Inventory Management approach of the Nike

In 2001, Nike implemented an updated version of their inventory management software

(RFID). The idea of this newly implemented inventory control software was to help predict
which products they would sell the most, and thus prepare the right amount of supply to meet
the demand. First, they would produce a demand forecast and based on that forecast, they
would prepare a manufacturing plan. That’s how most big corporations (and some small
businesses) make their operational business decisions. Here is the process in a nutshell –
Based on historical sales data of different products, and based on some market growth
estimates, Nike would first prepare a demand forecast for different families of products. This
demand forecast is then used to determine optimal inventory levels, reorder points, material
lead times etc. And the entire manufacturing plan for months is determined using these
numbers produced by the inventory management software.
Nike is using RFID to track inventory. What that means is, they can pull up and see exactly
where each set of shoes has moved. That allows them to say, this store has inventory it's not
going to sell, so we can ship it to another store, we can fulfil a digital order from that store;
this store isn't going to get its next shipment before it sells out of that size. And they've
bought a couple of technology companies to help them process that data. But they're getting
into a situation where, using AI and other techniques and real-time data, they're going to be
able to make better predictions about what inventory goes in what stores

Quality management approach of Nike

Nike offers a variety of shoes to their customers specific to many on-field games like
baseball, golf, soccer, basketball, tennis and volleyball, Nike also produces shoes meant for
consumer fashion such as Mary Janes or flip-flops. They have numerous other offerings when
it comes to shoes meant for running, cross-training, bicycling, wrestling, cheerleading, auto-
racing, aquatic activities or any other athletic and recreational purposes.
Nike implements a combination of Differentiation and Cost Leadership strategies. This is a
mix of two or more of Porter’s generic strategies which aim to reduce costs of production
while maximizing profitability or reducing selling prices.
Nike’s manufacturing process is inclined towards TQM (Total Quality Management). While
other companies’ TQM restrict innovation and creativity, Nike uses it to motivate creativity
which lets it to be in the position of continuous improvement and development of new
products. According to Nike, a quality product is one that can be obtained on the basis of
current knowledge and technology. Engineers and designers who are proficient in the field
find this method very appealing which in returns ends up enhancing their productivity and
motivation.

Nike handle consumer complaints in following ways

1) Nike provides a Resolver in which using Resolver, you can submit an issue about 1 service
offered by Nike. Your case will be sent to the correct person or team at Nike and escalated at
the correct times, to the correct person, if required.
2) By creating a two-way conversation with consumers, Nike gains actionable insight into
their needs and as the results show, they don’t just listen, they react.
3) Consumer can file a complaint and get it resolved by Nike India customer care. It’s quick
effective and absolutely free.
4) Consumer can also write the complaints in the form of reviews and the action will be taken
against the complaint.
5)If you have a Nike membership, you can log into the website and use the live chat to
connect with a customer service representative almost instantly.
6)After you have determined that your issue is with Nike, you may file a complaint with the
company's customer service department by calling 1800-806-6453.