Asia vs America - Apparel Sourcing Show 2013

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a chain of suppliers suppliers of change since 1981


EAST VS

WEST NOT EITHER/OR ...........BUT BOTH



AAPN Annual Meeting: May 2013: Miami 79: BRAND/RETAIL - 20 FACTORY - 27 FIBER/YARN/FABRIC - 21 TRIM – 11 31: LOGISTICS - 8 SERVICES - 5 TECHNOLOGY -13 INDUSTRY - 5


5. THE GOOD COMPANY 5. THE GOOD CUSTOMER 8. THE GOOD PARTNERSHIP



BETTER before CHEAPER REVENUE before COSTS TRUST before SPEED NETWORKING before POLITICS KNOWLEDGE before INFORMATION



EASIER..... FASTER..... BETTER..... CHEAPER..... .........................SAFER


2001: GUATEMALA 2013: MIAMI -- ACCESS TO RAW MATERIALS -- FLEXIBILITY -- COST COMPETITIVENESS -- SPEED TO MARKET


AAPN ASIA/AMERICAS REPORT CARD -- KNOWLEDGE OF US MARKET -- VERTICALITY -- SPEED -- COST -- EASE OF DOING BUSINESS -- PRODUCT DEVELOPMENT -- SUSTAINABILITY & SOCIAL -- RISK



Grand Totals West

Metrics East 10 of 31 favor West 21 of 31 favor East

95.5

107.3

3.1

3.5


East - West gap is closing Fabric limitation is greatest obstacle West has leadership in: ethics sustainability speed in production & transit West is gaining in: product development market speed vertical integration industry maturation


-- KNOWLEDGE OF US MARKET -- VERTICALITY -- SPEED -- COST -- EASE OF DOING BUSINESS -- PRODUCT DEVELOPMENT -- SUSTAINABILITY & SOCIAL -- RISK


TRANSPARENCY



KNOWLEDGE OF US MARKET VERTICALITY SPEED COST EASE OF DOING BUSINESS PRODUCT DEVELOPMENT SUSTAINABILITY & SOCIAL RISK


Knowledge of U.S. Market: Does the supplier understand that “it’s not what he wants that counts but rather what the customer wants/expects that counts?” `


AAPN ASIA/AMERICAS REPORT CARD Verticality: Supply Chain Dynamics Fiber/Yarn/Fabric Trim Logistics Full Package


AAPN ASIA/AMERICAS REPORT CARD Market Speed: From concept to consumer: Pre-production Production Logistics/Transit Times Predictability


AAPN ASIA/AMERICAS REPORT CARD Cost/Value: Labor Productivity Electricity Cost & Reliability Degree of Competitiveness Ease & Speed of Costing Engineered Approach vs. “Negotiated” every time


AAPN ASIA/AMERICAS REPORT CARD Ease-of-Doing Business: Rules of Engagement Minimums Flexibility/Responsiveness Control of operations Amount of Assistance Required


AAPN ASIA/AMERICAS REPORT CARD Product Development: Technology Color Development & Approval Pattern Making/Fit Approval Sample Modeling (Making) Design Development Cycle Times


AAPN ASIA/AMERICAS REPORT CARD Social Compliance + Sustainability: ENVIRONMENTAL ATTRIBUTES: Water Cost, Availability, Quality Green Sustainability CULTURAL ATTRIBUTES: Skilled Labor Supply & Education Social Compliance/Responsibility


AAPN ASIA/AMERICAS REPORT CARD Risk Assessment: Safety/security/language/ stability/political/regional issues/currency/economy/ legal/corruption/judiciary/financial situation/credit/ interest rates......



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