Sports Obermeyer
Sports Obermeyer
Sports Obermeyer
BY: 34242: Maulik Parekh 34253: Amit Savinkar 34233: Mahender Kumar 34192: Jyoti Rajguru
MRP Project
Ordering management Ordering management Planning process
Understand the demand variations, within the team and in the market Defining service level for each item, considering profit on sales and loss on unsold inventory Identifying costing of each item as % of total items Identify which items to order and in how much quantity Identify which plant to supply from ideally Check if MOQ is satisfied or not Select a plant based on MOQ requirements
Supply chain
Spreadsheet
Long term strategies
MRP Project
Process overview Ordering management Planning process Feb-May 92
Feb 92 design team senior management attend show at Munich, to see European offering Mar 92,Major trade show in Las Vegas, input for design of 9394 May 92 design concepts finalized
June 92March- 93
July 92 prototype production at Obersports limited Sep 92,refined final design completed ,production of sample to show retailer at Las Vegas During sep 92-mar 93 start determining fabrics and component requirement form initial Production Order
Supply chain Feb 93Sept- 93 Long term strategies Feb 93 cutting and sewing of 1st order Mar 13 retailer place 80% of order June-July garments shipped from Hong Kong warehouse to Seattle and by sep to distributors Goods produced in Aug shipped by air freight, high sale product replaced from stocks
MRP Project
Supply chain Process Ordering management Planning process
Printing Screens
Zippers YKKs
Supply chain
Leadtime 4560days
Source: same as fabric
Leadtime 6090days
Source : Japan, HKG
MRP Project
Key planning Parameters Ordering management Planning process
Supply chain
1. Forecast (Aggregate, SKU, Component level) 2. Master Data Material Master Bill of material Resources (machineries) Routing All these includes parameters such as Lead time Safety stock Order Quantities 3. Inventories Component level, pipeline etc.
MRP Project
Demand Forecasting Ordering management Planning process
Supply chain
MRP Project
Demand Forecasting Ordering management Planning process
Supply chain
MRP Project
Demand Forecasting Ordering management Planning process
Supply chain
MRP Project
Demand Forecasting: Recommendations Ordering management Planning process
Supply chain
1. Improve the internal demand forecasts before Speculative Production 2. Instead of using just a simple average of the individual forecast use a weighted average, with the weights reflecting past accuracy 3. Obtain market feedback earlier than Las Vegas, converting some Speculative Production to Reactive Production 4. Arrange retailers meet before annual fair 5. Use Accurate Response Method of forecasting 6. Use a small amount of sales data early in the life of the product to update forecasts: Effective use of early sales data typically reduces the forecast error margin from +/- 50-100% to about +/- 10% 7. At any point in time and at each point in the supply chain, choose inventory levels for a given product to maximize over the life of the product, total dollar gross margin less the cost of inventory carrying and obsolescence. Among other things, this requires estimating a margin of error on the forecast and to help do this we ask several forecasters to independently predict demand and use the dispersion of their forecasts as a measure of risk. 8. Use various approaches to reduce lead-time to be better able to react to early sales information.
MRP Project
Existing Supply chain Ordering management Planning process
Apparel Manufacturers
Demand forecasting process
Supply chain
Retailers
MRP Project
Supply chain Problems Ordering management Planning process
Problems
MRP Project
Critical path
Supply chain
MRP Project
Long Term Strategy recommendations Ordering management Planning process
Supply chain
Proactive Procurement Reduce number of SKUs offered, according to demand for individual style Contracts with supplier for timely delivery of products, treat them as business partners so that they adhere to timeline quality. Have profit sharing and information sharing model with suppliers/partners Run the processes parallel to reduce lead times Conduct market research to find out market trends and future requirement Do promotional activities for the end-user as well as retailers Provide training and support to Chinese workers to reduce cost Explore different markets segments for the ski-apparels and establish distribution centers Improve the product portfolio