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Sports Obermeyer

In: Business and Management

Submitted By Nilanjan
Words 2425
Pages 10
SPORTS OBERMEYER

Introduction

Sports Obermeyer Ltd. is a successful ski apparel company that needs to address logistics related decisions. The company was founded in 1947, by Klaus Obermeyer and it has continued to excel through latest trend spotting resulting in continuous product innovation. Currently the demand forecasting for the products is done by considering the average sales forecasts given by internal members. Postponement techniques were being used (by keeping large amount of greige material) so as to make the supply chain more responsive. In the apparel industry it is becomes necessary that clothing makers and sellers maintain long lead times. In case of Sports Obermeyer, the lead time is approximately 2 years. Such long lead times result in stock-outs of popular items during peak selling periods and leftover stock of not so popular products which eventually are sold at below cost rates.

To handle the problem of overstocking of less preferable, Sports Obermeyer can go for promotional campaigns and stimulate the market. But this might also lead to the aggravation of the stock out issues of the popular products. Sports Obermeyer has a limited geographic diversity and a huge product line. Currently Sports Obermeyer is operating in only Canada, U.S.A. and Great Britain. Moreover the regulations from the U.S. government limit the number of apparels that can be imported into the country.
SWOT Analysis
Strengths:
History of product innovation.
Buying committee forecasts balance expectations.
Experienced leadership and focused management team.
Deliver products to retailers early in the selling season.
Variety of SKUs, with color/size product diversity.
Use of greige fabric delays product differentiation.
Strong barter relationships with South American markets

Weaknesses:
Excessively long lead times, though this is the nature of…...

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