VF Brands: Global Supply Chain Strategy
Request: The case reports should exclude the title page, charts, figures, etc. The audience should be a senior manager of the company in the case. You should assume that the reader is familiar with the circumstances described. Key discussion questions for each case are providedon Canvas. The case analysis may go beyond these questions in identifying key decisions in the case. The material presented in the case, along with material covered in class orassigned reading materials, should be the primary basis for the analysis.
Case question:
1. How important is sourcing to VF? Is this a strategic issue or a tactical decision?
2. Which criteria would you use to evaluate the sourcing strategy?
3. Compare the various sourcing strategies utilized by VF. What are the advantages and disadvantages of each? Is it obvious that one of these dominates the others? If not, what factors would you use to choose the appropriate sourcing strategy?
4. Use the framework of product type and supply chain type to analyze the supply chain opportunities facing VF. Build on this to answer the key question in the case. Should VF increase its existing manufacturing capacity, emphasize traditional sourcing, or expand its use of the “Third Way”? You can also make additional or alternative suggestions.
-The intent here is to use the framework of functional and innovative products to examine the alternatives faced by the company.
VF, a global American company, is a clothing entity founded in 1899 and has its headquarters in Colorado. When the company started, it produced gloves and mittens until 1914 where it expanded to lingerie. Two years later, the company changed its name to Vanity Fair, and it entered the jeans business after acquiring the lee company. As of the year 2008, the total revenue of the company was $7.6 billion. The company has 13 brands that are part of VF by acquisition. In this report, how sourcing is important to VF, evaluation of the sourcing strategy, comparison of various sourcing strategies, and how product and supply chain type affect the supply chain opportunities of the company will be discussed.
Sourcing is important to VF because the company can negotiate prices for units from suppliers. Sourcing helps reduce the cost of products giving the entity the power to adjust commodities prices competitively. Sourcing is also beneficial to VF Company because it ensures a stable supply of products to consumers. A slight change in supply has a direct impact on the supply of the final product to consumers. Sourcing can act as a risk management tool because when buyers and suppliers have a strong relationship, it is easy to identify risks and respond immediately. Sourcing is a strategic issue and not a tactical decision because it supports the company's long-term goals. Tactical decisions, on the other hand, help companies to achieve their strategic plans.
The criteria that can be used to evaluate the sourcing strategy are one that Richard Rumelt suggested. The evaluation uses four criteria's including feasibility, consistency, consonance, and advantage. The feasibility criterion is important because it evaluates if a company can sustain a strategy. If the sourcing strategy is successfully sustained, it is easy for VF to a...
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