The objective of this omnichannel strategy was to maintain operations management that minimizes inventory costs while maximizing its effectiveness and efficiency.
To implement a successful omnichannel practice, Nike’s operations managers applied the perpetual method of inventory management, which involved continuous monitoring and movement of inventory from the supply chain distribution and retailers.
They were in the process of integrating all their information into a single shared platform.
The single shared platform, according to Koch (2004), was expected to improve the overall operation of the company among others. Thus, it brought several motivations to their system.
There would be improved financial visibility, accurate projections and forecasting, and better reallocation of the company’s resources.
Mongelluzzo (2002) explained that Nike would be able to achieve the key of the supply chain strategy which is having up-to-date information which would, in turn, play a key role in ensuring that the supply chain was more efficient than ever.
The omnichannel retail technology was utilized at Nike with a process including:
According to a post by Retail Technologist Alex Senn on LinkedIn, it took a deep dive into the Nike omnichannel experience. He mentioned:
- Central warehouse/vendor management system
- Inventory management system centrally connected with store and warehouse availability
- Website to handle orders and distribute proper order details for warehouse
- Personalized CRM for detecting past purchases
- In-store mobile-based POS
Nike integrated their digital properties with physical stores, making it easy to find out information about a particular pair of shoes online.
Furthermore, Nike takes advantage of showrooming by offering an exclusive line of shoes that while displayed in the store can only be bought online using the NikeID program.
Staff uses handheld POS systems to accept payments, process returns, and arrange home delivery without making customers queue up at the entrance.
Nike can use the data collected in-store, online, and on mobile to make the shopping experience even more personalized.
For example, if you bought a pair of shoes from the store, Nike can email you a discount coupon for a special occasion or something like that a day later, or send you a mobile push notification for the same.