Reebok NFL Replica Jerseys

Topics: Inventory, Supply chain management, National Football League Pages: 3 (831 words) Published: May 4, 2015

Reebok NFL Replica Jerseys: A Case for Postponement
Reebok is headquartered in Canton, Massachusetts and as of 2008 employed approx. 7,400 people. Since 2005, Reebok has been a subsidiary of German company Adidas. Reebok signed a 10 year contract in December 2000 which Granted exclusive license to manufacture NFL replica on-field jerseys, sideline apparel and NFL branded merchandise. The NFL (National Football League) is comprised of 32 teams across the United States. The NFL Season runs from September to February and is a high margin lucrative business opportunity for retailers to sell through high volumes of product if they can match demand with supply. Demand is influenced largely by uncontrollable factors such as player movements and team performance. Reebok produces both team "blank" and Player jerseys. The NFL season drives much of the demand. Sales are highest in August and September, prior to the season commencing. During the season changes in demand for player and team jerseys correlates with on field performance. Late in the season, demand reflects playoff appearances. Super Bowl winners will continue selling jerseys for 1-2 weeks post season. Hot market items "an item that was either not expected to sell well before the season or an unknown item with no prior sales performance". Annual sales cycle begins in January with Reebok offering retailers a discount for placing early orders. 20% of annual orders are received during this period. Limited orders are received in March and April with the exception of unexpected player movements. Orders placed between May and August is to position safety stock in retailer’s distribution centers with 50% of orders received by the beginning of September. The in-season orders are known as "The Chase" as retailers respond to customer demand and require replenishment of "Hot market Items". Reebok experiences complications in matching Jersey supply with customer demand due to difficulties in forecasting customer demand....
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