The company which our focus centers on is the prestigious Lululemon. What started out as an underground yoga and design studio blossomed today into a $225 million-dollar company that offers premium athletic clothing at high-end prices. It all started one day when the company founder, Chip Wilson, decided to try something new – yoga, a physical activity that emerged in 1997 which appealed to the independent woman. Wilson was a fanatic in every type of board; he took joy in surfing, snowboarding, and skateboarding. After his first session of yoga, Wilson found the experience so exhilarating and akin to the post feeling of boarding. Yoga today is the central focus surrounding Lululemon, the lifestyle which the customers pursue. Lululemon is dedicated to provide quality clothing that people can move, sweat, and be comfortable in. Although today, women from all segments of society can dress in Lululemon apparel due to the fact that people tend to dress much more casual and for comfort. Wilson never planned to expand outside from the Kitsilano location which housed the first Lululemon store. Today, Lululemon offers its products all over the globe with retailers in Australia, Hong Kong, Mexico, Philippines, Singapore, Taiwan, Canada, United States, and Japan. Lululemon
Lululemon’s primary objective is to improve and make impacts and improvements on the global communities by eliminating and removing waste that is harmful to the society. The company eliminates supply chain packaging, product manufacturing, product policies, retail environments, and purchasing practices to eradicate excess wastes in our professional and personal lives. Moreover, the company intends to influence our personal lifestyles too. An example is purchasing reusable coffee cups and reusing Lululemon’s garment poly bags. It can decrease your laundry expense; eliminate the chance of using plastic bags, and decrease pollution and wastes.
As the business expand into a global market, Lululemon has been building up relationships with, the United States, China, Taiwan, South Korea, South America, Israel, Indonesia, Thailand and Vietnam. This relationship is formed for the cause of manufacturing partnerships in order to support demand for capacity and technological capability. Lululemon has followed to illustrate a strong, ethical and talented global manufacturing team. The company’s first step is to identify a potential factory partners. The company first creates a strong manufacturing team by having the company’s Director of Global sourcing to carefully observing and examines Lululemon’s factory relationships. Afterwards, they will choose a group of manufacturers who particularly have the capability, capacity, quality, and responsible actions towards society and environment. The second step is to audit and inspect the factories. SGS, the third party auditor of Lululemon Company, organizes and conducts a formal audit. The audit includes a combination of review of timesheets, accounting records, health and safety reports, factory inspections, and interviews with all the workers and factory owners. The Corrective Action Plan (CAP) will be inducted if a violation against the company’s Code of Conducts occurs during the audit. Moreover, the company would also plan out an outline or a scheme to implement the solutions to resolve the problems. Lululemon has a compliance team that revisits the factory and reviews the changes that were made during the audit. However, the process will start again with the discussion for generating improvements if the solution doesn’t meet the expectations of the company’s. The product development with the factor will begin after the company has finished the audit. However, before the process of production begins, all factory partners must sign and write a commitment to Lululemon’s Supplier Agreement which outlines the manufacturing standards. The cost is the primary factor that the company based on to...