Posted: September 13th, 2017

New Blalance

New Blalance

•    1.     What are the key elements of the New Balance’s strategy? How do supply chain decisions fit this strategy?
•    2.   What is the role of domestic manufacturing?  Should this change in light of the Adidas-Reebok merger?  How important is NB2E and how realistic are its goals?
•    3.   What is the total premium for domestic manufacturing if New Balance produces 29 million pairs per year?
•    4.   Now assume that domestic labor is $25  per hour.  What is the resulting cost of domestic inventory?   Given the significantly shorter lead time on domestic manufacturing, this might yield inventory savings.  What would be these inventory savings be as compared to New Balance stocking these warehouses based on 9-week lead-time from Asia? What are the implications of this in terms of realistic strategies?
Walmart