SportObermeyer03 - SCM Case Study: Sport Obermeyer...

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SCM Case Study: Sport Obermeyer McLaughlin, Miller, Musgrave, Setzer Clearly, Sport Obermeyer needs to determine how to match supply with demand for products with high demand uncertainty in a globally dispersed supply chain. There are several proven techniques that may be utilized to reduce demand uncertainty. Four of these are improved forecasting, quick response, postponement, and tailored sourcing. One way to reduce demand uncertainty is to improve forecasting; this requires changing the way in which Sport Obermeyer analyzes initial forecast information. Currently, it relies upon the forecasts from its "Buying Committee" a consensus of six key Obermeyer managers. These have in all likelihood fostered a form of "group think" that have let the more dominant board members essentially "bully" the less dominant ones into submission. Instead, Wally should ask the committee members to submit individual forecasts which can then be tabulated and compared using statistical analysis. Another way to improve forecasting is to improve market intelligence. The lack of early empirical inputs via retail orders from major customers, combined with the long lead time between initial committee forecasts and the Las Vegas trade show, put Sport Obermeyer into a schedule crunch with respect to reacting to orders. The company clearly needs a strategy to accelerate its empirical awareness of market demand for the coming season while accounting for the limits of its production lines and supply chains. An improvement to market intelligence can be accomplished by giving certain preferred
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SportObermeyer03 - SCM Case Study: Sport Obermeyer...

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