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Sport Obermeyer

Harvard Business School Case Study
by

Kira Bednar

on 22 February 2013

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Transcript of Sport Obermeyer

Kira Bednar, Emily Newnam & Sarah Fleming Sport Obermeyer, Ltd.
Case Study Sport Obermeyer, Ltd. From Father to Son 1947 Klaus Obersport, Ltd. joint venture
established in 1985
Klaus Obermeyer & Raymond Tse
coordinate production of Sport Obermeyer products Klaus Obermeyer Obersport fabric and component sourcing CMT in either "Alpine" factories or Hong Kong, Macau & China Raymond Tse Alpine Ltd. plants in Hong Kong & China 80% of annual production volume was for Sport Obermeyer Aspen Ski School, Aspen, Colorado Traveling to Germany Broad line of fashion ski apparel - numerous styles, colors and sizes Functionality Management - delivering matching collections to retailers at the same time - deliver products early in selling season "heart & soul"
trust in people & providing value to customers
artistic realm of business - use ones judgement Wally current vice president
data gathering & analytical techniques sold at specialty ski retailers

most sales between September & January

full delivery prior to retail season designs based on european styles

style/color combinations made place orders quickly

long lead times, i.e. 90 days 80% sales at Las Vegas Trade show

second/final orders placed Order Cycle Worried Wally premature production orders placed
production begins before trade show retailer responses Accurate Forecasting Lead Times Inaccurate Forecasting more competition
more product categories deeply discounted merchandise
sell out of popular items can take up to 90+ days
must be placed as soon as possible Supply Chain planning and management of sourcing, producing & wholesaling textile & accessories suppliers apparel manufacturers Sport Obermeyer retail locations raw materials were collected around the world but sold in the United States Supply Chain
Break Down shell fabrics & linings subcontractors trims zippers cut & sew labor United States
Korea
Germany
Austria
Taiwan
Switzerland dye & print fabric options
45-60 day lead time min. order quantity 1,000 yards Dyeing Printing min. order quantity 3,000 yards d-rings, buckles, pull-strings and buttons Germany Hong Kong snaps, labels and tags YKK Other Japan
60 day lead time Japan
non-standard zippers
90 day lead time outsourced
Hong Kong
China SKU keep stock of top sellers keep stock of less purchased items prevents losing market share helps forecast upcoming seasons Hong Kong vs. China Additional Advantages to Producing in Hong Kong workers work about 50% faster
shorter production lines
smaller order quantities
cheaper shipping
NO quota restrictions Conclusion accurate forecasting is essential

importance of supply chain management when activities are done all over the world

compare production facilities to optimize production and decrease inventory risks

incorporate lead times in order placement to ensure accurate delivery Questions? design process/sample production sourcing/production ordering/shipment
Full transcript