USA: i2 Blames Nike Implementation For Inventory Problems
The argument over who's to blame for Nike's flawed inventory software has continued with supply chain software supplier i2 Technologies blaming Nike's customised implementation for the mistakes that have caused the sports giant to cut its earnings estimates.
Nike announced earlier this week that a flaw in the inventory system from i2 Technologies has lead to insufficient stock of some footwear models and excess stock of others.
In financial terms the sports footwear manufacturer has been left with a fiscal third quarter sales drop of around $100m and an estimated earnings drop for the quarter from its previous 50/55 cents level to just 34/38 cents per share.
i2 however, has countered Nike's claims of flawed software telling one news website that it issues specific methodology and templates for customers to use but Nike chose not to use the company's recommendations.
The company has also sought to reassure other customers that the problems surrounding Nike's software is an isolated incident and that other users systems are not at risk.
Despite their differences the companies are still working together and i2 employees have been quick to implement new software and practices into the system to eradicate the flaws.
Unfortunately for Nike the changes have come about just a little too late. It may have been able to catch up on the back log of orders that were not met but it is going to take some time to dispose of the excess orders through discount distributors such as the Nike outlet stores.
Companies: Nike Inc
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