Supply Chain Management

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Case study of Sport obermeyer ltd

Executive Summary

This is a case study of Sport Obermeyer: a high-end fashion skiwear design and merchandising company. Though Sport Obermeyer ski wears were profitable, they still lack the experience for the short-life-cycle products with uncertain demand and shortening the lead time. The Sport Obermeyer Company has to compete in the fierce environment of global market. With increasing demands and raising competition, the company has to have an edge on the market. Thus the company needs to increase productivity to meet the operational changes. Also, some of the company’s unfavorable situations are resulted from the company’s inaccurate forecasting and inappropriate production planning. The company can enhance production and increase the ability to deal with the planning and production stages. According to the case, what the company should do now is: 1. to deal with styles of irregular demand; 2. to deal with limited supplier capacity; 3. to reduce the lead time. This report describes challenges in managing short-life cycle products with uncertain demand for operations at a ski wear design and merchandising company and its supply partner. In this report, some recommendations of operational improvement, for example, accurate forecasting, improvement of inventory efficiency, shortening the lead time of production and raw material, efficient small lot production and information integration. Also, the report provides details about information and material flows that provide an opportunity to assess operational improvements of Sport Obermeyer, including comparisons between sourcing products in Hong Kong and China.

Table of Contents

1.Introduction and Background6
3.Issues Identified7
4.Analysis and Discussion11


List of Figures
1.Figure-1 Process of Sport Obermeyer’s product cycle10

List of Tables

1.Table-1 Comparison between the two sourcing location11
2.Table-2 Comparison in annual production quantity between the two sourcing location12 3.Table-3Comparison in cost of production between the two sourcing location12

Body of Report

Introduction or Background
This case has described the forecasting, planning, and production processes of the global skiwear supply channel of Obermeyer. Sport Obermeyer is a leading manufacturer of fashion skiwear for both adults and children. It is a high-end fashion skiwear design and merchandising company headquartered in Aspen, Colorado. Obermeyer offers a broad line of fashion ski apparel, including parkas, vests, ski suits, shells, ski pants, sweaters, turtlenecks, and accessories. Over the years, Sports Obermeyer has developed into a dominant competitor. And its estimated sales in 1992 were $32.8 million. The company holds 45% share of children's skiwear and 11% of adult Skiwear market. It has a global supply chain extending over US, China, Hong Kong, Japan, Germany, Korea, etc. Sports Obermeyer competes by offering an excellent price/ value relationship, where value was defined as both functionality and style, and targeted the middle- to high-end of the skiwear market. The company sells the vast majority of its products to customers for use while skiing. Management believes that the effective implementation of its product strategy relies on several logistics-related activities, including delivering matching collections of products to retailers at the same time, and delivering products to retail stores early in the selling season. Sports Obermeyer sells its products primarily through specialty ski-retail stores, located either in urban areas or near ski resorts. Obermeyer also serves a few large department stores and direct mail retailers. Most U.S. retail sales of ski-wear occur between September and January, with peak sales occurring in December and January. Most retailers requested full delivery of...
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