Analysis of an Incredible Hulk

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VF’s outsourcing strategy emphasized flexibility The lack of coordination and trust between suppliers and apparel companies led to higher inventory and long lead times. Improve processes and reduce cost By having their own plants they were able to move things through the supply chain quickly. In days instead of weeks Fraser wants the VF team to create supplier relationship that work as closely with them as their internal plant do. Third way approach sourcing strategy aser noted, “We used to be a company that sold what we could manufacture. With the Growth Plan, we decided to focus on marketing, and source products from the outside.” W There were two other critical elements of the company’s strategic growth plan. One was to expand sales outside the US, particularly in rapidly developing countries like Russian, India, and China. company’s distribution strategy balanced different types of channels: specialty stores (16%), domestic and international retailers (16%), department stores (2%), chains (7%), upscale department stores (3%), mass retailers (15%), ro yalty income (13%), and international wholesale (28%). VF organized its businesses into five major “coalitions.” Each coalition was responsible This case is VF Brands of the global supply chain strategy. Historically, VF used a combination of in-house production and the traditional arms-length search mechanisms. At the time of the case, the company is considering a third approach to relations with suppliers, which includes a much closer cooperation and partnership. The purpose of the “third way” approach is to create sources of relationship that combines the advantages of vertical integration with the flexibility sources. These mechanisms are often discussed in the literature and practice operations. This event gives students the opportunity to do an in-depth analysis of the

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