Titleist Golf Ball Project1
A3 Problem Solving
Concern/Problem Golf balls are overstocked at the Municipal Pro Shop
Processes that may be
impacted
Unknown
Date problem was
identified
7-1-12
Contacts
Steve Hardesty
Mike Hargrave
Tina Wiswedel
Problem Solving Team
Steve Hardesty
Mike Hargrave
Dion Louthan
Tina Wiswedel
Chris Curtis
Current Situation
The Muni Pro Shop currently stocks golf balls from 4 different companies. These
companies include Titleist, Bridgestone, Callaway, and Nike. Titleist dominates the
golf ball market both locally and nationally capturing up to 75+% of golf ball sales.
At the end of each of the last 4 seasons, the Muni Pro Shop has an overstock of
other brands of balls. At that time, these overstocked balls are put on sale to move
the merchandise and lower inventory costs. Titleist balls are never put on sale
during the season. The Titleist sales rep works with us monthly to make sure
inventory levels are what we need and the stock comes just in time. Other
companies ship the entire season in March and we have to deal with the stock the
rest of the year.
Analysis
Titleist Golf Company offers the following incentive for Exclusive Stocking Agreement
1. 10% rebate on all purchases for the year.
2. $1.00 off per dozen on Pinnacle driving range balls
3. Free club logo application on all Titleist and Pinnacle balls
This change will also save time in the following areas
1. Meetings with other sales reps
2. Time spent merchandising golf balls for other companies
3. Floor space for more profitable items
4. Time spent receiving/pricing other companies golf balls
Recommendation
Change Muni to a Titleist Only Golf Ball Facility beginning in 2013.
Labor and Cost Savings
Annual dollar savings: Estimated dollar savings in 2013 include $1200 rebates and
$500 in driving range balls
Annual hours of increased capacity:
2 sales meetings per year X 3 companies X 1 hour = 6 hours
30 minutes per month X 8 months merchandising = 4 hours
3 company shipments receiving merchandise X 1 hour = 3 hours
Total savings = 13 hours
Customer service or employee benefit: unknown
Implementation Plan
Meet with Titleist Sales Representative, Tina Wiswedel, in October 2012 and again in
December 2012 to evaluate, order and plan for 2013. Tina will visit Salina Muni at
least 4 times per year and call to check on inventory levels monthly from March-
October.
Also meet with Sales Reps from Callaway, Bridgestone, and Nike to explain our new
2
position.
Attachments
Approval Process
Supervisor’s Review
and others in the Chain
of Command
Instructions: This form is submitted through the chain of command
to the Director.
Date:
Name:
Comments:
Director’s Approval
Instructions: Approval authority is delegated to each Director for all
recommendations that result in $5,000 or less in annual savings,
or 250 hours or less of annual increased capacity. This form is sent
to the Process Improvement Director for his approval
Date: 10/24/12
Name: Dion Louthan
Approved/Denied
Process Improvement
Director’s Approval
Instructions: Upon approval this form is sent to the CMO Executive
Assistant, who forwards a copy to members to the Executive
Support Team. They determine how to convert hours into
budgetary savings.
Date: 10/25/12
Approved/Denied
City Manager’s
Approval
Instructions: Final sign off for all recommendations that exceed
$5,000 in annual savings, or 250 hours of annual increased
functional capacity is by the City Manager, who also signs off on
any plans to convert hours to budgetary savings. The CMO
Executive Assistant converts the approved form into a pdf file that
is saved on the P drive and in Laserfiche.
Date: NA
Approved/Denied: NA