Heel To Heel Footwear engineered to give you freedom Davis - - PowerPoint PPT Presentation

Heel To Heel

Davis Vanderslice Sidra Nadeem Livia Rosado Andy Segura Satwinder Kaur

Footwear engineered to give you freedom

ABOUT OUR PRODUCT

▫ Heel 2 Heel makes dress shoes for women designed with a revolutionary heel. ▫ Offers a interchangeable heels ▫ Wedge ▪ Stiletto ▪ We offer a comfortable and convenient option for women

• n-the-go.

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Business Strategy

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▫ Target Revenue - $30 Million ▫ Unit price - $200 ▫ Target Sales - 150,000 Units (Average 9,375 Units per period) ▫ Initially funded and sold through Kickstarter ▫ Afterwards, sold at high-end retailers and on Heel to Heel website

4 5000 10000 15000 20000 April July October January April July

Forecast

▫ Methods: ▫ Qualitative ▫ Quantitative (Steven Madden) ▫ Slow startup revenues ▫ Spikes in June & December


Assumptions Outcomes

▫ Start-Up Very High ▫ Sales not moving as drastically as forecasted

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Demand 275 550 825 1100 April July October January April July

1,060% 420% 263% 151%168%156%138% 92% 109%77% 91%

Demand Metric

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Supply Forecast

7500 15000 22500 30000 April July October January April July Actual Production Plan

▫ With our supplier only able to provide a lot size of 10,000 units, we did not have much leverage in

• rders. 


Assumptions

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Supply Metric

75 150 225 300 May July September November Janurary March May 20000% 20000% 30000% 10000% 20000% 10000% 10000% 20000% 20000% 10000% 20000% 20000% 5000% 20000%

i literally cannot figure out how you did this hahahah

Sole

Heel to Heel

Lace Box

Flat Heels Packaging

Heel High-Heel Wedge Plastic wrap

Bill of Materials

▫ Based on our cost analysis we decided it is cheaper to outsource our entire product from a Malaysian manufacturer ▫ Manufacturer has technology, labor force and raw materials, and available capacity to fit our needs. ▫ We decided on four regional distributors for ▫ Convenience ▫ Speed ▫ Efficiency ▫ Cost Savings ▫ Midwest regional distributor serves all E- commerce and midwestern retail distribution. Operations Distribution

Strategies

Supply Chain

Malaysia Retailer Regional Distributor (4) Customer Retailer Retailer Retailer

Malaysia Finished Good San Francisco

9 weeks

New York

12 weeks

Louisville

10 weeks

Miami

12 weeks

Delivery problem

Problem Statement

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Delivery Problems caused excess inventory and a higher cost of $250,000 resulting from misaligned computer systems, according to our local consultant.

• 1. Our Computer systems/ integration is not

aligned with supplier’s.

• 2. Supplier may not want to do business with us.
• 3. Lack of communication from us about issues with deliveries.
• 4. Supplier does not have good management systems.
• 5. Supplier may not be able to meet requirements (unfit for the job).
• 6. Supplier being difficult.
• 7. Supplier may be under pressure by too many deadlines.


Analytics

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Solution

• Hire an in-region consultant for $50,000, familiar with

local customs and manufacturing practices.

• Consultant found that the issues were a result of

misaligned computer systems. To fix the problem we hired an IT consultant at a cost of $50,000 to better integrate our SAP inventory system with the manufacturer’s system. Our solution cost us $100,000 as a tradeoff to solve our excess inventory problem, which in turn saved us $150,000.

Questions?