VF Supply Strategy

8875 WordsNov 5, 201436 Pages
rP os t For the exclusive use of M. Sepehri 9-610-022 NOVEMBER 5, 2009 GARY PISANO PAMELA ADAMS op yo VF Brands: Global Supply Chain Strategy It was August 2009. Chris Fraser, President, Supply Chain International for VF Brands, was driving to his office just outside of Milan near Lake Como. On this sunny morning, the sparkling lake was a picture of tranquility, a striking contrast to the turbulence of the global apparel industry. In the shorter term, the economic crisis of 2008-09 was taking its toll on the entire business from the largest marketing companies to the smallest sub-contractors. But beyond the crisis, Fraser also foresaw long-term structural changes in the apparel business that could call for profound changes in the…show more content…
Permissions@hbsp.harvard.edu or 617.783.7860 For the exclusive use of M. Sepehri VF Brands: Global Supply Chain Strategy rP os t 610-022 organization. To date, VF had experimented with a limited number of “Third Way” supplier relationships. Fraser now felt VF had the data and the experience to reflect on this experiment and to decide, once and for all, whether the “Third Way” should be implemented more extensively. VF Brands and the Apparel Industry op yo In 2008, VF Corporation had total revenues of just over $7.6 billion. The company’s roots could be traced back to 1899 as the Reading Glove and Mitten Company based in Pennsylvania. In 1914, the company expanded into lingerie and in 1917 changed its name to Vanity Fair. In 1969, Vanity Fair entered the jeans business through the acquisition of the Lee Company. By 1983, jeans accounted for 75% of the company’s $1 billion in sales. In 1984, the company embarked on a series of acquisitions aimed at expanding the jeans product line and diversifying into new areas. It acquired Blue Bell (owner of the Wrangler, Rustler, and Girbaud jeans brands), Jantzen (sportswear and backpacks) and RedKap (occupational apparel and uniforms). Through much of its history, Vanity Fair pursued a vertically integrated manufacturing strategy in jeans, with many of its factories located in the United States. tC In 2004, the company made a significant shift in strategy. Its new “Growth Plan” called for the transformation
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