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Sher-Wood Hockey Stick Global Sourcing

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1 Sher-Wood Hockey Stick Global Sourcing
Presented by: Muhammad Arslan Malik Taimoor Saeed Muhammad Arslan Qureshi MS-PM 3-A Supply Chain Management

2 Introduction The History Of Ice Hockey
Origin of the game is 4,000 years ago. In 1892 “Lord Stanley’s Dominion Challenge Trophy” referred to be Stanley Cup. In 1917, National Hockey League” NHL was founded in Montreal. In 1920 it was the Part of Olympics held in Belgium. By late Twentieth Century, Ice Hockey became popular Northern Hemisphere. Ice Hockey Stick Equipment's classified into 5 categories. As goalie, head/Face(Helmet, Neck Guard), Protective, Sticks & Skates. Three Qualities from Player Perspective are lightness, responsiveness, and “Feel” Three Characteristics professional players looked for are Lie, Flex, & Blade pattern. Three Primary materials used to manufacture hockey stick were wood aluminum & Composite. R&D, manufacturing and Quality control process Continued to advance in the industry. Basics of Hockey Equipment Industry Hockey Equipment Market showed an annual growth of 1 to 2 percent with 555$ sale in 2010. An approximate cost of Hockey for a teenage to an adult age hockey player was $600.

3 Continued…. Competitors brands & Strategies
There were 5 main brands for manufacturing Ice Hockey Equipment's. Easton-Bell Sports, Bauer, Reebok-CCM Hockey, Warrior Sports & sher-Wood. 80% of the market was shared by Bauer, Reebok & Easton. For balance equipment fragmented market was shared by two major Manufacturer’s Warrior & Sher-Wood. Easton Hockey Had signed Head to Toe Contract Extension with NHL for Years. They were innovative and introduce new technologies to the market. Bauer Performance Sports Focused on building a leadership position, growing its market share through continues innovation. By using alternative materials they produce products at competitive prices. They do consumer segmentation. Reebok-CCM Hockey The company leveraged its multi-brand approach to target different consumer segments. They target image-conscious consumers. Warrior-CCM Hockey the Company was dedicated to a core set of philosophies & Strengths, Technical Superiority, Grassroots marketing. Warrior Offered 15 types of player and goalie Sticks.

4 Concept Global Sourcing
Insourcing Keeping work within the country Outsourcing Keeping work outside the country Offshoring Near-shoring On-shoring

5 1st Answer They anticipate that composite stick business will grow in terms of Volume & Profitability. By outsourcing its PMP 5030 to local & geographical contractors they concentrated on making composite sticks. Cost reduction. They Need competitive retail price to boost demand. It requires low cost production and decent Quality. That’s why this motivate them to outsource its production.

6 2nd Answer Change market trend towards Global outsourceing.
To regain market position. cost effective production. Low Labor cost Per Hr. In 2008 consolidated three companies established with an additional investment of 1.5 Million. It boost their sale for all kind of equipment's.

7 3rd Answer It separates manufacturing activities from R&D & Marketing.
Challenged a company’s ability to coordinate initiatives between Quality Control Product innovation designing for manufacturability supply chain efficiency cultural differences, technology distance necessitated extra training. Geographical distance resulted in extra lead time. It impact company’s public image as it reduce domestic employment. in 2007 sher-wood outsource offshore its manufacturing was a bad influence.

8 4th Answer Yes, as Sher-wood cooperate with chines supplier about 10 years ago. They accumulated manufacturing capacity & R&D capabilities. They provide an effective lead time for manufacturing hockey sticks. They were become a partner rather then one section within the supply chain. Another reason for outsource to chine was that the return on investment of the fixed cost in Canada was low. To regain the market place they need competitive price product with fine Quality, and the option was china.

9 5th Answer Pros Low production cost High volume production
Fast turnaround time. No Language, cultural Barriers. Market collaboration. Cons Rising labour, material & currency exchange rate in china shipping was quite expensive. hockey is a western cultural heritage sport. It may impose a bad impression. Outsource Offshoring impact negatively on company’s public image.

10 6th Answer Debatable


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