Sport obermeyer ltd


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Sport obermeyer ltd

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Sport obermeyer ltd

  1. 1. Sport Obermeyer Ltd
  2. 2. Overview• Founded in 1947 by Kluas Obermeyer in Aspen Colorado• Fashion skiwear manufacturer offering a broad line of ski apparels including parkas, vests, ski suits, shells, ski pants, sweaters, turtlenecks & accessories• Estimated Sales of US $ 32.8 million in the year 1992• Market Share – 45% Childrens Skiwear – 11% Adult Skiwear• Major Production done in Hong Kong and China by partner company Obersport Ltd.• Obersport Ltd. was a joint venture established in 1985 by Kluas Obermeyer & Raymond Tse.• Obersports is responsible for the raw material sourcing and production for all Sports Obermeyer’s products in the Far East
  3. 3. Structure Ski Retail Stores Obersport Direct Mail Sport Obemeyer Retailers Departmental Stores
  4. 4. Production Process  Design (Feb 92)  Final Design ( Sept 92)  Sample Production  Full scale production (Feb 93)  Las Vegas show( 80% orders)  Place final order with Obersport  Additional orders received  Transport to HO( July 93)  Delivery to retailers by Sept 93  Retailers selling from Sept to Feb)  Later Discount Sale
  5. 5. The Order Cycle Design Design Finalized Process Begins Las Vegas Designs Concepts Sketches sent Trade Show Finalized 1993-94 Lines Finalized to Obersport• Feb 1992 • Mar 1992 • May 1992 • July 1992 • Sep 1992 Initial Final Production Cutting and Las Vegas Show Production Order to Sewing 80% orders Orders Obersport • Feb 1993 • Mar 1993 • April-May 1993
  6. 6. Challenges to Obermeyer Long manufacture lead time No feedback from market until Vegas Trade Improper Forecasts
  7. 7. Issues How to measure demand uncertainty from forecast How to allocate production between the factories in Hong Kong and China.( How much to produce in each Factory)
  8. 8. Production overviewHong Kong 50% faster then Chinese workers Expensive Faster FlexibleChina Cheaper Large Lot size Slower then HKK
  9. 9. The Product Product were offered in 5 genders( Men, Women, Boys, Girls & Preschoolers) Segmented according to( Price, Type and Fashion) Customer were divided into ( Fred, Rex, Beige & Klausie)
  10. 10. Suggestions Ideally, during Speculative Production, we want to order a specific quantity of a parka style, and then, during Reactive Production, we want to “fine tune” the parka’s remaining supply by ordering as few or However, a large minimum order quantity for a particular style of parka forces us to order either many parkas or none. Thus, a minimum order quantity significantly reduces the ability to “fine tune” during Reactive Production. as many as the indicated by the revised forecast after Las Vegas
  11. 11. Recommendations Improve the demand forecasts made internally by the Buying Committee in November just before Speculative Production. Instead of using just a simple average of the individual forecasts made by Laura, Carolyn, Greg, Wendy, Tom, & Wally, use a weighted average, with the weights reflecting past accuracy. Obtain market feedback earlier than Las Vegas, thereby converting some Speculative Production to Reactive Production. Decrease lead times for both raw materials and finished goods, thereby allowing more time to utilize existing capacity.