Sport Obermeyer is skiwear business that is family based with factories in Hong Kong and China. In this case study analysis we will identify key issues within the company that are inclusive of forecast inaccuracies, production allocation and transportation, along with necessary operational changes that need to be made. Many of there difficulties is in their supply chain. The goal is to implement cost reduction through more efficient inventory control and through the factories Sport Obermeyer uses with their sister company Obersport, Ltd.
Sport Obermeyer, Ltd. was created in 1947 by German immigrant Klaus Obermeyer. Klaus Obermeyer taught in Aspen, Colorado at Aspen Ski School where he observed his students were unbearably cold due to their insufficient clothing that didn’t keep them warm and by no means considered fashionable. Over time Klaus created different skiwear and equipment and by the 1980’s Sport Obermeyer became leading competition in the skiwear market. Their products are broken down into 5 categories or five different “genders” ("Sport Obermeyer, Ltd," 2006, p. 3), men’s, women’s, boys’, girls’, and preschoolers’ and from there begin to specialize for each particular category. This company is family owned with Klaus being the “heart and soul of the company” ("Sport Obermeyer, Ltd," 2006, p. 4), his wife Nome is in charged of product development and son Wally who had an MBA from Harvard Business School became Vice President of the Company and in charge of internal operations. Klaus and Wally differed in their management styles. Klaus relied on his experience where Wally believed in data and analysis. Their approaches would come into play since Sport Obermeyer were suffering from supply chain complications. Obersport Ltd. was created in 1985 to manage production of Sport Oberymeyer in the east and were responsible for fabric and component outsourcing ("Sport Obermeyer, Ltd," 2006, p. 2).
One major issue for Sport Obermeyer was their…