Keynote Address: Thomas A. Nelson, Managing Director, Vice President Global Product Procurement VF Asia

Transcription

1 Keynote Address: Thomas A. Nelson, Managing Director, Vice President Global Product Procurement VF Asia

2 What How Why 3 pire_action.html

3 Personal Global Impact 4

4 In the beginning.. g 1983 My First Year Life was simple! 5

5 VF Corporation 1983 Only a couple of Brands... VF Intimate s

6 In the beginning. OSHA in 7

7 of Musical Chairs Begins! 1984 Costa Rica : NAFTA Mexico 1995: WTO 1999: China in WTO 2000: AGOA/CBI 2001: First Quotas gone 2005: Quota gone 2005 DR-CAFTA 2006: China Quota back! 2008: All quota really gone! 8

8 A picture of 2010 and Front and Back 9

9 VF Corporation A Lot More brands Main Brands + sub Brands Selling in 150 Countries

10 A Clear Vision for the Future VF s vision is to grow by building leading lifestyle brands that t excite consumers around the world 11

11 Large-scale Complexity +430,000, UNITS

12 Large-scale Complexity 750, SKUs

13 Large-scale Complexity 25 Owned VF Factories CONTRACTOR FACILITIES 61 In Countries

14 2010 A Very Challenging Year More complexity

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16 Bangladesh Gas Shortages 17

17 Strikes in Cambodia Wage increase from US $ 50 to US 61 agreed (+22%) as of October 2010

18 Strikes in China

19 China Mass Exodus of Labor Will labor issues turn the China Price into a Tipping Point?

20 China Shortage of Electricity According to the announcement from China Government, we are forced to close the factory for 2 days a week from May 2010 onwards due to the shortage of electricity supply in Mainland China. There is a prolonged drought in the Northern Part of China leading to lack of water supplying electricity by Hydropower. Under this circumstance(natural crisis), it totally affects the efficiency on our production. The delivery date of the orders from (2 nd buy) will be postponed 2-3 weeks. 21

21 22 High Winds in Mexico

22 Earthquakes in Taiwan 23

23 Tornado in Hackleburg, Alabama Yesterday This was a VF DC Now Rubble 24

24 Cotton Inventory 25

25 Cotton Prices 26

26 What s Next? 27

27 28 More Complexity

28 29

29 30

30 WHY Product Safety & Sustainability 31

31 A Transformation of OUR World for Future Generations and A better workplace for the People that make our products 32

32 My Life is WAY TOO COMPLICATED! 33

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35 When we make a product in a country we don t necessarily know where it will be sold (We sell to150 countries). Which country s product safety standards should we use? (Even issues within the different US states). Can I be assured when I send the products to the lab it will give me a consistent reading with other labs globally? 36

36 37

37 Sustainability A A way of LIFE not an event. 38

38 Sustainable Apparel Coalition Membership for profit members adidas Arvind Ltd C&A Esquel Esprit Gap Inc. H&M Hanes Brands Intradeco JC Penney Kohl s Lenzing Levi Strauss & Co. Li & Fung 30+ Founding Circle members Marks & Spencer MEC New Balance Nike Nordstrom Otto Group Patagonia Pentland REI TAL Apparel Target Timberland VF Corp Walmart not for profit members Corporate e-ngo Government Academia Duke University Environmental Defense Fund U.S. EPA Verité Outdoor Industry Association 39

39 Sustainable Apparel Coalition Collaboration with Others Value in global alignment and harmonization Outdoor Industry Association (OIA), a participant in the Sustainable Apparel Coalition and original steward of Eco Index European Outdoor Group (EOG), co-collaborator on original Eco Index American Apparel and Footwear (AAFA), Collaborator, promoting testing, use and training of Eco Index World Federation of Sporting Goods Industries (WFSGI), Collaborator, promoting testing of Eco Index Sustainable Fashion Business Consortium (SFBC), Collaborator, promoting testing of Eco Index particularly amongst materials suppliers French Government, Alignment to allow index results to satisfy French Loie Grenelles labeling law Global Apparel, Footwear and Textile Initiative (GAFTI), Collaborator, promoting testing, use and training 40

40 Product Stewardship What You Can Do Now 1. Determine if your company has already participated in development of Eco Index... Who is leading it? 2. Become very familiar with the Eco Index 3. Share Guidelines & Indicators with your organization and supply chain partners 4. Find data in your processes to support metrics (energy, waste, water, etc.) 5. Familiarize yourself with the Nike Materials Assessment Tool 6. Join a subgroup of the Eco Working Group gp p 41

41 28 August 1963, at the Lincoln Memorial, Washington D.C.

42 I Have a DREAM We CAN work together to make a better tomorrow A Better World for Our Future Generations! 43

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