Apparel

In: Business and Management

Submitted By jholy
Words 1195
Pages 5
Case Study: Logistics & Distribution
Printronix Solution Saved Sara Lee Intimate Apparel A Quarter
Million Dollars in Fees
Sara Lee Intimate Apparel, headquartered in Winston-Salem, N.C., has a 70-year tradition of products with fashion, fit, comfort, quality and design. Its founders, Sam and Sara Stein, launched its Bali business in the mid-1920s by combining new raw materials with changing fashion trends accentuating shape. Playtex was developed by a Dupont Chemist after WWII. Sara Lee Intimate Apparel was formed in the late 1980s from the purchase of these two companies. The company’s flagship Bali and Playtex brands, as well as newer Wonderbra and Barely There lines comprise a powerful department and specialty store presence, while its Hanes Her Way, Just My Size and
Lovable brands combine to bring superior styling to the mass merchandise market.
A sub-division of Sara Lee Branded Apparel, Sara Lee Intimate Apparel manufactures and distributes more than 70 percent of the intimate apparel sold retail and private label in the United States. Because of the differing distribution requirements in the retail markets, the company operates two separate facilities in Kings Mountain, N.C. Combined, the company distributes more than 720,000 garments a day, via 36,000 outbound cartons, to thousands of customer locations, including JC Penney, Kohl’s, Macy’s, Mervyn’s, Sears and Wal-Mart.
Bar code labels are affixed to each garment and carton the company ships. Sara Lee Intimate Apparel department store and mass retail customers have strict requirements regarding the quality of the bar code labels to facilitate tracking through the supply chain. If a label is not in compliance with the customer’s standards, fees are assessed against the manufacturer’s invoice. Not only does the supplier incur additional expenses, it runs the risk of significantly impacting…...

Similar Documents

American Apparel

...Company’s Background American Apparel is a clothing manufacturer, wholesaler, and retailer in the United State Found in1998 by Dov Charney under the name “Old American Apparel” The company started out as a wholesale business selling undecorated t-shirts, and after its successful, its expand to retailing business, open its first store in L.A in 2003, and expand more to Canada, Europe and Asia. And also h ave its own online retail store. It currently has more than 270 retailer stores in 20 countries. Its retail business offer products for men, women, children, babies and even household pet, targeting at all age. Its wholesale business consists of producing from undecorated apparel to military uniform. And company oftenly promote itself as “Made in the USA" and “Sweatshop Free” product. Company Strategy  Vertical integration: In the past decades, it has become the norm amongst the majority of US apparel co mpanies to outsource their manufacturing operations abroad to third vendors. But American apparel ha s kept it local. it had made both backward and forward vertical integration as a central part of its strateg y. It bases its operation and manufacturing in this building 800,000 sq. ft. factory in downtown L.A. In t his building it does fabric cutting, sewing, knitting, dyeing , as well as distribution and wholesale operat ion. And it also does its own clothing design, marketing, and advertising, which often using its employee s as photographers and clothing models. As the...

Words: 869 - Pages: 4

Development of Apparel Industry in Bangladesh

...Development of Apparel Industry in Bangladesh Garment Industry Large-scale production of readymade garments (RMG) in organised factories is a relatively new phenomenon in Bangladesh. Until early sixties, individual tailors made garments as per specifications provided by individual customers who supplied the fabrics. The domestic market for readymade garment, excepting children wears and men's knit underwear (genji) was virtually non-existent in Bangladesh until the sixties. Since the late 1970s, the RMG industry started developing in Bangladesh primarily as an export-oriented industry although, the domestic market for RMG has been increasing fast due to increase in personal disposable income and change in life style. The sector rapidly attained high importance in terms of employment, foreign exchange earnings and its contribution to GDP. In 1999, the industry employed directly more than 1.4 million workers, about 80% of whom were female. With the growth of RMG industry, linkage industries supplying fabrics, yarns, accessories, packaging materials, etc. have also expanded. In addition, demand for services like transportation, banking, shipping and insurance has increased. All these have created additional employment. The total indirect employment created by the RMG industry in Bangladesh is estimated to be some 200,000 workers. In addition to its economic contribution, the expansion of the RMG industry has caused noticeable social changes by bringing more than 1.12 million...

Words: 13376 - Pages: 54

Scm in Textile- Apparel Industry

...expect to start with raw materials such as cotton, polyester and wool that are then woven into fabric, dying and passed into apparel manufacturers. The apparel manufacturer will cut the cloth, make it up and trim to a specific design template finishing and delivering to a retail customer, who sells the item on until it reaches its final destination - the customer. 1. Supply Chain Management of Textile Industry Supply chain management (SCM) is an approach that has evolved out of the integration of these considerations. SCM is defined as the integration of key business processes from end user through original suppliers that provide products, services, and information and hence add value for customers and other stakeholders Supply chain management emphasizes the overall and long-term benefit of all parties on the chain through co-operation and information sharing. This signifies the importance of communication and the application of IT in SCM. Information sharing between members of a supply chain using EDI technology should be increased to reduce uncertainty and enhance shipment performance of suppliers and greatly improve the performance of the supply chain system. The supply chain of the textile industry consists of the distribution structure which includes manufacturer, wholesaler, retailer, and consumer of raw fiber, yarn, fabrics, dyeing, and apparel. The textile industry has a very complex value chain structure and requires a complex processes to supply products......

Words: 2616 - Pages: 11

Apparel Industry Australia

...December 2009 The Apparel Industry in Australia1 1. 2. 3. 4. 5. 1. Executive Summary ................................................................................................................ 1 Market Entry............................................................................................................................ 1 Retail Channels....................................................................................................................... 4 Distribution Channels.............................................................................................................. 8 Market Resources................................................................................................................... 9 Executive Summary The Australian apparel market can be described as relatively small, competitive and well-serviced by domestic companies. Nonetheless, this market presents opportunities to Canadian business. Canada and Australia share similar cultures and lifestyle, for example, sports and the outdoors. This translates into similar fashion tastes and trends. Facing increasing pressure from inexpensive imports, competitive department stores and decreasing prices, Australian retailers are looking for new ways to compete. Some have differentiated by specializing and offering only a particular type of product, such as sportswear. Others sell exclusive product that cannot be found elsewhere. Most have moved to the mid- to high-end of the......

Words: 4702 - Pages: 19

American Apparel

...American Apparel American Apparel, founded in 1997, began its business strategy differently than most other companies. The founder, Dov Charney, believed in the philosophy of being a vertically integrated company. This means they manufacture, produce and sell their own products. Sales were slowly decreasing over the years because of poor fiscal management. To remain the largest U.S. apparel store they needed to tighten the reins on their financial management. Synopsis of the Case American Apparel is the largest clothing manufacturer located in the U.S that is sweat-shop free. They are infamous for selling their sexually explicit t-shirts as well as other clothing. All American Apparel operations are done within their facilities located in downtown LA. They enjoy high retention rates through generous benefits packages and other incentives. American Apparel strives to grow to be the most recognized clothing line in the U.S. by properly managing their finances. Relevant Factual Information about the Problem or Decision the Organization Faced American Apparel offers a comfortable environment for their employees. They offer incentives such as health care for employees and families, free parking, bus passes, low auto insurance, health and wellness centers, subsidized lunches and training to improve their job and management skills (Grant, 2010, p.259). Charney realizes that the benefits he offers are costly but they ensure continuity amongst his employees. ......

Words: 628 - Pages: 3

American Apparel Dofa

...Fortalezas: • Operaciones en manufactura (integración vertical). • Al ser responsables de todos los eslabones de la cadena de suministro, American Apparel responde a los cambios del mercado de una forma rápida y eficaz. • Prendas de alta calidad. • Personalidad de marca y público objetivo definidos. Fortalecimiento de los mismos mediante las estrategias. • Buen posicionamiento en el mercado textil de Estados Unidos. • Reconocimiento y recordación de marca. • Reconocido trato a los empleados y condiciones de trabajo. • Apoyo a las reformas de inmigración y los derechos de los homosexuales (Legalize LA y Legalize Gay) • Uso de productos químicos menos dañinos para el medio ambiente y cuidado al mismo en los procesos de producción. • Estilo único, originalidad y diferenciación entre el segmento. Debilidades: • Situaciones que han generado controversia (En 2009 el ICE EE.UU. investigó y encontró que en AA 1600 empleados estaban trabajando ilegalmente en los Estados Unidos). • Imágenes publicitarias provocadoras que pueden ser mal vistas y generar molestia. • En relación a sus competidores, los precios de las prendas son muy altos. • Público objetivo demasiado cerrado (específico). • Aire anti-cultura de la marca en general que puede generar un rechazo en sociedades muy tradicionales. • Excentricidad de Dov Charney (CEO) que puede contribuir a la imagen de la compañía de mala manera. • Altas deudas a lo largo del tiempo que han generado una......

Words: 463 - Pages: 2

American Apparel Case Analysis

...Case Analysis American Apparel: Unwrapping Ethics Whether American Apparel should change their advertising or stay with the highly sexualized nature they have been using for advertising Situation Analysis How American Apparel is going to take the brand from where they are at and move forward with it, either by changing their ways or staying the same. Internal Environment The resources American Apparel has available to them internally come from hiring young people for design and advertising to help them better reach their targeted market, and come up with the advertisements and style of clothing. The overall organizational goals are to offer a sustainable, high quality clothing product that appeals to young urbanite individuals who are likely to be loyal to their brand, and advertise it just by wearing it and making it popular. External environment Five Forces Influence the industry as a whole and determine the conduct of the firms within the industry and also determines profitability Competitive intensity-High Part of the reason American Apparel wants to change in order to build a lasting brand and to make a turnaround is due to the competitive intensity within the clothing industry. Competitive intensity reduces profitability because the more strongly firms are competing, the more likely they are to cut their prices. This intensity increases when there are numerous balanced competitors, slow growth, high fixed costs, lack of perceived difference between......

Words: 1798 - Pages: 8

Jh Apparel

...JH [ Confidential Report ] JH Men’s Apparel RE: Strategic Advice Request To: Xu Qiang, President of JH Men’s Apparel Xu Qiang, we have carefully reviewed your report and provided all our team’s analysis in this report. This report is 6 pages and we have also included an appendix for your reference. We understand that this is an urgent matter, and we would be more than happy to address any of your concerns. We sincerely wish you the best on JH’s endeavours, and we will continue to support you and firm with due diligence. Thank you very much, Arthur Chung and Alex Esposito Executive Consultants JH 0 JH The Strategic Challenge JH Men Apparel is currently facing a strategic dichotomy to choose between cost leadership or differentiation. Five years ago, JH made a commitment to manufacture quality products and now is battling in a price war. In addition, competitors have been able to imitate JH’s innovative designs and market them quicker than JH. As a result, the company’s gross margin has fallen 21% to 16% and therefore is facing profitability concerns to remain in business. Causation Analysis This section will identify and analyze the key causes of JH’s strategic challenge. From the general environment table, there are three important factors worth noting. The Political/Legal is the most concerning external factor. China’s intellectual property legislations are in its infancy stages, thus offers very limited legal protection for developments such as fashion......

Words: 2020 - Pages: 9

American Apparel

...Information Management Systems The Second Life Strategy of American Apparel 1. This was not a failure for American Apparel because this was a learning experience. This learning experience helped them identify with their customer base. This helped them start up the MTV’s virtual Lower East Side. This was a great benfit for the company. 2. This has supported American Apparels business strategy greatly. It has allowed American Apparel to come to the market, helped sales and building customer relationships. 3. The second life store helped American Apparel’s business strategy by providing to the market. This helped American Apparel understand their consumer market and to learn from their consumers. 4. I think it’s really cool. I would play that game. I also feel like it’s a lot like Sims the game. The only difference you do not have to pay for clothes and you do not fly. I would play this game but I do not like spending my money something that is not real. 5. Yes I do think its very effective. Many companies do game advertising. When a person plays any kind of sport game there is usually advertising. This is a very effective way of advertising because it’s cheap and it still gets the word out of what that company is doing. 6. Yes I do beieave that this increases customer loyalty. People can go online and look at the clothes on their avatar then go to the store and buy the same clothes. This keeps customers to keep coming back. The avatar represents......

Words: 396 - Pages: 2

American Apparel

...sub-issues that are relevant to the case. * Who are the key people and/or groups that you need to consider in solving the problem/opportunity?The decision maker is Dov CharneyMain Problem: American apparel is struggling to find synchronization between their corporate social responsibilities including pro labour practices, domestic manufacturing suppliers, sweat shop free policies, environmentally friendly materials and their increasingly controversial advertising strategies. The issue is important because the company is facing a lot of criticism and controversies and are also at the urge of losing investors. The problem should be solved as soon as possible to keep the company running with a profit.Sub issues: * Bad marketing strategy, took sexual appeal really far * $250 million sexual harassment lawsuit * Challenges repaying debts * On the brink of a collapseKey people: Dov charney, management, stakeholders( customers, investors) | Atiya khan-American apparel B. Key Facts of the Case (relevant facts only, no analysis) - 10 Marks | * Provide the relevant background that led to the problem/opportunity(s). * Provide any additional case information that provides context to the problem or opportunity. * 1998 American apparel was launched in LA, CA * Unisex manufacturer * Best known for knitwear * 7 story pink warehouse * Targeted 20+ young adult * Did not push people to idolize photo shopped models * Used......

Words: 1314 - Pages: 6

American Apparel

...AMERICAN APPAREL REPORT ANALYSIS 13/12/2011 [->0] SUBMITTED BY: JOEL CHERIAN – SMBA 11081 American Apparel COMPANY PROFILE :- American Apparel is one of the quickest growing companies in popularity among college aged shoppers. They are a very fresh, and very liberal corporation with a young and talkative CEO- David Charney . It is seemingly the “perfect” company- set on high wages and benefits for workers, using the least environmentally damaging chemicals and processes, and offering great products at a reasonable price. American Apparel is the most passionate and innovative wholesale blank T-shirt manufacturer and distributor in the world. It is committed to leveraging art, design, and technology to produce garments of the highest quality, while pioneering industry standards of social responsibility in the workplace. The major goal is to seek profits through innovation not exploitation. American Aparel are advancing a hyper capitalist-socialist business fusion. By relentlessly pursuing efficiencies in management and production, we aim to demonstrate that the use of exploitative labor tactics is not only......

Words: 4001 - Pages: 17

Anita's Apparel

...Anita’s Apparel Case Study Nordstrom developed a number of systems that was designed to support “The Nordstrom Way”. I will evaluate the company’s compensation programs, customer service satisfaction and employee empowerment systems. I will then provide suggestions for Anita Lamont about compensating her employees. Nordstrom’s compensation management system contributes to the overall success of the organization in several ways. Nordstrom’s philosophy is to offer the customers the best service, selection, quality and value. They enforce that all employees regardless of the level is the customer service department. Nordstrom has an inverted pyramid of which they put their customers at the top of the chart followed by salespeople and so on and so forth. The company promotes from within and every person starts as a salesperson. Nordstrom’s compensation system for their salespersons’ salaries are commissioned based, reflecting a commitment to pay people for their performance. Commission based salaries allow salespeople to earn considerably more money than the industry average. Salespeople also receive bonuses and rewards for doing an especially outstanding job. In order to retain their competitive advantage of superior customer service in the highly competitive retailing market, they designed an evaluation/compensation system that had the following objectives: (1) to support its high-service strategy and (2 to motivate its sales employees. They tried to evaluate and...

Words: 561 - Pages: 3

Apparel Industry Overview

...Apparel Industry Definition Apparel Industry is represented by the companies that create and sell clothing, accessories, and footgear. Nowadays, majority of the Apparel Companies have both types of operations: wholesale and retail through which they reach their consumer. For our group, we chose ANF Inc. (Abercrombie & Fitch), American Apparel Inc. (APP), GES (Guess), GPS Inc. (Gap), NKE Inc. (Nike), and URBN Inc. (Urban Outfitters), which are under the category of Apparel Store and Textile - Apparel Footwear & Accessories. Since apparel companies are mostly under the category of Apparel Store, except for NKE, we calculate the percentage of the industry that our group of companies represent by using the sum of the market capital of the chosen apparel companies plus NKE’s market cap divided by the total market capital of Apparel Store plus NKE’s market cap. The result turned out to be 32.07%, which means apparel companies that we chose represent 32.07% of the apparel industry. Wholesale Business Apparel Companies that have wholesale operations, design and manufacture products, which they then sell to either external retailers such as department stores, discounters, and small shops or through their own stores. Wholesalers often have licenses to produce certain items under a specific brand, for which they do marketing and advertisement. Apparel companies that own many licenses of well-known established brands have a competitive advantage. However, during the economic......

Words: 2237 - Pages: 9

Indian Apparel Industry

...Indian Apparel Industry: The Indian apparel industry adds 14% to the industrial production and 4% to the GDP of India. The Indian Apparel Industry is one of the largest sources of foreign exchange flow into the country with the apparel exports accounting for almost 21% of the total exports. The market is highly competitive with 65000 garment units in organised sector. Top 3 competitors are Arvind Mills, Madura garments and ITC Lifestyle. SWOT analysis of apparel industry Strengths: • India has high Sufficiency for raw material • Cultural diversity offers good base for designers • Increasing urbanization and purchasing power of Indian youth Weaknesses: • High power cost and long export lead times • Low productivity of apparels as compared to global competitors • Reliance on imports for synthetic yarns Opportunities: • World textile trade growing at 5% annually • Integration of information technology • New market access through bilateral negotiations Threats: • Shortening of fashion cycles • Opening of domestic market for foreign players • Formation of trading blocks like NAFTA, SAPTA, etc The business strategy of Xtreme fashions is driven by its vision, mission and core values and it addresses the five forces of market. 1. Differentiated Product and Store Environments: Owing to the demographic diversity of India, Xtreme creates product differentiation by incorporating local tastes and trendy designs. Stores are designed to provide a......

Words: 456 - Pages: 2

It in Apparel Trade

...INTRODUCTION The rapidly changing culture, politics and economics of modern life deeply affect the industrial environment, especially consumer industries such as textiles and clothing (Lowson, King & Hunter 1999). One of the impacts is that the contemporary North American and European textile and apparel industries suffer immense competition from foreign producers (Yan & Fiorito 2002). As early as the mid-1980s, imports were estimated to account for close to 50% of consumption (Lowson, King & Hunter 1999). As most imported textiles are produced with very low labor expense, huge amounts of inexpensive products can be supplied in the domestic market. Considering this situation, competitiveness in cost and quality continue to be key issues for textile manufacturers. In order to significantly reduce time and cost in the supply chain, the industry needed to become more focused on consumers by developing a supply chain management process that would be demand driven and production that would be synchronized to replenish product at the consumer's pull rate (Lovejoy 2001). Today, consumers desire to personalize the style, fit and color of the clothes they buy, and require high-quality customized products at low prices with faster delivery (Lee & Chen 1999). New manufacturing technologies such as 3D body scanners, CAD/CAM systems, and digital textile printers have played a key role in increasing the effectiveness, flexibility, agility, and precision of......

Words: 6653 - Pages: 27