Wolverine World Wide Global Sourcing

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I. Summary of the case Leading brand’s designer, producer and marketer of footwear are the best to describe Wolverine World Wide Incorporation. They generate their sales mostly from abroad and conduct continuous research and development for product design according to each foreign market. The Footwear Industry Most of the firms are in agreement with foreign manufacturers to produce the item at lower cost such as in China. However, shortage of labor leads to pressure on the wages. Wolverine Global Sourcing Previously, Wolverine produced their footwear by themselves in US. Later, they shifted from manufacturing to designing, marketing and distributing the brands. They outsource more than 90 percent of production to independent suppliers and the remaining is produced at company operated facilities. Higher cost is to be absorbed in the final product pricing as they out-sourced from distant location which includes transportation costs and production schedules. China uses fixed exchange rate regime to help the exports to be cheap worldwide. Due to overly reliance on global sourcing, they have to have positive relationships with suppliers. Other than that, guidelines are given to the manufacturers to monitor the product quality and labor conditions. Supply Chain Management Manufacturing is complex and supplier needs to have good skills in planning, design, transportation and logistics. They control the global supply chains from the headquarters and all players are automatically linked for management purpose. Recent Events Corporate restructuring plan is launched to decrease and standardize operations and supply chain functions where they outsourced operations and pressure suppliers to cut manufacturing costs. Brand managers and suppliers are worried about losing control of design and production when the supply chain was centralized to headquarters. II. Case
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