Global Supply Chain Management
Esquel Group:
Transforming into a Vertically Integrated, Service-Oriented, Leading Manufacturer of Quality Cotton Apparel
Introduction
Esquel Group (Esquel) is one of the world’s leading producers of premium cotton shirts, and among the most dynamic and progressive global-scale textile and apparel manufacturers. The company, which is privately owned and in 2005 employed around 47,000 people, was established in 1978 by Yuan-Loong Yang. In 1995 his daughter, Marjorie Yang, became the group’s chairperson. Esquel is rather unique in the apparel manufacturing industry in a number of ways, the first being its vertical set up; it has capabilities that range from cotton farming, ginning, and yarn spinning, to production of fabrics, garments, and accessories, and all the way to retailing. In addition, despite operating in a traditional industry, Esquel implemented a series of supporting IT (Information Technology) and supply chain management applications to improve operational efficiencies. Under Marjorie Yang’s leadership, a strong corporate culture has been established, with uncompromising emphasis on ethical business practices, creativity, and continual improvement. Finally, in addition to its business goals of growth and financial success, Esquel always strived to contribute to the community and bring about a positive change in society.
While Esquel’s strategy had proven to be very successful, and was in-line with management’s values, competition in the apparel industry was fierce. Therefore the company had to continue seeking for new ways to maintain its leading position in the market and achieve its goals for future growth and profitability. Esquel needed to re-think the overall company direction: Should it revise its product and service offerings, and if so, how? Could its operations achieve higher cost efficiencies while still maintaining high quality products and service offerings? And how should the company react to global changes such as the
Transforming into a Vertically Integrated, Service-Oriented, Leading Manufacturer of Quality Cotton Apparel
Introduction
Esquel Group (Esquel) is one of the world’s leading producers of premium cotton shirts, and among the most dynamic and progressive global-scale textile and apparel manufacturers. The company, which is privately owned and in 2005 employed around 47,000 people, was established in 1978 by Yuan-Loong Yang. In 1995 his daughter, Marjorie Yang, became the group’s chairperson. Esquel is rather unique in the apparel manufacturing industry in a number of ways, the first being its vertical set up; it has capabilities that range from cotton farming, ginning, and yarn spinning, to production of fabrics, garments, and accessories, and all the way to retailing. In addition, despite operating in a traditional industry, Esquel implemented a series of supporting IT (Information Technology) and supply chain management applications to improve operational efficiencies. Under Marjorie Yang’s leadership, a strong corporate culture has been established, with uncompromising emphasis on ethical business practices, creativity, and continual improvement. Finally, in addition to its business goals of growth and financial success, Esquel always strived to contribute to the community and bring about a positive change in society.
While Esquel’s strategy had proven to be very successful, and was in-line with management’s values, competition in the apparel industry was fierce. Therefore the company had to continue seeking for new ways to maintain its leading position in the market and achieve its goals for future growth and profitability. Esquel needed to re-think the overall company direction: Should it revise its product and service offerings, and if so, how? Could its operations achieve higher cost efficiencies while still maintaining high quality products and service offerings? And how should the company react to global changes such as the