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C h a i n D r u g s t o r e D a i l y S u n d a y, A u g u s t 2 3 , 2 0 1 5 1 2 HOW CORPORATE TRADE CAN SOLVE SUPPLY CHAIN WOES By Kevin Farkas, Executive Vice President, Sales and Business Development, and Hector Rodriguez, President of Active Freight and Logistics, Active International In today's interconnected, global econo- my, companies with distribution, whole- sale and retail partners in several differ- ent countries are grappling with how to manage increasingly complex interna- tional supply chains. Companies need flexible solutions to handle the inevitable excess inventory resulting from forecast- ing miscalculations or unforeseen supply chain disruptions. Many companies seek- ing these types of solutions are turning to corporate trade. Most companies that deal with trans- porting inventory are quite familiar with the bullwhip effect – when a slightly inaccurate forecast in the chain's early stages compounds into a huge impact fur- ther down the line. Corporate trade helps mitigate this risk by providing a flexible solution that enables companies to exchange unsold inventory for goods and services. Here is an example. Shipping of goods from Hong Kong to a port in Los Angeles may take approximately one month. From there, the goods may take three to four days to move to a warehouse under normal conditions. Finally, an extra few days may be needed to put the items on retailers' shelves where con- sumers can finally purchase them. Now, if a company fore- casts demand for 20,000 units but ends up selling only 10,000 in stores, then it has essentially wasted a large amount of time and money shipping goods that resulted in a financial loss. Additionally, supply chain discrep- ancies often occur when market condi- tions suddenly change, causing reduced demand after the distribution process has already begun. Though the company has not made any errors, it may have to uphold its end of contractual agreements with partners to move goods, which are now in little demand. In each of these common instances, corporate trade can provide a solution by purchasing unsold inventory at a premi- um to market value at any point through- out the supply chain. It can turn what would be a financial loss into money spent toward other business expenses. Increasing num- bers of distribution, wholesale and retail companies are using corporate trade to take full advantage of opportunities to protect their business profitability from the risk of unforeseen supply chain dis- ruption. Corporate trade eases the impact of forecasting miscalculations and streamlines inventory movement. Most importantly, it allows companies to allo- cate their time and money on creating and implementing broader business strategies for even greater success in the future. Visit Active International at booth #3131 to learn more and pick up a power bank to stay fully charged (while supplies last). For more information, go to www.activeinternational.com/NACDS20 15 or call 845.735.1700. AUROBINDO USA: AN OVERVIEW Aurobindo USA comprises several busi- ness platforms, including Aurobindo, a traditional generic solid dosage, small molecule manufacturer; AuroMedics, one of the fastest growing generic injectable companies; AuroLife a compa- ny dedicated to formulating and manu- facturing controlled substances; and AuroHealth, with a private label, over the counter pharmaceutical portfolio. Each represents a strategic fit for the growing U.S. footprint. Aurobindo USA received its first pharmaceutical approval from the United States Food and Drug Administration in 2004. Although not among the original U.S. generic manufacturers, Aurobindo USA is one of the fastest growing phar- maceutical companies, and by early 2013 it became one of the top 10 as measured by TRxs (IMS). Aurobindo USA invested resources in its people, facilities and portfolio. The investment continues to pay off, as Aurobindo's portfolio is recognized as one of the most extensive in the generic industry. As of July 2015, Aurobindo owns 183 ANDAs with an additional 120 pending at FDA. Another manufacturing characteris- tic of the product line stems from the diverse therapeutic categories it repre- sents. Formulating products for many of these categories, including neuro- sciences, cardiovascular, anti-virals, cephalosporins and pain management, to name the most prominent, requires both human expertise and varying scientific platforms. Aurobindo operates three U.S. facil- ities comprising more than 300,000 square feet of laboratory, manufacturing, packaging, warehousing, distribution and administrative offices, with more than 300 talented associates. Today's highly effective and efficient processes com- bined with its commercial expertise has helped Aurobindo grow exponentially within the U.S. generic market. Despite this uncommon degree of company suc- cess, senior leadership is not content to sit on their lau- rels. They continue to chal- lenge the status quo and asking provocative "What if" questions. The commercial opera- tion is made up of dedicated profession- als in the areas of sales, contract man- agement, supply chain, warehousing and distribution. This team of professionals has the look of success yet a work ethic reflecting a tireless commitment to get- ting it right. With an anticipated expan- sion of 100,000 square feet and the recent purchase of 90 acres of land, Aurobindo USA anticipates significant growth. For Aurobindo, it is not enough to formulate and manufacture finished dosage. It is also one of the largest suppliers of active pharmaceutical ingredients, also known as API. Essentially, it controls the process from the start, supplying the 'active' and manufacturing finished dosage, to the finish: distributing to a vast cus- tomer network which supplies to mil- lions of patients. The entirety of the process is commonly known as vertical integration. Aurobindo prides itself on strong scientif- ic principles and unmatched regulatory expertise. From discovery to formulation to manufactur- ing to commercialization, there is an atmosphere promoting both collabora- tion and individual triumphs; the two characteristics are not mutually exclu- sive. The laboratory is a beehive of activity, unencumbered by rigidity, instead focused on developing its port- folio and its employees. With its focus on quality, afford- ability and reinvestment in resources, Aurobindo USA is well-positioned to deliver consistent results and timely growth for its customers in the years ahead. Visit Aurobindo at booth #3352. For more information, go to www.aurobindousa.com or call 732.823.9021 or 267.679.3008. QUALITY BRANDED FAMILY APPAREL FROM GILDAN An interview with Rob Packard, Vice President of Marketing, Gildan USA. CDD: Tell our readers about your com- pany. What's your main line of business? RP: Gildan is a leading supplier of qual- ity branded family apparel, including t- shirts, fleece, sport shirts, underwear, socks, hosiery and shapewear. Gildan sells its products under a diversified port- folio of company-owned brands, includ- ing the Gildan ® , Gold Toe ® , Anvil ® and Comfort Colors ® brands and brand extensions, as well as the Secret ® , Silks ® and Therapy Plus™ brands. We own and operate vertically-inte- grated, large-scale manufacturing facili- ties primarily located in Central America, the Caribbean Basin and the U.S. to effi- ciently service the needs of our cus- tomers in all of our markets. CDD: Where is your current product emphasis? RP: For the latter half of 2015 we will be focused on the following product-brand initiatives: We're excited to enter the women's sheer hosiery business in the U.S. with the introduction of our Secret Silky ® brand. Our Secret and Silks legwear brands are already leaders in their respec- tive categories in Canada. We have socks, liners, leggings, shapewear, panties, activewear and now sheer. We will continue to expand the Gildan brand underwear and panty prod- uct line and distribution, which is already one of the largest brands of men's under- wear in the U.S. As investment in U.S. yarn-spinning increases, we are increasing our premium yarn product development across all cat- egories. Both Secret Silky sheer and Gildan underwear products can be found at Rite Aid Drugstores this fall. CDD: Tell our readers about your marketing. RP: It has been a busy year for Gildan as we continue to grow consumer aware- ness and trial of the Gildan brand. We have positioned Gildan as the best value for the consumer by offering better qual- ity products at a comparable or better price, and are marketing the brand as "your new favorite" brand. In 2015, we added two key partner- ships to our mix: 1. Blake Shelton – a successful coun- try musician and television personality with appeal across gender and age groups. Blake's fun personality is featured in our new television campaign, in-store POS and our digital media. We'll continue to work with Blake over the coming months. 2. Title sponsorship of Lifetime Gildan Esprit de She – The Spirit of Her Race Series. This race series includes female-led expert training programs and a philanthropic component with "Girls on the Run," a physical-activity based, posi- tive youth development program for girls in the third to eighth grade. It's a multi-generation, posi- tive, women-only experience with an opportunity to sample our Secret Silky products found in stores. CDD: Is there anything else you'd like to tell our readers? RP: Gildan's success in becoming a lead- ing brand in the North American print wear market and in building Secret Silky and Gildan as consumer brands sold through retailers is based on underpin- ning our brands with continuous major capital investments in vertically-integrat- ed manufacturing. Our investments have positioned Gildan as a global low-cost producer with the best product technology, allow- ing us to invest in our brands. As a result, our brands are trusted for quality, dura- bility and value for money. For further information, contact Randy Brown, Chief Executive Officer of Sales at rbrown@gildan.com, go to www.gildan.com, call 843.606.3600 or email retailmarketing@gildan.com.