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......