With China still pursuing their zero-Covid strategy, high inflation and the war in Ukraine, having a good procurement organization is more important than ever. Vista Outdoor knows this as much as anyone, with a diverse portfolio of brands including Camp Chef. They’ve had some logistical wins recently, including the following activities.
- Ramping up brass supply to support the ammo business
- Launching new products from Bushnell supported by the local China team
- Moving some CamelBak plastic bottle production to the Dominican Republic from China
- Increasing production of Made-in-the-USA helmets at the Bell and Giro facility in Rantoul
- Growing Camp Chef grill and QuietKat e-bike supply to record levels
There are lots of little examples. To use a baseball analogy, maybe we didn’t hit many home runs, but we hit lots of singles and doubles.David Stokoe, Vice President Strategic Procurement
All those singles and doubles have led to RBIs, as Vista Outdoor was named one of the World’s Top 50 Procurement Organizations in 2022 by market research firm Beroe inc.
To quantify how well a procurement organization is performing, Beroe developed the Best-in-Class (BIC) Index to evaluate the contribution to shareholder value of public companies. The metrics that make up the BIC Index are as follows.
- Cost of Goods Sold as a percentage of sales
- Inventory as a percentage of sales
- Payables as a percentage of sales
- Gross Margin Return on Investment (GMROI)
Based on the BIC Index, Vista Outdoor took gold in the Leisure Products category beating out names such as Hasbro and Yeti.
You don’t have to look too far to see we did better than the average — and it’s certainly nice to finish ahead of YETIDavid Stokoe, Vice President Strategic Procurement
In a press release from Vista Outdoor, David Stokoe notes that much of the success of the supply chain strategies can be attributed to sharing best practices across its 41 brands through the Supply Chain Center of Excellence.
If a brand finds success, we can share that quickly across the other portfolio businesses. Ocean freight is a good example. If we find solutions to get container space, we’re able to share that solution across the rest of the business. These are the things we like to highlight when we talk to Wall Street about the value of the Center of Excellence. It might not change a single investment decision, but it’s another one of those ‘singles and doubles’ mentality that keeps investors comfortable in our business.David Stokoe, Vice President Strategic Procurement
While recognition and awards are always nice, Stokoe points out that their success relies on the greater Vista Outdoor team as a whole. With accomplishments in the rear view and new challenges upcoming, the supply chain team is ready to get back to the mantra “the best supply chain is the one you never talk about”.