PAD 3800 Lecture Notes - Lecture 1: 7 For All Mankind, John Varvatos, Eastpak
Document Summary
Fraser noted (cid:515)for the past few decades, supply chain strategy in apparel was focused on chasing low cost labor from one country to the next. Benefits are this strategy allowed garment marketers like vf to shift production among suppliers in different locations in order to optimize costs and to respond to changes in exchange rates, tariffs, and other cost factors. Many believed that this approach also provided strong incentives for suppliers to reduce costs in order to compete for future contracts. A drawback would be the lack of coordination and trust between suppliers and apparel companies led to higher inventory and long lead times. The growth plan, was the decision to focus on marketing, and source products from the outside. (cid:516) (d) what products does vf. Page 4. (cid:515)chased quota(cid:516); that is, they sought out low- cost producers from countries that had not yet hit their quotas for importing into a certain country.