Executive Briefings

Finish Line Sees Sales Increase After Fixing Supply Chain Shortfalls

Last year some well documented supply chain miscues trimmed more than $30m in sales from The Finish Lines' bottom line, and left the retailer with unsold inventory in their DCs and disappointed customers in their stores.

The retailer moved quickly to address the issue, investing in both third-party resources and technical firepower to ensure product was where it needed to be, when it needed to be. Thanks to the retailer's willingness to openly address its supply chain shortfall, Finish Line has its fulfillment network humming at unheard of levels.

"When I assumed the role of CEO in February, our number one priority in the near-term was addressing the supply chain issues that plagued our performance late last year and during the early part of fiscal '17," said CEO Sam Sato in a recent earnings call with analysts. "We are pleased to report that we are now at and in most cases above historic levels on all key metrics such as direct to consumer fulfillment rates, speed of delivery and cancellations. Our focus remains on driving efficiencies from end-to-end in our supply chain that will benefit the company and our customers in the near and long-term."

Beyond the obvious ramification of decreased sales, the supply chain issues left Finish Line with a significant increase in unsold merchandise in its DCs and warehouses. At the end of Q1 2017 (June 2016) the retailer's inventories were up 9 percent, prompting aggressive markdowns to clean out the inventory backlog.

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The retailer moved quickly to address the issue, investing in both third-party resources and technical firepower to ensure product was where it needed to be, when it needed to be. Thanks to the retailer's willingness to openly address its supply chain shortfall, Finish Line has its fulfillment network humming at unheard of levels.

"When I assumed the role of CEO in February, our number one priority in the near-term was addressing the supply chain issues that plagued our performance late last year and during the early part of fiscal '17," said CEO Sam Sato in a recent earnings call with analysts. "We are pleased to report that we are now at and in most cases above historic levels on all key metrics such as direct to consumer fulfillment rates, speed of delivery and cancellations. Our focus remains on driving efficiencies from end-to-end in our supply chain that will benefit the company and our customers in the near and long-term."

Beyond the obvious ramification of decreased sales, the supply chain issues left Finish Line with a significant increase in unsold merchandise in its DCs and warehouses. At the end of Q1 2017 (June 2016) the retailer's inventories were up 9 percent, prompting aggressive markdowns to clean out the inventory backlog.

Read Full Article