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Importanceof logistics management
Under armour case study 2016
Importanceof logistics management
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Integrating Relationships across the Supply Chain
Krystal Hoham
San Diego Christian College
BU 323
Date; (September 15, 2014)
Abstract
Under Armour, Inc. is a sporting line from America who sell clothing and accessories. Also is a supplier of not just sportswear but also some casual apparel. The company first started selling footwear in 2006, it also has global headquarters which are located in Baltimore, Maryland.
Introduction
Under Armour was founded 18 years ago in 1996 from a college athlete Kevin Plank. This is an American company that sells clothing, footwear, sporting equipment, and accessories. The company’s global headquarters is locaded in Baltimore, Maryland, U.S. Under Armour is served Worldwide, also bringing
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in $2.332 billion in revenue. $265.098 million in operating income, $162.33 million in net income, $1.577 billion total assets, $1.053 billion in total equity and also have 7,800 employees. I am going to tell you about their Customer management, Supply Management, and Logistic Management. Customer Management must focus on three main parts of giving the customers the full experience, which are customor success, customer satisfaction, and basic service. The first one is customer success, which means to assist the customer in meeting their objective. The second is customer satisfaction, which means to meet or exceed customer expectations. Finally, the third is basic service, which means product availability, lead-time performance, and service reliability. Under Armour has a great core expectation when it comes to customer satisfaction. There are about ten words that easily describe this company’s customer satisfaction. They are, reliability, responsiveness, access, communication, credibility, security, courtesy, competence, tangibles, and knowing the customer. For example, I personally went to an Under Armour store, and their customer services are spectacular. They are low risk and confidential, polite, friendly, respectful, able to perform, their physical appearance was extremely professional, and also they were responsive to my unique customer needs. Also, their customer service is impeccable, if the product customer received is not up to Under Armour’s standard, or more importantly the customer’s standard then Under Armour is willing to give a full refund. Also, they do their best so that the customer is able to receive their package on time if they had ordered it online. Their order to delivery time depends on what kind of shipping the customer asks for. There are Standard, 2-Day, and Express. However Under Armour is willing to offer discounds on the shipping order method. Free Standard Shipping On US orders of $49+ which takes 1-2 weeks. Also, free 2-Day Shipping on US orders $125+, which should around 2 business days. Under Armour hires only the best so that they are able to stay within the time zone of what they have promised their customers. Under Armour has a Manager of CRM which means, customer relationship marketing and their position requires many specific details. In summary, “The manager of CRM is responsible for developing customer lifecycle strategies and programs designed to increase customer retention, loyalty and Under Armour’s share of wallet. The marketing strategies will be built around a thorough understanding of: a; The Under Armour consumer, b; Under Armour Product and category objectives, c; Under Armour’s Strategic initiatives such as Mobile and Digital Sports.” (https://www.linkedin.com/jobs2/view/6435229) In conclusion, basic customer service includes availability, lead-time performance and service reliability. Also, making the Order-to-Delivery lead-time is important, just like meeting or exceeding customer expectations for their satisfaction. The CRM involves data gathering and responding to the needs of specific customers. Supply Management is the identification, acquisition and management of inputs and supplier relationships.
Under Armour’s job of the supply chain is to deliver to this model: ( speed + control + predictability ) x innovation = successful growth. This mathematic equation may not be 100 percent mathematically correct however it does make common sense nonetheless. According to VP of Global Merchandise & Sales Planning Bill Nienburg, the most difficult challenge is how you combine speed with control and predictability is however the key point. A challenge apparel companies have is the different seasons, therefore making it difficult to always plan in detailed each supply and the planning process, from Spring/Summer to Fall/Winter, however they are planning for five such seasons. Nienburg also made a remarkable 4D Collaboration graphic, having data in its center. This is because internal nor external is able to fully work without accurate, timely and granular dad. Therefore that is where Under Armour started from, first by researching all about data. Involving master data management, data governance, etc., along with tools to leverage the data. This model is shown …show more content…
below: I believe Under Armour does everything they can do to deliever the best supply management out there, and to hire the best that knows what they are doing. This is because successful supply management improves performance, and in and or outsourcing must involve with both quantitative and qualitative analysis. Also they must be able to be involved always and having great communication and coordination is key. Finally Logistics Management is the movement and storage of materials to met customer needs and organizational objectives with will include forward and reverse flow, flow of materials and information, and also load, offload, move, sort and select material.
It is pretty much everything that happens behind the scenes that no one really thinks about who is buying this product. Integrated Logistics Management consists of about 6 differenc activities. They are, inventory management, order processing, transportation managemnent, network design, material handling and packaging, and warehouse management. Ever activity that goes on with logistics is extremely important to the company because even without just one of them the consumer satisfaction can go down the drain. With Under Armour the Logistics Coordinator has a deent set of key respoonsibilites and critical skills they must require. One responsibility is that they are the central point between Customer Service/ Sales and Under Armour’s 3PL for any daily business, as in daily priorities, express shipments, waving, quality issues, and complaints. I really love how in order to get jobs here Under Armour main expectations are to be a team player, proactive and pragmatic, able to perform under stress/peaktimes, also is capable of handling several tasks simultaneously and set priorites, and my favorite one of all the ability to influence people in the right direction or the right way. In my opinion, being in team sports
really prepares you for the real world and especially in jobs like this. Everything that I just explained that is the qualifications for most of Under Armour’s jobs, is pretty much the exact definition of being a team player. If I were to be the one to hire someone to this company I would of course see if the person is qualified with his education and experience but then see if he/she played on any sports teams and see how he/she was like. References h
Overall, Under Armor did an outstanding job targeting young, aspiring athletes to do what they want to do with their life. They used logic to show how hard the athletes work along with emotion to show how serious they take their training. Finally, Under Armor used the credibility of the athletes to sell their new training shoe. This commercial will make anyone want to purchase a pair of shoes and workout themselves. Since the commercial is on such a serious level, viewers emotionally connect with it which makes Under Armor seem like the best brand
Under Armour uses pathos as well to sell their product. The way Under Armour’s ad sells is almost the same as Adidas. Under Armour’s ad creates a message that all of the greatest athletes had to work hard to get where they are now. The ad is also trying to convince the audiences that their product is what will help to be a better athlete. They also use the famous athlete to convince the audience that their products will make them become great, as well as, get their money.
Lululemon Athletica Inc., also referred to as Lululemon, is an athletic apparel retailer from Canada. You can find them on Nasdaq with the ticker code LULU, as they are a publicly traded company. Lululemon was founded by Chip Wilson in Vancouver, in 1998. It didn’t take long time for Lululemon to become a wide-spread sensation throughout the United States. As of October 2015, Lululemon had over 354 stores worldwide. With growing popularity of the brand, it is not a surprise how successful the company itself has become. According to many, their products still maintain to be unique within the massive athletic-wear industry. Today, Lululemon produces outfits and gear for many different types of sports
Under Armor is a leading developer and distributor of athletic gear. The product line consists of a wide variety of apparel, footwear, and accessories. Over the past few years, the company has grown at an impressive rate due to their increased product line, expansions to the international market and direct- to- consumer business. Analyzing Porter’s Five Forces will aid in understanding what the company will face and potentially overcome moving forward.
Understanding the changes in the market and the growth of e-commerce prompted the organization to invest heavily in its supply chain management forecasting and management system. The development of a network of distribution centers and Direct Fulfillment Centers to position the company to capitalize on the growing e-commerce market indicate a strong understanding of the need to adapt to changing market forces. The company spent over $300 million on new distribution center facilities in 2014 alone, and continues to expand to maintain efficiency in product movement (Cassidy,
Under Armour’s target market is consumers that are involved in physical activities. The demographic age groups that they cater to varies from youth to adults. Their products can with stand any weather condition from cold weather to warm weather, which means their product can be used in any geographic location. These consumers can be either light user like walkers or heavy users like football players.
By putting the warehouses in strategic locations, you provide better access to those customers in more remote locations. By taking advantage of this, Under Armour will not only expose itself to new customers, but will be able to continue to dominate the athletic performance apparel industry.
The second recommendation for Under Armour is that they should develop a shoe line and marketing campaign for women, based on the idea of everyday athlete. Focusing on the fact that women want to compete and have the same performance benefits that everyone wants, but also have a shoe that is stylish enough that she can wear straight
Nike Incorporated is the number one leading sportswear and equipment provider in the world. They manufacture anything from casual clothes to sports equipment, shoes to socks, and basketballs to golf balls. As a result of its massive success, Nike employs nearly 30,000 people worldwide while manufacturing in 700 shops around the globe and has 45 offices outside the United States. Its extensive reach into the global market has Nike producing more exclusive products than any other manufacturer in the world. Nike’s headquarters is located in the metropolitan area of Portland, Oregon.
Under Amour Company ventured into a market segment that was overcrowded, it had thousands of companies that competed against each other. Out of the many companies involved in the trade, the two most formidable threats seemed to be orchestrated by Nike and Adidas. These are two giant sports apparel and footwear, which pride themselves as having been long term veterans in the industry. Nike in particular was christened as the ultimate shoe and athletic apparel company with revenues of $18.6 billion, net income of $1.9 billion and more than thirty two thousand employees globally in the year 2008. This makes it the largest athletic shoe and apparel seller in the world. This company has seen major expansions in outlets throughout the world over the years. Adidas on its part has managed to build a powerful brand through its technological innovations and aggressive marketing where they spend up to thirteen per cent of their revenue besides offering high quality services. These scenarios seem to present Under Armour with a massive competitive disadvantage.
The sports apparel and accessories industry has a highly competitive market. Businesses are constantly competing for elite athletes to sponsor, raw materials, and every opportunity to expand. Under Armour is able to not only survive but thrive in this market because of their ability to think outside of the box. They are constantly creating new and exciting products that help athletes everywhere.
44. Columbia Sportswear Company. Columbia. About Us. [Online] April 18, 2012. [Cited: April 23, 2012.] http://www.columbia.com/About-Us/About_Us_Landing,default,pg.html.
Many global companies like Nike, Inc. are seen as role models both in the market place as well as in society in large. That is why they are expected to act responsibly in their dealings with humanity and the natural world. Nike benefits from the global sourcing opportunities, therefore areas such as production and logistics have been outsourced to partner companies in low-wage countries like China, Vietnam, Indonesia and Thailand. As a result the company is limited nowadays to its core competencies of Design and Marketing.
Under Armour is a company that never stops innovating, as it has more than 40 scientists, and engineers always workin in hopes of finding the next successful idea. UA also hosts two “Future Show Innovation Challenges,” each year, so that young, and ambitious entrepreneurs around the world have the opportunity to showcase their ideas. This Under Armour future show is the base (starting point) of many of the products that Under Armour releases, or plans to release year after year. Usually around 12 finalists are selected amongst 1,000’s to meet in Baltimore at the Under Armour headquarters where CEO Kevin Plank and his team analyze the products. It’s an opportunity for them engage with entrepreneurs who may be see something that they may not
Adidas AG (German pronunciation: [ˈadiˌdas]) is a German multinational corporation that designs and manufactures sports shoes, clothing and accessories. The company is based in Herzogenaurach, Bavaria, Germany. It is the holding company for the Adidas Group, which consists of the Reebok sportswear company, Taylor Made-Adidas Golf Company (including Ashworth), Rockport, and 9.1% of FC Bayern Munich. Besides sports footwear, Adidas also produces other products such as bags, shirts, watches, eyewear and other sports and clothing-related goods. Adidas is the largest sportswear manufacturer in Europe and the second biggest in the world, after