Summary of VF Brands
Case Synopsis
VF Brands is a big apparel firm that houses most leading brands. As in this case, VF Brands is planning to shift from its traditional supply chain because of particular setbacks. The President of the Global Supply Chain, Chris Fraser, is concerned that the company will be unable to meet the imminent consumer demands in the Asia-Pacific region.
The firm is considering a “third-way” method which is capable of bringing profound collaboration with suppliers. This third approach aims at incorporating a sourcing process that blends some of the benefits of vertical integration with the aspect of supply.
Production Process during the Fall Season
The fall season is usually much cooler as compared to other months, and hence companies have to consider measures that will maintain their business operation. Companies have to concentrate on the approaches that they will use to counter fluctuation in demands during the fall season. The fall season could result in sales valleys or sales peaks depending on the process that the company will use to produce during the fall season. For instance, apparel companies can increase their levels of production in warm clothing as compared to other types of clothing. VF brands could consider levelling up their Jeanswear production while focusing less on image wear.
Proper maintenance of records will also be useful for the company to analyze its ability to counter the inventory demand fluctuations. It will also be vital to assess the information from past fall seasons to get trends that will help in determining the quantity of production. Additionally, the company can concentrate on forecasting mechanisms that will help them to track down the essential products that will help them obtain the most substantial profits during the fall season. The firm can consider sourcing from suppliers at a low cost. They can focus on using short-term vendors of proximity that will allow them to provide Just in Time (JIT) production deliveries. VF brands should be able to ensure that their supply and logistics operations are running effectively to smoothen the production process during the fall season. Planning before the execution of processes is a significant aspect that apparel companies should consider when producing their fall season collection.
“Third Way Sourcing” Proposal
This sourcing strategy was designated to be a focal point between full integration and conventional outsourcing to enable supply chains to be more productive. This concept revolves around creating solid relationships with VF Brand’s suppliers and connecting the company’s technical and core supply chain competencies with the suppliers. The long-term agreements with the suppliers would enable VF Brands to achieve some critical milestones in its supply chain and production section.
The long term contracts will enable VF to gain volume prediction for years to come as compared to traditional outsourcing which only offers seasonal forecasting. The third-way approach will also allow production lines to commit to the company’s products. Lastly, the proposal will enable elasticity that will be derived from personalized schedules and partnerships that will allow the advancement of processes. There will be logicality in the company’s investments resulting from the aspect of specialization and division of work, by letting the suppliers focus on production management with the help offered by VF Brands. This aspect will allow VF Brands to focus on investing their funds in brands and sales operations. From my standpoint, VF Brands should discard the traditional approach and continue with the third way approach. Even though complexities could arise from using the third-way method, it will increase quality and higher employee retention, which are aspects that every apparel brand wants in its supply chain. The VF Brand’s president has set a clear trajectory of the third way approach that will enable them to achieve sustainable conditions for every part of the firm’s supply chain.