Ensuring Operational Efficiencies and High Social Standards in Our Supply Chain
Our three manufacturing approaches (Owned Manufacturing, Contract Suppliers and Third Way) provide us with the competitive advantages of quality, service, speed and flexibility – as well as best-in-class social responsibility and environmental stewardship practices.
VF has over 110 years of experience in manufacturing at our own facilities. Our owned manufacturing operations provide us with the most direct control over a number of important factors, including the introduction of greater operational efficiencies and social standards. Today, approximately one-third of our production takes place in the 30 manufacturing facilities that VF owns. These facilities are governed by our Ideal Plant Model, which sets standards for how to operate and manage our sites in a safe and productive manner.
We work with external suppliers for two-thirds of our production. Like others in our industry, our contract suppliers enable us to respond quickly and efficiently to fluctuations in product demand. These engagements are governed by rigorous compliance principles, guidelines, audits and training to promote work environments that provide fair wages and are clean, safe, healthy and free from any form of discrimination.
Another unique element of our approach to supply chain management is our investment in what we call Third Way – a long-term strategic partnership with suppliers that gives us the ability to share our best manufacturing practices.