Ardan LM TP2

Task Performance 2
Ardan, Asela Marie F.

BSBA-OM
1.) The supply chain strategies of Louis Vuitton

2.) The optimum procurement process of Louis Vuitton to maintain brand exclusivity.
3.) The risks involved under the presumption that Louis Vuitton decided to outsource the
production of their famous handbags.
1. Numerous organizations are completely included to the application of Supply Chain

procedures. Louis Vuitton-Moet Hennessy is one of the companies which appreciates
preferences of these procedures concurring to the showcase necessities. In any case, the
company is completely utilizing promoting and deals, coordination and fabricating to fulfill
and create concurring to the showcase request. Subsequently, the company has been well
performing over 20 a long time through arrangement of extravagance items. Retail outlet
are roughly 1700 disseminated all-inclusive with net benefit development. The company
is encountering a few challenges due to the item accessibility with the advancement of
unused item within the organization. As the company develops created and executed a
few brands, these incorporates wines & spirits, mold & calfskin merchandise, fragrances &
beauty care products, observes & jeweler and at long last retailing. Many organizations
are fully involved to the application of Supply Chain techniques. Supply chain is to
enable products to be made under optimal conditions. The optimum
procurement process for Louis Vuitton to maintain brand exclusivity. The Louis
Vuitton promoted the “logo-free” handbags targeted the exclusively at high-end
customers. In other arti cle of LVMH there are more focus on innovati ng and
focusing the style of what the customers wants. The exclusivity of their products is
one more reason for the success of Louis Vuitton. Exclusive might not mean unique
but you know when you buy a piece from an exclusive series this isn’t a mass-
produced item the ordinary Jane and Joe will also have. This is the main reason why
people spend top dollar on a bag that is available for sale for a limited time only.
Exclusive series are released on various occasions and through various sales
channels. The optimum procurement process for Louis Vuitton is to maintain
brand exclusivity in establishing specifications, Louis Vuitton-Moet Hennessy is one of
the companies which enjoys advantages of these techniques according to the market
requirements. However, the company is fully utilizing marketing and sales, logistics and
manufacturing to fulfill and produce according to the market demand. Therefore, the
company has been well performing over 20 years through provision of luxury products.
Retail outlet are approximately 1700 distributed globally with net profit growth. The
company is experiencing some challenges due to the product availability with the
development of new product in the organization. As the company grows developed and
implemented several brands, these includes wines & spirits, fashion & leather goods,
perfumes & cosmetics, watches & jeweler and finally selective retailing. Additionally,
some products brands are growing at high rate while others are experiencing slow
growth rate. The optimum procurement process of Louis Vuitton to maintain brand
exclusivity are The company began to focus on leather products with high value added
rather than entry-level canvas logo style. In addition, Louis Vuitton has promoted a set
of “logo-free” handbags targeted exclusively at high-end customers. Relevant to the
company’s intention to maintain brand exclusivity, they are sourcing the materials used
to create their staggering handbags from a small number of private dealer pool. In
addition, LVMH manufactures its leather goods in company-owned factories in France,
Switzerland, Germany, Italy, Spain, and the United States. This initiative is maintained by
the company to keep control over their intellectual property and to get closer to their
regular patrons. In 2017, Louis Vuitton allied with Supreme, an American skateboarding
shop and clothing brand established in New York City in April 1994. This initiative
leverages the cool factor of Louis Vuitton particularly among millennials, thus increasing
their overall market presence and profitability. They actually used the other Supply
Chain Strategy Joint Ventures. These are formal collaborations between two (2)
companies. The goal of this strategy is to reduce risk, enhance skills, minimize costs, and
increase profitability. The Louis Vuitton company are use the Outsourcing strategies
which help them to be more sustainable in terms of producing a high-quality products
or goods. These strategies also help the LVMH company in some aspects of producing
handbags to maintain their exclusivity for their brand, because the company used the
materials from a small number of private dealer pool. In order to expand the business
LVMH set their own manufacturing to other countries to get closer to their regular
patrons. In a large company that involved in many sectors like Louis Vuitton, from luxury
make-up to high-end fashion such as handbags leather supply chain is of increased
importance and the center of all operations. Supply chain is to enable products to be
made under optimal conditions. He risk involved under presumption that
Louis Vuitton decided to outsource production of their famous handbags-I think it is the
Incompatible culture, because Louis Vuitton own many company located in France,
Switzerland, Germany, Italy, Spain and the United States the incompatibility here is the
communication they used because these countries had some different languages, there
are some risks that involved under the presumption that Louis Vuitton decided to
outsource the production of their famous handbags like security risk where the
company share their information with the suppliers in countries that have less stringent
regulations about intellectual property rights, proprietary information is often leaked.

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Task Performance 2

Ardan, Asela Marie F.

1.) The supply chain strategies of Louis Vuitton

1. Numerous organizations are completely included to the application of Supply Chain

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