Executive Summary Sport Obermeyer, Ltd. was founded by Klaus Obermeyer to provide U.S. skiers with the same protective and stylish clothing and equipment available in Germany. Over the years, Sport Obermeyer developed into a preeminent competitor in the U.S. skiwear market: estimated sales in 1992 were $32.8 million. The company held a commanding 45% share of the children’s skiwear market and 11% share of the adult skiwear market. Obermeyer offers a broad line of fashion ski apparel, including parkas, vests, ski suits, shells, ski pants, sweaters, turtlenecks, and accessories. Parkas are considered the most critical design component of a collection; the other garments were fashioned to match the parkas’ style and color. Their …show more content…
This supply chain uses strategies that increase responsiveness and flexibility to changes in customer demand. Specifically, for the responsive supply chain, we suggest the use of Postponement strategies. Additionally, we recommend that Obermeyer reduce the number of suppliers and get materials from suppliers geographically closer to the company’s production facilities, reduce setup lead time and costs by investing in better technology and provide extensive training to workers. This is especially important in China. Without extensive training we suggest that they completely abort operations in China altogether. We also feel that Obermeyer should acquire more control over the production of their products and distribute the risks associated with production fairly between Obermeyer and Obersport. Question A: Sport Obermeyer is a seller of fashion ski apparel. Such apparel would consist of parkas, vests, ski suits, ski pants, sweaters, turtlenecks, and other accessories. Sport Obermeyer offered its’ apparel in ‘genders’, or market segments. These would be men’s, women’s, boy’s, girl’s, and preschoolers. Each one of these individual segments would be further segmented by price, skier type (conservative, rugged, fashion-conscious, etc.), and fashion market trends. Each type of apparel is offered in numerous colors and sizes. Sport-Obermeyer’s apparel is considered functional as well as stylish and about
Over the last 10 years’ gym memberships within the United States have increased from 41.3 million to 54.1 million. The biggest trend over the last few years is becoming fit, more and more each day people are finding ways to live fit and healthier lifestyles. From eating the right nutritional foods, working out and people just wanting to follow the latest and greatest trends. The increase in gym memberships and the amount of people working out leads to the increase in athletic attire. For this exact reason athleisure wear was born, it is the newest fashion trends were people wear athletic clothing regardless if they intend go to the gym or not that day. People are wearing it to the office, shopping, to run errands and other social events. Athleisure wear consist of articles of clothing such as spandex, leggings, yoga pants, sports bras and fashionable sweats. Over the last 10 years an increase in athleisure wear has spread at a rapid rate globally, particularly in the women’s fashion industry. Since 2013 the increase in athleisure wear apparel has grown by 14% and accounts for 18% of the total clothing retail market. With this trend still catching on, active wear is expected to continue to grow at an average rate of 3.3% annually. Due to this rapid increase in purchasing athleisure wear the apparel industry will continue to grow especially Nike because they are the market leaders in active sportswear. For that exact reason I believe that Nike is a
Walden Sports was founded just over 12 years ago and co-founded by Benjamin Jones. The company has expanded its product line to include everything that adventurous travelers demand from sleeping bags to tents, to guidebooks, maps, even insurance. Clothing and equipment sales are $1,420,000 per year with a gross profit of $202,400. Walden Sport employs 70 people part-time and full-time distributed over a variety of departments, including finance, marketing, and operations. The company has recently started a mail order division through their website which has required their establishment of a mail order fulfillment department, and an IT department (Laureate Education, 2012).
(ii) Moreover, After 35 hardly people tend to use specialist sportswear. We have decided to divide this SSWD
It is becoming apparent that the ever changing environment in the global marketplace requires a swifter response time from businesses and their supply chains. The era when production was moved overseas, so businesses can take advantage of low-cost labor is coming to an end, because businesses are not only competing on price but also on time. The owner of Zara, a Spanish clothing store knows this first hand, and has turned supply chain management on its ear, making his company the “envy of the industry” (Ferdows, Lewis, & Machuca, 2004).
A supply chain is a net work of firms. Thus, each firm in the chain should build its own supply chains to support the competitive priorities of its services or products. Two distinct designs used to competitive advantage are efficient supply chains and responsive supply chains. Efficient supply chains work best in environments where demand is highly predictable. The focus of the supply chain is on efficient flows of services and materials keeping inventories to a minimum. The firm’s competitive priorities are low-cost operations, consistent quality, and on-time delivery. Responsive supply chains designed to react quickly in order to hedge against uncertainties in demand. Work best when firms offer a great variety of services or products and demand predictability is low. Typical competitive priorities are development speed, fast delivery times, customization, variety, volume flexibility, and top quality. Tables below show the environments and design features that best suit each design.
Supply chains manage the movement of products from the acquisition of raw materials through production and finally distribution to the end user. A properly designed supply chain can create many opportunities to drive down cost and increase revenue opportunities. In order to create a supply chain that is sustainable and flexible it is necessary to identify and align company goals and initiatives with the manufacturing and distribution of products.
There were multiple issues weighing heavily on the mind Wally, a VP at Sports Obermeyer, in November of 1992. Sports Obermeyer, a successful manufacturer of ski apparel was having trouble planning the manufacturing levels of its various skiwear items for 1993-94 based on whatever scant information it had on the end customers’ likes and dislikes. Waiting to make these decisions till after the Las Vegas trade show, the one event which would give reliable retailer feedback, would prove very costly given the extremely long lead times of it’s suppliers in Hong Kong and China. In the past, Sports Obermeyer had relied on a group of company managers, called the “buying committee” to make a consensus forecast on the demand of
For more than two decades Kinderlift of Colorado in Denver has been the go-to source for kids’ ski equipment for ski schools and ski resorts the world over. But Kinderlift is also the place where parents can find kids' ski gear that will keep their little ones safe when they take to the slopes this winter. February is here and the powder is fresh. So all this month shop directly on the Kinderlift website for kids' ski clothing, including the popular Children’s Safety Ski Vest. Because as every parent knows, fun and safety should go hand in hand.
The value delivery option is another component that supports the supply chain. Providing attention to the changes within consumer demands that will aid in rapid production of consumer products. In order to gain a larger view of the said component it is vital that the value-based method must be clearly understood. Based on the findings of (Feller, A., Shunk 2006).the ability to realign the structure of the supply chain, this process will allows the supply chain to sustain its effectiveness by adopting to changes in consumer necessities with merchandises of larger value. A diversified supply chain is constructed to match the overall components of the chain with customers need in mind. But if this construction of the supply chain doesn’t match the needs it will make nearly impossible for the organization to provide said products and services to the consumer.
Apply time, money, people and other resource involve in early supply and supplier to assure continuous availability at the lowest cost in strategy spend.
Interest in active-wear is growing and does not appear to be waning anytime soon. Active-wear is both stylish and comfortable, which are two of the qualities of Vigor’s clothing line. Harrington Collection could seize this opportunity and jump into the active-wear market and launch a new line of active-wear under the Vigor label. In order to do this successfully,
Effective supply chain management can provide an important competitive advantage for a business marketer, resulting in improved communication and involvement among members of the chain, increased motivation, and decreased costs. Tracking the movement of and demand for components used to manufacture a product across a variety of potential and actual suppliers, provides insight and the ability to respond instantly to shortages, surpluses, and changes in market conditions. It seeks to optimize production, decrease manufacturing time, minimize inventory, streamline order fulfillment, and reduce cost.
These experiences led Klaus to introduce a variety of skiwear products. He is credited in making the first goose down vest out of an old down comforter. Klaus also introduced turtlenecks, wind shirts in the U.S. and in 1980 he popularized the "ski brake." Klaus products are targeted for serious skiers. Eighty five percent of the Sport Obermeyer's market is a serious skier that utilizes the products for winter activities. Sport Obermeyer's produces manufactures for five different genders: men, women, boys, girls, and preschoolers. Each gender market offers an excellent price/value relationship, where value was defined as both functionality and style. Sport Obermeyer's focuses on the middle to high-end ski-market. Functionality was critical to the serious skier-products, which had to be warm and waterproof, yet not constrain the skier's ability to move his or her arms and legs freely. Management believed that the effective implementation of its product strategy relied on several logistics-related activities, including delivering matching collections of products to retailers at the same time (to allow consumers to view and purchase coordinated items at the same time), and delivering products to retail stores early in the selling season (to maximize the number of "square-footage days" products were available at retail). Since the beginning Klaus has been actively involved in the company's management.
Fischer talks about the two types of games, viz. cooperative and competitive, for a manufacturer to play within the chain to ensure an efficient supply of functional products. He also states the way to deal with unpredictability in Responsive supply chain of innovative products. The problem in production scheduling of innovative products, is the unreliability of the forecasts. If all the forecasts for your products are summed up, the overall forecast will be credible enough to count on it. This kind of strategy has huge impacts on the way the supply chain functions. Products are as closer as possible to the finished goods but they are not customized, it is done according to the customer preference.
Their products were offered in five different genders: men’s, women’s, boys’, girls’, and preschoolers’. The company segments each “gender” market according to price, type of skier, and how “fashion-forward” the market was. Within each “gender”, numerous styles are offered, each in several colors and a range of sizes (See Exhibit 3 for examples).