Structured Process Analysis

Structured Process Analysis 

Structured processes are formally defined, standardized processes that involve day-to-day operations: accepting a return, placing an order, purchasing raw materials, and so forth. The structured business process we will focus on is inventory. The scope of the inventory structured business process at Nike includes all the steps used to manage products from planning to delivery. It involves predicting how much customers will buy, ordering and producing the right number of products, and tracking inventory in warehouses, stores, and online. The process also includes storing and moving products to the correct locations, fulfilling customer orders, handling returns, and using data and technology to prevent having too much or too little stock. The overall goal is to make sure the right products are available at the right place and time while keeping costs low and customers satisfied.

Step By Step Inventory Process

When considering the overall effectiveness of Nikes inventory process, it does effectively support operations. This can be credited to Nikes use of advanced technology systems, like RFID tracking that supports its forecasting predictions and help manage stock. The use of automated systems improves efficiency. The company uses three specific company’s as suppliers of RAIN RFID technology that they embed in their products. The tech companies include Impinj for items throughout the supply chain, CoreRFID for specific product lines like Nike+, and iTag Smart Tags used in some regional inventory. Not only do these tags help the process of inventory they reduce risk of counterfeiting and enhance customer service in stores. Some challenges that exist are with integration and cost management. While RFID technology is helpful that data requires cloud computing and must be updated over time. Having to integrate innovative technology with already existing information risk incompatibility resulting in data silos and inefficiencies. The technology is also expensive. When considering scaling as the brand increases it inventory, the cost of tracking technologies and cloud systems require significant long-term investment. Despite these challenges the inventory process at Nike is efficient and supports functional operations. 

RAIN RFID

 

Nikes inventory process is supported by a Inventory Management system that integrates RFID tracking technology, warehouse management systems, and ERP software that checks products across its global supply chain. This system lets Nike track its inventory in real time as products move from its manufacturers to warehouses and then retails stores, ensuring correct stock levels and seeing how efficient it can replenish its products. Nike uses RFID scanners to collect inventory data, other softwares they use called “Power Bi” shows stock availability, sales trends and demand forecasts. It stores data such as SKUs, the quantity of products on hand, shipment records, and reorder points, which for managers it helps them to make decisions on what they should ask to get restocked or what should be put on hold and

stored at the warehouse.

IS Component	Nike Inventory Example	How it supports the Inventory Process
Hardware	RFID scanner (RAINs, barcode scanners, store tablets, POS systems	Scans products as they move through warehouses, stores, and to consumers. It updates stock level in real time.
Software	ERP systems (SAP), Inventory Management System, Power BI dashboards	Tracks inventory levels, generates reports, forecasts demand, triggers reorder alerts.
Data	SKU Numbers, quantity on hand, shipment records, supplier data, product size & color, reorder points	Provides information for restocking, forecasting, and decision-making
Procedures	Scanning shipment once it arrived updating inventory after each sale, checking low-stock alerts, transferring stock between locations	Ensures inventory is being counted correctly, transferred from one site to another correctly (warehouse to store), and being replenished before stock sells out.
People	Warehouse employees, store associates, inventory managers, data analysts, supply chain planners	All use the system to track stock, analyze reports, and make decisions on replenishment.

Information Silo

Tthere is an information silos within our process. Nike operates across various regions with different suppliers and distributor networks. The departments within this system are product design, manufacturing, marketing, finance, and e-commerce. Recently, Nike has had an interest in reducing silos and improving real-time data updates across all departments.

Our current information system currently reduces silos effects but does not fully eliminate them due to organizations, geographic, and strategic complexity.

There are some issues with the IS, there were a major ERP implementation failure in the 2000s, it caused inaccurate predictions, and overproduced and underproduced shoes or models. From data fragmentation across channels, data privacy risks, user resistance, and high cost.

CRM, ERP, and EAI

Customer Relationship Management (CRM) is an information system that supports the customer life cycle, including marketing, sales, and customer service activities. It helps organizations manage customer data, track interactions with customers, and improve relationships with them. Enterprise Resource Planning (ERP) is an information system that integrates business processes across an organization, such as accounting, manufacturing, inventory, sales, and human resources, into a single system and database. Enterprise Application Integration (EAI) is a suite of software applications that integrates existing systems by providing layers of software that connect different applications so they can communicate and share data. (Kroenke & Boyle, 2025)

 

The major ERP vendors include SAP, Oracle, Microsoft, Infor, and Sage. These companies provide ERP systems that integrate different organizational processes and data into one system used across the enterprise.

 

Nike does use one of these ERP vendors. Nike uses SAP as part of its enterprise information system to manage operations such as supply chain management, inventory tracking, financial reporting, and global logistics. Using an ERP system helps Nike integrate data across departments and improve coordination between manufacturing, distribution, and retail operations.

Inter-enterprise Information System

An inter-enterprise information system is an information system that supports business processes that span two or more independent organizations. These systems allow companies to share information and coordinate activities with suppliers, distributors, and partners to improve efficiency and reduce information silos. (Kroenke & Boyle, 2025)

 

Nike does have inter-enterprise information systems through its global supply chain and distribution networks. Nike exchanges data with suppliers, manufacturers, logistics companies, and retail partners to coordinate production, shipments, and inventory levels. These systems allow Nike to track products as they move through the supply chain and ensure that stores and online platforms have the correct products available.

 

Nike should continue to expand the use of inter-enterprise information systems because they improve communication and coordination with suppliers and partners. Strong integration with suppliers and logistics providers allows Nike to respond faster to demand changes, reduce delays in production, and maintain efficient inventory levels across its global operations.