Management Systems Discussion

Vintage Shoes Inc. (VSI) is an authorized manufacturer of replica athletic shoes from the 1960s and 70s. The Portland-based company produces running shoes and basketball shoes based on styles like Converse, Pro Keds, and Puma. The shoes are manufactured in Vietnam, shipped to the U.S., and sold by boutique retailers.

Demand skyrocketed after celebrities starting wearing VSI shoes. Chuck Taylor, CEO, received a call from Nike about recreating its Blazer shoes for sale in the companys stores. This would be a coup for VSI and send its sales into the stratosphere. The call was going well until the Nike representative asked about the integration level of VSIs information systems.

Chuck explained that VSI had a home grown warehouse management system and order management tools but relied on their international freight forwarder for transportation planning and execution. He added that none of these systems were integrated and all required a lot of manual data transfer.

After a brief silence, the Nike rep said We require contract manufacturers like VSI to conduct all transactions electronically, provide end-to-end visibility of inbound freight and inventory levels, and be moving toward digitized supply chain capabilities. Can you get to that level of technology within the next six months?

Without thinking, Chuck replied I have every confidence that my technology team can do this. When the call ended, he looked around at his team and said What do we do now?

Focusing on only the warehousing and transportation aspects of the business, and using resources provided this week, briefly discuss what you think VSIs first steps should be. What type of system should they be looking for? What features will be most important? Why?