Deckers Outdoor Corporation's footwear products are among some of the most well-known brands in the world. From UGG sheepskin boots and Teva sport sandals to Simple shoes, Deckers flip-flops, and Tsubo footwear, Deckers is committed to building niche footwear brands into global brands with market leadership positions. Net sales for fiscal year 2007 were close to $449 million. In addition to traditional retail store outlets for Deckers' footwear styles, the company maintains an active and growing "direct to consumer" e-commerce business. Since most retail stores cannot carry every style in every color and size, the company offers the full line for each of its brands directly to consumers through the brands' individual Websites. Online sales at its virtual store are handled by its e-commerce group. Customers who want a pair of shoes not available at the retail store can always buy from the virtual store.

QUESTIONS

1. How much does the forecasting process at Deckers correspond with the "typical forecasting process" described at the end of this chapter?
2. Based on what you see in the video, what kinds of information technology are used to make forecasts, maintain accurate inventory records, and project future inventory levels?
3. What factors make forecasting at Deckers particularly challenging? How can forecasts be made for seasonal, fashionable products for which there is no history file? What are the costs of over-forecasting demand for such items? Under-forecasting?
4. How does the concept of postponement get implemented at Deckers by having online sales and positioning inventory at the DCs for every model, color, and size?
5. Where in the supply chain are cycle, pipeline, safety stock, and anticipation inventories being created?
6. What are the benefits of leveling aggregate demand by having a portfolio of SKUS that create 365-day demand?
7. Deckers plans to expand internationally, thereby increasing the volume of shoes it must manage in the supply chain and the pattern of material flows. What implications does this strategy have on forecasting, order quantities, logistics, and relationships with its suppliers and customers?