Nike,
as a whole company, drives for innovation. With that, their inventory
management must be on point. This should be strongly emphasized because of
their customers’ high demand for their products. Nike Factory Store, although
just a factory, shares the same initiative. Customers strive for Nike products
and expect the store to have enough inventory on-hand. Therefore, inventory
management does affect the store’s profit margin which is closely watched by
the Operations Manager.
During
our interview with Ms. Good, she spoke about the pros and cons of the inventory
management at the Nike Factory Store. The S&R department has been in effect
since the store opened. Nonetheless, it effectively helps manage inventory.
Although there are times when there is an overload of shipment, this process
has overall increased store sales. It was interesting how Nike Factory processed
their shipment and how they stored their inventory. Not many people realize
that retail stores have real processes in order to manage their inventory. At
Nike Factory, they have their own unique way of dealing with it have shown true
success.
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