Ellen Martin Chief Information Officer – Jeanswear Division VF Corp.

VF Corp. is a global company with ownership of and responsibility for several brands, including Vans, North Face, Lee and Wrangler. The company purchases product from around the globe, particularly in Asia. Since evolving from a manufacturer to a brand management company, Ellen Martin’s role has changed as she tries to maintain visibility of product that her company no longer makes, but purchases to be shipped globally. In this session, Ellen outlines the journey VF has taken to come out on top as one of the world’s leading brand management companies.

• Understanding there is an inherent lack of control from start to finish in terms of your outsourced manufacturing and shipping operations in China and elsewhere in Asia
• Remaining steadfast with your outsourced partners that they maintain that quality is the foremost initiative in the manufacturing and shipping of your goods
• Ensuring that your information is as solid as possible based on the fact that you simply market the goods that your outsourced company manufactures
• Understanding all potential variables in terms of global 3PLs and effectively communicating that back to your domestic operation
• Realizing that communication is the only thing that you can use to guarantee on-time delivery to the right party and optimizing that key resource

	Ellen Martin Chief Information Officer – Jeanswear Division VF Corp.
	Mike Haining Senior Vice President of Supply Chain PETCO Animal Supplies

Shipping directly to retailers and bypassing your own distribution center can reduce delivery times significantly; making it an attractive option. However, when all production and transportation is outsourced, taking product directly to the retailer can be potentially risky, as the shipper never actually sees her/his ‘stuff.’ Implicit in this process is the notion that the 3PL becomes the manufacturer’s representative, should any problems arise. Bill takes us through dealing with the implications of this new kind of partnership:

• Integrating into your own supplier’s work plan the retailer’s particular preferences in the way they want product presented
• For example, tagging, putting clothes on hangers, special packing, various promotional boxes
• Adding the supervision and spot-checking of this work to your own company’s work plan
• Understanding that with this model your 3PL becomes your contact with the world, representing you at customs should your containers be opened, and also with the retailer, should the product not be provided in the way they stipulated
• Is this too much of a burden to put on the 3PL?
• Are they equipped to act as your agent?
• Realizing further that with this model you risk never seeing your product at all, necessitating a high level of trust between the manufacturer, the 3PL, the supplier and the retailer
• Weighing up the benefits of direct-store-delivery and the potential costs to the retailer relationship when you hand over the responsibility for meeting their requirements to an outside party

Marychris Melli Program Director Fair Factories Clearinghouse

When Reebok decided to make software it had developed to manage relationship with factories available to select key partners, those other companies in this space were thrilled. The Fair Factories Clearinghouse provides tools for brands and retailers to manage and share non-competitive information about workplace conditions in a cost-effective manner, to inform sourcing decisions and help improve factory workplace conditions around the world. Current members are: The adidas Group, ASICS America, Hudson’s Bay Company, L.L. Bean, Levi Strauss & Co., Macy’s Merchandising Group, Mark’s Work Wearhouse, Nike Inc., Patagonia, Starbucks Coffee Co., The Timberland Company, and VF Corporation. The sharing platform went live in March 2008. Marychris shares observations of this exciting new phase.

• Tracking factory compliance in an efficient and cost effective way through a web-based software tool
• Gaining knowledge about critical compliance issues in the supply chain
• Deciding which information to share with other members and having the option to expand on this with them off-line should you wish to do so
• Accessing a database of over 13,000 suppliers and 25,000 audits
• Sharing information on best practices and contributing to the knowledge of working conditions around the world

Jonathan Rubio Chief Executive Officer Wayne Trading, Inc., Peru

Peru embarked on a new era with the signing of the United States- Peru Trade Promotion Agreement in December. The country expects a huge surge in exports, as U.S.-based companies take advantage of this privileged relationship. The agreement calls for adjustments to local labor laws, meaning that overseas inspectors can focus all of their attention on ensuring a top quality product. Jonathan runs one of Peru’s largest denim factories and shares his anticipation of this exciting new period of expansion.

• Weighing up the options of outsourcing production into China and Peru
• Seeing the benefits of significantly shorter lead times in Peru, compared with cheaper labor in China
• Remembering that the new free trade agreement facilitates business as there are no quotas or duties to pay for customs
• Understanding that Peru’s proximity to the U.S., both in distance and timezone, may tip the scales towards taking production south of the border rather than overseas

	Jonathan Rubio Chief Executive Officer Wayne Trading, Inc., Peru
	Eric Kulisch Associate Editor American Shipper

While outsourcing seems to be the silver bullet in helping the bottom line, dealing with a new vendor framework has its demands. In some ways, shippers have swapped one challenge for another – avoiding the administrative and costly headache of running your own factories is enticing, but off-shoring to a wide group of suppliers with different cultural backgrounds is not easy to manage either. And dealing with overseas supply chain providers is yet another element requiring your close attention. Panelists address the most pressing issues in these new partnerships.

• Researching the business practices and culture in general of your new partner’s country, networking with others who have worked in the region to acquire first-hand knowledge
• Adapting your communication habits to this new environment
• Understanding that other countries have different regulations for the shelf life and labeling requirements of a product and your production and distribution plans need to tackle these variations
• Other differences can include more stringent arrive-by dates, in which failing to meet them is a matter of personal pride
• Providing realistic deadlines in terms of your own needs for outsourcing production
• Collaborating with production and sourcing partners worldwide to cost-effectively satisfy demand and optimize inventory investments