"Under Armour's COO highlights the spotlight on supply chain during the past 20 months"
Project Buffalo: Under Armour's Bison-Inspired Supply Chain Tactics
In the brutal storm of the COVID-19 pandemic, Under Armour put together a dedicated squad, named "Project Buffalo." Much like the tenacious American Bison, this team braved the storm instead of fleeing from it.
In February 2020, as a new coronavirus wreaked havoc across China and other countries, causing both human suffering and production havoc worldwide, Under Armour recognized the impending crisis. Colin Browne, who later became the brand's COO, had lived in China and foresaw the long-term repercussions.
"Before everyone else, we knew this storm was far from over," said Browne. "Being ahead of the game is what Project Buffalo is all about."
With the pandemic constantly evolving, this team is still operational and undeniably busy. Today's supply chain bottlenecks may not resemble those seen last spring, but they're still tied to the pandemic in intricate ways.
In a recent earnings call, Under Armour's CFO, David Bergman, revealed that supply chain issues were causing major backups, with local ports seeing the brunt of the challenges.
Months earlier, in August, Under Armour was keeping a watchful eye on factories in Vietnam and Asian port congestion as COVID-19 outbreaks led to factory closures and slowdowns.
As Under Armour's COO, Browne's job is to defy bad luck and aim for fortunes. With years of sourcing and supply chain experience under his belt, he joined Under Armour in 2016 after stints at VF Corp, Li & Fung, Reebok, Bally, and Pentland Brands' Asian business.
In Browne's own words, "The old days of sourcing based on the lowest price are gone. It's about making more profits with smart decisions."
The pandemic, says Browne, has accelerated changes in Under Armour's approach to supply chain that were already underway. By reducing inventory levels, the company can lower carrying costs across its supply chain while also managing prices and consumer expectations.
Under Armour has posted impressive growth, with revenue up more than 35% for the first nine months of 2021 compared to 2020, and operating income surging from a loss of $669.3 million in the same period last year to a profit of over $400 million.
"We're good at fulfilling our consumers' needs," Browne said. "We can predict their needs before they realize them, and now they can't imagine living without our products."
Data and technology play crucial roles in curating Under Armour's offerings and streamlining its product line. However, the specifics of Project Buffalo's adaptations to the ever-changing supply chain challenges are not fully disclosed. That said, companies generally tackle supply chain disruptions by diversifying suppliers, improving inventory management, embracing flexible logistics, and leveraging technology.
P.S. These strategies, while not outlined specifically for Under Armour, represent common tactics used by companies faced with supply chain challenges—from pandemics to storms.
- The COVID-19 pandemic, much like a storm, was met with resilience by Under Armour's Project Buffalo, named after the American Bison.
- As the pandemic evolved, Under Armour's supply chain issues remained a concern, causing major backups at local ports, a challenge that was first anticipated in August 2020.
- Under Armour's COO, Colin Browne, emphasizes the need for making profits through smart decisions, rather than relying on the lowest prices, a shift driven by the pandemic.
- Data and technology are key to Under Armour's product offerings and supply chain strategies, enabling the company to predict and meet consumer needs ahead of time.
- To adapt to the ever-changing supply chain challenges, companies often diversify suppliers, improve inventory management, embrace flexible logistics, and leverage technology, similar to the strategies proposed by Project Buffalo.
