VF Brands Global Supply Chain strategy

Prateek Jain
MBA19088

VF was a vertical organization apparel company and it manufactured jeans

in its own plants. The company is trying to pursue an outsourcing strategy
when it was trying to go global producing branded life style products. There
were many reasons for this. The majority of apparel companies were going
to countries where labor was cheap,It would not provide a business edge
anymore. VF needed to differentiate itself using others benefits such as the
speed market, effective use of materials and low stocking cost.

Outsourcing the production to other firms termed as as packaged sourcing

had many important plus points including that of low cost, as companies
could pick amongst suppliers in different places around the world based on
eco factors including labor and transport costs.

The firm way of doing things had reached a critical point. The brand had
great plans to expand into Asia which would mean the company will have
to bring crucial benefits to the firm. They can now do that by increasing
New ways of sourcing and Increase manufacturing or by changing its
sources for materials being obtained. In terms of hiring, the company can
use its own engineers to train the next generation of engineers and come
up with new ways of supply chain and operations management. Financial
results clearly indicate the new way of doing things has been working very
effectively in China and India. One major challenge the firm faced was the
instability of many suppliers it sourced it products from which why it was
important to select them very carefully. The suppliers should be in good
economic shape in order to qualify to work with the VF Brand and become
their partners.