Our Approach During COVID-19
PEOPLE STORIES
The COVID-19 pandemic has had a devastating health, societal and economic impact on a global scale. Similar to others in the apparel industry, HanesBrands continues to face challenges of the pandemic, including keeping our people safe, re-opening facilities, offices and stores, and navigating an uncertain macro-economic environment.
HanesBrands is also in the unique position of managing a supply chain in which the company directly owns or operates facilities that produce nearly 70% of the company’s unit volume, unlike the fully third-party sourced model that most apparel companies utilize.
HanesBrands continues to face challenges of the pandemic, including keeping our people safe, re-opening facilities, offices and stores, and navigating an uncertain macro-economic environment.
Despite these challenges, HanesBrands responded very quickly initially – with the appropriate care and consideration for the safety of the people who make our products – to the rapidly changing global landscape. This included efforts to minimize the impact on our suppliers by being flexible and working collaboratively with them to reschedule orders. As part of this effort, the company also focused on accelerating payment terms to our third-party suppliers as much as possible and providing opportunities for supplier financing to support much-needed cash flow.
Early in the pandemic, HanesBrands also shifted to producing hundreds of millions of reusable fabric face masks and gowns in its owned facilities and through a large number of third-party suppliers across the globe. Doing so helped meet a critical product need and kept tens of thousands of garment-industry employees working and being paid. This pivot to the production of personal protection equipment fueled orders and kept cash flowing to our contractor base.
As part of our work during times such as these, HanesBrands has and will continue to work with multi-stakeholder organizations, such as the Fair Labor Association. A fully accredited member of the FLA for more than 10 years, we are committed to the organization’s Principles of Fair Labor and Responsible Sourcing and Responsible Production and the spirit of its guidance on applying these principles in the current COVID-19 environment.
