Modernizing Systems and Processes at K2
K2 was founded on Vashon Island, Washington over forty years ago. The company focused primarily on its Alpine and Cross Country ski equipment lines until the mid 1990s. At that point, it began its diversification into a multi-line recreational equipment company.
One of the first major new products brought on board was in-line skates. This created a number of issues for the company.
First, the retail sales channels were entirely different. Skis are traditionally sold through smaller, "mom and pop" retail outlets. In-line skates were sold predominately through "big box" retailers.
Second, the production and distribution models were different. Skis are made in a limited number of Stock Keeping Units (SKUs), are produced in relatively small batches and shipped in relatively limited numbers to a large number of small stores. Skates have a large number of SKUs due to size requirements, are made in Asia in large batches and shipped in large quantities to a large number of large retail outlets.
Third, the jump in orders and shipments from skates began to overwhelm K2's processes and information systems. The systems in particular were old and prone to breakdown.
Seattle Consulting was engaged by K2 to:
Access the current state of K2's business processes and information systems
Develop a roadmap for transforming K2's processes and systems which would cost effectively support the diversification effort
Evaluate alternatives for core corporate systems
Project Manage the implementation of the systems, in coordination with the implementation of the new business processes.
The initial assessment and evaluation was completed over three months and the subsequent systems implementation was completed over the next six months.
K2 has since gone on to continue to successfully expand its portfolio of recreational products.
Copyright Seattle Consulting, Inc. 2008
