Analysis

Sport Spot’s main process and flows does not have the same procedure as Footlocker or many other big franchises. The way Sport Spot manages their footwear inventory is much simpler because they use codes to identify their products. Their quantity flow is a big part in this industry because they have a vast variety of items. The C.E.O. Jack Katz told us that they have the most popular brands for their customers. Mr. Katz has been in this business for a long time in the same location, so he knows what his customers like. For example, they sell sneaker brands such as Jordan’s, Nike, and Adidas, Polo’s, Converses, Levis, Nautica, True Religions, Lacoste, Vans, BBC, Uggs, Timberlands, and much more. For the clothing inventory, they have Levis, North Face, Buffalos, Mek Denims, Lacoste, True Religions, Nurtica, Nike, uniforms, and much more. North Face, Uggs, Jordan’s, Nikes, Lacoste, and Buffalos are the biggest sellers in the store, but also the most expensive brands. Since these brands are favored by many customers, they sell regularly every week. Many clothing brands are accompanied by footwear.

Sport Spot’s revenue has been satisfying for many years since they are well known in the city and neighboring cities. Since the recession hit in the late 2000s, Sport Spot did suffer a hardship. Despite the some slow months, Tax Reimbursement is always a kick up season (March-April), along with Father’s day (June), Valentine Day (February), Christmas (December) and mainly on the other big holidays. Due to that, they make up for the other slow months. The ways the inventory is setup, Sport Spot have two types of ordering processes. One process method is that they order seasonally (every two to four months). This is only on products that never go out of style and is a frequent demand (such as ACG Nikes, Timberlands, and Air Force One Nikes). The other ordering process is just buying whatever the new style is for that season, meaning, just ordering whatever they want to order at that moment in time. There are no special orderings; no “we will order your size.” We had asked the manager if this was ever a problem for their customers, he had said “There are times when we do not have what a customer want, so we may suggest something different. If that doesn’t work then they just won’t buy anything. However, although we may lose a sale that day, we never lose a customer… Well, at least we try our best” –Duke.

Sport Spots’ inventory size for both sneakers and clothing is roughly about 2000. When they order those constant yet seasonal products (especially footwear) they might order 200 to 250 pairs. Their lead time is 2 weeks to 3 weeks at most. When a customer asks for a size that they don’t have they will just have to tell the customer that their next order shipment will be in the next month or the next season. There are never any manual reminders of what product to buy when it comes to the set continuous inventory because of the perpetual system. The computer automatically knows what they have or do not have. We witnessed two different customers; one customer came in and ordered a “low top, all white Air Force Ones,” the employee knew he had them in stock since these are one of the continuous items and it is very well know. In less than one minute, he came back with his sneaker. The other customer asked for “black low top Adidas Shell toes,” the employee also knew that these were common and frequent, but they usually do not order as many as the Air Force. Unfortunately for the customer, they did not have the size. They told him that the next order of those will not come in again till the early spring season. However, she made a different suggestion.

Sport Spot has different types of tools and equipment that they use to make their process quicker.

Their computer is their main equipment in their store which works as their cash register and inventory organizer. On their sneaker boxes they have codes to determine where they can find their item in the stock rooms. For example 251-825which means “2”is a sneaker “5” is a low top “1” means black. The ending number (825) identifies the sneaker.

1st Number (2)	Type	Sneaker(2)
2nd Number (6)	Style	High Top(6)
3rd Number (1)	Color	Black (1)

However, only the cahiers and the manager, and the guy who is responsible for organizing the inventory (Jose) are allowed to use them. All the seals associates have to check manually for products. Sport Spot has a big stock room that divides into sections for sneakers, boots, shoes, clothes (Bags, hats and scarves). Sport Spot also have another room for the footwear that sells frequently; usually less than a week. They call is Jose’s Room. It saves time putting so rapid sellers there because it would be difficult to make space in the correct section for only a few days. On their sneaker boxes they have codes to determine where they can find their item in the stock room; this process makes it quicker for them to get to.

The diagram above indicates how the daily Operations of Sport Spot is. First, the customer makes a request; a sales associate checks the inventory for the item, then they are checked out at one of the two registers.