Since consumers’ buying habits has changed due to the pandemic, brands are changing their inventory to address different needs. Recently, sports giant Nike announced to adjust its buying plan and inventory in its fourth-quarter earnings call.
According to Nike’s CFO Matt Friend, Nike canceled about 30 percent of its factory orders booked before the virus outbreak. On the meantime, the company tripled its digital fulfillment capacity across its North American and European, Middle Eastern and African markets.
Also, Friend pointed out that supporting digital demand will be one of Nike’s main focuses in the future. He said the company will build new tech center to support its needs:
And we plan to open a new regional service center on the West Coast before the holiday season to forward deploy digital inventory, leveraging advanced analytics and demand sensing capabilities from our acquisition of Celect.
Nike’s end-to-end foundation
As the leader in the industry, Nike has been improving itself in many ways. The company has been investing in technology and digital sales to make strategic acceleration. Especially, the company will keep its eyes on end-to-end technology foundation.
End-to-end can be the trend in future shopping method. End-to-end sales enables brands to connect directly to their consumers and better understand their needs. By doing end-to-end sales, a brand can gather the data and analyze what are more popular among a specific area or group of people to make customized sales plan.
John Donahoe, CEO of Nike, explained how Nike will do about the end-to-end foundation. He said:
…we’ll speed up the unifier investments across demand sensing, insight gathering, inventory, management and more.
For example, Nike has cut the inventory to a proper amount in some virus-hitting area. Nike has implemented targeted promotions and markdowns to fulfill consumer demands.
In the future, Nike will develop its own digital sales channels and try to be more sensitive about demands to improve its ability to manage risk.
Logistic providers are using new tools to adjust needs
In fact, not only brands, logistic providers are also using new methods to address needs during pandemic and change inventory management. DHL is now partnering with fulfillment solutions provider Locus Robotics to update its warehouses with technology.
With the help of Locus Robotics, DHL can now imply robots to its warehouses to do some repeatable jobs. For example, robots can replace human workers that walk in the warehouses a thousand times to collect according products. Markus Voss, DHL Supply Chain’s global CIO and COO, said this can save human resources for more meaningful tasks:
By replacing monotonous, repetitive and particularly strenuous activities, the aim is not to replace employees over time, but to assign the more attractive and interesting tasks to our human workforce.
The new robotics platform piloted 6 River Systems in a DHL warehouse in Madrid. According to DHL’s press release, the new platform has cut integration and programming time to get new robots up and running by a surprising 60 percent.
By keep improving the products, DHL claimed that the integration time could be reduced by as much as 90 percent in the near future. More logistic providers will consider more intelligent ways to improve their fulfillment management service.
Follow the link below to learn more about Nike’s fulfillment plan amid the pandemic.
Nike increases digital fulfillment capacity 3x due to pandemic – Matt Leonard, Supply Chain Dive
The source :- intouch