DESIGNING AND MANAGING SUPPLY

CHAIN

DOÇ.DR.SEMİH ÖNÜT

Nima Gheslaghi12506010

REEBOK NFL REPLICA JERSEYS

Reebok (Background) National Football League(NFL) Reebok & NFL Demand for jerseys Hot market Solution Leftover jerseys

REEBOK (BACKGROUND)

REEBOK WAS A SMALL BRITISH SHOE COMPANY IN 1979

NOW COMPANY EMPLOYS 7400 PEOPLE AND WIDELY KNOWN FOR THEIR SPORTS

APPAREL AND FOOT WEAR BRANDS

NATIONAL FOOTBALL LEAGUE The National Football League is the premier professional league for

American football consisting of 32 teams and the history traces back to

1869.

In 2003,the Super Bowl between the Oakland and Buccaneers received over 139M viewers, making it the most watched television program in the history.

REEBOK & NFL In December 2000 Reebok signed a 10-year contract with the National Football

League(NFL) that granted an exclusive license to Reebok to manufacture ,market and sell NFL merchandise.

In granting an exclusive license to Reebok, the NFL expects Reebok to provide a very high level of service to its customers, the sport retailers who ultimately sell to the public.

DEMAND FOR JERSEYS

1) Players (team) Predictable

Demand for jerseys 2) Public (popular)

Unpredictable (why?)

Players Public Players

HOT MARKET

As the season starts, certain teams and players get a sales increase due to their performances .

Previously unknown players becomes superstars, and former superstars becomes nonfactor players.

In this case company will confront with hot markets which demands’ variety exponentially increase.

In hot markets retailers expect Reebok to supply product.

In hot markets, delivery lead time is always going to be an issue, Whether you have 12 companies or one, it will be an issue.

HOT MARKET

Retailers expect lead times between 3 and 12 week for replenishment of normal demand, but expect much shorter lead times of 1 to 2 weeks when faced with hot-market demands.

What is the solution?

SOLUTIONReebok decided to produce “blank” or “team finished” jersey.

1) Dressed jerseys finished goodIn this case we have two jersey 2)Blank jerseys without players

name & NO

Dressed jerseys Blank jerseys

REEBOK’S SUPPLY CHAIN

REEBOK’S SUPPLY CHAIN

In this decision Reebok produced minimum level of 1728 units of the dressed jersey for any players and provide the hot market demand by the screen printing facilities.

Reebok’s screen printing facility has a capacity to print 10000 jerseys per day during the peak season (Hot Markets).

By this way Reebok could able to provide demands of hot markets and also were able to make use of left over jersey .

LEFTOVER JERSEYSReebok has several options for jerseys that it cannot

sell to retailers:

1) Dressed jersey : Give discounts to sell the products

2)Blank jerseys : Save in distributor centers for next season

ANY QUESTIONS?

THANKS FOR YOUR ATTENTION