aafa sclc fall meeting. walter meck past 12 years ceo
TRANSCRIPT
AAFASCLCFall
Meeting
AAFASCLCFall
Meeting
Walter Meck
Past
12
Years CEO
CPA
Partner
Troubled CompanyWorkoutSpecialist
Investment Banker
Bought, fixed and sold
troubled companies
Before FesslerUSABefore FesslerUSA
• Pennsylvania-based
• 100% made-in-the-USA
• Private label knitwear
– Design support services
– Vertical manufacturing
Fashion
Tees
• Best customers in the whole world
• Fashion driven
• Technology based
• Last year – 4 million fashion tees
Fashion
Tees
Meckville, Pennsylvania
FarmGeneral StoreCigarsLiquorLumber
Meck Knitting
1900
Grandpa Walter
The Sewing Floor
1900
• Since 1900
• Underwear Manufacturer
• We survived:– 2 World Wars– 1 Great
Depression– Couple Recessions
• But “not exactly” the Korean War
Dri-JeansPlastic Leggings with Boots
Little Wally
1960
1960
Dad SoldDad SoldMr. Fessler BoughtMr. Fessler Bought
“Mr Fessler, we want
our company back.”“Mr Fessler, w
e want
our company back.”
• Artificially Sustained
• Weak Management Practices
• Technology Deprived
• Retailer-controlled Business Practices
• Virtually No Collaboration
• Volume Chasers, not Profit ChasersOpportunity
OpportunityNAFTA
NAFTA
1994 1995 1996
Sales
1994
to
1996
1994
to
1996
“Those jobs will be back soon, won’t
they?
“Those jobs will be back soon, won’t they?
SALESSALES
“Never quit.Never. Never. Never.”
Sir Winston
Churchill
“Human Resources.”“Human Resources.”
Old
Technology
“Sales are up 9% since we cut prices in half.”
“Sales are up 9% since we cut prices in half.”
Price
1996 1997 1998 1999 2000
Sales
1996
To
2000
1996
To
2000
Compete on PriceCompete on Price
Using Old TechnologyUsing Old Technology
When it rains,
it pours.
When it rains,
it pours.
When it
rains,
it pours.
When it
rains,
it pours.
September 11, 2001September 11, 2001
September 17, 2001
When it rains,it pours.
Paul:
“… takeit away
from me.”
Paul:
“… takeit away
from me.”
The Lord:
“My graceis sufficient
for you.”
The Lord:
“My graceis sufficient
for you.”
2 Corinthians 12:9
2 Corinthians 12:9
Paul’s ThornPaul’s Thorn
“History willbe kind
to me for Iintend towrite it.”
Sir Winston
Churchill
ToolsTools
Tools
+ (early)Technology
Tools
+ (early)Technology
“The best thing sin
ce
sliced bread.”
“The best thing sin
ce
sliced bread.”
2001 2002 2003 2004 2005 2006
Sales
2001
To
2006
2001
To
2006
To the priests:
Take up the ark of the covenant and pass on ahead of the
people.
When you reach the edge of
Jordan’s waters, go and stand in
the river.
Have faith.
Lead, don’t follow.
The Road Less
Traveled
Strategy
Niche
TheSecret
Fabrics
FashionTees
Small Lot
Quick
Turn
GarmentDye
Niche
Fabricsdictatethe“Look”
Fabricsdictatethe“Look”
Yarns
dicatethe
Fabric
Yarns
dicatethe
Fabric
DifferentDifferentDifferentDifferent
WhyWhy
Trendier Better
New
•70 orders
•70 different styles
•1,000 units each order
•70,000 units
•Each and every week
•2300 styles so far this year
What isWhat is
SpeedSourcing
FastFashionSpeed toMarket
CreativeThought
ShelfFrom
2 the
What isWhat is
•Flexible & Fast
•Right Goods on Shelf
•Higher Sell Throughs
•Fewer Mark Downs
WhyWhy
Strategy
How to best serve our niche.
Part
ners
hip
s
Customers
SuppliersAlli
an
ces
Consumer
Vir
tual V
ert
ical
Design Concept
Design Support
Production
Strategy
“Every gatewayto the futureis guarded by
a thousand soulsanointed to
protect the past.”
Strategic PartnershipsWith Customers
Strategic PartnershipsWith Customers
SPEEDTO
MARKETOur
Fabrics
YourDesigner
StrategicPurchasing
Design Support
=
Back Room
+
++
=
Roselon
Roselon
Cotton IncorporatedCotton Incorporated
Management
Technology
Niche Strategy
Link
EquipmentEquipment
ComputerSystems
ComputerSystems
SilhouetteDesign
SilhouetteDesign
PatternMakingPatternMaking
GERBERGERBER
Helps us manage:• 200 customers
• 500 fabrics
• 3,000 styles
• 4,000 orders
•a few good vendors
Warehouse
Bin & LotControl
ApparelManufacturi
ng
Distribution
OrderManageme
nt
Yarn &Knitting
PDM
Web AccessCustomersVendors
Sales ForceSupply Chain
Partners
Business Intelligence
MRPOrder to Yarn
“The future belongs to those who
dareto transform rapid change into competitive advantage.”
“The future belongs to those who
dareto transform rapid change into competitive advantage.”
Skills
Tools
Resources
Responsibility
Authority
Challenge
Skills
Tools
Resources
Responsibility
Authority
Challenge
LeadershipTraining
ForManagers
More Technology
“Technology that
facilitates collaboration”
“Alliance Technologies”
More Technology
“Technology that
facilitates collaboration”
“Alliance Technologies”
Luxury - the “new”
Fashion - fresh & creative
Luxury - the “new”
Fashion - fresh & creative
Speed to Market
“from creative thought
to the shelf”
“minutes”
Speed to Market
“from creative thought
to the shelf”
“minutes”
Collaboration - Design
- Supply Chain
- Country - Competitors
Collaboration - Design
- Supply Chain
- Country - CompetitorsBrandingBranding
The Future
Every morning, in the jungle,the gazelle awakes at dawn.
Every morning, in the jungle,the gazelle awakes at dawn.
The Future
The gazelle knows it must run faster than the fastest lion or it
will die.
The gazelle knows it must run faster than the fastest lion or it
will die.
Everymorning, in the jungle, the lion awakes at dawn.
Everymorning, in the jungle, the lion awakes at dawn.
TheFuture
The lion knowsit must run fasterthan the slowestgazelle or it will starve.
The lion knowsit must run fasterthan the slowestgazelle or it will starve.
TheFuture