Sport Obermeyer Ltd Company Background p p p

Sport Obermeyer, Ltd. Ø Company Background p p p Sport Obermeyer, headquartered in the U. S. , was founded by Klaus Obermeyer in 1947 First manufacturer to offer a complete collection of skiwear products designed with micro fiber outer materials For over fifty years, it has been engaging in the skiwear industry to make the finest skiwear targeting for five different ‘genders” – men, women, boys, girls and preschoolers

Industry Characteristics Ø Ø Ø Demand is seasonal and volatile Market response is difficult to predict Retail sales season begins in September and gradually builds up to January Peak sales occurs in December and January Cycle for customers’ demand is short Success depends on how well management predicts market response to different styles and colors

Industry Characteristics (con’t) Ø Ø Ø Long lead-times: nearly 2 -year from design/planning to production prior to actual sales of products to consumers Competition intense Inaccurate forecasts of demand leads to: Ø Ø Overstocking - excess merchandise selling at deep discounts below cost Understocking – loss of income, possibly loss of endcustomers’ future patronage

Product Characteristics Ø Ø Ø Offers greater product variety to allow endcustomers to view and purchase coordinated items at the same time Such strategy in turn attracts retailers placing more orders on Sport Obermeyer’s skiwear products Product variety includes parkas, vests, ski suits, shells, ski pants, sweaters, turtlenecks, and accessories

Product Characteristics (con’t) Ø Ø Ø Parkas - the most critical design component of a collection Other garments in the collection are fashioned to match the styles and colors of the parkas Management segments the market into four classes according to price, type of skier, and fashionconsciousness

Product Characteristics (con’t) 1. 2. 3. 4. Customers who buy basic styles and colors, and are likely to wear the same outfit for several years Skiers were affluent and image-conscious, and liked to sport the latest technologies in fabrics, features, and ski equipment Hard-core mountaineering type skiers who placed technical performance above all else and shunned any nonfunctional design elements High-profile skiers who were flamboyant, and liked to wear the latest styles, often in bright colors to attract attention

Type Char. Fred Conservative 1 every 12 yrs basic style Image -2 -3 yrs technology Mountaineering 2 -3 yrs Rex Biege Klausie High profile fashionable Buying Freq. once a yr Drivers Past sales, economy Technology Functions price, w/th Fashion trend

MEN’S PRODUCT SEGMENTS Highly Predictable demand FRED Somewhat predictable demand BIEGE Somewhat uncertain demand REX DEMAND UNCERTAINTY Highly uncertain demand KLAUSIE

End of Season Problem Ø Overstock: 8%* * unit wholesale price * p Ø Marking down, sending to S America (below costs) Stockout: 24% * * unit wholesale price *

The SO Supply Chain Shell Fabric Lining Fabric Insulation mat. Subcontractors Cut/Sew Distr Ctr Retailers Snaps Zippers Others Textile Suppliers Obersport Obermeyer Retailers

Reasons of Long Supply Lead Time Ø Dyeing p p p Ø Printing p p Ø Ø Lead time -> 45 -60 days Preparation of ‘lab-dip’ -> 2 -week Repeated ‘lab-dip’ if results unsatisfactory Lead time -> 45 -60 days Develop screens pattern -> 6 weeks The process of printing instructions cannot be started until the dyeing process was completed Demand of zippers depends on the styles and colors of actual production -> uncertain demand leads to late orders

HP打印机BOM

原来的供应链运作 温哥华 厂 Localization Finished Printers + Power cord + Manual 欧洲配送中心 Option AB Option AA . . .

新的供应链运作 欧洲配送中心 温哥华 厂 Localization Finished Printers Generic Printer Finished Printers + Power cord + Manual Option AB Option AA . . .

对配送中心本地化的评价 Ø 在配送中心本地化中，在保持一定的服务水平时， 可以利用风险分担降低总库存 为了评估库存，To evaluate inventory, compare total safety stock held if individual localized units are held in inventory or if generic units are held Ø 必须评估其他成本 Ø