dbmaltby

Daily thoughts, observations, and speculations

Vertical Integration

Under Armour outsources most of its production instead of Vertical Integration.  UA’s products are manufactured by unaffiliated manufacturers. Their products are primarily manufactured in Asia, Central and South America and Mexico They qualify multiple manufacturers where appropriate for particular product types and fabrications.

They actively seek out vendors that can perform multiple manufacturing stages, such as procuring fabric and providing finished products, helping to reduce the cost of goods sold. These relationships involve extensive governance to ensure proper ethical behavior and protect resource heterogeneity.

They also manufacture a limited number of products in their quick turn, Special Make-Up Shop, located at their distribution facility in Glen Burnie, MD. This 17,000 square-foot shop is stocked with fabric in multiple colors to help build and ship products on tight deadlines for high-profile athletes, leagues, and teams. 

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This entry was posted on March 30, 2013 by .
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