Transcript Document

The CLH Group
Chong Luen Hing Garments (CLH), Ltd – Hong Kong
Shunde Mao Nian Garments, Ltd - China
Shunde Chong Luen Hing Trading Co., Ltd – China
Chong Luen Hing Garments (CLH), Ltd – USA
Sourcing and Supply Chain Management Solutions for the
Consumer Product Industry
Beverly Hills
New York
Hong Kong
8383 Wilshire Blvd
Suite 614
Beverly Hills, CA
90211
323-782-9640
171 Madison Ave.
Suite 1201
New York, NY 10016
212-679-7803
Unit A, 3/F, Mackenny Centre
660-662 Castle Peak Road
Kowloon, Hong Kong
011-852-2741-7338
The CLH Group
China
Xintang Industrial Area
Lunjiao Shunde,
Guandong China
0765-7720200
The CLH Group
 The CLH Group – An Overview
 The Apparel Industry and Its Challenges
 The CLH Group Concept
 The CLH Group Solution
 The CLH Group Customer Value Proposition
 The CLH Group Proof of Concept
 Conclusions…..
 Our Team
The CLH Group
The CLH Group – An Overview
We allow consumer product companies to outsource the coordination of
all the individual supply chain elements that they now either do
themselves or outsource one by one – sourcing, production monitoring,
EDI, inbound logistics, customer allocations, etc. We assume control over
product specific supply chains, domestic and international fulfillment and
deliver significant economic advantages to our customers. We are
currently provided warehousing and distribution services both in the
United States and in China. Our warehousing and distribution facilities in
China serve as a consolidation facility for merchandise targeted in the
China market, as well as merchandise slated for the United States market.
In addition, in China, we offer pick and pack services for the China
market as well as merchandise for the United States Retail market.
Definitions:
Sourcing and Manufacturing: The functions involved in identifying and contracting with
suppliers, factories, and other points of manufacture primarily in off-shore labor markets.
Supply Chain Management: The process of management needed to move finished goods
from the point of manufacture to the sales floors of domestic retailers and wholesalers.
The CLH Group
The CLH Group – An Overview
Our Facilities in China:
Factory Specifications
 The CLH Group has been a market leader for over 25 Years, whose
management has collectively over 200 years experience
 Over 2,000 employees
 Capacity per month –1,000,000 pieces per month. Beginning in July 2003, our
capacity will double as we are in the process of completing our second stage of
expansion, adding an additional 200,000 square feet of production space.
 Fabric Specialty –
– Brushed Knits – textured, interlock, jersey, pointelle, jacquards, micro
yarns, sherpas, fleece, ribs.
– Wovens – Flannels, light weight wovens, stretch wovens, textures, multiple
printing processes, yarn-dyed.
 Quality Control – 7 step Process According to WRAP Program –
 WRAP Certified factory.
 Lead times – Landed Door to Door – 60-90 days after all production details are
confirmed
 Member of the Customs Trade Partnership Against Terrorism (C-PAT)
The CLH Group – An Overview
China Corporate Offices and Manufacturing Facilities
The CLH Group
China Corporate Offices and Manufacturing Facilities
Manufacturing Facility
Fabric Storage
The CLH Group – An Overview
Dormitory for Employees
Production Line
The CLH Group
China Corporate Offices and Manufacturing
Facilities
The CLH Group – An Overview
Cafeteria – Accommodates 600 Employees
Ground Breaking Ceremony for New Facility –
additional 150,000 square feet complete in July 2003
The CLH Group
Inspection Department
Success!
CLH Distribution Center for Jockey International
WRAP Certificate
The CLH Group – An Overview
The CLH Group
The Apparel Industry and Its Challenges
•Supply Chain has become too complex for
traditional management techniques
•Managers and staff are creative…not operational
•Seasonal business with a fixed overhead model
•Difficulty fully exploiting trends
•Profits based on creative sourcing and supply chain
management
•Difficulty in accessing a full range of overseas
factories and suppliers
•Resistance to change.
The CLH Group
The Apparel Industry and Its Challenges
 Global, Fragmented, Geographically Diverse, Inefficient
 1999, Wholesale import value of apparel products into the U.S. - $127
billion
 Estimated cost of direct Supply Chain Management (SCM) costs - $80
billion
 Manufacturers are highly fragmented in size and specialty.
 Cultural characteristics mitigate against wide scale use of information
technologies.
 Every company has warehousing and permanent overhead tasked to
SCM and production.
 The supply chain is complex.
 Profit margins are low and getting lower because of supply chain costs
and dynamic competition.
 Retailers are becoming more dictatorial.
The CLH Group
The CLH Group Concept
Allows companies to focus on their core competencies – design, sales and merchandising while we
focus on product sourcing, and other supply chain management challenges
Our Customers can outsource all or part of the supply chain process
We are not a technology company, but a company that uses technology. We use this technology to
create a pipeline in the supply chain that is completely transparent
Consumer Product Companies design but do not manufacture their products
Addresses the full suite of services consumer product companies can outsource to The CLH Group
from sourcing to EDI to shipments to clients customers
Unfortunately, in the process, they must worry about a myriad of
Supply Chain Issues:
Sourcing
•Containers
•Warehouse Handling Out
Manufacturing
•Customs Entry
•Warehouse Storage
Quality Assurance
•Customs Documents
•Unloading
•Customs Exams
•Sort & Segregate
•Customs Advance
•Labeling
•Warehouse Handling In
•Financial Analysis
Pre-shipment packaging
Trans-shipment
Payment Guarantees
Insurance
The CLH Group
The CLH Group Solution
•There are no infrastructure constraints to exploiting
market momentum.
•Specialization
•Reduction or elimination of fixed overhead
•Technology is Delivered…not Developed
•Re-emphasis on core competencies
•Real time status is transparent to our customer and
their customer
•Supply Chain Simplicity
•Superior Quality of Product and Information
The CLH Group
The CLH Group Customer Value Proposition

Change from a fixed cost to variable cost business model.
 Access to unattainable economies of scale.
 They save time, money, and personnel.
 Renewed focus on core competencies.
 Trade credit is simplified.
 Technology gains are delivered by CLH, rather than
developed from within.
 Simplification of process. Creative talent and marketing
innovation is unshackled.
 Market momentum can be fully exploited.
The CLH Group
The CLH Group Proof of Concept
The CLH Group team has delivered $300 million in product
and SCM services over a six year period.
The parent company of CLH USA, The CLH Group has
consistently maintained a dominant manufacturing position in
China for the last twenty-five years.
Our Customers
Branded and non-branded apparel companies
Licensees: Licensees of Large Branded Companies
Special Situations: Entertainment companies, Corporations
The CLH Group
Conclusions….
 Supply chains are inefficient and must be better controlled.
 Principals are confused as to their solutions.
 Specialization isn’t a complete solution unless it adds to the
bottom line.
 The CLH Group offers relief from uncertainty and gives our
customers added control without investment in people or
technology.
In short:
 We provide an opportunity for our customers to focus on their core
competencies – design, merchandising and sales, while we do the nonrevenue generating back office functions
 What we stand for is:
Product Quality
On time delivery
Integrity – Both in our product and our business practices
The CLH Group
Our Team
Billy Wong
Director and Chairman of the Board
Mr. Wong has spent the last 30 years in multiple facets of the apparel
industry. He owns and operates several factories in Southern China.
He was a pioneer in the export business from mainland China, entering
that market from Hong Kong over 20 years ago. He has extensive
knowledge of managing exports from China and the challenges that
come with it – Quota, Quality Control, Consistency and Integrity. Mr.
Wong has consistently maintained the highest quality and ethical
standards available to the apparel trade. Mr. Wong is currently the
largest factory employer in the city of Shunde, China. Due to Mr.
Wong’s vision and expertise, The CLH Group has maintained an
industry leadership position for over 25 years. His aggressive, yet
calculated approach to steady growth will lead The CLH Group to the
top of its industry for the next 25 years.
The CLH Group
Our Team
John Vorzimer
Director – US Operations
Mr. Vorzimer has been in the Consumer Products market for 17 years, with detailed
background in international apparel sourcing and production as well as experience in the
financial services industry. Prior to involvement in the apparel industry John was a
member of The Geometry Group where he specialized in equity trading, investment
banking and analysis of venture capital opportunities.
A part owner John is responsible for all financial aspects of CLH USA business and
oversees sourcing and manufacturing operations as well as Customer Relationship
Management (CRM) in the United States. Before joining The CLH Group, John created
an international sourcing company specializing in procurement, supply chain planning
and integration. His worldwide sourcing network extends across 29 countries and over
one hundred companies with whom John has developed close personal working
relationships. He has extensive experience in developing global trade relationships.
Since 1996, John has been responsible for placing over $300 million in consumer
apparel products through his network of factories for many leaders in the apparel
industry.
John has a Bachelor of Arts degree in Economics from California State University,
Northridge.
The CLH Group
Our Team
Laura Ramos
Customer Resource Manager (CRM)
Laura brings over 25 years of systems management expertise. She is
responsible for all Systems related issues – EDI, Data Integrity, Information
Flow to Customers, etc. Laura’s department ensures our customers are fully
informed every step of the supply chain process.
Marisa Fairstein
Design Director
Marisa brings 25 years of design experience in multiple product categories.
She provides our customers with a high degree of comfort due to her extensive
technical design knowledge. Her attention to detail and understanding of
product execution is invaluable to our clients. Marisa is charged with the
responsibility of developing and training our design staff in China. This is a
critical initiative as the industry begins to shift its design efforts overseas.
The CLH Group
Our Team
Jocelyn Woo
Customs and Logistics Manager
Jocelyn Brings a tremendous amount of knowledge in the customs
administration and logistics arena. She spent 10 years at one of the most well
respected customs clearance firms in the country – Carmichael International
Customs Brokers. Jocelyn’s department assures our customers that all import
documentation is correct and there are no U.S. Customs delays.
The CLH Group