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

Heel To Heel Footwear engineered to give you freedom Davis Vanderslice Sidra Nadeem Livia Rosado Andy Segura Satwinder Kaur

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 on-the-go.

3 3 Business Strategy ▫ 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

Forecast 4 20000 Assumptions ▫ Methods: 15000 ▫ Qualitative ▫ Quantitative (Steven Madden) ▫ Slow startup revenues 10000 ▫ Spikes in June & December 
 5000 Outcomes ▫ Start-Up Very High ▫ Sales not moving as 0 April July October January April July drastically as forecasted

5 Demand 1100 1,060% Demand Metric 825 550 420% 263% 275 151%168%156%138% 92% 109%77% 91% 0 April July October January April July

6 Supply Forecast 30000 Actual Production Plan Assumptions 22500 ▫ With our supplier only able to provide a lot size of 15000 10,000 units, we did not have much leverage in 7500 orders. 
 0 April July October January April July

i literally cannot figure out how you did 7 this hahahah 30000% 300 Supply Metric 225 20000% 20000% 20000% 20000% 20000% 20000% 20000% 20000% 150 10000% 10000% 10000% 10000% 75 5000% 0 May July September November Janurary March May

Bill of Materials Heel to Heel Heels Flat Packaging High-Heel Wedge Box Plastic wrap Sole Lace Heel

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

Supply Chain Retailer Retailer Malaysia Regional Distributor (4) Customer Retailer Retailer

New 12 weeks York San 9 weeks Francisco Malaysia Finished Good 12 weeks Miami 10 weeks Louisville Delivery problem

Problem Statement Delivery Problems caused excess inventory and a higher cost of $250,000 resulting from misaligned computer systems, according to our local consultant. 12


 
 
 
 13 1. Our Computer systems/ integration is not aligned with supplier’s. Analytics 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. 


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. 14

Questions?