The case study of VF Brands: Global Supply Chain Strategy makes excellent points towards their quest to decrease costs, increase efficiency while trying to stay ultra-competitive in the apparel market. Chris Fraser, president of Supply Chain for VF, states “We have to start finding cost savings by how we manage our supply chain.” (Kerin, R., & Peterson, R. 2013). This is the end goal for the Supply Chain segment of VF Brands. The first question of utilizing company- owned plants to using a large network of suppliers, simply comes down to command and control. With outsourcing you are competing with timelines and contracts by other companies. If you own the process, the company, you then can have efficient, effective and cost savings to your
…show more content…
This allowed VF Brands and their suppliers to focus on the challenges that may or may not cause issues during production. VF Brands, wanted factories running at full capacity, this is “critical factor affecting their economic viability,” (Kerin, R., & Peterson, R. 2013). This along with factors of location, source of raw materials, fabrics, and accessories, including cost of production, transportation and trade quota or tariff considerations are all included in the strategic supplier relationships that will assist in VF Brands providing a cost saving production process. Accomplishing the feat of keeping supply costs down based on region of the company owned plant or cases of providing guidance as a part of the “Third Way”, chain supply strategy will benefit VF Brands and their suppliers. We must always keep in mind that lining up creditable sourcing requires an enormous investment in time, as they need to be visited and capabilities carefully assessed. (Kerin, R., & Peterson, R. 2013). One of the best facts in the case study is “VF has a strict policy of doing business only with suppliers who followed internationally established standards for worker safety and protection.” (Kerin, R., & Peterson, R. 2013). The case study touched on the fact that every apparel company in the world is always looking for the cheapest place to produce, sometimes standards for worker safety as well as protection are the first items to be overlooked. A golf clap for VF Brands for meeting the
This allowed VF Brands and their suppliers to focus on the challenges that may or may not cause issues during production. VF Brands, wanted factories running at full capacity, this is “critical factor affecting their economic viability,” (Kerin, R., & Peterson, R. 2013). This along with factors of location, source of raw materials, fabrics, and accessories, including cost of production, transportation and trade quota or tariff considerations are all included in the strategic supplier relationships that will assist in VF Brands providing a cost saving production process. Accomplishing the feat of keeping supply costs down based on region of the company owned plant or cases of providing guidance as a part of the “Third Way”, chain supply strategy will benefit VF Brands and their suppliers. We must always keep in mind that lining up creditable sourcing requires an enormous investment in time, as they need to be visited and capabilities carefully assessed. (Kerin, R., & Peterson, R. 2013). One of the best facts in the case study is “VF has a strict policy of doing business only with suppliers who followed internationally established standards for worker safety and protection.” (Kerin, R., & Peterson, R. 2013). The case study touched on the fact that every apparel company in the world is always looking for the cheapest place to produce, sometimes standards for worker safety as well as protection are the first items to be overlooked. A golf clap for VF Brands for meeting the