NATIONAL INSTITUTE OF FASHION TECHNOLOGY

Supply Chain and E-Commerce Management

End Term Assignment

Submitted By:
Aditi Anand

Brindha Muraleedharan

Lakshita Sobti

Urvashi Kanwat

Vaishnavi Mishra

Under the supervision of:

Dr. Bhasker Banerjee

SUBMITTED TO
Department of Fashion Management Studies (FMS)
Batch 2023- 25
National Institute of Fashion Technology (NIFT) (Ministry of Textiles, Govt. of India)
GH-0 Road, Behind Infocity Gandhinagar 382007
http://www.nift.ac.in
 TABLE OF CONTENT

Sl.No Title Page No

1. Introduction 2

2. BMC of NIKE 3

3. Supply Chain of NOVA 5

4. Order generation cycle 6

5. Order Fulfilment Model 6

6. Procurement Model 7

7. Third Party Model 10

8. Return & Exchange Cycle 11

11. Website User Flow 13

12. App User Flow 15

14. JIT Model 17

15. D2C Model 17

16. Technology Advancement 18

17. References 22

1
 INTRODUCTION

In the fast-paced world of retail and manufacturing, companies like Nike stand out as giants
in the industry. Renowned for its cutting-edge products and iconic brand image, Nike has
captivated consumers worldwide with its innovative approach to sportswear and athletic gear.
Behind the scenes, however, lies a complex web of supply chain operations that enable Nike
to deliver its products to market with precision and efficiency.

Nike is a globally renowned sportswear brand known for its innovative footwear designs.
Nike shoes are favoured by athletes and enthusiasts alike for their performance, comfort, and
style. The brand offers a wide range of models, from iconic classics like the Air Jordan to
cutting-edge designs featuring the latest technologies. Nike continues to push the boundaries
of athletic footwear with its constant innovation and dedication to quality. Its shoes are worn
by athletes across various sports and are also popular among fashion-conscious consumers.

Nova, where style and innovation come together. Nova is a progressive footwear company
committed to innovating athletic footwear by combining modern technology, superior
comfort, and fashion-forward styles. We aim to make a unique remark.

Nike's ecommerce supply chain excellence have redefined the retail landscape, setting new
standards for digital innovation and customer experience. This assignment delves into the
core components of Nike's success, including its business model, supply chain models,
procurement, fulfillment, and technology integrations.

Nike's Business Model Canvas (BMC) is the foundation of its success, coordinating value
creation across all facets of the customer journey. Leveraging Ecommerce Supply Chain
Management (ESCM), Nike has mastered procurement and fulfillment, optimizing efficiency
and agility. Through advanced technologies and ERP integrations, Nike ensures real-time
control over inventory and distribution processes.

Unlike traditional players, Nike thrives on digital disruption, continuously innovating to

enhance customer engagement. Concepts like the three-way match principle are key to Nike's
procurement and fulfillment strategies, ensuring accuracy and efficiency.

2
In this assignment, we explore Nike's strategies in detail and consider their applicability to a
hypothetical brand like NOVA, offering insights for success in the ecommerce arena.

Business Model Canvas of Nike

The Nike business model illustrates how the company generates revenue by first creating
value for its target customers, then detailing how to deliver this value through products and
services. It encompasses various crucial components, including value propositions and
revenue streams, all of which contribute to the company's success. These elements will be
explored in more detail shortly.

Value Propositions of Nike

At the core of the Nike brand is a focus on athletic goods, particularly footwear, as evidenced
in the Nike business model canvas. However, Nike extends beyond simply supplying shoes to
athletes; the company conveys the notion that anyone can embody an athlete through its
top-notch quality and groundbreaking products.

Over the years, Nike has successfully provided and delivered value to its intended audience.
Alongside utilising premium raw materials and cutting-edge craftsmanship and technology,
they have also collaborated with renowned sports figures to enhance their brand even further.

Customer Segments of Nike

Nike's impressive achievements stem from the widespread appeal of its products. The
company doesn't solely concentrate on professional athletes but also caters to a diverse
audience seeking their items for various purposes, including casual wear, not limited to
sports.

Nike operates through four global divisions that serve distinct geographical markets. Its
primary operations are in North America, complemented by the EMEA division covering
Europe, the Middle East, and Africa, Greater China, and finally, Asia Pacific and Latin
America.

Key Partners of Nike

3
Nike has established partnerships with various companies to ensure the smooth operation of
its business. A significant portion of these collaborations revolves around manufacturing, as
Nike doesn't operate its own facilities but instead outsources production to contractors.
Currently, there are more than 145 factories manufacturing their footwear and over 400
factories producing their clothing, with most located outside the US.

Furthermore, Nike collaborates with respected research partners, including leading

universities in the US, Europe, and Asia, to enhance product development. Intensive research
endeavours are undertaken to improve the planning, design, and development processes.

Key Activities of Nike

While the primary focus of Nike is often perceived as the creation of its wide range of
products, there are numerous other essential activities integral to its operations. These include
substantial research efforts, negotiation with suppliers, formulation of marketing strategies,
and innovative advertising campaigns.

Customer Relationships of Nike

Since Nike operates primarily within the retail sector, customer interactions are largely
self-service. While sales staff are available to assist customers as needed, both online and in
physical stores, most customers typically opt to select and finalize their purchases
independently. This dynamic results in a somewhat indirect relationship between customers
and the company.

Key Resources of Nike

Key resources for Nike are the assets utilised to provide value to customers. These
encompass the five distribution centres located in Memphis and California, which dispatch
products to numerous outlets worldwide. Additionally, essential researchers continuously
develop new innovations to maintain the brand's relevance.

Nike's intellectual property is among its most valuable resources, comprising copyrights for
the Nike brand and logo, along with patents for the designs of every shoe and apparel item
created. Presently, the brand holds a portfolio of over 34,000 patents, indicating ongoing
innovation.

4
Revenue Streams of Nike

Nike generates revenue solely through the sale of its diverse array of products. Footwear
sales constitute the largest portion, surpassing $29 billion in 2023, followed by apparel sales
totaling $13.5 billion. Equipment sales generated over $2.35 billion in revenue, while sales of
the Converse brand brought in more than $1.6 billion.

Cost Structure of Nike

Given the extensive inventory maintained by the company, it's understandable that a
significant portion of its expenses is allocated to warehousing and inventory management, as
indicated in the Nike business model canvas. This segment alone amounts to approximately
$21 billion in annual expenses. Following closely are marketing and administrative expenses,
totaling $3 billion, with administrative costs accounting for around $500 million annually.

E-Supply Chain of Nova

1.Research & Development: Research and development (R&D) for NOVA involves
investing resources into activities aimed at innovating and improving its products, processes,
and technologies. This includes:

2.Product Innovation: Developing new designs, features, and technologies to create

innovative sportswear and athletic gear that meets the evolving needs and preferences of
consumers.

3.Process Improvement: Enhancing manufacturing processes, supply chain operations, and

quality control measures to increase efficiency, reduce costs, and maintain high standards of
product quality.

3. Technology Integration: Incorporating advanced technologies such as smart fabrics,

wearable devices, and sustainable materials into NOVA's products to enhance performance,
functionality, and sustainability.

5
4. Market Research: Conducting market research and consumer surveys to identify trends,
understand customer preferences, and anticipate future demands, guiding NOVA's R&D
efforts and product development initiatives.

5. Collaboration and Partnerships: Collaborating with research institutions, technology

partners, and industry experts to leverage external expertise and resources in driving
innovation and R&D initiatives.

6. Testing and Validation: Conducting rigorous testing and validation processes to ensure
the safety, performance, and durability of NOVA's products, adhering to industry standards
and regulations.

ORDER GENERATION CYCLE

1. Customer adds to cart: Customers as usual will surf the website or app of our brand and the
product he/ she likes will add to cart which basically acts as a shopping cart in online stores.
2. Cart Details are captured when the customer adds anything and this is a part of data as well
as the website will show the customer the similar products he/she added to cart.
3. Proceeds to Checkout Customers will go ahead in the interface of our website and go
towards the shipping address.
4. Order summary will be displayed on the next page.
5. Customer confirms order.
6. Order details are transmitted to the backend system.
7. Inventory Check will be done by the warehouse staff.
8. If there is sufficient inventory then we will place the customer order and if not then the
customer will go back to cart.

ORDER FULFILMENT

1. Order Placed by Customer: The customer completes the checkout process, providing
shipping and payment details, and places the order on the e-commerce platform.

6
2. Order Details Transmitted to Backend System: The order details are transmitted to the
backend system of the e-commerce platform for processing.
3. Inventory Check: The backend system checks the inventory to ensure that there is
sufficient stock available to fulfil the order.
4. Sufficient Inventory Available: If there is enough inventory to fulfil the order, the process
continues; otherwise, the order may be put on hold or backordered.
5. Order Confirmed: If the inventory check is successful, the order is confirmed, and the
fulfilment process proceeds.
6. Payment Processing: The customer's payment is processed securely through the chosen
payment gateway.
7. Payment Authorised: Upon successful payment authorization, the order status is updated to
reflect payment confirmation.
8. Pick, Pack, and Prepare for Shipping: The ordered items are picked from the inventory,
packed securely, and prepared for shipping.
9. Shipping Label Generated: A shipping label is generated for the package, including details
such as the customer's address and tracking information.
10. Product Shipped: The packaged products are handed over to the designated shipping
carrier for delivery to the customer.
11. Shipping Carrier Delivers Package: The shipping carrier transports the package to the
customer's specified address.
12. Order Received by Customer: The customer receives the package.
13. Customer Provides Feedback/Rating: After receiving the order, the customer may provide
feedback or rate their experience with the e-commerce platform.

PROCUREMENT PROCESS

The procurement process outlined for NOVA encompasses a systematic approach to

acquiring inventory to meet the company's needs efficiently and effectively.

1. Identifying Raw material Needs: This initial step involves assessing whether there is a
requirement for new inventory. By analysing factors such as current inventory levels and
sales forecasts, NOVA determines whether there is a need to restock items.

7
2. Determining Requirements: Once the need for new inventory is established, NOVA
analyses its inventory levels and sales forecasts to determine specific items that require
restocking. This ensures that procurement efforts are focused on fulfilling actual demand.

3. Request for Quotation (RFQ): After determining the requirements, NOVA prepares RFQ
documents detailing the specifications, quantities, and delivery timelines for the required
inventory. These documents are then sent to potential suppliers to solicit quotations.

4. Receive Quotations: Suppliers submit their quotations in response to the RFQ. NOVA
ensures that all required quotations are received before proceeding to the next step.

5. Evaluate Quotations: NOVA assesses the quotations received from suppliers based on
various factors such as price, quality, delivery time, and supplier reputation. The goal is to
identify the most suitable quotation that meets NOVA's requirements.

6. Negotiation and Selection: Once a suitable quotation is identified, NOVA enters into
negotiations with the chosen supplier to finalise terms and conditions. The aim is to ensure
mutually beneficial arrangements that meet NOVA's procurement objectives.

7. Issue Purchase Order (PO): After successful negotiations, NOVA generates and sends a
Purchase Order (PO) to the selected supplier. The PO serves as a formal agreement outlining
the details of the transaction, including item specifications, quantities, prices, and delivery
terms.

8. Supplier PO Confirmation: The supplier acknowledges receipt of the PO and confirms

acceptance of the terms and conditions specified therein. This step ensures that both parties
are in agreement before proceeding with the procurement transaction.

9. Goods Receipt and Inspection: Upon receiving the goods from the supplier, NOVA
conducts an inspection to verify that the items are as per the order and in acceptable
condition. Any discrepancies are addressed with the supplier to ensure product quality and
accuracy.

8
10. Invoice Verification: NOVA verifies the supplier's invoice against the PO and the goods
received to ensure accuracy and compliance with the agreed-upon terms. Any discrepancies
are resolved before proceeding to the next step.

11. Three-Way Matching Process Initiated: Nova initiates the three-way matching process
to reconcile the purchase order, supplier invoice, and physical goods received.

12. Match Purchase Order (PO) with Supplier Invoice: Nova compares the details of the
purchase order with the supplier invoice to ensure they match.

13. Match Supplier Invoice with Physical Goods Received: Nova compares the details of
the supplier invoice with the physical goods received to ensure they match.

14. Match Physical Goods Received with Purchase Order: Nova compares the physical
goods received with the details of the purchase order to ensure they match.

15. All Three Matches Are Successful: Nova checks if all three matches are successful. If
yes, the goods are accepted. If not, the process will continue.

16. Notification Sent to Supplier and Internal Teams: Nova notifies the supplier and
internal teams about the discrepancies identified in the matching process.

17. Investigation Initiated: Nova initiates an investigation to identify the discrepancies and
their causes.

18. Identify Discrepancies and Causes: Nova identifies the discrepancies and their root
causes through the investigation.

19. Communicate Findings to Supplier: Nike communicates the findings of the

investigation to the supplier and discusses potential resolutions.

20. Resolve Discrepancies: Nova will take appropriate actions to resolve the discrepancies,
which may include amending the supplier invoice, adjusting inventory records, or requesting
replacement goods.

9
21. Reinitiate Three-Way Matching Process: Nova will reinitiate the three-way matching
process to verify that the discrepancies have been resolved.

22. All Three Matches Are Successful: Nova checks again if all three matches are
successful after resolving the discrepancies. If yes, the goods are accepted. If no, the process
may continue until discrepancies are resolved.

23. Payment Processing: Finally, NOVA processes payment to the supplier based on the
verified invoice. Once payment is processed, the procurement cycle is complete, and NOVA
has successfully acquired the required inventory to meet its needs.

24. Material Components Stored in Inventory: After complete three way matching the
good ase then store in inventory and ready to be shipped to distribution centres.

THIRD PARTY WEBSITE

Nike's supply chain process for third-party platforms like Amazon:

1. Inventory Management:
a. Nike manufactures or sources products from suppliers.
b. Each product is tagged with a RAIN RFID tag chip for tracking purposes.
c. The products are received at Nike's distribution centres or warehouses.
d. Inventory data, including product details, quantities, and locations, is entered into Nike's
central database.
e. The inventory data is continuously updated and monitored to ensure accuracy and
availability.

2. Integration with Amazon:

a. Nike's inventory data is synchronised with Amazon's platform through an application
programming interface (API) or electronic data interchange (EDI).
b. Nike lists its products on Amazon's marketplace, including details such as product
descriptions, prices, and availability.

10
 c. Product listings on Amazon's platform are regularly updated to reflect changes in Nike's
inventory or pricing.

3. Order Processing:
a. A customer places an order for Nike products on Amazon's platform.
b. Amazon's platform forwards the order details, including the product(s) ordered, quantity,
and shipping address, to Nike's warehouse.
c. Nike's warehouse receives the order electronically and processes it internally.

4. Fulfilment:
a. Nike's fulfilment centre locates the ordered items within its warehouse based on the order
details.
b. Products are picked from their respective locations in the warehouse.
c. The picked products are packed securely, often with branded packaging materials.
d. Shipping labels are generated for each package, including tracking information.

5. Shipping Logistics:
a. The packaged items are handed over to Amazon's logistics partner, such as UPS, FedEx,
or Amazon's own delivery network.
b. The logistics partner transports the packages to Amazon's distribution centres or
fulfilment centres.
c. At Amazon's facilities, the packages are sorted and prepared for final delivery to the
customer.

6. Customer Receives the Order:

a. Amazon notifies the customer about the shipment, including tracking information.
b. The customer receives the order at the provided shipping address.
c. The customer may provide feedback or reviews on the product and delivery experience.

RETURN & EXCHANGE CYCLE

1. Customer Places Order Online: The customer completes the checkout process on the
e-commerce website, providing shipping and payment details, and places the order.

11
2. Order Details Transmitted to Backend System: The order details are transmitted to the
backend system of the e-commerce platform for processing.

3. Inventory Check: The backend system checks the inventory to ensure that there is
sufficient stock available to fulfill the order.

4. Sufficient Inventory Available: If there is enough inventory to fulfill the order, the process
continues; otherwise, the order may be put on hold or backordered.

5. Order Confirmed: If the inventory check is successful, the order is confirmed, and the
fulfillment process proceeds.

6. Payment Processing: The customer's payment is processed securely through the chosen
payment gateway.

7. Payment Authorised: Upon successful payment authorization, the order status is updated to
reflect payment confirmation.

8. Pick, Pack, and Prepare for Shipping: The ordered items are picked from the inventory,
packed securely, and prepared for shipping.

9. Shipping Label Generated: A shipping label is generated for the package, including details
such as the customer's address and tracking information.

10. Product Handed Over to Shipping Carrier: The packaged products are handed over to the
designated shipping carrier for transportation.

11. Shipping Carrier Transports Package to Local Distribution Center: The shipping carrier
transports the package to the local distribution center nearest to the customer's delivery
address.

12. Package Sorted at Distribution Center: The package is sorted at the distribution center to
prepare it for delivery.

12
13. Package Loaded onto Delivery Truck: The package is loaded onto a delivery truck for
transportation to the customer's local area.

14. Delivery Truck Transports Package to Customer's Local Area: The delivery truck
transports the package to the customer's local area for final delivery.

15. Package Loaded onto Delivery Vehicle for Final Delivery: The package is loaded onto a
delivery vehicle for final delivery to the customer's home.

16. Delivery Driver Delivers Package to Customer's Home: The delivery driver delivers the
package to the customer's home address.

17. Customer Receives Package and Signs for Delivery: The customer receives the package
and signs to confirm receipt of the delivery.

Website User Flow

1. Decides to Buy New Shoes: The user decides to purchase new shoes through the website.

2. Gets to Know the Website: The user navigates to the website through the television ad.

3. Opens the Website: The user opens the website.

4. Home Page: The user is presented with the Home Page, which displays different categories
of shoes, such as sports, casual, sneakers, training, etc., as well as options to search, view
their orders, favorites, notifications, and profile.

5. Browse Through the Home Page: The user browses through the Home Page, exploring the
different categories and options.

6. Searches for Desired Shoe: The user searches for the desired shoes they want to purchase.

7. Selects a Particular Category: The user selects a particular category of shoes, such as
Male/Female/Kids.

13
8. Selects the Shoes: The user selects the shoes they want to purchase, based on their
preferences.

9. Product Page: The user is taken to the Product Page, where they can view detailed
information about the selected shoes.

10. Adds to Favourites: The user can add the shoes to their favourites list.

11. Adds to Bag: The user can add the selected shoes to their shopping bag.

12. Adds to Cart: When the user is ready to make the purchase, they are taken to the cart,
where they can review the items in their bag and proceed with the payment.

13. Checkout Page: The user is taken to the Checkout Page, where they can check the
products, enter the required details, and proceed to the payment.

14. Payment Page: The user selects the payment method and completes the payment process.

15. Order Placed: The user receives an order summary, and the order is placed.

16. Inventory Check: The system checks the inventory and availability of the ordered items.

17. Order Processing: The order is processed for fulfilment.

18. Label Generation: A shipping label is generated for the order.

19. Customer Shipment: The order is packaged and shipped to the customer.

20. Return or Exchange: If the customer needs to return or exchange the items, they can
initiate the process.

21. Customer Feedback: The customer can provide feedback on their experience.

22. Order Completion: The order is marked as complete once the customer receives the
shipment.

23. Follow-Up: The app may send follow-up notifications to the user, such as delivery
confirmation, review requests, or future recommendations.

24. Inventory Update: The inventory is updated to reflect the completed order.

14
25. Restocking/Refurbishment: If any items are returned, they may go through a restocking or
refurbishment process before being made available for sale again.

26. Continuous Improvement: The app may gather data and feedback to continuously
improve the user experience and the overall order fulfilment process.

Application User Flow

1. Decide to Buy New Shoes: The user decides to purchase new shoes through the mobile
app.

2. Open the App: The user opens the mobile app and is presented with the Splash Screen.

3. Welcome Screen: The user is shown the Welcome Screen.

4. Login Screen: The user is presented with the Login Screen, where they can log in using
various options like email, password, Google, Facebook, etc.

5. Home Page: After successful login, the user is taken to the Home Page, which displays
different categories of shoes, such as sports, casual, sneakers, training, etc., as well as options
to search, view their orders, favourites, notifications, and profile.

6. Browse Through the Home Page: The user browses through the Home Page, exploring the
different categories and options.

7. Searches for Desired Shoe: The user searches for the desired shoes they want to purchase.

8. Selects the Shoes: The user selects the shoes they want to purchase, based on their
preferences.

9. Product Page: The user is taken to the Product Page, where they can view detailed
information about the selected shoes.

10. Adds to Favorites: The user can add the shoes to their favorites list.

11. Adds to Bag: The user can add the selected shoes to their shopping bag.

15
12. Add to Cart: When the user is ready to make the purchase, they are taken to the cart,
where they can review the items in their bag and proceed with the payment.

13. Checkout Page: The user is taken to the Checkout Page, where they can check the
products, enter the required details, and proceed to the payment.

14. Payment Page: The user selects the payment method and completes the payment process.

15. Order Placed: The user receives an order summary, and the order is placed.

16. Inventory Check: The system checks the inventory and availability of the ordered items.

17. Order Processing: The order is processed for fulfilment.

18. Label Generation: A shipping label is generated for the order.

19. Customer Shipment: The order is packaged and shipped to the customer.

20. Return or Exchange: If the customer needs to return or exchange the items, they can
initiate the process.

21. Customer Feedback: The customer can provide feedback on their experience.

22. Order Completion: The order is marked as complete once the customer receives the
shipment.

23. Follow-Up: The app may send follow-up notifications to the user, such as delivery
confirmation, review requests, or future recommendations.

24. Inventory Update: The inventory is updated to reflect the completed order.

25. Restocking/Refurbishment: If any items are returned, they may go through a restocking or
refurbishment process before being made available for sale again.

26. Continuous Improvement: The app may gather data and feedback to continuously
improve the user experience and the overall order fulfilment process.

16
Just-in-Time (JIT) for Inventory Management:
NOVA adopts JIT principles to minimize waste and optimize inventory levels. By
synchronizing production with customer demand, NOVA aims to reduce excess inventory and
associated holding costs. JIT enables NOVA to receive materials from suppliers and produce
goods only as needed, eliminating the need for large inventories and ensuring a leaner, more
efficient supply chain. Through JIT, NOVA can respond quickly to changes in demand,
produce smaller batch sizes, and maintain a consistent flow of inventory through its facilities.

Nike's Direct-to-Consumer (DTC) model in e-commerce

1. Nike.com and Mobile App: Nike operates its own e-commerce platforms, including its
website and mobile app, where customers can browse and purchase products directly from
the company.

2. Exclusive Online Offerings: Nike offers exclusive products and collections through its
online platforms, providing customers with access to unique merchandise not available
through third-party retailers.

3. Digital Marketing and Promotion: Nike utilizes digital marketing strategies such as social
media advertising, email campaigns, and targeted promotions to drive traffic to its
e-commerce platforms and engage with customers online.

4. Personalization and Customization: Nike's e-commerce platforms offer personalized

shopping experiences, allowing customers to customize products, receive personalized
recommendations, and access tailored content based on their preferences and behavior.

5. Data-driven Insights and Optimization: Nike collects and analyzes customer data from its
e-commerce platforms to gain insights into shopping behavior, preferences, and trends,
enabling the company to optimize its online offerings, marketing strategies, and user
experience.

6. Global Reach and Accessibility: Nike's e-commerce platforms provide a global reach,
allowing customers from around the world to access and purchase Nike products online,
regardless of their location.

17
7. Seamless Integration with Physical Retail: Nike's e-commerce platforms are seamlessly
integrated with its physical retail stores, enabling customers to shop online and pick up orders
in-store, or return online purchases in-store, enhancing convenience and flexibility for
shoppers.

Technological Advancements

Digital First Supply Chain

Within distribution centres, Nike has also deployed more than “1,000 cobots” – collaborative
robots – to aid Nike workers, or “teammates” as the company calls them, in the sorting,
packing and movement of products, increasing speed in order processing, alleviating physical
challenges and allowing teammates to focus on higher-value activities.

NDRE Stand Alone Terminals

NIKE faced the challenge of developing and installing three separate terminals within a tight
timeframe of ninety days. These terminals needed to communicate effectively and integrate
with the existing store's ERP catalogue and eCommerce platform. To address this, NIKE
opted for Unity, a game engine, to ensure optimal performance and enhance the visual
experience for customers.

This initiative brought several benefits for the supply chain. It integrated the terminals with
the ERP catalogue and eCommerce platform improved operational efficiency by providing
real-time product availability information to customers, streamlining inventory management,
and order fulfilment processes. NIKE's commitment to innovation accelerated progress in
supply chain technology integration, setting a precedent for future advancements.

The Nike Boot room

A 65-inch interactive surface integrates seamlessly with NIKE's products, offering real-time
information on size and colour availability through their ERP system. It includes engaging
product videos and detailed comparisons, enhancing the shopping experience. Utilising RFID
technology and 3D cameras, it enhances product detection and user interaction. In the supply
chain, this surface improves inventory management, enhances customer engagement, and

18
streamlines operations, ultimately strengthening NIKE's supply chain by optimising
inventory, improving customer experience, and increasing operational efficiency.

The sneaker hunt with a smartphone

NIKE recently invested in augmented reality (AR) technology to engage its fan base, inspired
by the success of Pokémon Go. Through its mobile innovation studio, S23NYC, NIKE
launched SNKRS Stash in Los Angeles, rewarding engaged users with exclusive offers. This
initiative helps NIKE manage inventory effectively, allocate limited-edition products to loyal
customers, and gain valuable insights for future product releases and marketing strategies,
ultimately benefiting the supply chain.

NIKE FIT APP

The Nike Fit app revolutionises the shoe-buying experience by employing augmented reality
technology to accurately measure customers' feet, leading to reduced returns and exchanges
and improving demand forecasting. This data-driven approach also optimises inventory levels
and enables personalised product recommendations, enhancing customer satisfaction and
loyalty. Furthermore, insights from the app inform product design and manufacturing,
resulting in better-fitting shoes and reduced waste.

Nike’s ERP

Nike is replacing its ERP system as part of its consumer-direct acceleration strategy, aiming
to enhance business reporting, customer service, inventory management, cost reduction, and
supply chain management. This investment aligns with Nike's Triple Double Strategy, which
focuses on innovation, speed, and direct consumer connections, all of which can impact its
supply chain operations by influencing product development, manufacturing processes,
distribution strategies, and customer engagement.

RAIN RFID

RAIN RFID technology is integral to Nike's digital leadership, enabling real-time data-driven
initiatives and powering its digital transformation. From manufacturing to sale, Nike products
are equipped with RAIN RFID tag chips, allowing comprehensive tracking throughout their
lifecycle. RAIN RFID readers provide instant inventory visibility, empowering Nike to

19
respond swiftly to consumer demands and optimise its supply chain processes. This seamless
integration of technology enhances efficiency and agility.

Demand Planning and Forecasting Software

Nike employs demand planning and forecasting software to predict customer demand for its
products. These tools analyse historical sales data, market trends, and other factors to
generate accurate forecasts, which are used to optimise inventory levels and production
schedules.

Inventory Management Software

Nike uses inventory management software to track and control the flow of goods throughout
its supply chain. These systems provide real-time visibility into inventory levels, locations,
and movements, helping Nike optimise stock levels, minimise stockouts, and reduce excess
inventory.

Warehouse Management Systems (WMS)

Nike utilises WMS to manage its warehouse operations efficiently. These systems automate
tasks such as receiving, picking, packing, and shipping, improving order accuracy, reducing
cycle times, and increasing overall warehouse productivity.

Transportation Management Systems (TMS)

Nike employs TMS to optimise its transportation operations. These systems help Nike plan
and execute shipments, select the best transportation routes and carriers, track shipments in
real-time, and optimise transportation costs and efficiency.

Supplier Relationship Management (SRM) Software

Nike uses SRM software to manage its relationships with suppliers and ensure timely and
high-quality deliveries of raw materials and components. These systems enable Nike to
collaborate with suppliers, monitor performance, and mitigate risks across its supply chain.

Product Lifecycle Management (PLM) Software

20
Nike utilises PLM software to manage the entire lifecycle of its products, from design and
development to manufacturing and distribution. These systems facilitate collaboration
between different teams and stakeholders, streamline product development processes, and
ensure product quality and compliance.

DESIGN
Designing here refers to the design that we will be making in our products and we will hire
designers and try sharing with them our vision for new products and get it designed by them.

SUPPLIER IDENTIFICATION
After having our designs we will be looking for suppliers for the raw materials and will try to
identify, choose and select them on the basis of cost, long term goals, relationship with the
organisation.

Manufacturing will be done after doing all the activities before outsourcing raw materials
and then we will be sending our goods to distribution centres. After unloading of supplies at
DCs the goods will be segregated to different warehouses and from there to retailers or stores
owned by Nova. Customers can fulfil their order demand through online website purchases
where the order is fulfilled directly from the DC of the nearest centre.

Quality Checking and Inspection is done before loading goods to the Distribution Centre
and then to the warehouse where stock is transported and divided according to local areas.
After that the stock is also given to third party people, and then it reaches the customer.

21
 REFERENCES

Nike Digital Retail Experience. (n.d.). English.

https://demodern.com/projects/nike-digital-retail-experience

Gary, & Gary. (2024, January 17). How Nike customer Experience uses artificial intelligence

to improve engagement & personalization. Digital Silk.

https://www.digitalsilk.com/digital-trends/nike-artificial-intelligence/

Salgado, A. (2022, July 11). Nike overhauls ERP in bid for better supply chain speed, agility.

Supply Chain Dive.

https://www.supplychaindive.com/news/nikes-new-erp-system-launch-in-greater-chin

a-then-the-us/626353/

Torres, R. (2020, October 1). Nike's ERP overhaul supporting consumer-first strategy. CIO

Dive.

https://www.ciodive.com/news/nike-erp-overhaul-consumer-direct/586251/#:~:text=N

ike%20is%20in%20the%20process,go%20live%20in%20July%202021

Nike business model | How does Nike make money. (n.d.). Boardmix.

https://boardmix.com/analysis/nike-business-model/

RAIN RFID helps Nike ‘Just Do It’ despite supply chain challenges. (2022, July 28).

https://www.impinj.com/library/blog/rain-rfid-helps-nike-just-do-it-despite-supply-ch

ain-challenges

Team, & Team. (2021, August 2). Nike integrates NFC tags in sneakers: Future of NFC in

footwear. RFID Card.

https://www.rfidcard.com/nike-integrates-nfc-tags-in-sneakers-future-of-nfc-in-footw

ear/

22
23