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Day 1 of the SCRC Meeting: Global Complexity at HanesBrands Inc

On the first day or our SCRC meeting, we spent some time in the morning emphasizing the need for strong decision-makers, who are able to work around key issues in a globally diverse supply chain. This theme continued in my key note, with individuals sharing how critical it was to deal with the host of issues required to manage complexity. Among these, the critical few included Global Process Standards, having the right KPI’s, global visibility of supply chain processes, and most importantly, the right people. Following my discussion , Robin Hager, Senior Manager of Global Supply Chain at Hanesbrands, Inc. discussed how complex their supply chain is, and how subject to volatility it is. The most recent example is theWest Coast port strikes will be spreading to the East Coast. HBI has begun to to explore ports where the ILA is not as pre-eminent, as their containers at risk continues to mount, with shipments to major consumers at risk. This port issue will impact just about every major importer and retailer in the country, as so much cargo comes through Los Angles. Robin also discussed leveraging global scale on ocean contracts, to combine export volume and supplier’s volume that HBI can influence as one of the top 50 exporters in the US. They are seeking not just favorable credit terms, but dedicated account management and protected allocation on critical shipments. Delivery reliability is a key priority in this environment. To manage global logistics, they have regional providers that they have deep relationships with, as well as providers that are the eyes and ears of their logistics network. Having strong relationships with providers is key to functioning of the network. They also have routing guides, shipping instructions for each country, documentation requirements, and key contacts which are updated monthly, carrier and services forecasts, and business services. These are critical to ensure seamless operation of their global logistics network. Manifests, PO’s, Origin CFS updates, and destination updates are linked through their global visibility system, SeeChange, managed by APL Logistics. This provides visibility on consolidation and deconsolidation of containers, full visibility of SKU’s going into containers, tracking of shipments going into manufacturing and international business locations. Talent management continues to be an issue of concern as well. To ensure people stay on board, HBI emphasizes global opportunities and growth as a major recruiting and retention tool. Overall – a great first day!