SCM 414 Analysis Report of Real Sportz

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Analysis Report of Real Sportz’s Daniel Hutchings SCM 460 Dr. John Pual Dittman 11/12/20Intro. Real Sportz is a company that like many others seeks to sell a product, in this case hoodies, to a... few suppliers in the southeast of the United States. Up until now their method of forecasting and creating sales data have nonexistent to downright negligent. If Real Sportz seeks to be competitive in their field in the future, they must change the way they forecast and record sales data as well as change the way the departments of the company work together. 1. The current state of Real Sportz. This section will cover the way that Real Sportz is currently forecasting production needs and issues it has internally. Real Sports as a company has a very non-statistical approach to the way that they are forecasting the demand for their products. It is almost entirely based in non-formulated data and relies heavily on the predictions of Real Sportz customers and their sales numbers. Because of this, the predictions are frequently subject to change based on sudden calls by the customer or by management and there is distrust between departments. This is a problem for several reasons  Fluctuating and unpredictable invantory needs necessitate a high invantory cost.  It creates a distrust between customers and Real Sportz over their ability to be able to supply their need.  It creates many loose ends through all of the different spreadsheets and POS (Point of Sale) data that is created trying to cover surprise changes in need.  It creates a distrust between departments and especially of the sales department since they make most of real sports predictions. The small amount of forecasting that does happen is not reconciled with any historical data. Real Sportz does do a small amount of forecasting in the form of weekly Short-Term Look (STL) analysis and a monthly Market Demand Forecast (MDF).  However, these analyses are never connected or reconciled.  This makes recording invantory requirements and using them to predict future needs almost impossible.  There is constant second guessing between departments based on a lack of trust that predictions made by one department are good enough to meet demand.  This results in multiple small forecasts coming from each department.  While this works for now, it is a hard model to expand should the company wish to become bigger or need to expand to compete with its’ competitors.  On top of that there is no standard for even analyzing or collecting the consumerbased data they get.  Most of these practices are based on the false belief that aggregating the numbers would be of none or little use to the company. The only thing keeping Real Sportz in bussiness is the weekly S&OP meetings that they have. These meetings are the only reason this non-data-based method of forecasting is able to work in this company at all. The company clearly has a good line of communication between their main fulfillment departments and with their customers.  There appears to be an excellent link between the sales, production, and logistics/fulfillment in each region as they are currently able to meet the wildly fluctuating demand each week.  The marketing department is not included in these meetings though, which means they have no real base for who they should be marketing to or areas that they should market better.  On top of that the executives can change forecast numbers as they please if the forecast does not match up with executive financial goals [Show More]

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