Supply Chain & Corporate Responsibility C A M E R O N B A I L - - PowerPoint PPT Presentation

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Sep 30, 2022 146 likes •374 views

Supply Chain & Corporate Responsibility C A M E R O N B A I L E Y , E V P , G L O B A L S U P P L Y C H A I N S E A N C A D Y , V P , G L O B A L R E S P O N S I B L E S O U R C I N G & S U S T A I N A B I L I T Y T H E P O

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Supply Chain & Corporate Responsibility

C A M E R O N B A I L E Y , E V P , G L O B A L S U P P L Y C H A I N S E A N C A D Y , V P , G L O B A L R E S P O N S I B L E S O U R C I N G & S U S T A I N A B I L I T Y

T H E P O W E R o f A N D

SLIDE 2

I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

Supply Chain Overview

W H A T W E D O

I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

SLIDE 3

400M

UNITS ANNUALLY

23K

SUPPLY CHAIN ASSOCIATES

Operational Discipline To Manage Large-Scale Complexity

I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

70K

STYLE / COLORS

SLIDE 4

Global Sourcing & Manufacturing Capabilities to Serve Our Diverse Brands

I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

>$5B

FY’20 COST OF GOODS

Sourced 87% Owned 13%

460

VENDORS

48

COUNTRIES OF ORIGIN

778

FACTORIES

SLIDE 5

We Proactively Manage Our Global Footprint to Reduce Risk Exposure

I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

VIETNAM 25% CHINA 17% CAMBODIA

11%

OTHERS 20% BANGLADESH 5% U.S. 6% HONDURAS 8% MEXICO 8% CHINA to U.S. 7%

FY’20 UNITS

BY COUNTRY OF ORIGIN

Directional mix change from CY’14 units

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Global Network To Service Customers And Growing DTC Business

I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

USA 20 EMEA 14 APAC 13 OTHER AMERICAS 12

59

DISTRIBUTION CENTERS GLOBALLY

Omnichannel

CAPABILITIES AT EACH VF-OWNED DISTRIBUTION CENTER

170

COUNTRIES IN WHICH VF PRODUCTS ARE SOLD

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I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

What Got Us Here Won’t Get Us There…

I . F A S T E R T O G E T H E R S T R A T E G Y I I . P U R P O S E L E D S U P P L Y C H A I N

I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

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I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

Faster Together Strategy

W H E R E W E A R E G O I N G

I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

SLIDE 9

Embracing End-to-End Digital Supply Chain Transformation

DESIGN AND DEVELOP PLAN AND MANAGE SOURCE AND MAKE MOVE SELL AND ENGAGE

DISTRIBUTION CENTER AUTOM ATION DIGITAL PRODUCT CREATION AUTOM ATION AND ADVANCED M ANUFACTURING DIGITIZATION OF STORE OPERATIONS

I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

AUTOM ATED DEM AND AND SUPPLY PLANNING

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Digital Product Creation Transforming How We Create, Make And Sell Products

I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

Better product/market fit – More efficient creation process – Agility and speed to market

CREATE MAKE SELL

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Driving Automation And Advanced Manufacturing Across Our Footprint

I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

MANUFACTURING AUTOMATION ADVANCED MANUFACTURING INTERNAL 3 1 W/ PARTNERS 4

Knowledge Transfer Cost efficiency Risk management Speed-to-market Speed-to-market New routes to market Mass customization Automation Index

(Vans FW) 2

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Transforming Distribution for Improved Consumer Proximity and Retail Centricity

I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

Speed-to-market/consumer proximity – Risk management – Flexibility

MULTI-NODE DC NETWORK DC AUTOMATION

Percentage of Automation (New DC’s)

40-50% 50-60% 70-80%

Year 2019 2021 2017

Single- node Dual- node Multi- node

Year 2019 2021+ 2017 Number of Nodes of Distribution

SLIDE 13

Case Study: Multi-Speed Capabilities To Sustain Vans’ DTC Growth

I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

170 days 140 140 70

Core

Core Core + Seasonal

LEAD TIME

STYLES % DTC

M ATERIALS M ANAGEM ENT CAPACITY M ANAGEM ENT M ANUFACTURING AUTOM ATION (Pha s e I)

2016 2017 2018

70 30 Core + Seasonal Core + Seasonal

M ANUFACTURING AUTOM ATION (Pha s e II) W/ HEM ISPHERE NEARSHORING

2020 2021+

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Case Study: Supply Chain Capabilities To

Support The North Face Breakthrough

Innovation

PARTNERSHIP Strategic partnership with vendors New models for internal collaboration

I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

INNOVATION New methods of make and standards Agile supply chain execution SUSTAINABILITY Sustainable materials and chemistry Aligned sustainable suppliers

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The Scope of Our Supply Chain Provides Opportunity to Drive Large-Scale Change

I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

Material origin farmers 900,000 Tier-3 material transformation 1,200,000 Tier-2 material production 3,000,000 Tier-1 product manufacture 1,200,000 >6,000,000 LIVES

Materials 34% Supply Chain 24% Logistics 8%

VF carbon emission footprint

Direct impact <1%

OUR IMPACT ON PEOPLE OUR IMPACT ON PLANET

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I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

Purpose Led Supply Chain

W H A T D R I V E S U S

I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

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Anonymous

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SLIDE 18

Our Integrated Responsibility And Sustainability Efforts Create Value

I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

WORKER RIGHTS AND SAFETY PRODUCT STEWARDSHIP ENVIRONMENTAL SUSTAINABILITY WORKER AND COMMUNITY DEVELOPMENT

SLIDE 19

Leading in Traceability and Supply Chain Transparency

SLIDE 20

We are on Track to Impact One Million Lives in Our Supply Chain by 2025

I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

WATER + SANITATION HEALTH + NUTRITION CHILDCARE + EDUCATION

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When We Lead, We Are Movement Makers And Transform Our Industry

I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

SLIDE 22

Key Takeaways

I N V E S T O R D A Y 2 0 1 9 / S U P P L Y C H A I N & C O R P O R A T E R E S P O N S I B I L I T Y

Building on solid foundations

– Operational disciplines to manage complexity – Globally balanced footprint – 23K talented associates

Faster together strategy

– Digitizing our supply chain end-to-end – Automation for cost, speed and innovation – Enabling consumer- and retail-centric transformation

Purpose Led supply chain

– Responsibility and sustainability aligned to value creation – Positively impacting one million lives by 2025 – When we lead, we are movement makers