Inventory Management Study Of Li Ning Sports Goods Co., LTD.

Globalization has profoundly affected how companies are doing businesses now. New risks and challenges have emerged from these new global supply chains. Together with the impact of e-commerce and financial crises, many companies found themselves facing huge challenges in managing their supply chains strategically and operationally.Managing supply chain is especially complex in the clothing industry given the short life cycle of products. Any failure in this process can be devastating for operations and market share.Being one of the best-known clothing retailers in China, the Li-Ning Company has long been associated with high-quality sportswear. However, in 2011, Li-Ning’s inventory skyrocketed and since then the company has been experiencing losses every year. It was clear to the management that these supply chains management issues had to be fixed.This case focuses upon the inventory and supply chain management of the Li-Ning Company and the strengths, weaknesses, opportunities and threats of their business decisions. By recommending an updated supply chain process, this case aims to help Li-Ningestablishing an advantage over its competitors, mitigate risks and build a global supply chain that is competitive while sustainable.