VF BRANDS Harvard Case Solution & Analysis

The Underlying Rationale for Third Way

The various underlying rationale for the implementation of the third way sourcing are mentioned below:

1. The implementation of third way sourcing enables the company to distribute the production process to different companies so the cost of the product can be minimized.
2. The investment of supplier can be utilized for the product lines which could help the company to save its investment and utilize it in the provision of the raw material to the suppliers for production purposes.
3. The third way sourcing enables the supplier and the company to jointly schedule the production capacity required to meet the deadline which improves the delivery efficiency of both the companies.
4. Collaboration of the VF and supplier would enable the VF to use its skilled engineers to enhance the production efficiency of the suppliers which is advantageous for both the companies.
5. The VF tends to provide raw material and procure fabrics for the suppliers at lower cost which will enable the company to reduce the cost of finished products and reduces the investments in plants and equipment.

5. Implementation of Third Way

The third way sourcing should be implemented extensively because of several reasons which are mentioned below:

1. The implementation of third way sourcing enables the company to reduce the total cost of product in comparison with the other alternative of acquiring the finished goods for the clients.
2. The third way sourcing will enable the company to improve the efficiency of delivering the product to the shelves of the clothing stores.
3. The third way will increase the collaboration between the partner companies which will strengthen the relationship between the supplied and VF brands.
4. The company could save the amount of heavy investments in plants and equipment which will enable the company to utilize this amount on purchase of raw material for the supplier.
5. Finally, the implementation of third way sourcing will enable the company to increase its production capacity without investing heavily in capital intensive projects.

Exhibit 1

Exhibit 2

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