The procurement process of the company involves both direct and indirect procurement
processes. Procurement is commonly defined as a tactical, process-oriented function where not
many strategic decisions are made. Traditionally procurement has been described as an essential
record keeping department that ensures that the organization follows industry norms and allows
the organization to be audited (Patowary & Doshi, 2018). Direct procurement is a process to
acquire resources that go into building the actual product or service the business is offering. Louis
Vuitton has their ways in order to maintain brand exclusivity through their procurement process.
LVMH manufactures its leather goods in company-owned factories in France, Switzerland,
Germany, Italy, Spain, and the United States. The company makes sure that they have their
company manufacture products that are relevant in order to create top-grade quality that states
their uniqueness or particularity. Louis Vuitton employs indirect procurement process as well.
Indirect procurement is the process of acquiring resources that support the ongoing existence of
the business. Another strategy behind the success of the luxurious brand is sourcing the materials
used to create their signature staggering hand-bags from a small number of private dealer pool.
The initiative of direct procurement maintained by the company is to keep control over their
intellectual property and to get closer to their regular patrons. While on the other hand, indirect is
applied to achieved singularity. These approaches provide an advantage to Louis Vuitton when it
comes to efficiency and effectivity.