Nikon Focuses on Supply Chain Innovation

Nikon Focuses on Supply Chain Innovation and Makes New Product Distribution a Snap

Top  consumer  goods  manufacturers  now  recognize  that  success  requires  more  than  just  making  market-leading  products. Having  the  right distribution network  is  just as critical. Nikon  Inc.  is  the world’s  leader  in precision optics,  35mm and digital imaging technology. So it’s no surprise that when the company saw the next big trend in photographic  technology —digital  cameras—they were  ready  to  deliver with  some  of  the most  advanced  product  designs  in  the  marketplace.  But  to  ensure  that  retailers  could  meet  the  demand  of  tech-hungry  consumers  and  professional

photographers, Nikon, with the help of UPS Supply Chain Solutions, reengineered its distribution network to keep them  well supplied. 

To  support  the  launch  of  its  new  digital  cameras,  Nikon  knew  that  customer  service  capabilities  needed  to  be  completely  up  to  speed  from  the  start  and  that  distributors  and  retailers would  require  up-to-the-minute  information  about  product  availability. While  the  company  had  previously  handled  new  product  distribution  in-house,  this  time Nikon realized that burdening its existing infrastructure with a new, demanding, high-profile product line could impact  customer service performance adversely.  “In our business, it’s not enough just to produce leading-edge products,” said

Arnold Kamen, Nikon’s Vice President of Operations  and Customer Service.  “Having  the  ability—and visibility—to  predict how much merchandise  is  available  and when  it  can be distributed makes  the difference  in  staying  ahead of  customers’  needs.”  For Nikon,  that meant  applying  its well-known  talent  for  innovation  to  creating  an  entirely new  distribution strategy and taking the rare step of outsourcing distribution of an entire consumer electronics product line.  With UPS Supply Chain Solutions on board, Nikon was able  to quickly execute a synchronized supply chain strategy that moves product to retail stores throughout the United States, Latin America and the Caribbean, and allows Nikon to  stay focused on the business of developing and marketing precision optics.   

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1.       What were  the options available  to Nikon  for  focusing  the  facility networks  in order  to  reduce  the  lead  time of  retailers of US, Caribbean and Latin American markets?

2.        What  were  the  characteristics  that  Nikon  might  have  considered  for  its  logistics  information  and  telecommunication system LITS?