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Presentation Agenda Our Company and the Industry Human Capital Challenge in China Some best practices; our competitive edge Observations.

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Presentation on theme: "Presentation Agenda Our Company and the Industry Human Capital Challenge in China Some best practices; our competitive edge Observations."— Presentation transcript:

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2 Presentation Agenda Our Company and the Industry Human Capital Challenge in China Some best practices; our competitive edge Observations

3 Our Company and the Industry

4  Strategically located product design and development centers, factories, logistics stations and sales offices  Employs over 20,000 people worldwide Leading Apparel Supply Chain Services Provider USA EUROPE ASIA Production: China, Philippines, Indonesia Offices: Hong Kong, Shanghai, Phnom Penh, Tokyo, London, New York, Ho Chi Minh, Los Angeles, Ohio SUPPLY CHAIN CITY IN DONGGUAN

5 End-to-end Design, Logistics, Information Technology and Compliance Platform Our design-to-store Business Model Design & Development Development Centers Fashion Design Support Trends Forecasting Fabric and Trim Research Graphics, Print, Wash & Embroidery Technical Services Sample making Development Centers Fashion Design Support Trends Forecasting Fabric and Trim Research Graphics, Print, Wash & Embroidery Technical Services Sample making Customers’ Retail Stores Production Planning Multi-Country, Multi- Product Operations Outward Processing, Alliance Program Quality Control and Assurance Corporate Social Responsibility Production Planning Multi-Country, Multi- Product Operations Outward Processing, Alliance Program Quality Control and Assurance Corporate Social Responsibility ManufacturingLogistics Store-ready packing Customs clearance Vendor-managed Inventory (VMI) Delivery to distribution centers or store levels Store-ready packing Customs clearance Vendor-managed Inventory (VMI) Delivery to distribution centers or store levels MaterialManagement Fabric & Trims Sourcing Quality Assurance/ Quality Control Online Color Center Certified In-house Fabric & Accessories Laboratory Inbound Logistics Fabric & Trims Sourcing Quality Assurance/ Quality Control Online Color Center Certified In-house Fabric & Accessories Laboratory Inbound Logistics Speed-to-Market

6 Sweater Ladies Sleepwear and Career Wear Activewear Casualwear Denimwear Multi- products  Knit and woven shirts, pants; sleepwear, active wear, tailored garments, dresses, sweater, denimwear  More than 80 million pieces of apparel produced annually Multi-product Expertise

7 Serving the World’s Top Brands

8 Luen Thai Supply Chain City Dongguan, China Strategic Location 1.5-hour drive from Hong Kong 1.5-hour drive from Dongguan City 45-minute drive from Shenzhen 15-minute drive from Mission Hills Golf Cub 2-hour drive from Guangzhou Modern Facilities Established in M sq.ft. land area Home to 11,000 employees Produces approx 1.5M dozens per year per building 3 production buildings (30,600 sqm each)

9 What is Luen Thai’s Supply Chain City? One-stop facility offering these apparel supply chain services: Product design and development center Print shop Wet processing center Technical center Modern production facilities Logistics center Technical training center Compliance and audit center Residential and recreational centers

10 Human Capital Challenge in China

11 1. Managing Change migration, adaptation, knowledge transfer, localization continued next page

12 2. Recruitment shortage of qualified force to meet growth and business need continued next page

13 3. Retention keeping the knowledge you have; competition continued next page

14 4. Developing Talent scarcity of capable technical & management staff continued next page

15 5. Increasing Costs increase in minimum wage and benefits development

16 Some Best Practices: Our Competitive Edge The Supply Chain City HR Structure. A World-class Infrastructure. Responsive Initiatives.

17 Supply Chain City HR Structure Innovative A structure that works seamlessly Offers end-to- end HR services TRADITIONAL HR and ADMIN -Printed Publications -Multimedia and Video -Corporate Identity -Event Management -Employee Care -Compliance and Code of Conduct -Environmental Awareness Corporate Communications Corp Social Responsibility Visit Management Employee Wellness -Stakeholder Visit Management -Academe -Government -Customer -Media -Housing and Office Environments -Space Utilization & Planning -Work-Life Balance -Fitness Program -Recreation Property Development

18 HR & Services Infrastructure Modern, spacious work and living environments

19 Our Initiatives

20 Wellness Program personalized training provided by certified strength and conditioning coaches holistic approach to wellness

21 Recruitment and Selection System Investing and partnering with technical training schools in the rural areas in exchange for graduates

22 Recruitment and Selection System Partnering with universities through the Student-Trainee Enhancement Training Program (STEP)

23 Continuous Learning and Development M-7 Management Development Program Partnership with external organizations Shift from Training Needs Analysis (TNA)-based program to Curriculum- based training

24 Knowledge-sharing and Communications Aggressive use of electronic media in communicating to stakeholders.

25 Diversity Advantage Diversity helps to drive sales Diversity increases knowledge

26 Caring Culture “Can Do!” service culture campaign

27 Observations

28 Some Observations HR needs to be Strategic and Operational HR needs to have the courage to initiate and lead HR needs to be a partner to the business HR needs to know the business HR needs to have measurable contribution CEO / Business needs to redefine HR functions Embracing the Mainland

29 Thank you. Frank Sauceda Senior Vice President Corporate Human Resources and Administrative Service


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