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Projects: Management



New Balance: Shoe Fits



By Larry Barrett

  Table of Contents:
  1. New Balance: Shoe Fits
  2. ' Life in a Thousand '
  3. ' Any Which Way but '
  4. ' Breaking Free From the '
  5. ' Statistical Lockdown '
  6. ' Hitting the Limit '
  7. ' Just Do It Yourself '
  8. ' Hitting Stride '
  9. ' Second Wind '
  10. ' The Final Kick '
  11. ' Victory Lap'
  12. ' New Balance Athletic Shoe '

New Balance had nearly faded into irrelevance six years ago. Then, accurately forecasting demand for its shoes became a sport for the entire company and its retailing partners. Now it's making up ground quickly, in its footrace with Nike.

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New Balance: Shoe Fits - ' New Balance Athletic Shoe '


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Base Case"> New Balance Athletic Shoe Base Case

Headquarters: 20 Guest St., Boston, MA 02135

Phone: (617) 783-4000

Business: The second-largest maker of running shoes in the U.S. and third-largest maker of all types of athletic shoes of all types. Manufactures a wide range of shoes for male and female athletes, as well as Dunham boots, PF Flyers "casual footwear," athletic apparel and accessories.

Chief Information Officer: Elaine Ritchie, Director of Information Services

Financials: $1.3 billion in sales in 2002. Privately held.

Challenge: Maintain rapid growth and take more market share from top competitors Nike, Reebok and Adidas—without disrupting manufacturing and warehouse operations.

Baseline Goals:

  • Increase monthly sales-forecast reporting from less than 20% of North American
    sales force to 100%.
  • Improve on-time order servicing to major retailers by 10%.
  • Reduce excess stock from discontinued styles of shoes by 8%.
  • Spread collaborative sales-forecasting system throughout international


     
     
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