2002, Professor Jerome M. Katrichis
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Sports Authority Example
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The Sports Authority has a strong focus on customer service. They divide their selling and non-selling functions in order to allow sales associates to devote their full attention to customers. Non-selling functions, such as receiving and stocking of shelves, are completed during non-operating hours so that customers are not inconvenienced. The company is a price leader, providing competitive pricing compared to traditional sporting goods and specialty sporting goods stores. They offer the largest selection of brand name products for sports equipment, apparel, and footwear, offering an average of greater than 40,000 active SKUs per store.
While using a perpetual inventory system, the Sports Authority is a leader in the industry with regards to inventory management technology. Their information systems allow the company to integrate all aspects of the business. This top grade system enables management to monitor inventory levels throughout the corporation from raw materials to finished goods on specific store shelves. The merchandise mix and configuration for each store is tailored to the geographic region and preferences of store customers. This is accomplished by using JDA’s Merchandise Management System and MarketMax’s Assortment and Space Planning system. The company employs point of sale (POS) terminals in all of its stores and radio frequency hand held scanners. All of these systems allow Sports Authority to precisely track and manage their inventory as well as reduce the employee’s amount of non-selling functions, which distinguishes them from their competitors.