Nike European Operations has won the Dutch Logistics Award 2014. The jury states that Nike has achieved 'exceptional performance in the field of logistics', in particular by reducing inventory in the supply chain by 22% in a few years.
Aligning forecasting and stock management
How did Nike achieve this? The brand is constantly assessing whether there are too many products on the market. If there are indeed too many products, they have to be discounted, which does not benefit the brand’s value. The brand has therefore brought the supply chain more closely into the commercial side of the business. This results in better alignment of forecasts and improved stock management.
Category organisations
Nike has access to this data by setting up category organisations. The pioneer has adapted its internal organisation to these categories (such as Food and Running) in such a way that bespoke decisions can always be made. Each category uses a ‘Forecast Alignment tool’, which is used to align demand forecasts across Sales, Finance, Operations and Merchandising.
Full-time S&OP
The brand is therefore fully committed to Sales and Operations Planning. Marc den Boogert, manager of demand planning and inventory management, believes it is important to have staff who work full-time on S&OP. Based on the available data, they can make quick decisions and thus ensure that stock levels are maintained.
Editorial LogistiekProfs
