As our company continues to expand across geographies and distribution channels, we are focused on developing an efficient supply chain that will evolve with our business needs.
Our capabilities for worldwide procurement and sourcing enable us to deliver to our customers competitive and high quality goods at an attractive value and on a timely basis. We have an extensive established network of worldwide sourcing partners that enables us to meet our customers' needs in an efficient manner and not rely on any one vendor or factory or on vendors or factories in any one country. We also operate a network of wholesale and retail distribution centers that we believe has sufficient capacity to accommodate planned growth, as well as additional brands we may license or acquire.
We are continuing to develop strategies and make investments in people and locations that enhance our ability to provide our customers with timely product availability and delivery. Speed is a focus area across our company, as we have taken measures to reduce our lead times, leverage data to enhance our operations and simplify our processes to create a more dynamic and responsive business model, while increasing service levels, reducing inventory exposure and improving quality and consumer value. We believe the enhancement of our supply chain efficiencies and working capital management through the effective use of our distribution network and overall infrastructure will allow us to better control costs and provide improved service to our customers.
In line with our supply chain priorities, we recently restructured our relationship with Li & Fung Trading Limited (“Li & Fung”). In connection with this transaction, we terminated our non-exclusive buying agency agreement with them and entered into a new agreement that allows us to evolve our supply chain, while also building upon our operating platforms to enhance our efficiencies across the organization.
To evolve our supply chain and become more dynamic, we began producing goods in Ethiopia during the first half of 2017 through a joint venture that we formed with Arvind Limited. Products produced by the joint venture are mainly sold in the United States under our heritage brands. Through the manufacturing facility in Ethiopia, we are able to produce products at a cost advantage, while also maintaining a strong commitment to corporate responsibility.
We are committed to the health, safety and well-being of the workers throughout our supply chain, while also preserving the environment and producing high-quality products. We actively work to educate our associates and partners and improve factory conditions, as well as continue to invest in the communities where we do business.
These and other Corporate Responsibility issues are key considerations with regards to our supply chain. Please click here to learn more about Corporate Responsibility at PVH.
We are committed to the health, safety and well-being of the workers throughout our supply chain and to the integrity of our products.