3. The risks involved under the presumption that louis Vuitton decided to outsource the production of their famous handbags. In the fashion field, most of the clothes that models wear at fashion shows are luxury brands. There are many artists, idols, icons, and other people prefer luxury brands for the quality of the product. There are also many luxury brands in the field of fashion such as Celine, Gucci, Chanel, Ralph Lauren, Burberry, Versace Prada, and many others. One of the famous brands is LVMH (France's Moet Hennessy Louis Vuitton), also known as the famous Louis Vuitton. From the past to the present, Louis Vuitton has been one of the most successful luxury brands on the market. LVMH has grown to become the world's largest luxury conglomerate, with more than 70 brands and 3,950 stores worldwide since its founding in 1987. The monogram of Louis Vuitton (LV) can be seen on almost all of the label's items, including luxury trunks and leather goods, as well as ready-to-wear, shoes, jewelry, footwear, sunglasses, and books. Louis Vuitton is one of the most prestigious foreign fashion houses in the world. For the sixth year in a row, Louis Vuitton has been ranked the most successful luxury brand in the world The majority of businesses are competitive due to a variety of factors. Supply chain and logistics are one of the strategies used by popular brands. Supply chain strategies are critical for a smooth transition of products in supply chain management. Supply chain strategies include in-sourcing, vertical integration, near-sourcing, few and several suppliers, joint partnerships, and virtual companies. In the case study of LVMH, they used near sourcing and joint ventures for their supply chain strategy. Near sourcing involves a strategic placement of business functions or activities close to the location where products and service are sold to improve efficiency and reduce costs. LVMH or Louis Vuitton manufactures its goods in company-owned factories in various countries such as France, Switzerland, Germany, Italy, Spain, and United States. This initiative is maintained by the company to keep control over their intellectual property and to get closer to their regular patrons. Joint ventures are formal collaborations between two companies. In 2017, Louis Vuitton partnered with Supreme which is an American brand that produces clothes and accessories. Successful brands have their own sourcing strategy that works well for them. One of the procurement procedures for Louis Vuitton to retain brand exclusivity is to find and pick suppliers, which entails looking for possible suppliers or contractors from a number of sources. The potential suppliers shall issue a request for information (RFD) and a request for proposal (RFP) to let the identified vendors know that the company is interested in some trade agreement and to bid on delivering specific products that will include the specifications of the items. Since LVMH, or Louis Vuitton, is one of the most popular luxury brands in the market, they need to be more careful in selecting their suppliers. Louis Vuitton is one of the world largest company that deals with the sales of luxury goods. As a result, there will be risks involved under the presumption that Louis Vuitton decided to outsource the productions of their famous handbags: Loss of focus, quality problems and hidden costs. The first risk that can be encountered of the company will loss of focus to optimizing its supply chain so as to ensure mitigation of losses on account of lost sales and stock outs. The second risk that could arise as a result of Louis Vuitton's decision is a quality issue. When it comes to inventory management, the logistics center handled returns from unsold, damaged, faulty, and out-of-date products, which could result in a larger loss for the company Last but not least, the risk associated with Louis Vuitton is the hidden cost. The time it takes for products to travel from the warehouse to company-owned stores is also excessive. This is the primary cause of inventory stock outs, which results in revenue loss. The logistics cost is a too long high. Since their order time is a month, it becomes inconvenient for the consumer, and it can be a drawback. The amount of inventory kept in stores is