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Just in Tme

In:

Submitted By agaa15
Words 1619
Pages 7
Situation
Sport Obermeyer is a family-owned business in the fashion ski apparel industry. They specialize in ski apparel for the mid to high-end market, which consists of fully coordinated outfits with parkas as the centerpiece. They break their product market into 5 genders: men, women, boys, girls and preschoolers. Within each gender they further categorize according to customer preferences.
The company’s product strategy rests on offering fully-matching collections, and delivering to retailers early in the season to assure good product placement and ample floor space. Currently they can boast a 45% share of the market for the children’s section, and 11% for adults.
Sport Obermeyer is facing difficulties from its outdated supply chain. They suffer long lead times, due to supplier capacity constraints which places a heavy burden on forecasting. Forecasting in this ever-changing market is a significant challenge, which when is inaccurate costs the company in terms of below cost inventory disposal and lost sales revenues, which may also further reduce market share.
Due to the dynamics of the industry, having both uncertain supply and demand, usage of an “agile” supply chain is the recommended course of action. An agile supply chain means that Sport Obermeyer needs to build agilty, adaptability and alignment with suppliers within its system. Achieving this goal will reduce lead times, which will allow the company to react more quickly to market demands and reduce the need for strenuous forecasting almost a year ahead of delivery to retailers. The suggested improvements fall into three categories: operational & strategy improvements, forecasting improvements and supplier structure.
Strengths:
History of product innovation.
Buying committee forecasts balance expectations.
Experienced leadership and focused management team
.Deliver products to

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