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Management article
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Reference no. P0506B
Published by: Harvard Business Publishing
Published in: "Supply Chain Strategy", 2005
Length: 5 pages

Abstract

For years, Joe Keane, chief operating officer of Reebok Apparel, has faced a decidedly uphill battle. Since 2001, Reebok International has been in the fortunate position of holding exclusive rights to distribute replicas of jerseys worn by National Football League players. But, thanks to the extraordinarily fickle nature of fan loyalty and the unpredictability of the sport itself, pinpointing the demand level for specific players and teams has been next to impossible. Consumers might clamor for a copy of the jersey worn by a veteran quarterback at the beginning of one season, only to lose interest after that same player unexpectedly finds himself injured and sidelined two months later. Reebok faced several major impediments in the supply chain, which were costing it untold millions in inefficiencies and lost sales: it was unable to meet many sudden spikes in demand; it was exposed to an excess supply of particular jerseys when demand took an unexpected dive; and it was unable to make the most efficient arrangements with retailers, manufacturers, and raw-goods suppliers. Learn how Keane and his team at Reebok set out both to develop a more effective way to forecast demand and to manage better the inevitable areas of uncertainty.

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Abstract

For years, Joe Keane, chief operating officer of Reebok Apparel, has faced a decidedly uphill battle. Since 2001, Reebok International has been in the fortunate position of holding exclusive rights to distribute replicas of jerseys worn by National Football League players. But, thanks to the extraordinarily fickle nature of fan loyalty and the unpredictability of the sport itself, pinpointing the demand level for specific players and teams has been next to impossible. Consumers might clamor for a copy of the jersey worn by a veteran quarterback at the beginning of one season, only to lose interest after that same player unexpectedly finds himself injured and sidelined two months later. Reebok faced several major impediments in the supply chain, which were costing it untold millions in inefficiencies and lost sales: it was unable to meet many sudden spikes in demand; it was exposed to an excess supply of particular jerseys when demand took an unexpected dive; and it was unable to make the most efficient arrangements with retailers, manufacturers, and raw-goods suppliers. Learn how Keane and his team at Reebok set out both to develop a more effective way to forecast demand and to manage better the inevitable areas of uncertainty.

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