Nike and Direct-to-Consumer: Just Doing It

Nike and Direct-to-Consumer: Just Doing It

May 5, 2021

Nike continues its march towards more direct-to-consumer (DTC) sales, notifying seven more distributors that they will no longer be selling its products.

The last shipments to DSW, Macy’s, Urban Outfitters, Big Five, and several others are likely to go out in October 2021. The move follows Nike’s cut of nine wholesalers last fall, and continues a push towards more digital sales.

Its DTC model that began about a decade ago has been accelerated and positively affected by the pandemic.


Video Spotlight: 


This post is based on the Retail Dive article, Nike drops DSW, Urban Outfitters, Macy’s in quest for more DTC sales , by Cara Salpini, March 26, 2021; the Retail Dive article, How Nike is using DTC and data to expand its empire, by Cara Salpini, March 23, 2021; and the YouTube video in the Spotlight. Image source: Paulaphoto/Shutterstock

Discussion Questions:

1. How will Nike reach consumers if it bypasses the many wholesalers and retailers on which it has traditionally relied?

Guidance: Nike plans to use more digital sales in its app-driven stores, and it plans to open about 200 Continue reading

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USPS Plans to Deliver Changes to Mail Services

USPS Plans to Deliver Changes to Mail Services

The US Postal Service (USPS) is planning a service overhaul to stem its losses.

The overhaul includes replacing one-to-three-day first-class mail with one-to-five day, consolidating mail processing and postal locations, cutting hours at some retail locations, moving more first-class mail by trucks instead of airplanes, going all-electric for last-mile delivery, and increasing postal rates.

A previous OM in the News post explained additional changes being made, as part of its overall efforts to redesign services, to cut costs and revamp USPS operations.


Video Spotlight: 


This post is based on the Reuters article, U.S. Postal Service proposes revamp; plan would slow some mail, by David Shepardson, March 23, 2021, and the YouTube video in the Spotlight. Image source: Scott A. Frangos

Discussion Questions:

1. What are the issues that USPS is able to address by revamping its services?

Guidance: To address delivery delay, USPS is standardizing the first-class mail delivery requirements from one-to-three days, to one-to-five days.  To reduce costs of operations, more first-class mail will be moved by truck, mail processing and postal locations will be consolidated, and all-electric fleets will be Continue reading

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Big Ship Creates Big Backlog

Big Ship Creates Big Backlog

When the Ever Given got stuck in the Suez Canal, its gigantic size became a gigantic problem.

To support an ever-expanding global trade, ship size has been increasing for decades. Today, the largest ships can carry between 18,000 and 24,000 containers.  A larger cargo makes perfect economic sense because the cost of shipping one container decreases as cargo capacity increases. However, when things go wrong, big ships mean big disruptions in an already strained global supply chain. It is estimated that the stranded ship held up 12% of global trade at an estimated cost of $9.6 billion a day. This financial and logistic threat, along with more elusive cost savings in the future, may signal the need for fresh ideas in global shipping.

 


Video Spotlight: The Ripple Effects of the Backlog


This post is based on The New York Times article, Why the World’s Container Ships Grew So Big, by N. Chokshi, March 30, 2021, and the YouTube video, Cargo Ship Freed from Suez Canal, but Shipping Backlog Could Last, by CBC News: The National, March 29, 2021. Image source: (c) Glow Images/SuperStock.

Discussion Questions:

1. Will the short-lived blockage have a major Continue reading

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