Case Study: Nike achieves improved forecasting and inventory control with Ordoro

Nike - Customer Case Study

Nike, a global apparel giant, faced a major inventory management failure in the early 2000s that cost the company about $100 million in lost sales. Software bugs and data errors produced incorrect demand forecasts, which led to underproduction of high-demand items and overproduction of others, disrupting manufacturing plans and inventory levels.

In 2001 Nike implemented an updated inventory management system that used historical sales and market growth estimates to generate demand forecasts, set optimal inventory levels, reorder points and lead times, and drive manufacturing plans. By fixing implementation issues and improving data quality, Nike corrected its forecasting and inventory decisions, recovered from the losses, and highlighted the importance of reliable software and accurate data for effective inventory control.

Nike