Harris Teeter 2003 Annual Report Download - page 12

we have demonstrated such commitment, which is the key to our success. This commitment includes color consistency,
product innovation, protecting the environment, and excellent communications with retailers.
Color Consistency From initial color creation to final production, A&E is able to provide a consistent color over
a wide range of fiber types worldwide. We also use the Datacolor ColoriteTM system that allows for the electronic
transmission of accurate color representations and stitch configurations with customers. In 2004, we plan to introduce
a new digital color communication tool for our customers to access A&E’s global color palette. This new web-based
system will be accessible through ANESYST®, A&E’s order management system. This browser will assist customers in
searching our worldwide colors from the convenience of their desktop computer. Color cross-referencing information
of various types along with digital reflectance information for each color will be made available when using this system.
Through worldwide accessibility, A&E will be able to improve communications with its customers and reduce cycle
time while providing a consistent color worldwide.
Product Innovation — Signature®Embroidery Thread An A&E innovation specifically designed for the
embroidery industry, Signature®is gaining industry prominence in the decorated products market place. Signature®’s
unique air-entangled construction allows a manufacturer to reduce the number of stitches required to produce a specific
design, thereby lowering production costs. In addition, sewability tests in a production environment confirm that
Signature®sews with as much as forty percent fewer stitch interruptions when compared to its major competitors.
Environmental Commitment A&E continues to emphasize environmental leadership along with an unwavering
dedication to safety. Our accomplishments have not gone unnoticed. During fiscal 2003, the American Apparel and
Footwear Association honored A&E with its first annual “Excellence in Social Responsibility — Preservation of the
Environment” award for our global environmental practices. Internationally, our new dye house in Dongguan City, China,
received an environmental award from the Environmental Protection Property Association of Guangdong Province.
Communications with Retailers A&E has developed excellent relationships with many of the leading retailers.
We work with retailers and their sourcing partners to help them make thread choices that will optimize the quality of
their sewn products. From minimizing open seams on stretch knits, to minimizing seam puckering on no-iron dress
shirts, assisting retailers in making the right thread choice is critical in helping them maintain their brand image. This
type of assistance is key to getting A&E on garment specifications so that regardless of where the sewn products are
produced in the world, quality seaming can be achieved. More and more retailers are learning that quality fabrics and
trim, proper fit, and quality construction methods are the keys to customer satisfaction. Quality thread is a key trim
component that can greatly reduce quality defects and help reduce overall production costs.
OUTLOOK While A&E faces challenging business conditions in fiscal 2004, we are confident that our global
approach to the sewing thread industry will be successful in the long run. As we remain ever focused on global customer
commitment and excellence, we will also continue with our strategies for global expansion and management of costs
and manufacturing capacities.
RUDDICK CORPORATION & SUBSIDIARIES ANNUAL REPORT TWO THOUSAND THREE
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