Hanesbrands, Inc.

Hanesbrands Inc. (HBI), a leader in apparel design and manufacturing, was spun off from parent company Sara Lee Corporation in September of 2006. As it transitioned from a wholly owned subsidiary to a publicly traded company, HBI sought to update and streamline operations, including the management of its facilities. Based on a long, successful history with Cassidy Turley, we were asked to assess current operations and design and implement a new real estate strategy.

Having relied heavily on the real estate and facilities management infrastructure of Sara Lee, HBI lacked the technology to effectively manage and track their lease information and work orders. Without these systems in place, it was difficult for senior HBI management to accurately evaluate total occupancy costs. HBI also recognized they did not have the in-house resources to develop and implement preventative maintenance or energy conservation programs. Though the company’s vision included environmentally low-impact initiatives, they did not have the expertise to design a practical sustainability program for their facilities.

In September of 2006, Cassidy Turley deployed a multi-discipline team to evaluate 1.3 million square feet of corporate headquarters and administrative facilities in and around Winston-Salem, North Carolina. The team’s first step was to scrutinize each facility and its organization from technical, operational, fiscal and staffing aspects. A detailed report proposing a consolidation of services, a streamlined organization, and recommendations for significant cost savings and risk mitigation followed.

HBI contracted with Cassidy Turley for full facility management of their administrative portfolio which included both owned and leased sites. Our portfolio administration specialists abstracted all HBI leases into our process management platform while our market research team analyzed comparative data to the rental rates HBI was paying. Our transaction specialists used the data to negotiate renewals and new leases. Our sustainability professionals implemented programs for low-impact pest control, landscape and cleaning as well as energy efficiency initiatives based on LEED guidelines.

Within the first 18 months of the contract, Cassidy Turley was able to save HBI more than $2 million annually in operational costs by implementing streamlined facility management processes and developing accurate service level agreements while enhancing employee workplace satisfaction. By quickly abstracting more than 450 leased and owned property information, we were able to track costs, red flag landlord issues, and coordinate timely lease renewals. Using our REFLEX process management technology, we were able to provide accurate, timely occupancy costs for senior management, enhancing their ability to make informed, strategic decisions.