VF Brands: Global Supply Chain Strategy (Case Study) Sourcing Strategy (third way) The sourcing strategy (third way) was designed in supply chain management process as a half-way point between traditional outsourcing and full integration. In the year 2004, Christ Fraser, the president of international supply chain network for VF brand constructed a globally diversified and highly efficient supply chain management process…
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VF Brand Point of View This strategy takes huge lead time to complete a manufacturing process. Moreover because of this sourcing strategy the organizations may have to face huge inventory due to lack of trust and co-ordination between the organization and the suppliers that can hamper the logistics and distribution process. In-House Manufacturing Process In-house manufacturing process is a particular method which is implemented by the organization to complete a certain task using the internal technical organizational resources. Justification Basis on the Economic Situation Depending upon this assessment it can be said that VF brand should reduce its in house manufacturing process. During the economic downturn, it will be effective for the apparel organizations to keep limited stocks in inventory. Slow liquidation of inventory is one of the major problems in the supply chain management process of the organization. VF brand needs to manufacture products according to the current market demand. Global Strategy in terms of Brand The organization has successfully expanded their business in global market. They have established their platforms and footprints in Latin America, Europe and Asia. The organization has effectively explored the potential opportunities for future growth. In terms of customer service and preference, the organization has made commitment to build partnership and healthy relationship with the clients and customers. Global strategy in terms of organizational Culture It can be identified from the case study that, the organization generally follows supreme organizational value. VF brand has implemented informal organizational structure. The value and mission of the organization reflects from the organizational culture. Answer 1 VF brands are one of the leading organizations within the global apparel industry. The organization has implemented both outsourcing and internal manufacturing strategy. It is one of unique operational strategy in the global apparel industry (Friedman, 2007). The organization has several manufacturing units across the globe. In terms of US apparel market, the organization used outsourcing for its footwear, backpack and lifestyle apparel (Norman & Ramirez, 1998). However, coming into the main topic, it has evident that VF brands have several manufacturing plants in the Asian, European and American countries (Lee, 2012). The organization should not limit its manufacturing process in the home country. In order to practice effective global business operation, the organization should continue its manufacturing process in the foreign operating countries. It will be difficult for the organization to control global operation process depending upon the home manufacturing process. This strategy will be time consuming and costly (Collins & Porras, 2011). Considering the recent unfavourable economic condition around the globe, it can say that, the organization needs to support their global business operation by global manufacturing process (Justice, 2010). In terms of consumer buying behaviour, people are trying to save more rather than spending. Though the global economy is overcoming from the effects of recession, but still it can state that, several organizations are focusing on own production process. On the other hand, from
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