Although not widely known VF Corp is the largest apparel company in the world with over 30 leading brands sold in more than 150 countries. Although the company has set up its own 700 stores in these countries it also utilizes a variety of other distribution channels. In 2009 the company generated revenue worth 7.2 bn. The company partly attributes this success to the use of diverse distribution channels and superior supply chain management. VF’s superior supply chain has in turn been successful due to the company’s long time partnership with logility voyager software solutions. This partnership which dates back to the mid 1990 was triggered by the need for better logistic services for the company rapid expansion. Today the company has outsourced more than half of its production to other third party suppliers located in Eastern Europe America and Latin. The company today is much more involved in the forecasting of its products most of which are available for a short duration usually a single season.
Forecasting of short term products is much more difficult however the voyager software solutions makes it easier to do so using history of previous similar solutions. The company has expanded its product range by acquisition of other established brands. However this has not brought any difficulties to the company’s supply chain although normally expanding the product range usually brings up a new level of complexity. This is because logility and its voyager solution have enabled the company integrate new products into the existing supply chain.
One of the strength of logility has been its capacity of working in a flexible manner with VF’s organization structure especially in forecasting. The company has organized brands based on the consumer lifestyle for easier logistics. In the US the company has six major coalitions with each brand bearing forecasting responsibility, training and loading of data based on a brand by brand basis. The company deals with a wide variety of products and has around 600,000 SKUs. Despite this large number forecasting of products must take a global perspective. It is difficult to incorporate forecast from repetitive products and forecast of short term products into the same model. The company forecasts products within a range of three to six months which is very important for supply planning. Logility solutions has assisted the company improve the accuracy of forecasting both the short term and repetitive products. The benefits of increasing forecast accuracy is also felt in other sectors of the company. The company has also attempted to integrate some of the requirements of the products offered by logility solutions. VF Corp has developed further interests on some of the ligility products offered by logility solutions. And as a result is considering obtaining some of these packages. VF often engages in discussions regarding some of the challenges and capabilities that arise from the use of the products offered by the company.
The success of VFCorp is not only attributed to partnership with logility company. This is because VF has ensured that the products it provides are back d by solid business cases. This has helped the company realize the benefit of ROI . VF’s partnership with logility has lead to inventory reduction as well as the decrease in carry cost expenses. Therefore the partnership between Logility solution and VF is very necessary for the company’s success.