Holey Bottoms experienced quick revenue growth. During this period, Holey significantly improved the production ability, warehouse space and products on hand in an effort to meet demand. Now Holey has extra manufacturing capacity beyond the actual manufacturing program, this works extremely well when ever actual demand exceeds predicted demand (pre-booked orders), although is it strong enough to take care of the opposite situation? In other words, the model is usually " optimized” for significant upswings in product require, thus allowing for the company to manufacture goods within a advertising season, although is " sub-optimized” to get large downswings in merchandise demand, which can be what happened between November and January and what will happen in the event the economy containers. The challenge is usually building a source chain that is certainly robust enough to withstand a broad range of cases, and having enough forwards visibility to economic improvements and supply sequence activities so the company will take preemptive further actions. Holey Soles doesn't have real-time awareness to actual demand and downstream inventory. From the case it looks like you�re able to send primary " demand signal” is not actual require, but purchases from selling customers. Diversify?

Holey Soles makes the almost all its revenue in the summer, it seems sensible to consider diversification. Simply by extending the portfolio of goods they can ensure a regular income stream via January to December. Innovation is the key to creating a unique manufacturer identity and distinguishing Holey Soles from other foam-clog suppliers. As a quick-progress company needs to be careful they will don't try to branch out too quickly by what they do well but being too old-fashioned could also stop their expansion prospects. Growing international product sales is the best option for Holey. They need to take more time looking for fresh opportunities in new market segments. One of the keys to building a strong business is definitely balancing current sales with future, quite possibly much larger sales. This means getting realistic about...