty on apparel and textiles entering the U.S. is 19.7%.

The cost of shipping a 20’ intermodal container from Ambarli, Turkey to Long Beach, CA is $1563.

36 million people in Turkey use the internet, which accounts for only 46% of the entire population. With a 4.5% industrial growth rate, and a pretty evenly dispersed economy, Turkey is making great strides in technology. 13


COUNTRY SELECTION

SRI LANKA

SUPPLIER ANALYSIS

SINGAPORE

LOCATION

TURKEY

DOUBLE DRAGON INTERNATIONAL PTE. LTD.

SINGAPORE Cotton Knit Boxers

YESIM SATIS MAGAZALARI VE TEKSTIL A.S. TURKEY

SUSTAINABILITY

Men’s Cotton T-Shirts Hugo Boss, Burberry

MAS ACTIVE TRADING PVT. LTD. SRI LANKA

LABOR LAWS

Men’s Knits Patagonia, Lululemon

TECHNOLOGY

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TRADE AGREEMENTS

CHOOSING OUR SUPPLIERS

COST

Double Dragon International PTE LTD in Singapore is a great “fit” for our company because of its options for men’s briefs and boxers. Their high customer approval makes it an ideal company to work with, as communication with the factory is integral to a good business relationship.

FIRST CHOICE

SINGAPORE

SECOND CHOICE

SRI LANKA

THIRD CHOICE

TURKEY

Yesim Satis Magazalari Ve Tekstil in Turkey works well with FIT because of their other clientele and product assortment, which includes Hugo Boss, Burberry, and cotton men’s t-shirts, respectively. As a company, we value the quality of our men’s undergarments, and this factory produces the quality we desire. Our final factory, Mas Active Trading (Pvt) Ltd., in Sri Lanka, specializes in men’s knits. Their clientele, including Patagonia and Lululemon, proves that they produce garments of a high standard that we will be happy with.

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STRATEGY PUBLICATION

STRATEGY PUBLICATION COST & PROFITABILITY

COUNTRY SELECTION 1

SINGAPORE Benefits: Free Trade, Good Sustainability Initiatives,

2

Lowest Cost, and Fastest Shipping

SRI LANKA Benefits: No Child Labor, Better Fair Wage, and Good Factory Standards

3

TURKEY Benefits: Cheap, Decent Trade Agreements, and Sustainability

SINGAPORE Singapore works diligently to leverage profitability in a few very efficient ways. Firstly, they have a free trade agreement with the United States. The United States-Singapore Free Trade Agreement was initiated January 1, 2004. This was formed through discussion in order to strengthen practices carried out by each country and agreement on a better business relationship. In addition to their free trade agreement, Singapore has a high quality, high speed shipping port. There are about 1,000 ships in the port at all times, with one arriving or leaving every 2-3 minutes. Up to 10,000 ships can be tracked at once through the Port Operations Control Centre. Singapore is connected to 600 ports in over 120 countries. Further, shipping costs are incredibly low with a relatively fast lead time, at $882.00 USD for a 20 foot container taking 25 days to ship to Los Angeles. This level of quality and efficiency keeps profitability high.

SRI LANKA

SUPPLIER SELECTION 1

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MAS ACTIVE TRADING PVT. LTD. Best Because: Clientele, Factory Ratings, Analytics

2

YESIM SATIS MAGAZALARI VE TEKSTIL A.S. Second Best Because: Clientele & Product Quality

3

DOUBLE DRAGON INTERNATIONAL PTE. LTD. Third Best Because: Product Assortment & Customer Service

Sri Lanka does their best to leverage profitability in a number of ways. The best feature of Sri Lanka’s profitability and quality is their employee wages. Although this fair wage makes manufacturing costs slightly higher, it creates an ethical quality that is unbeatable. There is also no child labor, making it a desirable country to source from for companies looking to keep production ethical. Shipping costs are slightly higher at $1338.00 USD, with a 33 day lead time to Los Angeles.

TURKEY A country on the verge of better profitability, but still a viable country to source from, Turkey is on it’s way to creating efficient factory and shipping processes. On December 22, 2015 The Turkish Minister of Economic Affairs Nihat Zeybekci announced that Turkey is showing interest, and plan on joining the Transatlantic Trade and Investment Partnership. The TTIP is a free trade agreement between the United States and the European Union. Turkey joining the TTIP will lower prices significantly, and with excellent factory standards, this addition will create a very profitable country to source from. However, it is still in progress, and currently, shipping from Turkey is $2000.00 USD with a lead time of 30 days.

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APPENDIX STRATEGY CONCLUSION The countries selected are very efficient in cotton production as well as manmade fibers. Each country has the potential to create our product at the right price point at the right time with the correct fibers. Turkey has sustainable fabrics for production and Singapore and Sri Lanka have the resources via imports to create our product at a low cost.

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costing

line plan

tech packs

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25

28

rankings

guidelines

resources

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47

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UNIT COST STRATEGY

COST SHEETS

MCKINLEY BOXER

MITCHELL Sales %: 25% Cost: $3.35 MU%: 88% Margin $: $16.65 Retail: $20

FABRICS Woven Lyocell

0.5 yards

$1.50

$0.06/meter

0.762 meters

$0.04

EVEREST Sales %: 25% Cost: $2.65 MU%: 89% Margin $: 22.35 Retail: $25

DENALI

COMPONENTS Elastic

LABOR Sewing

Sales %: 15% Cost: $5.05 MU%: 85% Margin $: 29.95 Retail: $35

$3.50/yard

$1.00

SHIPPING

MCKINLEY Sales %: 35% Cost: $3.79 MU%: 81% Margin $: 16.21 Retail: $20

Packing

$0.25

Shipping

$0.50

Duty

$0.50

Total

$1.25

TOTAL COST $3.79 20

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COST SHEETS

COST SHEETS

DENALI LOUNGE PANT

EVEREST BRIEF

FABRICS

FABRICS

Organic Cotton

$0.55/yard

4 yards

$2.20

COMPONENTS

$3.50/yard

0.25 yards

$0.88

$0.06/meter

0.337 meters

$0.02

COMPONENTS

Drawstring Cord

$0.08/meter

1.143 meters

$0.09

Elastic

$0.06/meter

0.172 meters

$0.01

Total

Woven Lyocell

Elastic

$0.10

LABOR

LABOR

Sewing

Sewing

$1.50

$0.50

SHIPPING

SHIPPING Packing

$0.25

Packing

$0.25

Shipping

$0.50

Shipping

$0.50

Duty

$0.50

Duty

$0.50

Total

$1.25

Total

$1.25

TOTAL COST

TOTAL COST $5.05

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$2.65 23


COST SHEETS

LINE PLAN MCKINLEY $20

MITCHELL T-SHIRT

DENALI $35

EVEREST $25

MITCHELL $30

FABRICS Organic Cotton

$0.55/yard

2 yards

$1.10

LABOR Sewing

$1.00

SHIPPING Packing

$0.25

Shipping

$0.50

Duty

$0.50

Total

$1.25

TOTAL COST $3.35

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MONTHLY UNIT PLAN

MONTHLY % PLAN

MONTH

MCKINLEY

DENALI

EVEREST

MITCHELL

MONTH

MCKINLEY

DENALI

EVEREST

MITCHELL

JANUARY

35

25

20

15

JANUARY

6.2%

8%

4.6%

3.5%

FEBRUARY

50

30

30

10

FEBRUARY

8.9%

9.6%

7%

2.3%

MARCH

40

20

20

15

MARCH

7.1%

6.4%

4.6%

3.5%

APRIL

40

20

15

30

APRIL

7.1%

6.4%

3.4%

7%

MAY

45

15

30

35

MAY

8%

4.8%

7%

8.2%

JUNE

30

10

35

40

JUNE

5.3%

2.7%

8.1%

9

JULY

35

10

35

45

JULY

6.2%

2.7%

8.1%

45

AUGUST

50

25

40

45

AUGUST

8.9%

8%

9.3%

45

SEPTEMBER

45

30

35

35

SEPTEMBER

8%

9.6%

8.1%

8.2%

OCTOBER

50

20

40

45

OCTOBER

8.9%

6.4%

9.3%

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NOVEMBER

65

45

60

50

NOVEMBER

11.6%

14.5%

13.9%

50

DECEMBER

75

60

70

60

DECEMBER

13.3%

19.3%

16.2%

60

560

310

430

425

560

310

430

425

YEARLY TOTAL 26

YEARLY TOTAL

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TECH PACKS

TECH PACKS

MCKINLEY BOXER

MCKINLEY BOXER

STYLE

DATE CREATED

STYLE

DATE CREATED

Men’s underwear/boxers

3/7/2016

Men’s underwear/boxers

3/7/2016

DESCRIPTION

DESCRIPTION

Lyocell boxers with an elastic

Lyocell boxers with an elastic

waist band

waist band

SKETCH

COLORS

SKETCH

Mocha

Forest

Taupe

28

Slate

29


TECH PACKS

TECH PACKS

MCKINLEY BOXER

MCKINLEY BOXER

STYLE

DATE CREATED

STYLE

DATE CREATED

Men’s underwear/boxers

3/7/2016

Men’s underwear/boxers

3/7/2016

DESCRIPTION

SAMPLE SIZE

DESCRIPTION

Lyocell boxers with an elastic

Lyocell boxers with an elastic

waist band

waist band

MATERIALS

SIZE SPECIFICATIONS

Medium (M)

All measurements are in inches

LYOCELL

SWATCH

DESCRIPTION: A sustainable form of rayon that is man made from cellulosic materials, like wood or bamboo pulp. COLORS: Mocha, Forest, Taupe and Slate

XS

S

M

L

XL

Waistband (relaxed)

24-26

26-28

30-32

34-36

38-40

Waistband (stretched)

26-28

28-30

32-34

36-38

40-42

12

13

14

15

16

20.25

20.63

21

22.8

25.13

Fly length

4

4.5

5

5.5

6

Fly width

2

2

2

2

2

SIZE

Length

ELASTIC

30

DESCRIPTION: Used in the waist, the elastic is used to allow the waistband to stretch. COLORS: White

SWATCH Leg opening

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TECH PACKS

TECH PACKS

DENALI LOUNGE PANT

DENALI LOUNGE PANT

STYLE

DATE CREATED

STYLE

DATE CREATED

Men’s loungewear/sleepwear

3/7/2016

Men’s loungewear/sleepwear

3/7/2016

DESCRIPTION

DESCRIPTION

Slim-straight lounge pants with a draswtring waist and cinched leg openings.

Slim-straight lounge pants with a draswtring waist and cinched leg openings.

SKETCH

COLORS

SKETCH

Taupe

Slate

32

33


TECH PACKS

TECH PACKS

DENALI LOUNGE PANT STYLE

DATE CREATED

Men’s loungewear/sleepwear

3/7/2016

MATERIALS ORGANIC COTTON

SWATCH

DESCRIPTION: Woven cotton that is responsibly grown, doesn’t use pesticides and provides fair wages to workers. COLORS: Taupe, Black

DRAWSTRING CORD

STYLE

DATE CREATED

Men’s loungewear/sleepwear

3/7/2016

DESCRIPTION

SAMPLE SIZE

Slim-straight lounge pants with a draswtring waist and cinched leg openings.

Medium (M)

SIZE SPECIFICATIONS

SWATCH

DESCRIPTION: A woven cotton cord used for securing the waistband of the pants. COLORS: White, Gray

ELASTIC

DENALI LOUNGE PANT

SIZE

XS

S

M

L

XL

Waist

28

32

34

36

40

Length

30

34

34

36

42

Leg opening

3

3.2

3.4

3.6

3.8

SWATCH

DESCRIPTION: Used in the waist, the elastic is used to allow the waistband to stretch. COLORS: White 34

35


TECH PACKS

TECH PACKS

EVEREST BRIEF

EVEREST BRIEF

STYLE

DATE CREATED

STYLE

DATE CREATED

Men’s underwear/briefs

3/7/2016

Men’s underwear/briefs

3/7/2016

DESCRIPTION

DESCRIPTION

Classic fit with a soft stretch

Classic fit with a soft stretch

and an elastic waist band.

and an elastic waist band.

SKETCH

COLORS

SKETCH

Black

Forest

Taupe

36

Slate

37


TECH PACKS

TECH PACKS

EVEREST BRIEF

EVEREST BRIEF

STYLE

DATE CREATED

STYLE

DATE CREATED

Men’s underwear/briefs

3/7/2016

Men’s underwear/briefs

3/7/2016

DESCRIPTION

SAMPLE SIZE

DESCRIPTION

Classic fit with a soft stretch

Classic fit with a soft stretch

and an elastic waist band.

and an elastic waist band.

MATERIALS

SIZE SPECIFICATIONS

LYOCELL

SWATCH

DESCRIPTION: A sustainable form of rayon that is man made from cellulosic materials, like wood or bamboo pulp. COLORS: Forest, Taupe, Slate, Black

ELASTIC

Medium (M)

SWATCH

SIZE

XS

S

M

L

XL

Waist

11.25

12.25

13.25

14.25

15.25

Crotch width

5.375

5.375

5.375

5.375

5.375

Leg Opening

8.375

9

9.375

10.25

10.875

DESCRIPTION: Used in the waist, the elastic is used to allow the waistband to stretch. COLORS: White 38

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TECH PACKS

TECH PACKS

MITCHELL T-SHIRT

MITCHELL T-SHIRT

STYLE

DATE CREATED

STYLE

DATE CREATED

Men’s lounge shirt

3/7/2016

Men’s lounge shirt

3/7/2016

DESCRIPTION

DESCRIPTION

Classic fit crew neck short

Classic fit crew neck short

sleeve tee.

sleeve tee.

SKETCH

COLORS

SKETCH

Stark

Forest

Taupe

Slate 40

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TECH PACKS

TECH PACKS

MITCHELL T-SHIRT

MITCHELL T-SHIRT

STYLE

DATE CREATED

STYLE

DATE CREATED

Men’s lounge shirt

3/7/2016

Men’s lounge shirt

3/7/2016

DESCRIPTION

SAMPLE SIZE

DESCRIPTION

Classic fit crew neck short sleeve tee.

Classic fit crew neck short sleeve tee.

MATERIALS ORGANIC COTTON DESCRIPTION: Woven cotton that is responsibly grown, doesn’t use pesticides and provides fair wages to workers. COLORS: Stark, Taupe, Forest, Slate

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Medium (M)

SIZE SPECIFICATIONS SWATCH SIZE

XS

S

M

L

XL

Chest

40

41

42

43.5

45

Length

27.25

28.25

29.25

30.25

31.25

Armhole

4.5

5

6

6.5

7

Bottom hem

39.5

40.5

41.5

43

44.5

Sleeve Length

7.75

8

8.25

8.5

8.75 43


COUNTRY RANKING

SUPPLIER RANKING

DOUBLE DRAGON PTE. LTD. TOTAL: 59 AVERAGE: 7.38 MAS ACTIVE TRADING PVT. LTD. TOTAL: 71 AVERAGE: 8.86 YESIM SATIS VE TEKSTIL A.S. TOTAL: 65 AVERAGE: 8.13

DOUBLE DRAGON PTE. LTD. (SINGAPORE) ABILITIES (8): Well-established import and export company for sourcing for a variety of garments and apparel since 1986. Works with a range of woven and knitted products. CAPACITY (7): Sales volumes of around $5 million and cooperates with more than 20 supplier factories. Minimum order of 2,000 units required for underwear products. SRI LANKA TOTAL: 73 AVERAGE: 6.63

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SINGAPORE TOTAL: 90 AVERAGE: 8.18

TURKEY TOTAL: 76 AVERAGE: 6.90

LEAD TIME (9): 23 Days to L.A. QUALITY (7): 100% guarantee on quality, provides experienced quality controllers at each factory. CUSTOMERS (6): Variety of customers as their products include menswear, womenswear, children’s clothing, red wine, and more

SOURCING GUIDELINES (8): Honor human rights and promote ethical trade standards; bans use of unsafe chemicals, specifically in underwear products, and bans animal testing. Also have Protect Our Planet initiative which focuses on responsible use of chemicals, minimizing waste, and encouraging recycling. SERVICES OFFERED (7): In addition to manufacturing, offer design unit, quality unit, and merchandising unit which covers labeling and packaging. STRATEGIC OUTLOOK (7): Overall, has good social responsibility initiatives, a variety of services, and shorter lead times. However, such large portfolio of production could affect overall quality / concentration on product.

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SUPPLIER RANKING

GUIDELINES: OUR CSR

MAS ACTIVE TRADING PVT. LTD. (SRI LANKA)

YESIM SATIS VE TEKSTIL A.S. (TURKEY)

ABILITIES (10): $1.6 billion conglomerate and one of the world’s most recognized Design-to-Delivery Solution Providers in the realm of Apparel and Textile Manufacturing.

ABILITIES (9): Employs over 2,000 people, carried out over a total of 325,000 square meters; One of the four largest fully integrated yarn to finished product facilities under one roof in the garment sector anywhere in the world.

CAPACITY (9): 48 manufacturing facilities placed across 15 countries and with over 76,000 people involved in the operation; 160 million pieces and partnering in 24 launches in 2014

CAPACITY (8): 50 tons of knitted products; 60 tons dyed; 100,000 meters of printed f a b r i c ; 1 5 0 , 0 0 0 pieces of garments; and 100,000 pieces of home textiles.

LEAD TIME (7): 30 Days to L.A.

LEAD TIME (7): 30 Days to L.A.

QUALITY (9): High quality, top products; integrated use of updated technology and innovations; creates pieces for top brand names

QUALITY (7): High quality, and timely delivery; SA 8000 Certificate approved.

CUSTOMERS (9): Variety of customers including Nike, Chico’s, Lululemon, Hanesbrands, The Gap, Calvin Klein, and Victoria’s Secret

CUSTOMERS (9): Includes Burberry, The Gap, Banana Republic, Levi Strauss, and many more top industry brands.

SOURCING GUIDELINES (10): Global reputation for ethical and sustainable working environment. Tireless effort towards women’s empowerment. Works with Thurulie- the world’s first purpose build eco manufacturing plant. Rated LEED Platinum by the US Green Building Council and has been profiled as a Global Best Practice in Sustainability. Community growth.

SOURCING GUIDELINES (8): Has Green Factory initiatives- prevent and reduce sources of pollution, and implement industry best practices and standards. Also focuses on minimizing health risks, and promoting health and safety standards within factory settings. Also has programs in place to train personnel for quality work experience and knowledge.

SERVICES OFFERED (8): Creates intimate wear, active wear, and swim wear. Additionally, offers fully integrated supply chain from design to delivery. Has own fabric division.

SERVICES OFFERED (9): Knitting, Dyeing Printing, Finishing, Apparel, and Home Textiles; Apparel includes sewing, ironing, quality control, packing, and the packaging process.

STRATEGIC OUTLOOK (9): Overall, well recognized with top industry customers as well as great initiatives that align with social and environmental guidelines. However, lead times are longer and no free trade agreements exist with this country.

STRATEGIC OUTLOOK (8): Overall, the supplier is reputable and provides good quality products. Additionally, features strong guidelines dealing with social and environmental issues. However, there are longer lead times and higher costs.

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ENVIRONMENT Recently, Corporate Social Responsibility (or CSR) has evolved to encompass a number of categories, from being socially responsible for people in communities where companies do business to finding the best way to become completely sustainable and leave no carbon footprint. In an effort to create a more socially responsible company, FIT is starting with the basics of CSR and finding innovative ways to be not just environmentally friendly – but environmentally respectful and sustainable. There are three major components to our Environmental Policy at FIT: Products, Practices and Innovation.

PRODUCTS

INNOVATION

FIT products are made with careful consideration to the environment. We use materials like Lyocell (a type of rayon derived from cellulosic wood pulp), Modal (another type of rayon made partially from wood pulp as well as synthetic materials) and Organic Cotton. But ensuring that our products are made from responsible materials is just the beginning. We ensure that the manufacturing process is as environmentally stable as possible by keeping close communications with our factories.

By creating environmentally sustainable products and ensuring that our selling practices are as responsible to the environment as they are our customers, there’s only one more aspect to be concerned about: the future. Making sure that there is an environment for future generations to enjoy is one of our top priorities. Following Patagonia’s 1% initiative, FIT will donate 1% of our annual revenue to various research and development agencies to ensure that future environmental problems have real life solutions today. 47


PRACTICES

TRANSPARENCY

We at FIT don’t believe in Greenwashing. We’re not just creating “Green” products for the sake of being trendy. We genuinely care about the environment. To prove this, we’re making all of our facilities as sustainable as possible with the end goal to have the first retail business with zero Carbon Footprint. To take our company in the right direction, we plan on taking the following steps: 1. Sustainable energy: Our corporate headquarters as well as our retail operations will be powered by wind turbines and solar energy. Any excess energy we generate can be sold to electric companies to help offset additional carbon footprints. 2. Recycling Programs: We want to recycle as many recyclable materials as possible - and that includes our products! All or our retail operations will have collection places for any unwanted FIT products and clothes that can be reused or recycled. 3. Employee Transportation Initiatives: To increase interest in decreasing air pollution, FIT offers a 5% bonus every month for employees who use public transportation or carpools.

BUSINESS FIT strives to make sure the factories we do business with are not only sustainable but also completely ethical in all their practices.

RELATIONSHIPS FIT strives to create long-lasting, personal relationships with the factories and the owners.

WORKPLACE

HONESTY FIT also wants our customers to get what they pay for and to see why each item costs as much as it does.

FIT cares that our workplace is safe, equal, and free of unfair treatment and discrimination. All genders are to receive equal pay, benefits, and treatment in our work place. The positive and secure environments in which our product is developed, produced and marketed are crucial to creating a product of superior quality and ware for our consumer. FIT believes our workplace and employee happiness is directly connected with our consumers’ happiness.

COMMUNITY

SAFETY

EQUALITY

FIT guarantees that its workplace environment is as safe for our workers both physically and personally as possible. In our factories, FIT ensures that all safety regulations are enforced and promotes weekly audits to verify the factories ongoing safety. Corporately, FIT cares about its employees’ safety from sexual harassment and poor treatment. All employees must follow a strict code of conduct to ensure a well ran operation.

We feel that all employees should be treated equally. Race, gender, and sexual orientation have no place in deciding how a person should be treated or paid.

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PAY & BENEFITS All employees of FIT receive fair and just wages that allow quality of life. All overtime will be paid for and follow local guidelines.

FIT strives to actively engage and interact with the world around us. We believe, as a company, it is our responsibility to give back and make a difference. We seek to not only partner with charities that are bettering people, the planet, and the community, but to also encourage and provide the opportunities for our employees and customers to take an active stance in doing good. FIT aims to better people, the planet, and the community. Being a men’s underwear brand, we seek to improve men’s wealth and well-being. We partner with the Movember Foundation, a global charity committed to men living happier, healthier, longer lives, by sponsoring special events and opportunities. Since FIT emphasizes sustainability, we seek to better the planet we live in. We work with the Conservation Fund to protect the land, water, and wildlife around us. To give back to the community, FIT also partners with charities like Project Home and Feeding America that seek to improve lives with needs like shelter and food which we so often take for granted. Not only do we as a company seek to make an active difference, FIT also encourages our employees and customers to become involved as well. We host multiple charity events at our headquarters, as well as provide paid volunteer days for our employees. To allow our customers to become involved and to help those in need, FIT donates gently used underwear to people in developing nations. Additionally, FIT underwear that is returned to us and unable to be donated is recycled and reused for other purposes instead of entering a landfill. 49


RESOURCES Ministry of Manpower: Singapore. http://www.mom.gov.sg/employment-practices/young-persons-andchildren. Web. March 6th 2016. Sri Lanka’s Middle path to Sustainable Development. United Nations Conference on Sustainable Development. June 20th 2012. https://sustainabledevelopment.un.org/content/documents/ 1013SriLankaRio+20.pdf. Web. March 5th, 2016. Sustainable Singapore Blueprint. http://www.mewr.gov.sg/ssb/. Web. March 6th 2016.

CONCLUSION Strong, stylish and sustainable. In brand, aesthetic and production, FIT revolves around these words. Through quality designs, a confident set of values, and a carefully selected group of countries and factories, FIT works its hardest to create a line of men’s underwear and loungewear that is comfortable, tailored, well made and stylish for a man who wants more than a plastic package of boxers.

Turkey Human Rights Report. http://www.ncbuy.com/reference/country/humanrights. html?code=tu&sec=6d. Web. March 6th 2016. Turkey’s Sustainable Development Plan: Claiming the Future. 2012. https://sustainabledevelopment. un.org/content/documents/853turkey.pdf. Web. March 6th 2016. Yesim Textile History. http://english.yesim.com/icerik/8/General-Profile/. Web. March 6th 2016. 2014 Findings on the Worst Forms of Child Labor in Sri Lanka: Moderate Advancement. http://www. dol.gov/ilab/reports/child-labor/sri_lanka.htm. Web. March 5th 2016. https://www.cia.gov/library/publications/the-world-factbook/geos/ce.html. Web. March 5th 2016. https://www.cia.gov/library/publications/the-world-factbook/geos/sn.html. Web. March 6th 2016. https://www.cia.gov/library/publications/the-world-factbook/geos/tu.html. Web. March 6th 2016. https://www.searates.com/. Web. March 6th 2016. http://www.noobstore.com/boxers-size.shtml. Web. March 8th 2016. http://www.calvinklein.com/shop/en/ck/customerservice/men-size-guide. Web. March 8th 2016. http://www.masholdings.com/overview.html#overview. Web. March 5th 2016. http://www.doubledragonintl.com/index.php?mod=index&act=Main&nid=9. Web. March 3rd 2016. https://www.searates.com/reference/portdistance/?A=ChIJE9on3F3HwoAR9AhGJW_fLI&D=15873&G=12117&. Web. March 4th 2016. https://www.cia.gov/library/publications/the-world-factbook/. Web. March 5th 2016. http://www.worldfreightrates.com/ https://panjiva.com/shipment_search/company?permanent_id=28446479&type=all_profile http://sg104081757.fm.alibaba.com/

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https://panjiva.com/Yesim-Satis-Magazalari-Ve-Tekstil-Fabrikalari-A-S/28330538?q=underwear. WEb. March 1st 2016.

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Shandy Frey, Taylor Miller, Ashlee Scott, & Kristin Terrana FASM 420 / Winter 2016 / SCAD


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