SCM CASE ASSIGNMENT

Section A
Group 07
Amey Shekatkar
Niharika Jain
Monika Saha
Jayanth Pushpa Raju
Chintada Nikhil
Ashwin I
Q2:
What operational changes would
you suggest to Wally to improve
performance?
Recommendation 01: Production Changes
Obermeyer’s saw ski apparels as majorly a functional product with some focus on
style. Although the customer were evolving and started viewing Ski Apparels are
fashionable clothing.

Hence the need is to have a shorter life cycle by reducing the lead time of
production.

Fabric Cut/Sew
Supplier Greige
Fabric Dyer DC at Denver Retailers
Factory
Fabric:
Undyed

Asia: Hong Kong and China Sports Obermeyer: US

Recommendation 01: Production Changes
REDUCTION OF LEAD TIME

Problems:
1. Long lead time for dying of fabric around 45-60 days for a dying
subcontractor and if needed 45-60 days for printing. They need a minimum
requirement so as to keep their capacity utilized.

2. Basic color forecasts are easily predictable, while for fashion color has higher
variations

Recommendations:
3. A 1-year binding contract containing the commitment of capacity to the
Dyers.

4. Dying basic colors early in the supply chain, but dying of fashion colors in the
ski season (Product Postponement)
Recommendation 02: Procurement Changes

1. Procuring from a few big suppliers instead of a many small

subcontractors.

• This would reduce the long planning for production time which took
around 56 days.
• Take advantage of economies of scale from suppliers end to have higher
bargaining power.

2. Extra stocks of zippers from YKK

• Zippers were inexpensive from Hong-Kong, however had a long lead

time of 60-90 days. Adding a safety stock of zippers for basic and non-
basic colors could ensure availability
Recommendation 03: Distribution Changes
1. Establishment of Distribution Center (DC) at Seattle and direct shipping from
Hong-Kong to the Port of Denver

2. Distribution can also be established to neighboring countries such as Canada

that have a different ski season and hence sales capacity can be utilized
throughout the year.