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Section B (40 Marks) Answer any ONE (1) Question Question Bl Nike has a central customer service centre (distribution centre) located at Laakdal in Belgium. The centre is 200,000 square metres in size and serves 45.000 customers in EMEA with footwear, apparel and equipment. The centre receives products from supplier factories around the world for distribution to retail clients both before the start of all four seasons each year, and during a given season. Prior to the start of a season. when work is at a peak the workforce stands at some 2.300 operational staff. Off peal, that drops to 1_350 start. Deliveries are very time-critical. given the seasonal nature of the business. Retailers demand in-store availability on day one of a new season. The centre is a clear example of a company deciding to centralize receiving. storage and shipment to customers at one location in Europe. The benefits include consolidation of inbound shipments. lower inventory levels and better delivery service (in comparison to fragmented warehouses scattered around Europe). This does not mean, however, that the logistics operations are standardized for all flows of goods and all customers. Not every shipment is handled in a standard way through a single distribution pipeline: About a quarter of the volume of shipments is shipped to customers directly. These are larger shipments. such as full pallets for larger customers for which there is no need and an customers. Not every shipment is handled in a standard way through a .

Section B (40 Marks) Answer any ONE (1) Question Question Bl Nike has a central customer service centre (distribution centre) located at Laakdal in Belgium. The centre is 200,000 square metres in size and serves 45.000 customers in EMEA with footwear, apparel and equipment. The centre receives products from supplier factories around the world for distribution to retail clients both before the start of all four seasons each year, and during a given season. Prior to the start of a season. when work is at a peak the workforce stands at some 2.300 operational staff. Off peal, that drops to 1_350 start. Deliveries are very time-critical. given the seasonal nature of the business. Retailers demand in-store availability on day one of a new season. The centre is a clear example of a company deciding to centralize receiving. storage and shipment to customers at one location in Europe. The benefits include consolidation of inbound shipments. lower inventory levels and better delivery service (in comparison to fragmented warehouses scattered around Europe). This does not mean, however, that the logistics operations are standardized for all flows of goods and all customers. Not every shipment is handled in a standard way through a single distribution pipeline: About a quarter of the volume of shipments is shipped to customers directly. These are larger shipments. such as full pallets for larger customers for which there is no need and an customers. Not every shipment is handled in a standard way through a .

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Nike adopts logistics strategy here, explain how it gains the competitive advantages and effects the Nike’s logistics performance.

Section B (40 Marks) Answer any ONE (1) Question Question Bl Nike has a central customer service centre (distribution centre) located at Laakdal in Belgium. The centre is 200,000 square metres in size and serves 45.000 customers in EMEA with footwear, apparel and equipment. The centre receives products from supplier factories around the world for distribution to retail clients both before the start of all four seasons each year, and during a given season. Prior to the start of a season. when work is at a peak the workforce stands at some 2.300 operational staff. Off peal, that drops to 1_350 start. Deliveries are very time-critical. given the seasonal nature of the business. Retailers demand in-store availability on day one of a new season. The centre is a clear example of a company deciding to centralize receiving. storage and shipment to customers at one location in Europe. The benefits include consolidation of inbound shipments. lower inventory levels and better delivery service (in comparison to fragmented warehouses scattered around Europe). This does not mean, however, that the logistics operations are standardized for all flows of goods and all customers. Not every shipment is handled in a standard way through a single distribution pipeline: . About a quarter of the volume of shipments is shipped to customers directly. These are larger shipments. such as full pallets for larger customers for which there is no need and an customers. Not every shipment is handled in a standard way through a single distribution pipeline: About a quarter of the volume of shipments is shipped to customers directly. These are larger shipments, such as full pallets for larger customers - for which there is no need to consolidate with other shipments. As a result, it is cheaper and quicker to make these shipments directly. New growth areas that are served from the centre are Russia, Turkey and South Africa. For Russia. the first satellite centre with small inventories was recently opened to support the customer demand. Selected shipments to selected retailers are dealt with by a materials handling operation at the centre. This mainly involves labelling and re-packing operations. • Some retailers share weekly point of sale data with Nike, enabling it to replenish inventories based upon actual sales. 1. Nike adopts logistics strategy here, explain how it gains the competitive advantages and effects the Nike's logistics performance. (20 Marks) 2. Analyze the reasons to start satellite centres when Nike has a centralized distribution centre (10 Marks) 3. Discuss the pros and cons of locating materials handling operations, such as labelling and packing. In distribution centre, as opposed to in a factory (10 Marks)
Transcribed Image Text:Section B (40 Marks) Answer any ONE (1) Question Question Bl Nike has a central customer service centre (distribution centre) located at Laakdal in Belgium. The centre is 200,000 square metres in size and serves 45.000 customers in EMEA with footwear, apparel and equipment. The centre receives products from supplier factories around the world for distribution to retail clients both before the start of all four seasons each year, and during a given season. Prior to the start of a season. when work is at a peak the workforce stands at some 2.300 operational staff. Off peal, that drops to 1_350 start. Deliveries are very time-critical. given the seasonal nature of the business. Retailers demand in-store availability on day one of a new season. The centre is a clear example of a company deciding to centralize receiving. storage and shipment to customers at one location in Europe. The benefits include consolidation of inbound shipments. lower inventory levels and better delivery service (in comparison to fragmented warehouses scattered around Europe). This does not mean, however, that the logistics operations are standardized for all flows of goods and all customers. Not every shipment is handled in a standard way through a single distribution pipeline: . About a quarter of the volume of shipments is shipped to customers directly. These are larger shipments. such as full pallets for larger customers for which there is no need and an customers. Not every shipment is handled in a standard way through a single distribution pipeline: About a quarter of the volume of shipments is shipped to customers directly. These are larger shipments, such as full pallets for larger customers - for which there is no need to consolidate with other shipments. As a result, it is cheaper and quicker to make these shipments directly. New growth areas that are served from the centre are Russia, Turkey and South Africa. For Russia. the first satellite centre with small inventories was recently opened to support the customer demand. Selected shipments to selected retailers are dealt with by a materials handling operation at the centre. This mainly involves labelling and re-packing operations. • Some retailers share weekly point of sale data with Nike, enabling it to replenish inventories based upon actual sales. 1. Nike adopts logistics strategy here, explain how it gains the competitive advantages and effects the Nike's logistics performance. (20 Marks) 2. Analyze the reasons to start satellite centres when Nike has a centralized distribution centre (10 Marks) 3. Discuss the pros and cons of locating materials handling operations, such as labelling and packing. In distribution centre, as opposed to in a factory (10 Marks)
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