AAFA

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AAFA SCLC Fall Meeting
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Walter Meck
Past 12 Years
CEO
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Before FesslerUSA
CFO
CPA Partner
Troubled Company Workout Specialist
Investment Banker Bought, fixed and sold troubled
companies
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Fashion Tees

• Pennsylvania-based
• 100 made-in-the-USA
• Private label knitwear
• Design support services
• Vertical manufacturing

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Fashion Tees

• Best customers in the whole world
• Fashion driven
• Technology based
• Last year 4 million fashion tees

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Meckville, Pennsylvania
FarmGeneral StoreCigarsLiquorLumber
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1900
Meck Knitting
Grandpa Walter
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1900
The Sewing Floor
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Meck Knitting

• Since 1900
• Underwear Manufacturer
• We survived
• 2 World Wars
• 1 Great Depression
• Couple Recessions
• But not exactly the Korean War

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Dri-JeansPlastic Leggings with Boots
Little Wally
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1960
Dad Sold
Mr. Fessler Bought
Meck Knitting
Fessler Knitting
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1994
Mr Fessler, we want our company back.
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The Industry

• Artificially Sustained
• Weak Management Practices
• Technology Deprived
• Retailer-controlled Business Practices
• Virtually No Collaboration
• Volume Chasers, not Profit Chasers

Opportunity
NAFTA
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Impact of NAFTA
1994 to 1996
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SALES
Those jobs will be back soon, wont they?
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• Never quit.
• Never.
• Never.
• Never.

Sir Winston Churchill
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Old Technology
Human Resources.
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Price
Sales are up 9 since we cut prices in half.
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Old Paradigm
Compete on Price
Using Old Technology
1996 To 2000
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When it rains, it pours.
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When it rains, it pours.
September 11, 2001
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When it rains, it pours.
September 17, 2001
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Pauls Thorn
Paul take it away from me.
The Lord My grace is sufficient for you.
2 Corinthians 129
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"Those who cannot remember the past are
condemmed to repeat it."
Georges Santayana
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Paradigm Shift
History will be kind to me for I intend to write
it.
Sir Winston Churchill
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Old Paradigm
New Paradigm
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Old Paradigm
Tools
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New Paradigm
Tools (early) Technology
The best thing since sliced bread.
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New Paradigm
2001 To 2006
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Crossing the Jordan
To the priests Take up the ark of the covenant
and pass on ahead of the people. When you reach
the edge of Jordans waters, go and stand in the
river.
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Crossing the Jordan
The Road Less Traveled
Lead, dont follow.
Have faith.
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Old Paradigm
Niche
Strategy
The Secret
New Paradigm
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Small Lot
Niche
Quick
Fabrics
Fashion Tees
Turn
Garment Dye
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Why
Fabric ?
Fabrics dictate the Look
Yarns dicate the Fabric
New
Different
Better
Trendier
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What is
Small Lot ?

• 70 orders
• 70 different styles
• 1,000 units each order
• 70,000 units
• Each and every week
• 2300 styles so far this year

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What is
Quick Turn
Fast Fashion
Speed to Market
Speed Sourcing
Shelf
From
Creative Thought
2 the
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Why
Garment Dye?

• Flexible Fast
• Right Goods on Shelf
• Higher Sell Throughs
• Fewer Mark Downs

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Strategy
How to best serve our niche.
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Consumer
Strategy
Customers
Partnerships
Design Support
Virtual Vertical
Production
Alliances
Suppliers
Design Concept
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Convincing Customers and Suppliers
Every gateway to the future is guarded by a
thousand souls anointed to protect the past.
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New Paradigm
Strategic Partnerships With Customers

Strategic Purchasing
SPEED TO MARKET

Our Fabrics
Design Support Back Room
Your Designer


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Industry Alliances
Cotton Incorporated
Roselon
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Link
Technology
Niche
Strategy
Management
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Technology
Computer Systems
Equipment
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Silhouette Design
Pattern Making
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Tension-free Spreading
GERBER
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Computerized Cutting
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Computer System

• Helps us manage
• 200 customers
• 500 fabrics
• 3,000 styles
• 4,000 orders
• a few good vendors

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Warehouse Bin Lot Control
Yarn Knitting
Order Management
Apparel Manufacturing
Distribution
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PDM
Web Access Customers Vendors Sales Force Supply
Chain Partners
Business Intelligence
MRP Order to Yarn
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Management Team
Skills Tools Resources Responsibility Authority Ch
allenge
The future belongs to
those who dare to transform rapid
change into competitive
advantage.
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Leadership Training For Managers
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What's Hot
Speed to Market from creative thought to the
shelf minutes
Collaboration - Design - Supply Chain
- Country - Competitors
Branding
More Technology Technology that facilitates
collaboration Alliance Technologies
Luxury - the new Fashion - fresh creative
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The Future
Every morning, in the jungle, the gazelle awakes
at dawn.
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The Future
The gazelle knows it must run faster than the
fastest lion or it will die.
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TheFuture
Every morning, in the jungle, the lion awakes at
dawn.
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TheFuture
The lion knows it must run faster than the
slowest gazelle or it will starve.
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The Future
It doesn't matter if you are a lion or a
gazelle, when the sun comes up, you better be
running