strategicinsight
BY JAMES A. COOKE, EDITOR AT LARGE
ASICS keeps pace
ASICS America’s
single distribution
center couldn’t keep
with growing demand
up with surging
demand for its athletic
shoes and apparel.
Changing its
distribution pattern
and adding another
warehouse helped the
company manage
both current sales and
future growth.
BACK IN 2008, ASICS AMERICA WAS HAVING TROUBLE KEEPING AHEAD OF
demand for its athletic shoes and apparel. Sales for the North American branch of the
Japanese manufacturer were growing by 21 percent annually, which turned out to be
both a blessing and a curse. While the gains in revenue and market share were welcome indeed, the strong sales performance had also caused ASICS’ single U.S. distribution center to hit capacity. That resulted in service slowdowns and raised concerns
about the company’s ability to handle future growth.
“We realized a year ago that with the growth we were having as a company, our current distribution model was not going to support the business in the next couple of
years,” says Gary Jordan, chief supply chain officer for ASICS America.
Clearly, the manufacturer needed more distribution capacity, and soon. Before it
could act, however, Jordan and his colleagues needed to answer two questions: How
could the company quickly get a handle on current growth? And what would be the
most cost-effective way to develop capacity to support future expansion? To answer
those questions, ASICS America conducted an analysis of its distribution system. The
results led the manufacturer to reroute some of its shipments to bypass the DC,
expand its use of a third-party logistics service provider (3PL), and build a second distribution center. Here’s a look at what ASICS America has accomplished to date and
its plans for the future.
PHOTOS COUR TES Y OF ASICS
