VF Brands: Global Supply Chain Strategy Harvard Case Solution & Analysis

VF Brands: Global Supply Chain Strategy: Case Studies


VF is the well-known corporation of high quality attires, footwear and decorations(Adams, 2009). The corporation was founded in 1899, which is operating by today. Highly effective brands are in the corporation's portfolio. The company was recognized by John Barber and the group of investors. In 1920, the name of corporation was taken as Vanity Fair silk industries. Because of World War II the word Silk drop from their brand name because the government restricts the transport of silk fabrics. In the year 1951, the corporation comes in the swapping of New York stock exchange. In the year 1969 corporation adopt the denim category and make acquisition with lee brand and is now renamed as VF Corporation. The constant changes come in the innovation of VF brands from 1899 to 2020. The recent decision of 2020, which makes the company more valuable, was to gain the leader of street wear, which is supreme. VF brands connect the people with their lifestyles by offering every type of product which fulfil their needs and demand regarding that product. The current stock price of VF brands is $55.74. VF Corporation has 13 brands which have different products.


VF is a powerful brand and has strong brand recognition and brand equity. The brand has some many competitors in the same product line. Nike, Adidas, Puma and Armor are the strong competitors having the same line of products in Accessories, different designed apparels and high-quality footwear.

Products and Services:

VF brands have a strong product portfolio the newly gained brand Supreme also adds the value proposition to the brands. Apparels, footwear, accessories, production of new designs, procurement and marketing. These all are the operations of VF brand.

Problem Statement

The worldwide supply chain planning of VF brand is studied in this case. VF has traditionally used a mix of in-house manufacturing & traditional arms-length procurement. At the time of the lawsuit, the firm was investigating a third strategy to supplier relations, which would entail considerably closer collaboration. The purpose of the "Third Way" strategy is to build a sourcing relationship that combines some advantages of vertical integration with sourcing freedom. In the operations literature & such arrangement are becoming more popular. This example allows students to do an in-depth investigation of such a situation and learned about the trade-offs involved.

Situation Analysis:

Manufacturing businesses might make various sourcing arrangements in order to offer finished products to their clients based on the demand for a specific product type. As a result, the advantages and disadvantages of various sourcing are described further below:

Alternative 1: Sourcing in-house

Advantages & Disadvantages of Sourcing In-House For VF Brand

The products made by the company's own plants are included in the in-house sourcing. Because of the company's supply chain management system, one of the most important qualities of in-house production by VF brands is the quality and the reduced time to transport the final product to customers. As a result, VF brands' in-house production is high quality, as the corporation is one of the largest garment companies in the world.

Finding and training staff is a time-consuming procedure that causes financial support. Training is one of the most critical aspects of on boarding and nurturing staff, yet it is a time-consuming and expensive process and finding top talent in the labour market is tough.

Alternative: 02 Outsourcing

The second alternative for which the company looking for is outsourcing. Outsourcing is basically a contract in which one firm hires another for a particular project. It is done internally by the companies. Sometimes the employees and assets of both the company are to be exchangeable.

Advantages and Disadvantages of Outsourcing for VF brand

In outsourcing, labour and transportation costs become low. The prices for the final products become low, which can be beneficial for the company because selling prices are settled by seller, not by manufacturer. The efficiency also increases because the 2 companies' ideas are working on a single project. VF brand can give more focus on basic capabilities. The disadvantages of the outsourcing, which can be faced by VF brands, are lacking in elasticity may be the other company limit less rigid products. The material used in manufacturing products by other company may be of an inferior quality which make unsatisfied the customers. Missing in co-ordination between buyers and suppliers.

Alternative: 03 third way sourcing

Third way, sourcing gives the VF brand choice, which is more suitable for each product. Third way sourcing has the characteristic of both in house sourcing and outsourcing.

Advantages and Disadvantages of Third way sourcing for VF brand

The major advantage of third way sourcing is that it improves the quality of each product and also manages the timing. In the third way, sourcing the technology is also increasing and the profit generate by the third way is also good because in the third way the VF has no communication gap and the third party can easily produce the products to market by understanding the trend and culture of buyers.

The disadvantages for the VF brand from third way sourcing is that this is the short-term contract which matures between 6 to 12 months and also having the trust issues with third party....

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