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2 pages/≈550 words
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APA
Subject:
Business & Marketing
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Case Study
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English (U.S.)
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Topic:

VF Brands; Global Supply Chain Strategy

Case Study Instructions:

After reading the case, VF Brands: Global Supply Chain Strategy, respond to the following questions.
1. How has VF Brands' operations strategy evolved over the two decades? How well aligned were the operations and business strategy?
2. How would you characterize VF's various products/brands in terms of critical competitive priorities? What are the implications for the operations strategy?
3. What is your evaluation of the "Third-Way" sourcing strategy proposed in the case? Is this the best of both worlds or worst of both worlds?
4. What are the implications of the statements made by the head of operations that "Today, apparel is produced just about everywhere on Earth, and we have basically run out of new 'low-cost' places to source production - until, of course, penguins learn to sew. We have to find cost savings by how we manage the supply chain?"

Case Study Sample Content Preview:

VF Brands; Global Supply Chain Strategy’s Case Study
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VF Brands; Global Supply Chain Strategy’s Case Study
Question I
VF Brands was traditionally a jeans company where sales from such wear accounted for more than three-quarters of the total annual revenues. However, the company recognized a niche in the market as other apparel companies that had previously emphasized single product lines, such as footwear and shoes. As a result, they started to diversify their operations and expand their market shares. In 1984, VF Brands recognized that their business model would not survive unless they were to diversify their operations in the dynamic markets. Therefore, the company acquired several lifestyle brands to intensify their operations, diversify products and meet the changing needs of consumers.
The company started a journey of dominating the global markets through its strategic Growth Plan in 2004. The main aim of the strategy was to expand direct-to-consumer business by increasing sales from international markets. Moreover, the cost of labor and setting centers of manufacturing places such as China, India, and Russia were considerably lower compared to that of the United States and Mexico. Notably, they had already created a large network of suppliers comprising of 30 direct clients and 1600 contractors coupled with many acquisitions between 2000 and 2009.
The company still faced significant challenges with contractors and lead time despite its application of outside sourcing similar to that of competitors. Therefore, the company understood it was time to optimize their operations in new areas and make outsourcing effective. Notably, the major challenges involved coordination and trust between the outsourced suppliers and apparel companies due to shifting contracts (Pisano & Adams, 2009). Therefore, the growth plans were not strategically aligned, leading to the formulation of the third way.
Question II
VF Brands has categorized their lines of products into several coalitions that make...
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