Analysis of Nike distribution facility's outbound process flow

Abstract

A simulation study was conducted to run different scenarios on the outbound process flow affected by the Soccer World Cup 2010 event. Along with Excel spreadsheets this simulation proved to be vital in the decision making of the build up for the World Cup. The results obtained showed that not all KPI’s where at their optimal level, thus changes where made in the number of resource at certain workstations. It also indicated that the system was resistant to change and modifications on process logic is needed to create the desired flexible. The change in the resources deployment will save Nike labour cost due to high productivity and utilisation in different department. The system changes will reduce process cycle time and order lead time, which in turn will result in increased customer satisfaction. Increasing the flexibility indicated that more goods could be delivered in the same period of time, thus increasing the number of sales. Overall the project is a huge success and will yield significant cost reduction after implementation in February 2010. The simulation model is re-usable internally and further studies can be conducted on outbound process flow and planning processes.