Sport Obermeyer Case
Question 2.
What operational changes would you recommend to Wally to improve performance? Clearly list the expected benefits from each change. Please try and be specific in terms of the changes and benefits in response to this question. One of the main reasons to implement certain operational changes is to reduce the difference between initial forecast done before Las Vegas show and the updated forecast done after it. Some operational changes also have to be made to reduce the lead times in all stages of production. As skiing apparel are seasonal products, some strategies have to be followed to counter the short life cycle of the product. Considering the above-mentioned issues, we recommend the following: * Historical data should be analyzed on a backward time line and compare the initial forecast and updated forecast. Variables such as standard deviation and covariance should be analyzed and applies to current forecasts. * A push strategy should be used to try and get orders before the Las Vegas show to reduce the difference between initial and updated forecasts. Organizing meets with regular retailers and arranging a private show of the upcoming clothing line can achieve this. Pre-season discounts can be offered to retailers for placing orders at this time. This reduces the production level disparities to a certain extent. * Using information technology to share demand information with suppliers might reduce lead times. * Maintain huge inventories of items that are common to different products such as base insulation materials, basic ski cloth, buttons, zippers, etc. * Alliance with a supplier/manufacturer who can meet unforeseen excess demand in a short period of time. These sub-contractors should be chosen for their dependability to meet the demand rather than their low cost component.
Question 3.
How should Obermeyer management think (both short term and long term) about sourcing? What sourcing policy would you
What operational changes would you recommend to Wally to improve performance? Clearly list the expected benefits from each change. Please try and be specific in terms of the changes and benefits in response to this question. One of the main reasons to implement certain operational changes is to reduce the difference between initial forecast done before Las Vegas show and the updated forecast done after it. Some operational changes also have to be made to reduce the lead times in all stages of production. As skiing apparel are seasonal products, some strategies have to be followed to counter the short life cycle of the product. Considering the above-mentioned issues, we recommend the following: * Historical data should be analyzed on a backward time line and compare the initial forecast and updated forecast. Variables such as standard deviation and covariance should be analyzed and applies to current forecasts. * A push strategy should be used to try and get orders before the Las Vegas show to reduce the difference between initial and updated forecasts. Organizing meets with regular retailers and arranging a private show of the upcoming clothing line can achieve this. Pre-season discounts can be offered to retailers for placing orders at this time. This reduces the production level disparities to a certain extent. * Using information technology to share demand information with suppliers might reduce lead times. * Maintain huge inventories of items that are common to different products such as base insulation materials, basic ski cloth, buttons, zippers, etc. * Alliance with a supplier/manufacturer who can meet unforeseen excess demand in a short period of time. These sub-contractors should be chosen for their dependability to meet the demand rather than their low cost component.
Question 3.
How should Obermeyer management think (both short term and long term) about sourcing? What sourcing policy would you