Turnaround across diverse global supply chains using shared metrics and change methodology

Abstract

PurposeThe purpose of this paper is to document the outcome of a global three‐year long supply chain improvement initiative at a multi‐national producer of branded sporting goods that is transforming from a holding structure to an integrated company. The case company is comprised of seven internationally well‐known sport brands, which form a diverse set of independent sub‐cases, on which the same supply chain metrics and change project approach was applied to improve supply chain performance.Design/methodology/approachBy using in‐depth case study and statistical analysis the paper analyzes across the brands how supply chain complexity (SKU count), supply chain type (make or buy) and seasonality affect completeness and punctuality of deliveries, and inventory as the change project progresses.FindingsResults show that reduction in supply chain complexity improves delivery performance, but has no impact on inventory. Supply chain type has no impact on service level, but brands with in‐house production are better in improving inventory than those with outsourced production. Non‐seasonal business units improve service faster than seasonal ones, yet there is no impact on inventory.Research limitations/implicationsThe longitudinal data used for the analysis is biased with the general business trend, yet the rich data from different cases and three‐years of data collection enables generalizations to a certain level.Practical implicationsThe in‐depth case study serves as an example for other companies on how to initiate a supply chain improvement project across business units with tangible results.Originality/valueThe seven sub‐cases with their different characteristics on which the same improvement initiative was applied sets a unique ground for longitudinal analysis to study supply chain complexity, type and seasonality.