a chain of suppliers suppliers of change since 1981

EASTVS

WEST

NOT EITHER/OR

...........BUT BOTH

AAPN Annual Meeting: May 2013: Miami

79:BRAND/RETAIL - 20FACTORY - 27FIBER/YARN/FABRIC - 21TRIM – 11

31:LOGISTICS - 8SERVICES - 5TECHNOLOGY -13INDUSTRY - 5

5. THE GOOD COMPANY5. THE GOOD CUSTOMER8. THE GOOD PARTNERSHIP

BETTER before CHEAPER

REVENUE before COSTS

TRUST before SPEED

NETWORKING before POLITICS

KNOWLEDGE before INFORMATION

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

.........................SAFER

2001: GUATEMALA2013: 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 MetricsWest East

10  of  31  favor  West21  of  31  favor  East

95.5 107.3

3.1 3.5

East - West gap is closingFabric limitation is greatest obstacle West has leadership in: ethicssustainabilityspeed in production & transit

West is gaining in: product developmentmarket speedvertical integrationindustry maturation

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

TRANSPARENCY

KNOWLEDGE OF US MARKETVERTICALITYSPEEDCOSTEASE OF DOING BUSINESSPRODUCT DEVELOPMENTSUSTAINABILITY & SOCIALRISK

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 CARDVerticality: Supply Chain Dynamics Fiber/Yarn/Fabric TrimLogisticsFull Package

AAPN ASIA/AMERICAS REPORT CARDMarket Speed: From concept to consumer:Pre-production ProductionLogistics/Transit TimesPredictability

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

AAPN ASIA/AMERICAS REPORT CARDEase-of-Doing Business: Rules of EngagementMinimumsFlexibility/ResponsivenessControl of operations Amount of Assistance Required

AAPN ASIA/AMERICAS REPORT CARDProduct Development: TechnologyColor Development & ApprovalPattern Making/Fit ApprovalSample Modeling (Making)DesignDevelopmentCycle Times

AAPN ASIA/AMERICAS REPORT CARDSocial Compliance + Sustainability: ENVIRONMENTAL ATTRIBUTES: Water Cost, Availability, QualityGreen Sustainability

CULTURAL ATTRIBUTES: Skilled Labor Supply & EducationSocial Compliance/Responsibility

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