Nike’s Information Management System and Tech Integration in Global Operations Essay

Introduction

Nike is one of the most prominent global organizations that has dominated the sportswear industry. The company is recognized as the largest supplier and manufacturer of athletic shoes (Nani et al., 2022). Moreover, the firm manufactures sports equipment and has gained a competitive advantage in that sector.

In 2020, Nike, Inc. recorded revenue above $37.4 billion, making it the most valuable company in the sports business. Nike has established various brands under which it sells its products. Some of the company’s top brands are Nike Golf, Nike Blazers, Air Jordan, and Air Max, among others (Nani et al., 2022).

In its establishment, Nike acquired other sportswear firms, becoming more competitive in the industry. Organizations such as Cole Haan, Bauer Hockey, Converse, and Umbro, among others, were acquired by Nike. Given its brand position and reputation on a global scale, Nike, Inc. has maintained high-quality products with a broad consumer base.

Overview of Nike’s Information Management System (IMS)

Nike Inc. is one of the companies that has extensively integrated technology into its routine operations. IMS involves a system used for data collection, storage, and analysis for various business decisions (Kachman et al., 2022). Given its complexity in structure, Nike has adopted the IMS that suits its different levels of operations.

Nike’s employees use an automatic identification system (AIS) to record their information and gather data crucial for routine administrative operations. The system contains information about its raw material suppliers and businesses that sell its products. The transaction processing system (TPS) is central in recording and analyzing Nike’s financial information (Cariou & Notteboom, 2022). Payments due, revenue earned, and profits, among other fiscal information, are gathered and analyzed by the TPS. Meanwhile, at the customer level, the company has developed the Nike App that allows clients to enter their information and choose their preferred products.

Transportation and Warehousing

Nike Inc. carries out its manufacturing and design activities in various countries. Its transportation and warehousing system is divided along the countries of operation. The company manufactures its major products in China, Vietnam, Indonesia, and Thailand (Carty, 2002). Upon manufacturing and packaging, the products are transported to warehouses in the distribution countries, including the U.S.

Transport and logistics companies such as DHL and Sutton are then contracted to distribute the products to different suppliers across the world. The company has integrated technology into its transportation management system. The inventory system is used to track the number of products distributed and those remaining.

Meanwhile, Nike’s e-commerce platform has messaging and product tracking capabilities (Cariou & Notteboom, 2022). The features allow clients from various locations to track the transportation progress of their ordered products. Therefore, the use of inventory and e-commerce technologies will enable Nike to satisfy its customers in the course of transportation.

How Technology Creates a Competitive Advantage

Technology integration can be beneficial to an organization since it allows the manufacturing of quality products. Nike’s technology integration has given it a competitive advantage over companies such as Adidas (Pratama et al., 2022). The Nike App has unique features that allow clients and potential customers to decide on the kind of sportswear that fits them. Moreover, the platform allows the clients to access other software designed by Nike to create a personal fitness program, which means that the company collaborates with clients even after the purchase of a given sportswear or apparel.

The company’s decision to categorize its IMS is unique; the approach allows the organization to deal with issues arising from the system separately. For instance, it is easy for the company to identify transactional problems through its TPS. The utilization of unique technology features has led to increased Nike sales compared to its competitors.

How IMS Coordinates Supply Chain Partners

Nike IMS plays a significant role in helping the company coordinate with its supply chain partners. Some of its supply chain partners are logistics companies and suppliers located in various distribution centers worldwide. The TPS allows Nike to generate invoices and quotations for its suppliers.

For instance, a partner wishing to purchase Nike’s products for resale gives order details, which are recorded in the TPS (Nani et al., 2022). After that, the system generates the total amount due and the estimated duration to have the order ready for supply. Nike then uses its logistics systems to find an appropriate company and means of transportation for the customer (Nani et al., 2022). Meanwhile, the company has set up NSRL, where various researchers and designers are located, to provide designs based on the partner’s unique needs (Pratama et al., 2022). Nike’s IMS is structured in a manner that meets clients’ needs while maximizing profitability.

How IMS Monitors Orders and Inventory to Satisfy Customer

Nike’s IMS serves various purposes, including order and inventory monitoring. The company’s order monitoring is done under TPS and AIS. The system collects information about each product category’s market performance. For instance, the report generated by the TPS helps Nike monitor the most profitable product type. Consequently, the company updates its stock to ensure that the product is always available to meet customers’ demands.

Another example is where IMS Nike collects customer information through IMS and categorizes it according to their preferences. The company modifies its manufacturing system to meet unique customer needs and satisfy them. Therefore, IMS plays a crucial role in satisfying Nike’s consumer base.

Why Managing Information Is as Important as Managing Inventory

Information management is crucial for organizational efficiency, productivity, and profitability. Managing and analyzing customer information, such as purchase trends and the amount spent, helps organizations to meet their needs. For instance, an organization focuses on products that are in demand after analyzing product performance data and information. Additionally, forecasting techniques through information management help identify possible areas of profitability and losses (Mardani et al., 2018).

Hence, organizations eliminate areas of losses while maximizing profitability. For efficiency, IMS allows companies to compare their business model and manufacturing approaches to focus on the ones that are more efficient and effective. Therefore, IMS is significant in promoting efficiency, productivity, and profitability.

Conclusion

Nike is one of the many global organizations that has integrated information management technology. Although moving products to customers can help reach a broad consumer base, the company’s information management serves various purposes. Through information management, the company can identify the customer segment to focus on.

Additionally, managing information promotes product diversification to meet consumer needs. Nike uses its IMS to coordinate with its supply chain partners. The TPS generates invoices and quotations for suppliers, while the Nike App allows a potential customer to engage with clients routinely. Information management systems have given Nike a competitive edge over other companies at the global level. Therefore, Nike is more efficient, productive, and profitable due to the integration of IMS.

References

Cariou, P., & Notteboom, T. (2022). Implications of COVID-19 on the US container port distribution system: Import cargo routing by Walmart and Nike. International Journal of Logistics Research and Applications, 1–20. Web.

Carty, V. (2002). Technology and counter-hegemonic movements: The case of Nike Corporation. Social Movement Studies, 1(2), 129–146. Web.

Kachman, O., Findura, J., Balaz, M., Gyepes, G., Majer, L., & Vojs, M. (2022). Intelligent monitoring system for universal data collection and analysis. 32nd International Conference Radioelektronika. Web.

Mardani, A., Nikoosokhan, S., Moradi, M., & Doustar, M. (2018). The relationship between knowledge management and innovation performance. The Journal of High Technology Management Research, 29(1), 12–26. Web.

Nani, N., Badriyah, B., & Ratnawati, R. A. (2022). Effects of product quality, price, and brand image on the purchasing decisions of Nike products. Jurnal Mantik, 5(4), 2607–2611. Web.

Pratama, A., Sutopo, W., Hisjam, M., & Istiqomah, S. (2022). Comparative study of global business strategy: Lessons learned from excellent sports-wear companies (Nike and Adidas). Proceedings of the International Conference on Industrial Engineering and Operations Management Istanbul. Web.