RAVI is a new and inspiring athletic clothing brand who’s mission is to stimulate inner balance. The brand aims to shed light on beauty through innovative active wear. RAVI values health, perseverance, aesthetic, and integrity in all aspects of life.
OUR
COMPANY This report focuses on: COMPANY logistics
country analysis
supplier analysis
strategy publication
logistics store location
TARGET MARKET
washington
d.c.
26-32 yrs Female clientele who live healthy, active lifestyles
product category
item range
knit bottoms 4products
OUR
adventure
THE
THE
products ca pri
leg ging
$85
$100
SIZES
SIZES
2 4 6 8 10
wanderer
THE
THE
2 4 6 8 10
har em
wanderlust
short s
$120
$55
SIZES
SIZES
2 4 6 8 10
2 4 6 8 10
adventure
These pants allow f o r e n d l e s s adventures i n a l l a r e a s o f l i f e. N o m a t t e r w h e r e yo u a r e, w h e t h e r i t i s i n t h e Aspen mountain tops or the b l a c k s a n d s o f La n ka i o f O a h u, yo u a r e a b l e t o c u r ve, t w i s t, a n d d i p i n a n y s i t u a t i o n.
DISCOVERY
wanderer
wonderlost
O r g a n i z i n g o u r l i ve s i s f a m i l i a r a n d c o m f o r t a b l e; wandering t h r o u g h t h e u n k n o w n i s u n s e t t l i n g ye t i nv i g o r a t i n g. We h a ve d e s i g n e d t h e s e c a p r i s t o b e u p f o r a n y t h i n g.
discovery
Ro u t i n e i s e m b e d d e d i n t o o u r d a i l y D N A. G e t t i n g f r o m p o i n t A t o p o i n t B i s e s s e n t i a l. H o w eve r, h o w w e g e t t h e r e i s u n d e fi n e d. T h e discover y i n e a c h o f o u r j o u r n ey i s u n k n o w n. R AV I ’ s l e g g i n g s a r e s i m p l y a l o n g f o r t h e r i d e. Desiring exploration broadens our i n s p i r a t i o n. T h e wanderlust S h o r t helps decrease the clutter and discomfort that most spandex s h o r t s c r e a t e. L i ve f r e e, b e f r e e.
COUNTRY
ANALYSIS location Based on proximity to the US, RAVI is looking for low freight costs and short lead times between ports.
sustainability RAVI highly values the future of our environment, thus ensuring that our company researches the environmental practices within each country of interest.
fair labor laws
Meeting basic living standards and working conditions is an absolute must for business to progress. All employees must be treated fairly.
technology Each country of interest must be capable of adapting to modern technology and open to innovative production methods.
trade agreements A free trade agreement with the United States must be in place in order for business ot be conducted.
cost While production costs must be low, the minimum wage of all employees must be met. Following this requirement, a healthy profit margin must be met.
W h e n d e c i d i n g w h a t c o u n t r i e s t o wo r k i n, a b i g f a c t o r wa s t h e a p p a r e l i n d u s t r y a n d t h e i r s p e c i a l t i e s. I n g e n e r a l, C e n t r a l a n d S o u t h A m e r i c a n c o u n t r i e s h a ve a p r o d u c t i o n f o c u s e d o n k n i t s a n d wove n s, w h i l e a l s o b e i n g r e l a t i ve l y i n e x p e n s i ve w h e n i t c o m e s t o l a b o r c o s t s. T h i s s p e c i a l i t y a n d l o w l a b o r c o s t b e n e fi t s R AV I ’ s p r o d u c t a s s o r t m e n t r e q u i r e m e n t s, a n d t h e l o c a t i o n a n d p r o x i m i t y h e l p s t o a c h i eve l o w f r e i g h t c o s t s p e c i fi e d i n t h e c o u n t r y r o a d m a p. B a s e d o n t h i s, R AV I l o o ke d i n t o p r o d u c t i o n i n N i c a r a g u a, H o n d u r a s, C o l o m b i a, Pe r u, E l S a l va d o r, a n d G u a t e m a l a. T h r o u g h t h e a n a l y s i s, R AV I f o u n d t h a t e a c h c o u n t r y wa s i n a F TA w i t h t h e U n i t e d S t a t e s. U l t i m a t e l y, Pe r u, C o l o m b i a, a n d G u a t e m a l a w e r e c h o s e n b e c a u s e o f t h e i r g r o w i n g a p p a r e l i n d u s t r y a n d s p e c i a l t y i n a c t i ve k n i t w e a r p r o d u c t s.
COUNTRY
SELECTION
ROAD M A P
REMINDERS location sustainability labor laws technology trade agreements cost
PERU Peru’s apparel industry is steadily on the rise. With major retailers like Lilly Pulitzer, Marc Jacobs, Hugo Boss, John Varvatos, and many more large names moving production to the country, it is clear that the quality is of products being produced is unmatched (Donaldson(2)). Along with the apparel industry, the social class divide is drastically being improved. Poverty is being decreased at unrepresented rates thus make production within Peruvian boarders more and more desirable. The factory working conditions are rapidly improving with the $750 minimum wage constantly being assessed (Peru). A vast majority of the major manufacturers are WRAP certified, provided reassurance with production standards.
COLOMBIA
GUATEMALA
Colombia has an apparel industry that is prominently focused on being vertically integrated and innovative in the cotton and knitwear sectors (“Fabrics”). From the mill to the end packaging, Colombian manufacturers are working to integrate sustainable and socially responsible practices into everything they produce (“Fashion”). As an added benefit for employees working in factories, employers are obligated to provide a $72 stipend on top of wages for transportation (Smith). Colombia also has a strong commitment to Foreign Policy and openness to foreign investments. With short lead times, averaging only 28 days, the apparel sector is expected to grow in upcoming years (“Textile”).
Wovens and knitwear are at the center of the apparel industry in Guatemala. Sustainability and innovation in production are two qualities the country is working to improve, which can be seen through their prominent and successful manufacturers (“Garments”). With boasting and efficient ports accessing both the Pacific Ocean and Gulf of Mexico, Guatemala’s freight is inexpensive and reliable. Over 90,000 jobs have been created in the apparel sector, and unemployment is at an all time low with 2.9% (“Guatemala”). Guatemala’s economy and political standing are improving with each fiscal year as inflation rate is decreasing and GDP is steadily growing.
SUPPLIER
GOAL
ANALYSIS Once our countries were selected, we knew that we needed to assess the major knitwear manufacturers within each selected country. The main areas of interest pertained to sustainability, corporate social responsibility, and vertical integration. These three factors not only drive profit but also meet RAVI’s customer expectations. Ensuring that fair labor laws are met are a necessity for RAVI to conduct business. Along with the factories’ CSR, the companies’ transparency is also an area of concern. It is essential that each factory publicly displays all information about production and conditions to avoid any future discrepancies. Finally, vertical integration allows for a quick and seamless process, thus delivering RAVI’s products as quickly as possible.
Textil Del Valle is one of Peru’s top vertically integrated factories that specialize in advanced technologies (Donaldson). This factory, unlike most Peruvian factories, publicly displays their environmental initiatives. Del Valle has also produced their own water treatment facilities to help improve the community in which they operate in. Creytex is on of Colombia’s leading vertically integrated manufacturers. Their processes range from textile milling, dying, embroidery, cutting, sewing, distribution, and dispatching. The company’s production capacity equals out to 15,000 units/day with a short, 40 day lead time. An essential quality about Creytex is that they participate in lean manufacturing, which diminishes waste and unnecessary time. Hansoll Textile is the umbrella corporation to Modas Kotop. Mainly manufacturing knit apparel from Guatemala, Hansoll believes that employee relationships are crucial to high productivity. The company maintains an active grievance resolution system which includes suggestion boxes, counseling, hot-lines, and interviews in each factory. LED lighting, solar water heaters, and wastewater treatment systems are integrated for sustainability.
STRATEGY
PUBLICATION country
Peru, Colombia, and Guatemala present endless opportunity for growth within the apparel and textile sector. Specializing in knitwear and advanced technological practices, these countries offer manufacturers that set unmatched standards in all areas of production. With close proximity to the United States, these countries present both low costs and short lead times, making their exporting abilities even more desirable.
suppliers
Within the selected countries, the top manufacturers have been identified. Textil Del Valle, Creytex, and Hansoll Textile are recognized as leaders of apparel production in their prospective country. Aside from their exceptional sustainable and social practices, each chosen manufacturer is able to produce high quality products in high capacity. Durability and longevity can also be seen throughout their vertically integrated processes.
units
As depicted in the appendix, RAVI’s product assortment has been leveraged throughout the three countries in order to maximize our margins. Refer to the last page of the appendix for further inquiry.
86.83% $11.49
AVG. MARGIN
AVG. COST
*PLEASE REFER TO APPENDIX FOR FULL PLACEMENT STRATEGY
STRATEGY
CONCLUSION At the core of RAVI’s values, customer’s expectations take priority and define how business should be conducted. Sustainability, transparency, and social responsibility are three aspects the RAVI customer expects to exceed industry standards. With this in mind, countries and factories were evaluated on strict guidelines that not only would maximize margins to their fullest potential, but also provide reassurance on fair labor and environmental practices. This strategy is conducive for the RAVI community because of the correlation between our values and the country/supplier compliance. The suppliers within each selected country publicly display progressive transparency in ethical practices. The leading manufacturers aspirational efforts correlate with RAVI’s value of integrity. Each country produces consistent quality, thus meeting our aesthetic needs. Perseverance and health go hand in hand for each country selected. The countries chosen have textile industries that are steadily improving labor conditions and continuously researching innovative ways of producing new fibers and energy saving technologies. Our strategy, depicted in this report, proves that our selections maximize our margins. As seen in the appendix, our average profit margin is 87%. With the minimum margin requirement being 68%, it is clear that our strategy exceeds this total significantly. Since we have selected countries located in Central and South America, our leadtimes are lower than sourcing from other options presented. With the apparel industry growing in each country, their lead-times have become extremely competitive. During the evaluation process for this final strategy, we assessed the key areas of international business in order to maximize all potential opportunities. Due to strong economic and political environments within each of the countries, our risks were minimized. Vertical integration allows for seamless production, reducing complications in all aspects of the business process. This strategy offers future growth based capacity, growing innovation, increased competition, and increased interest in sustainable initiatives. Peru, Colombia, and Guatemala are excellent choices for conducting business. So, RAVI is proud to display this information to its customers.
REPORT
APPENDIX
LINE
PLAN 5/23/15 RAVI LINE PLAN STYLE #
SEASON SP/SU
NAME
Style #1 Style #2 Style #3 Style #4
Shorts Capris Leggings Pants
Style #1 Style #2 Style #3 Style #5
1000000 STYLE # Shorts 20% Capris 25% Leggings #1 Style 25% #1 Pants 10%
5/23/15 TOTALLINE RAVI
Style #2 Style #3 Style #4
UNIT
SUMMER
JAN
FEB
Quantities 17200 21200 21000 8900 68300 PLAN
Quantities 16200 20500 20600 8000 65300
NAME 250000
/12 16666.7 20833.3 20833.3 8333.33
300000 300000 Shorts 150000
Capris 1000000 Leggings Pants
MAR
APR
Quantities Quantities 17100 16300 21800 20600 21800 20500 8800 7800 69500 SEASON 65200 SP/SU
Style #1 Style #2 Style #3 Style #5
Shorts Capris Leggings #1 Pants
1000000 20% 25% 25% 10%
JU
Quant 168 205 205 780 656
JAN
FEB
Quantities 17200 21200 21000 8900 68300
Quantities 16200 20500 20600 8000 65300
250000 300000 300000 150000
/12 16666.7 20833.3 20833.3 8333.33
BREAKDOWN TOTAL
MAY Quantities 16300 20800 20600 8000 65700
1000000
Q
MAY
antities 16300 20800 20600 8000 65700
AL
00 00 00 00 00
JUN Quantities 16800 20500 20500 7800 65600
Fall/ Winter
JUL
AUG
SEP
OCT
Quantities 16500 20400 20200 7900 65000
Quantities 16200 20200 20200 7900 64500
Quantities 16200 20000 20300 8200 64700
Quantities 16200 20000 20200 8000 64400
HOLIDAY
NOV
DEC
Quantities 17200 21500 21500 9100 69300
Quantities 17800 22500 22600 9600 72500
TOTAL 200000 250000 250000 100000 800000
Retail
Retail
Cost
Cost
Margin
Margin %
Per Unit $55.00 $85.00 $100.00 $120.00
Total $11,000,000.00 $21,250,000.00 $25,000,000.00 $12,000,000.00 $69,250,000.00 Average
Per Unit $6.00 $10.00 $13.00 $16.00
Total $1,200,000.00 $2,500,000.00 $3,250,000.00 $1,600,000.00 $8,550,000.00 Average
$49.00 $75.00 $87.00 $104.00 $315.00 Average
89.09%
Ret
Per $55 $85 $10 $12
89.09% Average
FOLLOWED BY
COST SHEETS
RAVI SHORTS COST SHEET Date: 5/17/15 Style #: RA3446 Style Name: Lotus Description: Shorts
Peru
FABRICS
Season : Winter 2016 Wash : Light wash Wash Description : Wash with like colors
Mill
Style #
Fabric 1
Textil del Valle
TDV-3422
Fabric 2
Textil del Valle
TDV-3429
TOTAL FABRIC COST *to include freight
Components Thread Care label
Description
86% nylon/14% spandex 86% nylon/14% spandex
Cost Per Yard*
Yield**
Total
$3.10
0.75
$2.348
$1.90
0.250
$0.480
$2.828
**must include waste
Vendor
Style #
Cost Per Unit
Quantity**
Total
Textil del Valle Textil del Valle
TDV-5745 TDV-6703
$0.002 $0.050
100 1
$0.202 $0.050 $0.070 $0.455
Embroidered label
Textil del Valle
TDV-4709
$0.07
1
Elastic
Textil del Valle
TDV-1463
$0.30
1.5
TOTAL COMPONENT COSTS
PACKAGING
$0.777
Hangtags
Vendor
Style #
Cost Per Unit
Quantity
Total
Textil del Valle
TDV-8966
$0.051
1
$0.051
Price Tkt Straps
Textil del Valle Textil del Valle
TDV-7871 TDV-5677
$0.051 $0.100
1 1
$0.051 $0.101
TOTAL PACKAGING COSTS
PACKING
Cartons Tape Labels
$0.203
Vendor
Style #
Cost Per Unit
Quantity
Total
Textil del Valle Textil del Valle Textil del Valle
N/A N/A N/A
$1.34 $0.01 $0.06
100 1 1
$0.013 $0.010 $0.060
TOTAL PACKING COSTS
LABOR
Patternmaking Grading Marking Cutting Sewing Admin
$0.083
Vendor
Cost Per Min
# of Mins
Total
Textil del Valle Textil del Valle Textil del Valle Textil del Valle Textil del Valle Textil del Valle
$0.0117 $0.0117 $0.0117 $0.1170 $0.1300 $0.5000
1 1 1 1 9 1
$0.0117 $0.0117 $0.0117 $0.1170 $1.1700 $0.5000
TOTAL LABOR
$1.82
*Includes pressing & packing unless otherwise noted.
OTHER
Vendor
Freight *Insurance Included* Mediterranean Shipping Company Per Container Broker Mediterranean Shipping Company
Cost
# of Unit
Total
$1,571.00 $0.01
105,600 1
$0.015 $0.010
No Duty- Free Trade Agreement
TOTAL OTHER
$0.025
GRAND TOTAL
$5.738
RAVI SHORTS COST SHEET Date: 5/17/15 Style #: RA3446 Style Name: Lotus Description: Shorts
Colombia FABRICS
Season : Winter 2016 Wash : Light wash Wash Description : Wash with like colors
Mill
Style #
Fabric 1
Creytex
CY-3169
Fabric 2
Creytex
CY-3391
TOTAL FABRIC COST *to include freight
Description
86% nylon/14% spandex 86% nylon/14% spandex
Cost Per Yard*
Yield**
Total
$4.00
0.75
$3.030
$2.50
0.250
$0.631
$3.661
**must include waste
Components
Thread Care label Embroidered label Elastic
Vendor
Style #
Cost Per Unit
Quantity**
Total
Creytex Creytex Creytex Creytex
CY-1234 CY-1825 CY-1783 CY-1643
$0.00125 $0.05 $0.07 $0.30
100 1 1 1.5
$0.126 $0.050 $0.070 $0.455
TOTAL COMPONENT COSTS
$0.701
PACKAGING
Hangtags Price Tkt Straps
Vendor
Style #
Cost Per Unit
Quantity
Total
Creytex
CY-0004
$0.051
1
$0.051
Creytex Creytex
CY-0007 CY-0901
$0.051 $0.100
1 1
$0.051 $0.100
TOTAL PACKAGING COSTS
$0.202
PACKING
Cartons Tape Labels
Vendor
Style #
Cost Per Unit
Quantity
Total
Creytex Creytex Creytex
N/A N/A N/A
$1.34 $0.01 $0.06
100 1 1
$0.013 $0.010 $0.060
TOTAL PACKING COSTS
$0.083
LABOR
Patternmaking Grading Marking Cutting Sewing Admin
Vendor
Cost Per Min
# of Mins
Total
Creytex Creytex Creytex Creytex Creytex Creytex
$0.0014 $0.0014 $0.0014 $0.1260 $0.1400 $0.5000
1.0000 1.0000 1.0000 1.0000 9.0000 1.0000
$0.001 $0.001 $0.001 $0.126 $1.260 $0.500
TOTAL LABOR
$1.890
*Includes pressing & packing unless otherwise noted.
OTHER
Freight *Insurance Included* Broker
Vendor King Ocean Services King Ocean Services
Per Container
Cost
# of Unit
Total
$1,120.00 $0.01
105,600 1
$0.011 $0.010
No Duty- Free Trade Agreement
TOTAL OTHER
$0.021
GRAND TOTAL
$6.558
RAVI SHORTS COST SHEET Date: 5/17/15 Style #: RA3446 Style Name: Lotus Description: Shorts
Guatemala FABRICS
Season : Winter 2016 Wash : Light wash Wash Description : Wash with like colors
Mill
Style #
Fabric 1
Modas Kotop S.A.
MK-4456
Fabric 2
Modas Kotop S.A.
MK-4431
TOTAL FABRIC COST *to include freight
Components
Description
86% nylon/14% spandex 86% nylon/14% spandex
Cost Per Yard*
Yield**
Total
$3.90
0.75
$2.954
$2.20
0.250
$0.556
$3.510
**must include waste
Thread
Vendor
Style #
Cost Per Unit
Quantity**
Total
Modas Kotop S.A.
MK-4420
$0.002
100
$0.202
Care label Embroidered label Elastic
Modas Kotop S.A. Modas Kotop S.A. Modas Kotop S.A.
MK-5676 MK-5679 MK-1235
$0.05 $0.07 $0.30
1 1 1.5
$0.050 $0.070 $0.455
TOTAL COMPONENT COSTS
PACKAGING
Hangtags Price Tkt Straps
$0.777
Vendor
Style #
Cost Per Unit
Quantity
Total
Modas Kotop S.A. Modas Kotop S.A. Modas Kotop S.A.
MK-3331 MK-2424 MK-1022
$0.051 $0.051 $0.100
1 1 1
$0.051 $0.051 $0.100
TOTAL PACKAGING COSTS
PACKING
Cartons Tape Labels
$0.202
Vendor
Style #
Cost Per Unit
Quantity
Total
Modas Kotop S.A. Modas Kotop S.A. Modas Kotop S.A.
N/A N/A N/A
$1.34 $0.01 $0.06
100 1 1
$0.013 $0.010 $0.060
TOTAL PACKING COSTS
LABOR
$0.083
Patternmaking Grading
Vendor
Cost Per Min
# of Mins
Total
Modas Kotop S.A. Modas Kotop S.A.
$0.0010 $0.0010
1.0000 1.0000
$0.001 $0.001
Marking Cutting
Modas Kotop S.A. Modas Kotop S.A. Modas Kotop S.A. Modas Kotop S.A.
$0.0010 $0.0900 $0.1000 $0.5000
1.0000 1.0000 9.0000 1.0000
$0.001 $0.090 $0.900 $0.500
Sewing Admin TOTAL LABOR *Includes pressing & packing
$1.493
Modas Kotop S.A.
unless otherwise noted.
OTHER
Freight *Insurance Included* Broker
Vendor Translogistica S.A. Translogistica S.A.
Per Container
Cost
# of Unit
Total
$1,580.36 $0.01
105,600 1
$0.015 $0.010
No Duty- Free Trade Agreement
TOTAL OTHER
$0.025
GRAND TOTAL
$6.090
RAVI CAPRIS COST SHEET Date: 5/17/15 Style #: RA3446 Style Name: Yin Description: Capris
Peru
FABRICS
Season : Winter 2016 Wash : Light Wash Wash Description : Wash with like colors
Mill
Style #
Fabric 1
Textil del Valle
TDV-3422
Fabric 2
Textil del Valle
TDV-3429
TOTAL FABRIC COST *to include freight
Components Thread Care label
Description
86% nylon/14% spandex 86% nylon/14% spandex
Cost Per Yard*
Yield**
Total
$3.10
1.500
$4.697
$1.90
0.750
$1.439
$6.136
**must include waste
Vendor
Style #
Cost Per Unit
Quantity**
Total
Textil del Valle Textil del Valle
TDV-5745 TDV-6703
$0.002 $0.050
150 1
$0.303 $0.050 $0.070 $0.455
Embroidered label
Textil del Valle
TDV-4709
$0.07
1
Elastic
Textil del Valle
TDV-1463
$0.30
1.5
TOTAL COMPONENT COSTS
PACKAGING
Hangtags Price Tkt Straps
$0.878
Vendor
Style #
Cost Per Unit
Quantity
Total
Textil del Valle Textil del Valle Textil del Valle
TDV-8966 TDV-7871 TDV-5677
$0.05 $0.051 $0.100
1 1 1
$0.050 $0.051 $0.101
TOTAL PACKAGING COSTS
PACKING Cartons Tape Labels
$0.202
Vendor
Style #
Cost Per Unit
Quantity
Total
Textil del Valle Textil del Valle Textil del Valle
N/A N/A N/A
$1.34 $0.01 $0.06
75 1 1
$0.018 $0.010 $0.060
TOTAL PACKING COSTS
LABOR
$0.088
Vendor
Cost Per Min
# of Mins
Total
Patternmaking Grading
Textil del Valle Textil del Valle
$0.0130 $0.0130
1 1
$0.013 $0.013
Marking Cutting
Textil del Valle Textil del Valle
$0.0130 $0.1300
1 1
$0.013 $0.130
Sewing Admin
Textil del Valle Textil del Valle
$0.1300 $0.5000
10 1
$1.30 $0.50
TOTAL LABOR
$1.97
*Includes pressing & packing unless otherwise noted.
OTHER
Vendor
Freight *Includes Insurance* Mediterranean Shipping Company Per Container Mediterranean Shipping Company Broker
Cost
# of Unit
Total
$1,571.00 $0.01
31,680 1
$0.050 $0.010
No Duty- Free Trade Agreement
TOTAL OTHER
$0.060
GRAND TOTAL
$9.332
RAVI CAPRIS COST SHEET Date: 5/17/15 Style #: RA3446 Style Name: Yin Description: Capris
Colombia FABRICS
Mill
Fabric 1
Creytex
Fabric 2
Creytex
Season : Winter 2016 Wash : Light Wash Wash Description : Wash with like colors
Style #
Description
86% nylon/14% CY-3169 spandex 86% nylon/14% CY-3391 spandex
TOTAL FABRIC COST *to include freight
Cost Per Yard*
Yield**
Total
$4.00
1.500
$6.060
$2.50
0.750
$1.894
$7.954
**must include waste
Vendor
Style #
Cost Per Unit
Quantity**
Total
Thread
Components
Creytex
CY-1234
$0.00125
150
$0.188
Care label Embroidered label Elastic
Creytex Creytex Creytex
CY-1825 CY-1783 CY-1643
$0.05 $0.07 $0.30
1 1 1.5
$0.050 $0.070 $0.455
TOTAL COMPONENT COSTS
$0.762
PACKAGING
Hangtags Price Tkt Straps
Vendor
Style #
Cost Per Unit
Quantity
Total
Creytex Creytex Creytex
CY-0004 CY-0007 CY-0901
$0.051 $0.051 $0.100
1 1 1
$0.051 $0.051 $0.101
TOTAL PACKAGING COSTS
$0.203
PACKING
Cartons Tape Labels
Vendor
Style #
Cost Per Unit
Quantity
Total
Creytex Creytex Creytex
N/A N/A N/A
$1.34 $0.01 $0.06
75 1 1
$0.018 $0.010 $0.060
TOTAL PACKING COSTS
$0.088
LABOR
Patternmaking Grading Marking Cutting Sewing Admin
Vendor
Cost Per Min
# of Mins
Total
Creytex Creytex
$0.0014 $0.0014
1.0000 1.0000
$0.014 $0.010
Creytex Creytex Creytex Creytex
$0.0014 $0.0014 $0.1400 $0.5000
1.0000 1.0000 10.0000 1.0000
$0.010 $0.010 $1.400 $0.500
TOTAL LABOR
$1.944
*Includes pressing & packing unless otherwise noted.
OTHER
Freight *Insurance Included* Broker
Vendor King Ocean Services King Ocean Services
Per Container
Cost
# of Unit
Total
$1,120.00 $0.01
31,680 1
$0.035 $0.010
No Duty- Free Trade Agreement
TOTAL OTHER
$0.045
GRAND TOTAL
$10.996
RAVI CAPRIS COST SHEET Date: 5/17/15 Style #: RA3446 Style Name: Yin Description: Capris
Guatemala FABRICS
Fabric 1 Fabric 2
Mill Modas Kotop S.A. Modas Kotop S.A.
Season : Winter 2016 Wash : Light Wash Wash Description : Wash with like colors
Style #
TOTAL FABRIC COST *to include freight
Components
Description
Cost Per Yard*
MK-4456 100% Cotton- 72/73" Width MK-4431 100% Cotton- 58/60 Width
$3.90 $2.20
Yield**
Total
1.5 0.75
$5.909 $1.667
$7.575
**must include waste
Vendor
Style #
Cost Per Unit
Quantity**
Total
Thread Care label
Modas Kotop S.A. Modas Kotop S.A.
MK-4420 MK-5676
$0.002 $0.05
150 1
$0.303 $0.051
Embroidered label Elastic
Modas Kotop S.A. Modas Kotop S.A.
MK-5679 MK-1235
$0.07 $0.30
1 1.5
$0.070 $0.455
TOTAL COMPONENT COSTS
PACKAGING
Hangtags Price Tkt Straps
$0.878
Vendor
Style #
Cost Per Unit
Quantity
Total
Modas Kotop S.A. Modas Kotop S.A. Modas Kotop S.A.
MK-3331 MK-2424 MK-1022
$0.051 $0.051 $0.100
1 1 1
$0.051 $0.051 $0.101
TOTAL PACKAGING COSTS
PACKING
Cartons Tape Labels
$0.203
Vendor
Style #
Cost Per Unit
Quantity
Total
Modas Kotop S.A. Modas Kotop S.A. Modas Kotop S.A.
N/A N/A N/A
$1.34 $0.01 $0.06
75 1 1
$0.018 $0.010 $0.060
TOTAL PACKING COSTS
LABOR
Patternmaking Grading Marking Cutting Sewing Admin
$0.088
Vendor
Cost Per Min
# of Mins
Total
Modas Kotop S.A. Modas Kotop S.A. Modas Kotop S.A. Modas Kotop S.A. Modas Kotop S.A.
$0.0100 $0.0100 $0.0100 $0.1000 $0.1000 $0.5000
1 1 1 1 10 1
$0.010 $0.010 $0.010 $0.100 $1.000 $0.500
TOTAL LABOR
$1.630
*Includes pressing & packing unless otherwise noted.
OTHER
Vendor
Freight *Insurance Included*
Translogistica S.A.
Broker
Translogistica S.A.
Per Container
Cost
# of Unit
Total
$1,580.36
31,680
$0.050
$0.01
1
$0.010
No Duty- Free Trade Agreement
TOTAL OTHER
$0.060
GRAND TOTAL
$10.434
RAVI LEGGINGS COST SHEET Date: 5/17/15 Style #: RA3446
Season : Winter 2016
Style Name: Chakra
Wash : Light wash
Description: Leggings
Peru
FABRICS
Wash Description : Wash with like colors
Mill
Style #
Fabric 1
Textil del Valle
TDV-3422
Fabric 2
Textil del Valle
TDV-3429
Description Cost Per Yard* Yield**
86% nylon/14% spandex 86% nylon/14% spandex
Total
$3.10
2.250
$7.045
$1.90
1.000
$1.919
TOTAL FABRIC COST *to include freight
Components
$8.964
**must include waste
Vendor
Style #
Thread Care label
Textil del Valle Textil del Valle
TDV-5745 TDV-6703
Cost Per Unit Quantity** $0.002 $0.050
225 1
$0.455 $0.050
Embroidered label Elastic
Textil del Valle Textil del Valle
TDV-4709 TDV-1463
$0.07 $0.30
1 1.5
$0.070 $0.455
TOTAL COMPONENT COSTS
PACKAGING
Total
$1.029
Vendor
Style #
Cost Per Unit
Quantity
Total
Hangtags Price Tkt
Textil del Valle Textil del Valle
TDV-4355 TDV-4169
$0.05 $0.051
1 1
$0.050 $0.051
Straps
Textil del Valle
TDV-5677
$0.100
1
$0.101
TOTAL PACKAGING COSTS
PACKING
$0.202
Vendor
Style #
Cost Per Unit
Quantity
Total
Cartons Tape
Textil del Valle Textil del Valle
N/A N/A
$1.34 $0.01
50 1
$0.027 $0.010
Labels
Textil del Valle
N/A
$0.06
1
$0.060
TOTAL PACKING COSTS
LABOR Patternmaking Grading Marking Cutting Sewing Admin
$0.097
Vendor
Cost Per Min
# of Mins
Total
Textil del Valle Textil del Valle Textil del Valle Textil del Valle Textil del Valle Textil del Valle
$0.0130 $0.0130 $0.0130 $0.1300 $0.1300 $0.5000
1 1 1 1 10 1
$0.013 $0.013 $0.013 $0.130 $1.300 $0.500
TOTAL LABOR *Includes pressing & packing unless otherwise noted.
OTHER
$1.969
Vendor
Freight *Includes Insurance* Mediterranean Shipping Company Per Container Broker Mediterranean Shipping Company
Cost
# of Unit
Total
$1,571.00
52,800
$0.03
$0.01
1
$0.01
No Duty- Free Trade Agreement
TOTAL OTHER
$0.04
GRAND TOTAL
$12.300
RAVI LEGGINGS COST SHEET Date: 5/17/15 Style #: RA3446 Style Name: Chakra Description: Leggings
Season : Winter 2016 Wash : Light wash Wash Description : Wash with like colors
Colombia FABRICS
Mill
Style #
Fabric 1
Creytex
CY-3169
Fabric 2
Creytex
CY-3391
TOTAL FABRIC COST *to include freight
Description 86% nylon/14% spandex 86% nylon/14% spandex
Cost Per Yard*
Yield**
Total
$4.00
2.250
$9.090
$2.50
1.000
$2.525
$11.615
**must include waste
Components Thread Care label Embroidered label Elastic
Vendor
Style #
Creytex Creytex Creytex Creytex
CY-1234 CY-1825 CY-1783 CY-1643
Cost Per Unit Quantity** $0.00125 $0.05 $0.07 $0.30
225 1 1 1.5
TOTAL COMPONENT COSTS
Total $0.284 $0.050 $0.070 $0.455
$0.859
PACKAGING Hangtags Price Tkt Straps
Vendor
Style #
Cost Per Unit
Quantity
Total
Creytex Creytex Creytex
CY-0004 CY-0007 CY-0901
$0.051 $0.051 $0.100
1 1 1
$0.051 $0.051 $0.101
TOTAL PACKAGING COSTS
PACKING Cartons Tape Labels
$0.203
Vendor
Style #
Cost Per Unit
Quantity
Total
Creytex Creytex Creytex
N/A N/A N/A
$1.34 $0.01 $0.06
50 1 1
$0.027 $0.010 $0.060
TOTAL PACKING COSTS
$0.097
LABOR Patternmaking Grading Marking Cutting Sewing Admin
Vendor
Cost Per Min
# of Mins
Total
Creytex Creytex Creytex Creytex Creytex Creytex
$0.0140 $0.0140 $0.0140 $0.1400 $0.1400 $0.5000
1 1 1 1 10 1
$0.014 $0.014 $0.014 $0.140 $1.400 $0.500
TOTAL LABOR
$2.082
*Includes pressing & packing unless otherwise noted.
OTHER
Vendor
Freight *Insurance Included*
King Ocean Services
Broker
King Ocean Services
Per Container
Cost
# of Unit
Total
$1,120.00
52,800
$0.021
$0.01
1
$0.010
No Duty- Free Trade Agreement
TOTAL OTHER
$0.031
GRAND TOTAL
$14.887
RAVI LEGGINGS COST SHEET Date: 5/17/15 Style #: RA3446
Season : Winter 2016
Style Name: Chakra Description: Leggings
Guatemala FABRICS
Wash : Light wash Wash Description : Wash with like colors
Mill
Style #
Fabric 1
Modas Kotop S.A.
MK-4456
Fabric 2
Modas Kotop S.A.
MK-4431
TOTAL FABRIC COST *to include freight
Components
Description
86% nylon/14% spandex 86% nylon/14% spandex
Cost Per Yard*
Yield**
Total
$3.90
2.250
$8.863
$2.20
1.000
$2.222
$11.085
**must include waste
Vendor
Style #
Cost Per Unit
Quantity**
Total
Thread
Modas Kotop S.A.
MK-4420
$0.002
225
$0.455
Care label Embroidered label Elastic
Modas Kotop S.A. Modas Kotop S.A. Modas Kotop S.A.
MK-5676 MK-5679 MK-1235
$0.05 $0.07 $0.30
1 1 1.5
$0.050 $0.070 $0.455
TOTAL COMPONENT COSTS
PACKAGING Hangtags Price Tkt Straps
$1.029
Vendor
Style #
Cost Per Unit
Quantity
Total
Modas Kotop S.A. Modas Kotop S.A. Modas Kotop S.A.
MK-3331 MK-2424 MK-1022
$0.05 $0.051 $0.100
1 1 1
$0.051 $0.051 $0.101
TOTAL PACKAGING COSTS
PACKING Cartons Tape Labels
$0.203
Vendor
Style #
Cost Per Unit
Quantity
Total
Modas Kotop S.A. Modas Kotop S.A. Modas Kotop S.A.
N/A N/A N/A
$1.34 $0.01 $0.06
50 1 1
$0.027 $0.010 $0.060
TOTAL PACKING COSTS
LABOR
$0.097
Vendor
Cost Per Min
# of Mins
Total
Patternmaking Grading
Modas Kotop S.A. Modas Kotop S.A.
$0.0100 $0.0100
1 1
$0.010 $0.010
Marking Cutting
Modas Kotop S.A. Modas Kotop S.A.
$0.0100 $0.1000
1 1
$0.010 $0.100
Sewing Admin
Modas Kotop S.A. Modas Kotop S.A.
$0.1000 $0.5000
10 1
$1.000 $0.500
TOTAL LABOR *Includes pressing & packing unless otherwise noted.
OTHER
$1.630
Vendor
Freight *Insurance Included*
Translogistica S.A.
Broker
Translogistica S.A.
Per Container
Cost
# of Unit
Total
$1,580.36
52,800
$0.030
$0.01
1
$0.010
No Duty- Free Trade Agreement
TOTAL OTHER
$0.040
GRAND TOTAL
$14.083
RAVI PANTS COST SHEET Date: 5/17/15 Style #: RA3445
Season : Winter 2016
Style Name: Anusura Description: Pants
Peru
FABRICS
Mill
Wash : Light Wash Wash Description : Wash with like colors only in cold water
Style #
DescriptionCost Per Yard* Yield**
Total
Fabric 1
Textil del Valle
TDV-3422Organic Cotton Fleece $3.00
3.25
$9.848
Fabric 2
Textil del Valle
TDV-3429 Yarn Dyed Pima Cotton $1.00
1.25
$1.263
TOTAL FABRIC COST *to include freight
$11.110
**must include waste
Components
Vendor
Style # Cost Per Unit Quantity**
Total
Thread
Textil del Valle
TDV-5745
$0.002
250
$0.505
Care label Embroidered label
Textil del Valle Textil del Valle
TDV-6703 TDV-4709
$0.050 $0.07
1 1
$0.050 $0.070
Elastic
Textil del Valle
TDV-1463
$0.30
1.5
$0.455
TOTAL COMPONENT COSTS
$1.080
PACKAGING
Vendor
Hangtags Price Tkt Straps
Textil del Valle Textil del Valle Textil del Valle
Style # Cost Per Unit Quantity TDV-4355 TDV-4169 TDV-5677
$0.05 $0.051 $0.100
1 1 1
TOTAL PACKAGING COSTS
Total $0.050 $0.051 $0.101
$0.202
PACKING
Vendor
Style # Cost Per Unit Quantity
Total
Cartons Tape
Textil del Valle Textil del Valle
N/A N/A
$1.34 $0.01
30 1
$0.045 $0.010
Labels
Textil del Valle
N/A
$0.06
1
$0.060
TOTAL PACKING COSTS
$0.115
LABOR
Vendor
Patternmaking Grading Marking Cutting Sewing Admin
Cost Per Min # of Mins
Textil del Valle Textil del Valle Textil del Valle Textil del Valle Textil del Valle Textil del Valle
$0.0156 $0.0156 $0.0156 $0.1560 $0.13 $0.50
1 1 1 1 12 1
TOTAL LABOR
$2.272
*Includes pressing & packing unless otherwise noted.
OTHER
Freight *Insurance Included* Broker
Total $0.016 $0.020 $0.020 $0.156 $1.560 $0.500
Vendor
Mediterranean Shipping Company Mediterranean Shipping Company
Per Container
Cost
# of Unit
Total
$1,571.00
31,680
$0.050
$0.01
1
$0.010
No Duty- Free Trade Agreement
TOTAL OTHER
$0.060
GRAND TOTAL
$14.837
RAVI PANTS COST SHEET Date: 5/17/15 Style #: RA3445
Season : Winter 2016
Style Name: Anusura
Wash : Light Wash
Description: Pants
Colombia FABRICS
Wash Description : Wash with like colors only in cold water
Mill
Style #
Fabric 1
Creytex
CY-5466
Fabric 2
Creytex
CY-2243
Description Cost Per Yard* Yield**
Organic Cotton Fleece Yarn Dyed Pima Cotton
Total
$3.20
3.25
$10.50
$1.50
1.25
$1.89
TOTAL FABRIC COST *to include freight
Components
$12.40
**must include waste
Vendor
Style #
Thread Care label
Creytex Creytex
CY-1234 CY-1825
$0.00125 $0.05
250 1
$0.32 $0.05
Embroidered label Elastic
Creytex Creytex
CY-1783 CY-1643
$0.07 $0.30
1 1.5
$0.07 $0.45
TOTAL COMPONENT COSTS
PACKAGING
Vendor
Style #
Cost Per Unit Quantity**
Total
$0.89
CY-1234
Cost Per Unit
Quantity
Total
Hangtags Price Tkt
Creytex Creytex
CY-1825 CY-1783
$0.051 $0.051
1 1
$0.05 $0.05
Straps
Creytex
CY-1643
$0.100
1
$0.10
TOTAL PACKAGING COSTS
PACKING
Cartons Tape Labels
$0.20
Vendor
Style #
Cost Per Unit
Quantity
Total
Creytex
CY-0004
$1.34
30
$0.045
Creytex Creytex
CY-0007 CY-0901
$0.01 $0.06
1 1
$0.010 $0.060
TOTAL PACKING COSTS
LABOR Patternmaking Grading Marking Cutting Sewing Admin
$0.115
Vendor
Style #
Creytex Creytex Creytex Creytex Creytex Creytex
Cost Per Min
# of Mins
Total
$0.0014 $0.0014 $0.0014 $0.17 $0.14 $0.50
1 1 1 1 12 1
$0.001 $0.001 $0.001 $0.168 $1.680 $0.500
TOTAL LABOR *Includes pressing & packing unless otherwise noted.
OTHER
$2.352
Vendor
Freight *Insurance Included* King Ocean Services Broker King Ocean Services
Per Container
Cost
# of Unit
Total
$1,120.00
31,680
$0.035
$0.01
1
$0.010
No Duty- Free Trade Agreement
TOTAL OTHER
$0.045
GRAND TOTAL
$16.00
RAVI PANTS COST SHEET Date: 5/17/15 Style #: RA3445 Style Name: Anusura Description: Pants
Guatemala FABRICS
Season : Winter 2016 Wash : Light Wash Wash Description : Wash with like colors only in cold water
Mill
Style #
Fabric 1
Modas Kotop S.A.
MK-2010
Fabric 2
Modas Kotop S.A.
MK-2002
TOTAL FABRIC COST *to include freight
Components Thread Care label Embroidered label Elastic
Description Cost Per Yard* Yield**
Organic Cotton Fleece Yarn Dyed Pima Cotton
$3.80
3.25
$12.474
$2.40
1.25
$3.030
$15.504
**must include waste
Vendor
Style #
Modas Kotop S.A. Modas Kotop S.A. Modas Kotop S.A. Modas Kotop S.A.
MK-4420 MK-5676 MK-5679 MK-1235
Cost Per Unit Quantity** $0.002 $0.05 $0.07 $0.30
250 1 1 1.5
TOTAL COMPONENT COSTS
PACKAGING Hangtags Price Tkt Straps
PACKING
Vendor
Style #
Cost Per Unit
Quantity
Total
Modas Kotop S.A. Modas Kotop S.A. Modas Kotop S.A.
MK-3331 MK-2424 MK-1022
$0.05 $0.051 $0.100
1 1 1
$0.051 $0.051 $0.101 $0.203
Vendor
Style #
Cost Per Unit
Quantity
Total
Modas Kotop S.A. Modas Kotop S.A. Modas Kotop S.A.
N/A N/A N/A
$1.34 $0.01 $0.06
30 1 1
$0.045 $0.010 $0.060
TOTAL PACKING COSTS
LABOR
Total $0.505 $0.050 $0.070 $0.455
$1.080
TOTAL PACKAGING COSTS
Cartons Tape Labels
Total
$0.115
Vendor
Cost Per Min
# of Mins
Total
Patternmaking Grading Marking Cutting
Modas Kotop S.A. Modas Kotop S.A. Modas Kotop S.A. Modas Kotop S.A.
$0.0120 $0.0120 $0.0120 $0.1200
1 1 1 1
$0.012 $0.012 $0.012 $0.120
Sewing Admin
Modas Kotop S.A. Modas Kotop S.A.
$0.1000 $0.5000
12 1
$1.200 $0.500
TOTAL LABOR *Includes pressing & packing unless otherwise noted.
OTHER
Freight *Insurance Included* Broker
$1.856
Vendor Translogistica S.A. Translogistica S.A.
Per Container
Cost
# of Unit
Total
$1,580.36 $0.01
31,680 1
$0.05 $0.01
No Duty- Free Trade Agreement
TOTAL OTHER
$0.06
GRAND TOTAL
$18.817
RAVI COUNTRY RANKING Scale of 1 to 10 with 1 being the worst and 10 the best Peru
Explanation
Business Climate
9
Costs
9
Primarily stable but the etiquette is slightly different and can cause confusion Extremely low costs but the minimum wage does not support basic family needs
Government
9
Is currently stable but has shown fluctuation in the past
Location
10
Risks
9
Social Stability
Sourcing Guidelines
Textile Industry
Trade Agreements
Trained Work-‐force
Socio-‐eco-‐political
5
9
10
9
7
8
Located in South America making lead times extremely short Vast difference in social classes (urban vs. rural) has caused protestsin the pastbut are currently being resolved; Few natural disasters to worry about Extreme difference in urban and rural areas that have caused social unrest among most of the Peruvian population Majority of the manufacturers in Peru are WARP certified thus ensuring that guidelines are set in place; current president is dilegently working to enhance conditions Many name brand and designer retailers are moving all of their production to Peru; the industry is growing exponentially each year Have a current agreement with the US as well as Europe and China; still working to be apart of Trans-‐Atlantic agreement Skilled workers are steadily growing thanks to training and education practices increasing The economic and political areas within the country are currently stable but the social differences pose as a threat for the future if not addressed in the way the population sees fit
Colombia
8 9 7
9
Explanation
Due to limitied supply, starting to outsource raw materials. Economy has been steadily growing in many industries within Columbia Low exporting and shipping costs; Working wage per month is relatively low as well Well established legal system ; Strong foreign policy and an open economy Close to our location as well as having ports in a accesrble spot for not to many interuptions ; Inadequate road structures that cause delays from factory to port
7
poor infastructure, not many raw materials availlable for use
8
Socially responsible manufacturing
Guatemala
8
Explanation
While apparel Is growing in the country, the investment opportunities could improve
9
Ethical wage that meets living wage standards in the country Similar to the US, most recent President has made improvements for economy
10
Very close to the United states with extremely inexpensive freight
7
Flooding, volcanoes and a crime rate that is comparable to neighboring countries
5 Peaceful country and unified classes
9 In place, but violation does occur. Child labor laws are being closely watched
10
7
ISO, BASC and WRAP in place
16.9 is manufacturing exports
10
Free trade agreement
10
Highly skilled workers that produce extreme quality in goods
7
Political disputes with Nicaragua for maritime space
8
9
10
9
Apparel is the number one export for the US. Knitwear and Denim are two of the main focuses CAFTA-‐DR in place and tremendously helping the economy Over 90,000 employed in the apparel industry in Guatemala. Equal men to woman ratio
The industry is on the rise, but the poverty level and education level could use some improvement. Overall, stable
8
Total
94
92
92
Average
8.5
8.4
8.4
RAVI SUPPLIER RANKING Scale of 1 to 10 with 1 being the worst and 10 the best
PERU Textil del Valle
COLOMBIA Industria Hailpesa Textil del Pacifico S.A.
Supertex
GUATEMALA PROTELA S.A.
CREYTEX
Silko Modas Kwang Lim Guatemala Kotop, S.A. Primetex S.A S.A
Abilities
9
8
8
8
8
9
9
7
8
Capacity
7
9
5
8
8
10
9
9
8
Lead-time
5
5
7
8
7
9
7
7
6
Quality
10
7
9
10
9
8
8
8
7
Customers
10
7
9
10
7
9
8
7
8
Sourcing Guidelines
7
9
7
9
8
10
10
6
10
Services Offered
10
9
9
9
7
10
9
9
7
Strategic Outlook
Total
8
9
8
7
8
10
9
8
9
66
63
62
69
62
75
69
61
63
Average
8.25
7.875
7.75
8.625
7.375
9.375
8.625
7.625
7.875
Criteria definition for ranking o Abilities How many types of products a supplier can manufacture o Lead-‐time Amount of time it takes to produce product from P.O. issuance to delivery o Quality Excellent, good, average, poor (can evaluate by certifications and customers) o Customers Who are they? o Sourcing Guidelines Published? (can tell by customers) o Capacity How much can the manufacturer produce on a weekly/monthly basis? o Strategic/Forward TAre hinking they looking to grow, develop…? o Value Added Services Do they provide pattern making, design, inventory management, freight…?
PERU CAPRIS
TEXTIL DEL VALLE LEGGINGS
PRELIM PLACEMENT & MARGIN CALCULATION 68% MARGIN REQUIRED
SHORTS
PANTS
COLOMBIA
CREYTEX
GUATEMALA
-‐
MODAS KOTOP S.A.
150,000
PANTS
$ 120.00
LEGGINGS
$ 18.82
-‐
-‐
CAPRIS
-‐
-‐
-‐
SHORTS
-‐
PANTS
-‐
LEGGINGS
-‐
CAPRIS
$ 55.00 $ 85.00 $ 100.00 -‐
50,000 175,000 175,000 -‐
$ 6.56 $ 11.00 $ 14.89
84.32%
$ 101.18
SHORTS
$ 5.73 $ 9.33 $ 12.30 -‐
$ 55.00 $ 85.00 $ 100.00 -‐
-‐
-‐
1,000,000 200,000 125,000 125,000 -‐
Retail
-‐
-‐
Total Units
Cost per Unit
-‐
-‐ 87.06%
85.11% -‐
88.07%
$ 48.44 $ 74.00 $ 85.11 -‐
$ 18,000,000.00
87.70% -‐
$ 2,750,000.00 $ 14,875,000.00 $ 17,500,000.00
89.02%
$ 11,000,000.00 $ 10,625,000.00 $ 12,500,000.00
$ 15,177,000.00
$ 2,823,000.00
89.58%
$ 49.27 $ 75.67 $ 87.70 -‐
Margin
$ 87,250,000
$14,894,250.00
$ 328,000.00 $ 1,925,000.00 $ 2,605,750.00
% Total Retail
$ 9,854,000.00 $ 9,458,750.00 $ 10,962,500.00
$ 1,146,000.00 $ 1,166,250.00 $ 1,537,500.00
$12,950,000.00
$ 75,718,500
$ 11,531,500
$2,422,000.00
Total Purchase
86.78%
$ 75.72
$ 11.53
$ 87.25
total Margins Avg . Retail Avg. Purchase
Avg. Margins Avg . Margins %
Avg. Cost/Unit $ 11.53
TEXTIL DEL VALLE
CAPRIS
PERU
SHORTS
LEGGINGS
$ 87.25
$ 75,760,000
$ 11,490,000
$ 87,250,000
Avg Cost/Unit $ 11.49
AvgMargins Margins $ 75.76 Avg % 86.83%
$ 12,317,500.00 $
9,458,750.00 $ 10,962,500.00
$ 1,432,500.00 $ 1,166,250.00 $ 1,537,500.00
$ 13,750,000.00 $ 10,625,000.00 $ 12,500,000.00
-‐
-‐
-‐
-‐
-‐
87.70% -‐
$ 49.27 $ 75.67 $ 87.70 -‐
89.02%
-‐
$ 5.73 $ 9.33 $ 12.30 -‐
89.58%
-‐
$ 55.00 $ 85.00 $ 100.00 -‐
-‐
LEGGINGS
85.11% -‐
$12,950,000.00
$14,894,250.00
$ 1,925,000.00 $ 2,605,750.00
$ 14,875,000.00 $ 17,500,000.00
87.06%
$ 74.00 $ 85.11 -‐
$ 11.00 $ 14.89
$ 85.00 $ 100.00 -‐
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CAPRIS
GUATEMALA MODAS KOTOP S.A. PANTS SHORTS
175,000 175,000 -‐
CAPRIS
COLOMBIA CREYTEX PANTS SHORTS
1,000,000 250,000 125,000 125,000 -‐
Avg Purchase $ 11.49
Avg Retail
total Margins
Total Purchase
Total Retail
%
Margin
Cost per Unit
Retail
Total Units
68% MARGIN REQUIRED
FINAL PLACEMENT & MARGINS
-‐
-‐
-‐
-‐
-‐
-‐
-‐
-‐
$ 15,177,000.00
$ 2,823,000.00
$ 18,000,000.00
84.32%
$ 101.18
$ 18.82
$ 120.00
150,000
LEGGINGS PANTS
RAVI SOURCING GUIDELINES 1. Valid identification process: no individual under the age of 16 is allowed to be employed. Those between the ages of 16-18 are unable to work past 6pm. The suppliers that ravi works with will be required to sign a contract that requires them to have a device that detects whether an individual’s id is valid. If invalid, the company may not proceed with employment.
2. Auditing: quarterly but random visits by ravi corporate staff members as well as going through a third party organization via biannual visits.
3. Fair wages: must meet/exceed minimum wage of country of origin. 4. Overtime wages: must comply with country overtime payment laws. If no law exists, employer must provide hourly compensation of 125%+.
5. Working hours: regular work schedule should not exceed 45 hours a week per 6-day period. Overtime (must be voluntary + compensated) cannot exceed 60 hours.
6. Health + safety: all work conditions must be sanitary and regularly checked. Accessible, clean bathroom facilities must be provided.
7. Sustainable production: must comply with environmental laws of country followed by separate monitoring to meet ravi standards.
8. Traceability: all suppliers must track and monitor all aspects of their business and be able to provide clear maps of their product and services upon random request.
9. Fair + equal treatment: all employees, both corporate and supplier, must be treated with the utmost respect. All opinions must have equal opportunity to be voiced and considered. Opportunity for employment must revolve around equal employment principles. Hiring will not be based on race, ethnicity, religion, political stance, etc.
10. Nutrition + well being: all supplier employees must be given designated time to eat. If nutrition options are not available in supplier facilities, ravi will provide a locally sourced snack for employees.
community
National Obesity Foundation- A nonprofit organization working to help americans struggling with obesity. RAVI will host a relaxation + fitness day each month that informs dc residents about healthy living habits, provide fitness class/workshops, and allow customers to shop ravi products and learn how to utilize their clothing in their healthy lifestyles. NEDA (National Eating Disorder Association)- RAVI will partner with charity walks by donating collaborative shirts for participating runners. Employees will recieve one paid day a year to volunteer in the DC community
Environmental
Waste reducing practices are incorporated in manufacturing processes.
philanthropy
Each month RAVI will donate a portion of our revenue to to a charity or non profit organization that is inline with our company’s core values.
WORKS
CITED country selection Donaldson, Tara. “Peru Textile and Clothing Exports Up 7%, U.S. Leads Growth - Sourcing Journal Online.” Sourcing Journal Online. Hertzman Media Group, 16 Apr. 2014. Web. 11 May 2015. <https://www.sourcingjournalonline.com/peru-textile-clothing-exports-7-u-s-leads growth-td/>. Donaldson, Tara. “Sourcing Spotlight: Manufacturing in Peru - Sourcing Journal Online.” Sourcing Journal Online. Hertzman Media Group, 18 Nov. 2014. Web. 11 May 2015. <https://www.sourcingjournalonline.com/sourcing-spotlight-manufacturing-peru-td/>. “Fabrics and Apparel Trims.” PROCOLOMBIA. Proexport Colombia, 2015. Web. 24 May 2015. <http://fta-us.procolombia.co/offer-by-sector/textile-and-apparel-industries/fibers-fab rics-and-apparel-trims>. “Fashion Industry Statistics Colombia.” Fashion United. Fashion United, 2015. Web. 24 May 2015. <http://www.fashionunited.com/fashion-industry-statistics-colombia>. “Garments & Textiles.” Invest in Guatemala. Government of Guatemala, 2015. Web. 09 May 2015. <http://investinguatemala.org/investors_guide/content/garments-textiles>. “Guatemala.” The World Factbook. Central Intelligence Agency, 2013. Web. 2 May 2015. <https://www.cia.gov/Library/publications/theworld-factbook/geos/gt.html>. “Peru Minimum Monthly Wage | 1990-2015.” . Trading Economics, 2015. Web. 11 May 2015. <http://www.tradingeconomics.com/peru/minimum-wages>. Smith, Nat. “1.2 Million Colombians See Their Minimum Wage Go up $12/month.” Colombia Reports. Colombia Reports, 06 Jan. 2015. Web. 24 May 2015. <http://colombiareports.com/1-2-million-colombians-see-minimum-wage-go- 12month/>. “Textile and Apparel Industries.” PROCOLOMBIA. Proexport Colombia, 2015. Web. 24 May 2015. <http://fta-us.procolombia.co/offer-by-sector/textile-and-apparel-industries>.
supplier analysis http://www.cicreytex.com.co/index.php?lang=en http://hansoll.com/_ENG/ http://www.textildelvalle.pe/
RAVI FINAL STRATEGY PROF. GRACE CANEPA Christine DeNicola | Lizzie Rose Taryn Ford | Mike Magliochetti
FASM 420-02