supply chain
Initial idea: Offer affordable sports equipment for children
Products:
− Used (second-hand) products
− Surplus equipment from manufacturers and retailers
Current situation (December 2007):
− Demand has been growing steadily over the last years
− The products are distributed to the U.S. customers through a single (and small) warehouse in St. Louis
− The warehouse is leased on a year-to-year basis
− The current network design, in particular the distribution network and warehouse configuration, is not appropriate to satisfy the forecasted demand
4
Customers from the 6 U.S. customer zones are served from a central warehouse in St. Louis
Washington
Northwest
Maine
Montana
North Dakota
Demand: 320,000 units
Vermont
Minnesota
Upper Midwest
Oregon
Idaho
New Hampshire
Wisconsin
South Dakota
Wyoming
160,000
New York
Connecticut
Pennsylvania
Iowa
Nevada
Northeast
Nebraska
Utah
California
Illinois
Kansas
Southwest
350,000
220,000
200,000
Virginia
Kentucky
North Carolina
Tennessee
Oklahoma
New Mexico
Maryland
West
Virginia
Missouri
Lower Midwest
Arizona
New Jersey
Ohio
Indiana
St. Louis, MO
Colorado
Massachusetts
Rhode Island
Michigan
South
Carolina
Arkansas
Southeast
Alabama
Mississippi
Georgia
175,000
Texas
Louisiana
Florida
Alaska
Hawaii
SportStuff.com contracted with UPS to handle all its outbound shipments
5
According to a 3-year forecast, demand will be growing by 0.8 per year (in total and in each region)
Projection
Zone
2007
× 1.80
2008
× 1.80
2009
× 1.80
2010
[units]
[units]
[units]
[units]
Northwest
320,000
576,000
1,036,800
1,866,240
Southwest
200,000
360,000
648,000
1,166,400
Upper Midwest
160,000
288,000
518,400
933,120
Lower Midwest
220,000
396,000
712,800
Initial idea: Offer affordable sports equipment for children
Products:
− Used (second-hand) products
− Surplus equipment from manufacturers and retailers
Current situation (December 2007):
− Demand has been growing steadily over the last years
− The products are distributed to the U.S. customers through a single (and small) warehouse in St. Louis
− The warehouse is leased on a year-to-year basis
− The current network design, in particular the distribution network and warehouse configuration, is not appropriate to satisfy the forecasted demand
4
Customers from the 6 U.S. customer zones are served from a central warehouse in St. Louis
Washington
Northwest
Maine
Montana
North Dakota
Demand: 320,000 units
Vermont
Minnesota
Upper Midwest
Oregon
Idaho
New Hampshire
Wisconsin
South Dakota
Wyoming
160,000
New York
Connecticut
Pennsylvania
Iowa
Nevada
Northeast
Nebraska
Utah
California
Illinois
Kansas
Southwest
350,000
220,000
200,000
Virginia
Kentucky
North Carolina
Tennessee
Oklahoma
New Mexico
Maryland
West
Virginia
Missouri
Lower Midwest
Arizona
New Jersey
Ohio
Indiana
St. Louis, MO
Colorado
Massachusetts
Rhode Island
Michigan
South
Carolina
Arkansas
Southeast
Alabama
Mississippi
Georgia
175,000
Texas
Louisiana
Florida
Alaska
Hawaii
SportStuff.com contracted with UPS to handle all its outbound shipments
5
According to a 3-year forecast, demand will be growing by 0.8 per year (in total and in each region)
Projection
Zone
2007
× 1.80
2008
× 1.80
2009
× 1.80
2010
[units]
[units]
[units]
[units]
Northwest
320,000
576,000
1,036,800
1,866,240
Southwest
200,000
360,000
648,000
1,166,400
Upper Midwest
160,000
288,000
518,400
933,120
Lower Midwest
220,000
396,000
712,800