However, a large minimum order quantity for a particular style of parka forces us to order either many parkas or none. The suggested improvements fall into three categories: They suffer long lead times, due to supplier capacity constraints which places a heavy burden on forecasting.
This would reduce the lead-time for raw material purchasing. In the long-term, there are three elements that could decrease the minimum lot size at the Chinese factory: In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management.
Stock outs on most popular items during peak selling Opportunities: When having a fast reading, following points should be noted: Choose suppliers of raw materials more on the basis of D than C.
Wally should source those designs which have the highest expected demand to China because it allows him to take fullest advantage of the cheaper labor.
Recommendations Question 4 What operational changes would you recommend to Wally to improve performance? Activities that can be avoided for Sport Obermeyer.
Strength of property rights and law rules.
The transportation costs of the company should be optimal. To make a detailed case analysis, student should follow these steps: These five forces includes three forces from horizontal competition and two forces from vertical competition.
The compatibility of objectives. When reading the case for second time, following points should be considered: Case study method guide is provided to students which determine the aspects of problem needed to be considered while analyzing a case study. Recommendations to Wally continued Sport Obermeyer can decrease the minimum order quantities by providing incentives to its suppliers to have more flexible production lines.
However, the biggest benefit to narrowing the offerings would be to cut costs. They specialize in ski apparel for the mid to high-end market, which consists of fully coordinated outfits with parkas as the centerpiece.
The second main issue to consider is whether to source in Hong Kong or China. Since, the demand of Case sport obermeyer company products is cyclical therefore; the company should set up different distribution channels in different countries of the world.
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.Case: Sport Obermeyer Vijayakrishnan Krishnamurthy, Kara Maruszak, John Mulka University of Toledo BUAD July 4, 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. For over 75 years, Obermeyer has emphasized “fit” to ensure the ultimate performance between design and function.
We incorporate weatherproof technology, lightweight insulation, specialty fabrics, innovative styling, and individualized features to enhance the active lifestyle.
The Sport Obermeyer case is mainly about the production and manufacturing process of a skiwear product. Sport Obermeyer is a high-end fashion skiwear design and manufacturing company located in Aspen, Colorado.
Over the years, Sport Obermeyer developed into preeminent competitor in skiwear market. competing with the likes of Jacobs coporation, North face, etc. Obermeyer offered a broad line of fashion ski apparel, including parkas, vests, ski suits, shells, ski pants, sweaters, turtlenecks, and accessories.
Sport Obermeyer’s Relationship with Obersport In this global supply chain, Sport Obermeyer operates in the US and specializes in the demand side by coordinating activities such as monitoring fashion trends, designing the parkas, and selling the parkas by entering into relationships with retailers.
Access to case studies expires six months after purchase date. Publication Date: October 13, The case describes operations at a skiwear design and merchandising company and its supply partner.Download