Internal Logistics in New York NikeTown

NikeTown, located in New York (6 East 57th street New York), is considered one of the biggest flagship store of the Nike Brand worldwide.

The number of visitors on a daily basis reaches incredible targets. Therefore, if the store were adopting the traditional internal logistics, this would naturally lead to endless queues.

In order to prevent this scenario, NikeTown included modern, well-designed and efficient mini elevators that ease the exchange with the deposit.

In practice, once a salesman requests a pair of shoes currently not available on shelves, through a handheld, she is actually sending the order to the warehouse. This triggers a process whose first step see the workers in the warehouse in the attempts to search for the missing item. Once found, the item is located in the appropriate lift identified by a specific requester code, and, in a few minutes, the pair of shoes reaches the salesman.

Each salesman relates to a specific lift and is characterized by a unique order code, which provides all the necessary information, such as model and number of the shoes, code of the salesman, floor.

If on one hand, the logistics strategy that Nike utilizes doubtlessly speeds up the sales, minimizes costs, and increases customer satisfaction; on the other hand, it translates into a means of marketing, attracting customers for the elegance of the design of the elevators and innovative aspect of the idea.

Referring to my personal experience, the first time I visited the store, I remained completely astonished: I thought I was witnessing how the future would have been and I did not want to forget of this experience. Hence, I decided to purchase a pair of shoes that I would have taken with me back to Italy.

As a result, I did not only buy a pair of shoes, but I had the impression that I was rather buying a service, a customer experience, which I enjoyed to the extent that I still feel as fascinated as seven years ago. Nevertheless, only today, I am able to realise that it was the perfect outcome of a strategic logistic choices, made not only for the mere purpose of beautifying the store, rather that cut costs and boost efficiency.

By: Michele Pisacane


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