Supply Chain

Sports Obermayer, Ltd. (SO)

One of the most critical tasks of SO (fashion skiwear manufacturer) faced each year is the specific production quantities for each skiwear item the company would offer in the coming year.

There are no clear indications of how consumers responded to the prior line.

Success of the line depends on the market prediction of the response to different styles and colors.

Inaccurate forecast of retailer demand become a growing problem, considerable income was lost each year because of the company's inability to predict its products.

Wally Obermayer asked each of its 6 managers to forecast retailer demand for each product.

A second issue Wally face was hoew to allocate production between factories in Hong Kong and China.

The order cycle

SO sold its products primarily through specialty ski-retail stores, few large department stores and direct mal retailers.

Design process

1993-1994 design process line began in February 1992.

Sample production

As soon as designs are finalized, Obersport (joint venture in the far east to coordinate production) began the production samples.

There is another facility in China

Raw material sourcing and production

Obersport determined fabric and components requirements for SO initial production order.

Retailing ordering process

Retailers placed order during Las Vegas rade show. SO received 80% of tis annual volume.

Shipment to Obermayer warehouse

Garments are transported by ship from HK to Seattle and by truck to Denver.

Shipment to retail; replenishments orders

End of august SO shipped orders to retailers. February SO offer replenishments at discount.

Supply chain

SO source most of its outwear and production materials through Obersport.

Each Greige fabric (fabric woven or knitted) would later be dyed or printed as necessary; insulation and other components are used; other components are available (zippers, buttons, etc).

Cut and Sew

SO's products required cutting and sewing.

Production planning

Wally's concern: appropriate