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Louis Vuitton Value Chain

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This case should demonstrate the value that is being added to Louis Vuitton fashion and leather goods chain. We have used several analysis within the case.
We have started with the management of the supply chain in order to see how the production lines are working within the 7 factories of Louis Vuitton for leather goods, starting from the suppliers, distributors and the final area in the official shops.

Michael Porter’s value chain entitle the fact of a completely controlled area even from the beginning due to the fact that the suppliers are under Louis Vuitton administration and distributors like Kuehne + Nagel Japan are having strictly and confidential agreements in order to take care of the worldwide distribution for Louis Vuitton.

New …show more content…

Nowadays it’s part of Louis Vuitton – Moët Hennessy Group and is one of the world’s most famous fashion brands. Louis Vuitton …show more content…

Louis Vuitton has 7 factories based on Europe and US dedicated for the production of leather goods within the focal company. There is one factory established in US, San Dimas, Los Angeles, one in Spain and the rest of five in France. All factories represents the property of Louis Vuitton where it has been entitled a long tradition of leather craftsmanship. There are about 500 employees in each factory where most of the workforce is formulated from skilled operators called “ Maroquiniers” The analysis of the Louis Vuitton supply chain underline the fact that on the Upstream course on the first tier the suppliers are few due to the fact that Louis Vuitton is trying to control the whole supply chain in order to avoid the counterfeiting and to be sure that factories are being supplied with the highest quality leather. Even more than that on some cases Louis Vuitton prefer to take control of the supplying company like in HENG LONG crocodile leather supplier where they took 51% of the company shares. For the cattle leather LV is more into northern European supplier due to the fact they fulfill the ISO 14001 quality certification for the leather goods supply chain. Louis Vuitton has provided Kuehne + Nagel Japan in 2010 a contract for the management of distribution where they are responsible for taking care of warehouse operations for all Louis Vuitton’s distribution centres worldwide. Being accredited with ISO 14001 certification

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