Fasturn Begins Turning Apparel Orders - Brief Article

Bobbin, Sept, 2000 by Kathleen DesMarteau

In the business-to-business (B2B) e-commerce arena, it's increasingly evident that it will take a combination of strengths to ensure staying power: deep financial pockets, extensive industry connections, smart strategic partnerships, a top-notch management team; and a cutting-edge information technology (IT) infrastructure.

In upcoming issues, Bobbin will explore a variety of firms that are trying to stake a claim in the super-competitive, quickly evolving B2B scene. This month we take a closer look at Fasturn Inc. (www.fasturn.com), an apparel sourcing site with headquarters in Century City, CA, in the Los Angeles metropolitan area.

Overview: Founded in the fall of 1999, Fasturn's B2B site went live this past May, and as of press time in mid-July, the first order to be sourced via the site had been delivered to the customer. (See "A Customer's Perspective," page 12.) Fasturn's seller base includes 1,800 apparel factories in 48 countries. The firm is connected to these factories in many cases through major apparel sourcing agencies with which Fasturn has forged exclusive partnerships for Internet-based sourcing. Among these agencies are Primex, which has 17 offices throughout Latin America; Textile Network Ltd. (TNL), a Hong Kong-based agency with offices throughout the Far East and South Asia; and itex, a division of Waves Trading. In addition, Fasturn has a wholly owned office in Korea. Fasturn's buyer base includes more than 2,000 qualified buyers, some of whom are from the same apparel companies. LL Bean, Finish Line and TCI Apparel are among those that have placed orders, the company reported.

Financial Backing: Since the beginning of the year, Fasturn has received approximately $50 million in investment capital, including $14 million from the venture capital firm Battery Ventures. Fasturn president Marilyn Tam told Bobbin the company has received enough financing to keep it going into the "foreseeable future."

Management Team/Staff: Since its start-up, Fasturn has grown from about 10 to 80 employees. The firm has attracted diverse talent, including several apparel industry heavy hitters, to its management team. CEO and co-chairman is Dr. Frank Litvack, a physician who has successfully launched several high-tech firms. President Tam's resume includes former positions as CEO of Aveda Corp., president of Reebok's Apparel Products and Retail Group, vice president of Nike and senior executive posts with May Department Stores, Britannia Sportswear and Miller's Outpost. David McTague, senior vice president of sales, previously was executive vice president of sales and strategic planning, sportswear and athletic wear, Tommy Hilfiger USA. Janet Fox, vice president of global sourcing, formerly was manager of import sourcing for JCPenney Co. Legal, financial and supply chain management (SCM) experts round out the executive team. In addition, Tam emphasized that most Fasturn staffers, from its 24-hour help desk associates to i ts programmers, have apparel backgrounds, whether they previously were designers or consultants with industry experience.

Strategic Partnerships/Services: Fasturn has alliances with the following firms: i2 Technologies for SCM; Finova, CIT and GE Capital Commercial Finance for financial solutions; IBERC for quota and trade management; Vastera, Expeditors International and Carmichael International for logistics, customs clearance and real-time shipment tracking; PriceWaterhouseCoopers for consulting, implementation services and joint marketing; and AIG for corporate and personal insurance. In addition, Fasturn offers factory inspection and certification services to ensure customers are dealing with socially compliant factories.

IT Infrastructure: Fasturn's site was developed by Scient, a respected Web development firm. The site's platform is designed to be private and secure, and "is very well protected," Tam said. Customers have the option to use Fasturn's Global Digital Marketplace (GDM), which provides access to the factory selling base and sourcing agents, as well as surplus liquidation auctions. There also is the option to establish a Private Digital Marketplace (PDM), which can be designed for firms that already have extensive sourcing networks, but want to use Fasturn's Web-based sourcing platform and services. For PDM customers, Fasturn integrates with the customer's internal sourcing resources and systems, while providing access to its GDM as needed. Fasturn also hosts 2 Technologies' SCM tools over the Internet, allowing customers to use the software at a reduced cost. In addition, the site offers online tools for calculating net landed costs; uploading product data specifications; buying/selling via online auction; and tr acking work in process (WIP).

A Customer's Perspective: Van Nuys, CA-based TCI Apparel was the first customer to fulfill an order via Fasturn: 22,000 shirts sourced from a Brazilian manufacturer. The order was fulfilled in less than 60 days. At press time, TCI had placed another three orders with Fasturn.