nbas group 8

7/23/2019 Nbas Group 8

1/20

Devanshu Kulthe

Shishir Sharma

Rituraj Dhir

Satyadeo Thakur

Nitin Tewari

Satvik Jani

GroupNo. 8


2/20

CaseOverview

OperationStrategy

Recommendation


3/20

Distriution Channels

!ig !o" #al$%art& Target& Sears Sales estimated to '()n

National Sellers *oot +ocker$ ,--- store&

(-. o/ Nike0s sales were1-. o/ *oot +ocker sales

The Sports 2uthority$ ,--3S stores& roader productline

& *inish +ine$ 145 Stores&closeout sales6

3ran Cha Strong ties w

tastemakers Sold rands

discount or cspeci8c neecustomers6

CaseOverview

OperationStrategy

Recommendation


4/20

New !alance 3ni9ue :roposition o/ variale width6

Top selling product 44- series was worth '(--

;mphasis on cutting edge R7D and meeting per/ormance ocustomer needs6

:rovide J


5/20

Sales 7 Distriution

Category No6 o/ 2ccounts No6 o/ Outlets To!

Re

Speciality Retailers

;lite Running

Stores

)1- =1-

New !alanceStores

>- (=-


6/20

Sales 7 Distriution

@State o/ the artA distriution centers which usestechnology to support and strengthen retailerrelationships6

New Sales /orce automation system helps represento access inventory in/ormation & place orders and

inventories6

Shipping 9uickly and accurately6

2ll these /actors comined resulted in the aility to

loyal customers6

CaseOverview

OperationStrategy

Recommendation

O i R


7/20

Supply Chain %anagement

>1 . o/ the volume is outsourced6

)1 . o/ product assemly took place in 36S6

Cut through assemly B


8/20

Supplier D*inishedshoes

Supplier !Soles*inished3pper3pper Kits*inishedshoes

Supplier C*inishedshoes

Supplier 2Soles*inished3pper3pper Kits

*inishedshoes

Skowhegan&%;

E(

Skowhegan&%

;E)

Skowhegan&%;

E=

Skowhega

Norway

Norridgew;

+awrenc

!oston

+awrence&%;

Ontario&%;

%anu/ac:lan

%aterials#arehouses

2sianSuppliers

DistriutionCentres

+ead TimeF1weeks

+ead TimeF=

weeks

+ead TimeF1weeks

+ead TimeF> weeksB)--(, weeks B)--1

C O ti R


9/20

#arehousing& %anu/acturing and Distr

'4 million or ,61 weeks raw material inventory in thwarehouses6DiGerent process How /or @cut through assemlyA 7@Sourced 3pperA6561 to )61 days lead time reduction through procesimprovements6

Cost

+2!OR %2T;R


10/20

#ork/orce

+engthy Recruitment process6

?$5 weeks training with @uddy to enhteamwork6

*le"iility due to non union system6

%otivation y hourly ased pay to teamased pay6

CaseOverview

OperationStrategy

Recommendation

Case Operation Recommen


11/20

N!);

Loal is to (--. deliver product wi), hrs6!atch production to pair y pair Hoproduction6

Remove @!rute *orceA6

Reduce manu/acturing cycle time6

CaseOverview

OperationStrategy

Recommendation

Case Operation Recommen


12/20

Decision M

React to 2didas$Reeok deal6

!etter promotional tactics6

Operational improvements via N!

Reduce Domestic manu/acturing

CaseOverview

OperationStrategy

Recommendation


13/20

Current Operations Strategy

3nlike its competitors& N!2S /ocuses much more manu/acturing 7 operations than on marketing6

The /ocus on width siing 7 8t dictated product d

New !alance has remained private6 ence& is 8namore He"ile and /ree$Howing company than the

listed companies6as a /unction$over$/ashion0 approach P per/ormproduct06

New !alance work/orceP ourly compensation sywork/orce training6


14/20

Current Operations Strategy

*ocuses on design and innovation to compete in the market6

The New !alance ;"ecutive ;"cellence BN!); P enhancing the product$9uality aseciency in manu/acturing6

Domestic manu/acturing 3nlike competitors0 approach o/ outsourcing productio


15/20

2ssuming that the total 36S6 market /or athletic /ootwear was ,-- in )--1& how costly was New !alance decision to maintain )1. o/ manu/acturing in the 3nited StatesM #hat is your assessment o/ th

Total market share o/ New !alance in 36S6F =.6

No6 o/ pairs delivered y New !alanceF =. o/ ,-- millions F One third o/ )1 . 36S6 manu/actured was @cut$through assem

accounted /or '(= more than the similar product manu/acture

;"tra money cost F 6)1B(U=()F ( millionVVVVVV6B(

Two third o/ )1 . 36S6 manu/actured was @sourced upper pair

accounted /or '-61- more than the similar product manu/actu ;"tra money cost F 6)1B)U=-61- F -65=== millionVVVV6B

Total e"tra money costF (65==== millions6 B(B)


16/20

2ssuming that the total 36S6 market /or athletic /ootwear was ,-- min )--1& how costly was New !alance decision to maintain )1. o/ itmanu/acturing in the 3nited StatesM #hat is your assessment o/ tha

No6 o/ pairs delivered y New !alanceF ((6=. o/ ,--F ,16,, millions6

61> million

Total e"tra costF $56.8 million (Approx.)

#hile developing and assemling products domestically the

Operation


17/20

OperationStrategy

N!);


18/20

OperationStrategy


19/20

pStrategy

Changes in Operations Strategy

yOverview on


20/20

Thank You!

nbas group 8

Documents