SCM20003 - Global Logistics and Supply Chain Management Semester 1, 2025 Assignment 2 Report Prepared by: Group 2 Nguyen Thi Anh Ngoc - 104988786 Pham Tran Phu Thanh - 105061934 Tran Thi Thuy Lien - 105705559 Pham Hoang Uyen Thu - 104169552 Nguyen Truc Minh Uyen - 104336893 Prepared for: Dr. An Duong Wordcount: 4434 NIKE PREMIER LEAGUE ACADEMY 2024/25 FOOTBALL This report develops a forecast and distribution plan for the Nike Premier League Academy 2024/25 Football (PLU: M69571801), ensuring efficient supply to meet projected demand across Rebel Sport outlets in Australia from January 2024 to December 2024. Nike Australian leading sports equipment and apparel chain Offering high-quality sports equipment, apparel, accessories Network design: standalone stores & sections within larger retail spaces (totaling 163 stores) & online presence Nike Premier League Academy 2024/25 Football Founded in 1964 and headquartered in Beaverton, Oregon Selling high-quality athletic footwear, apparel, equipment, and accessories, emphasizing innovation and superior construction. The Official Ball Supplier of the English Premier League (EPL) from the Nike Geo Merlin (2000/01) to the latest Nike Flight (2024/25) DEMAND FORECASTING Forecasting predicts future trends using past data and relevant variables. Method Price: 39.9 AUD Characteristics: Durability, Flight Stability, Accuracy Manufacture: Vietnam mm, Category: Training and semi-competitive football product Customer segment: Amateur Club Players, Skill Development Players, and Recreational Football Enthusiasts SOURCING SUPPLIERS Bill of Materials Inner Bladder - 67% Butyl Rubber Valve Assembly - Butyl Rubber Inner Layers - 13% Polyester, 10% Ethylene Vinyl Acetate (EVA) Quantitative forecasting method Time Series Why: Nike leverages data-driven forecasting for precision in supply chain planning. Outer Cover -10% Polyurethane (PU) Autoregressive details Integrated Stitches (Polyester Thread) 3D ACC (All Conditions Control) Ink Moving Average How: Analyzes past sales trends, seasonality, and external factors to optimize inventory and meet demand. (ARIMA) Supply chain diagram Prediction Model Influencing factors Trend: Growing participation in football, driven by high engagement among youth and a rising fan base in urban areas. Seasonal: Peak football participation during spring/summer enhances product sales, especially around major tournaments. Cyclical: Strong economic growth in Australia supports increased discretionary spending on sports gear PLACE, TIME AND QUANTITY UTILITY Thailand Suppliers: A major hub for natural rubber production with a strategic shipping location in Southeast Asia China Suppliers: A global manufacturing leader with advanced infrastructure, abundant labor, and a strong logistics network. Japan Suppliers: A leader in technological innovation, ensuring high precision, durability, and performance in manufacturing. Place Utility Time Utility Quantity Utility Need information on -Stores -Warehouses -Suppliers -Distribution infrastructure -Order processing -Lead time -Inventory levels -Supplier lead times -Logistics scheduling -Order accuracy -Sales & reorder analytics -Returns data PERFORMANCE MEASUREMENT SCOR model 15 days Estimated delivery time PLAN/SOURCE/MAKE/DELIVER/RETURN Logistics & Supply chain DISTRIBUTION Inovation & Learning Balanced Scorecard Customer Business Finance Contract warehousing Contract with 3PLs Risk Mitigation Cost Efficiency & Scalability Focus on Core Competencies Advanced Technology & Tracking Operational Efficiency Global Logistics Expertise TABLE OF CONTENT 1. INTRODUCTION.............................................................................................................................2 1.1. Background of Nike and the Selected Product.......................................................................... 2 1.2. Background of Rebel Sport........................................................................................................3 1.2.1. Market Operations & Network Design:............................................................................ 3 1.2.2. Online Presence & Digital Supply Chain:........................................................................ 4 1.2.3. Product Range & Customer Segments of Nike Premier League Academy 2024/25 Football:...................................................................................................................................... 4 2. DEMAND FORECASTING............................................................................................................ 6 2.1. Forecast definition and evolution...............................................................................................6 2.2. The forecasting methods suitable for Nike Premier League Academy 2024/25 Football......... 7 2.3. Factors influencing demand....................................................................................................... 9 2.3.1. Market Trends:.................................................................................................................. 9 2.3.2. Seasonal Patterns:........................................................................................................... 10 2.3.3. Business Cycles.............................................................................................................. 10 3. SOURCING SUPPLIERS.............................................................................................................. 12 3.1. Bill of Materials (BOM).......................................................................................................... 12 3.2. Supply Chain Diagram.............................................................................................................15 4. PLACE, TIME AND QUANTITY UTILITY.............................................................................. 16 5. SUPPLY CHAIN PERFORMANCE MEASUREMENT...........................................................17 6. DISTRIBUTION............................................................................................................................. 19 6.1. Distribution Route....................................................................................................................19 6.2. Estimated delivery time........................................................................................................... 23 6.3. Private fleet or contract 3PLs...................................................................................................25 6.4. Private or contract warehouse.................................................................................................. 26 6.4.1. Private warehouse........................................................................................................... 26 6.4.2. Contract warehousing:.................................................................................................... 27 7. CONCLUSION............................................................................................................................... 28 REFERENCES....................................................................................................................................29 APPENDIX.......................................................................................................................................... 44 List of Figures Figure 1 The ultimate forecasting model 6 Figure 2 The process of forecasting 7 Figure 3 Four examples of time series showing different patterns 8 Figure 4 Contributions of Discretionary and Essential Consumption to Quarterly GDP Growth in Australia 11 Figure 5 Nike Premier League Academy 2024/25 Football’s bill of materials 12 Figure 6 Nike Premier League Academy 2024/25 Football’s supply chain model. 15 Figure 7 SCOR process-related indicators. 18 Figure 8 Relationships between supply chain management and the BSC Framework 19 Figure 9 Nike’s Contract Manufacturing Facility in Vietnam – Tremon Sporting Goods Enterprise Co., Ltd. 20 Figure 10 Distribution Route of Nike Premier League Academy 2024/25 Football 22 Figure 11 Specific route and estimated time of transportation from Vietnam to Australia 25 List of Tables Table 1 Bill of materials of Nike Premier League Academy 2024/25 football ball and supplier information 14 Table 2 Information Flow Management 17 Table 3 Comparison of Modal Capabilities 21 Table 4 Breakdown of Estimated Delivery Time 24 List of Abbreviations 3PL Third-party Logistics ARIMA Auto Regressive Integrated Moving Average BOM Bill of Material DCs Distribution centers PU Polyurethane SCOR Supply Chain Operations Refer IFM Information Flow Management BSC Balanced Scorecard Keywords: Nike, Rebel Sport, Nike Premier League Academy 2024/25 Football, Supply Chain Management, Supplier Sourcing, Value-added utilities, Performance measurement, Distribution Network, 3PLs, Demand forecasting. 1 1. INTRODUCTION This report presents a comprehensive analysis of the supply chain for the Nike Premier League Academy 2024/25 Football (PLU: M69571801) within the context of Rebel Sport Australia’s retail operations. It examines Rebel Sport’s operational background, product range, and customer segmentation to contextualize the strategic positioning of the chosen product. Key components of the analysis include estimating demand through forecasting methods, factors influencing product demand, creating a Bill of Materials (BOM), and assessing supply chain logistics, including distribution routes and transportation modalities. The report also evaluates transportation modalities and warehousing options while considering geopolitical risks related to supplier selection. Ultimately, this analysis aims to provide Rebel Sport Australia with actionable insights to develop a forecast and distribution plan for the period January 2024 to December 2024, optimizing product availability, reducing costs, and enhancing customer satisfaction to strengthen Rebel’s market competitiveness. 1.1. Background of Nike and the Selected Product Nike, Inc. is a global leader in selling athletic footwear, apparel, equipment, accessories and services, renowned for its innovation and high-quality construction in the development and manufacturing of the products. Founded in 1964 and headquartered in Beaverton, Oregon, the company operates a diverse portfolio, including Nike, Jordan, and Converse, catering to professional athletes, sports teams, and fitness enthusiasts worldwide (Wu, 2024). The company relies on over 700 offshore manufacturing partners, primarily in Asia, to support its apparel, footwear, and equipment production, ensuring large-scale global distribution despite geographical distance from key consumer markets such as North America (Emeghara et al., 2017). Nike offers a broad range of performance equipment and accessories under the NIKE Brand, including sport balls, bags, socks, protective gear, eyewear, and digital devices (U.S. Securities and Exchange Commission, 2024). As the Official Ball Supplier of the English Premier League (EPL) since the 2000/01 season, Nike continuously providing advanced football technology from the Nike Geo Merlin (2000/01) to the latest Nike Flight (2024/25), integrating Aerowsculpt technology for enhanced flight stability and accuracy (Premier League, n.d.). Nike’s Premier League 2024/25 ball 2 lineup consists of multiple tiers tailored to different playing levels, such the Nike Premier League Flight, Academy, Pitch, and Skills Ball. 1.2. Background of Rebel Sport Rebel Sport is Australia’s leading sports retail chain, offering a diverse range of sporting goods, apparel, and footwear across multiple categories, including football, tennis, running, and gym equipment (Rebel, 2024). Rebel was founded in 1985 and has since developed into a major force in the Australian sports retail industry, serving both amateur and professional athletes. The company stocks products from major global brands such as Nike, Under Armour, ASICS, Reebok, Puma, and Adidas, providing customers with high-quality sports gear and accessories. Rebel operates an extensive network of brick-and-mortar stores across Australia, alongside a robust e-commerce platform, allowing customers to shop conveniently both in-store and online (Pacific Werribee, 2025). 1.2.1. Market Operations & Network Design: The company operates through a multi-channel distribution strategy, seamlessly linking retail stores with a strong online presence to serve a diverse range of customers. Rebel Sport’s retail network includes 163 stores across Australia distributed as follows: • New South Wales (NSW): 51 stores • Victoria (VIC): 39 stores • Queensland (QLD): 39 stores • Western Australia (WA): 16 stores • South Australia (SA): 11 stores • Australian Capital Territory (ACT): 4 stores • Tasmania (TAS): 2 stores 3 • Northern Territory (NT): 1 stores Rebel Sport employs a centralized distribution model, where inventory is stored at distribution centers (DCs) before being transferred to retail stores nationwide. This model reduces lead times, optimizes transportation costs, and minimizes excess inventory risks (Chopra.S, 2021). Additionally, Rebel Sport collaborates with logistics partners to enhance transportation efficiency, particularly during peak football seasons, allowing the company to focus on retail operations while ensuring fast and cost-effective store replenishment (Christopher, M., 2022). 1.2.2. Online Presence & Digital Supply Chain: Rebel Sport’s e-commerce system integrates real-time order processing, inventory management, and distribution, improving demand forecasting, stock optimization, and cost efficiency (Hübner et al., 2022). With real-time inventory tracking, customers can check product availability before purchasing, reducing stockouts and enhancing shopping convenience (Wagner, S. M., & Sutter, R., 2012). To support e-commerce operations, Rebel Sport leverages an optimized delivery network, including express shipping and click-and-collect services, minimizing costs and shortening delivery times (Deloitte, 2023). 1.2.3. Product Range & Customer Segments of Nike Premier League Academy 2024/25 Football: The company’s product range spans multiple categories, including sports equipment, apparel, footwear, and fitness accessories, ensuring that customers have access to high-quality gear from leading global brands (Appendix 1). Rebel Sport Australia offers a diverse selection of footballs from brands like Nike, Adidas, and Wilson, catering to a wide spectrum of customer segments, including professional athletes, amateur club players, skill development enthusiasts, and recreational participants (Rebel Sport, 2024). Within this product portfolio, the Nike Premier League Academy 2024/25 Football occupies a strategic mid-tier range, designed to balance performance with affordability. Priced at AUD 39.99, this ball sits between entry-level training balls (AUD 20-40) and premium FIFA-certified match balls (over AUD 200) (Rebel, 2024) This pricing strategy reflects the 4 product's intended usage: to provide a durable and reliable option for players who require performance beyond basic training equipment but do not necessitate the specifications of a professional match ball. The price allows for regular use without the financial burden associated with high-end models, making it a practical choice for consistent training and semi-competitive play (Nike, 2023). The customer segment for the Nike Premier League Academy 2024/25 Football primarily comprises: ● Amateur Club Players: Individuals participating in organized, non-professional leagues who require a durable and reliable ball for regular training and club matches. ● Skill Development Players: Youth players and individuals focused on enhancing their football skills, who seek a balance of quality and affordability for effective training. ● Recreational Football Enthusiasts: Individuals engaging in football for leisure and fitness who prioritize durability and functionality for casual play. 5 2. DEMAND FORECASTING 2.1. Forecast definition and evolution Forecasting is a method of predicting future occurrences or trends using available data, and past patterns and examining relevant variables (Amara, 1988). Forecasting is a crucial supply chain management process since it improves labor efficiency, inventory control, and product flow while increasing profitability (Marien, 2001). Aside from these operational benefits, it enables informed decisions in production, inventory management, and resource allocation (De et al., 2015; Syntetos et al., 2009; Wacker & Lummus, 2002). Businesses can improve planning accuracy by evaluating historical sales data to discover demand trends, such as seasonal swings (Kusiak et al., 2007). Furthermore, forecasting improves risk management by predicting demand fluctuations, allowing firms to establish contingency plans (Ittner & Michels, 2016) and facilitating goal setting through realistic performance benchmarks (Lawless, 2008). There are two types of forecasting techniques: qualitative, which rely on expert opinion (Clarke, 1992), and quantitative, which employs historical data and statistical models (A. Goldstone, 2008). To improve accuracy and dependability, forecasters frequently use a mix of the two methodologies (Figure 1). Figure 1 The ultimate forecasting model Source: (Caniato et al., 2011, p.7) 6 A structured strategy for forecasting combines historical data analysis, model selection, accuracy evaluation, and iterative improvements to improve prediction dependability (Figure 2). Figure 2 The process of forecasting Source: (Uddin & Sultanul Hasnat, 2018, p.5) 2.2. The forecasting methods suitable for Nike Premier League Academy 2024/25 Football To forecast demand for the Nike Premier League Academy 2024/25 football product, the ARIMA time series analysis model is a suitable quantitative forecasting method. ARIMA is a time series forecasting technique that is especially effective for products with historical sales data, identifiable trends, and seasonal demand fluctuations. To forecast the operational time series, Nike must collect sales data for the football product over a specific period (e.g. daily, weekly, monthly). This data will then be visualized through a time series chart to identify increases and decreases in trends, seasons, and periods. Compared to other methods such as exponential smoothing and weighted moving average, the ARIMA model has a more diverse combination of both trends and seasons. ARIMA also adjusts to 7 changes in demand patterns by analyzing historical data and forecast errors (Chatfield et al., 2019). Additionally, it helps predict demand spikes to help retailers maintain appropriate inventory levels, limit bottlenecks, and reduce inventory costs. The ARIMA method can be refined by Rebel to predict and automate production planning for highly variable situations including: Increased demand before major tournaments such as the World Cup, FIFA, UEFA Champions League, and another small domestic league. Major promotions during the year such as Black Friday, Christmas, and postseason inventory sales. Sales spike during months when schools and sports academies purchase large quantities of new equipment. Figure 3 Four examples of time series showing different patterns Source: (J Hyndman & Athanasopoulos, 2018) The ARIMA method can also be integrated with other data sources (including social media interactions, search queries, and website traffic) to identify spikes in interest in specific football models. Refinement of trends based on competitive metrics allows Rebel to quickly react to 8 competitors’ pricing strategies. Therefore, the ARIMA model is suitable for markets with external influences such as marketing campaigns, sponsorship deals, and global sporting events. However, ARIMA still has limitations. The ARIMA model assumes that future trends will be similar or continue from past trends. Faced with sudden changes in the market such as economic recessions, the global COVID-109 pandemic will make the model less effective (Bobeica & Hartwig, 2021). In addition, this model also requires a lot of computational resources to adjust the parameters (d, p, and q values), which is a disadvantage for businesses that cannot analyze the data themselves (Hyndman & Athanasopoulos, 2018). In summary, time series analysis and ARIMA modeling are the most optimal choices for Nike's soccer products. However, to ensure good sales, it is necessary to continue monitoring to fine-tune the model to suit market changes. 2.3. Factors influencing demand 2.3.1. Market Trends: Increasing Participation Rates Football is one of the most popular sports in Australia, with high participation rates among children and adults. Over 1.3 million Australians actively participate in football, making it the most played outdoor team sport (Statista, 2024a). Research reveals that participation in Australia is predominantly male, with about 9% of adult males and 3% of adult females participating actively (Statista, 2024b). Youth participation is particularly pronounced, especially among boys aged 9 to 11, who represent the largest segment of players (Australian Sports Commission, 2019). Football has also seen a notable rise in participation across Australia through the rising popularity of tournaments like the FIFA World Cup, Premier League and the A-League, e, generating extensive media coverage and public enthusiasm (Statista, 2024c, Nikolaou et al., 2023). Concurrently, the A-League, Australia's premier football league, is cultivating a growing fan base, particularly in urban hubs such as Sydney and Melbourne (Pisani, 2022). These cities are becoming focal points for football culture, which translates into increased demand for football-related products like the Nike Flight Ball. Regional Demand Dynamics 9 Urban areas like Sydney, Melbourne, and Brisbane are seeing increased demand for football products due to larger populations, active communities, and professional clubs like Sydney FC and Melbourne Victory (Australian Sports Commission, 2019). This strong local support for these teams fosters grassroots involvement, leading to higher participation rates. Additionally, regional areas are also witnessing growth, driven by community engagement initiatives and grassroots programs, further expanding the market for Rebel’s products (Markwide Research, 2025). 2.3.2. Seasonal Patterns: Football participation tends to peak during the spring and summer months (September to February), when weather conditions are most favorable for outdoor activities (Al-Mohannadi & Al-Kuwari, 2015). School holidays and community events occurring during this period further boost engagement, leading to increased sales of footballs (Holmes, 2021). This seasonal trend necessitates a strategic alignment of supply chain activities to capture the heightened consumer interest during these months. Additionally, major tournaments, such as the Premier League and A-League finals significantly amplify media exposure and consumer enthusiasm (Thabi, 2024). These events frequently align with the height of the sport season, leading to a significant rise in public interest and involvement. For example, during the FIFA World Cup, there is a recorded spike in the sales of football-related products as the sport experiences increased visibility and engagement (Nikolaou et al., 2023). 2.3.3. Business Cycles Australia’s GDP is expected to reach $1.88 trillion (nominal) in 2025, with a real growth rate of 2.1%, driven by strong domestic demand and continued infrastructure investment (International Monetary Fund, 2023). This favorable economic climate supports increased discretionary spending, enabling consumers to allocate more funds toward leisure activities, such as purchasing sports gear like the Nike Flight Ball (Hampson et al., 2023; ABS, 2022). Furthermore, the average household disposable income per capita is expected to reach approximately USD 59,710 in 2025, indicating a rising consumer capacity to purchase premium sports products (Statista, 2025). 10 On the other hand, during economic downturns, consumers become price-sensitive, prioritizing essentials and affordable alternatives that offer better long-term value, leading them to reevaluate budgets and focus more on quality and performance over brand loyalty (Hampson et al., 2023; Mansouri, 2021). However, the Nike Flight Ball's strong reputation for quality enables it to remain appealing in tough times, allowing marketing strategies to emphasize its long-term value and superior performance to attract cost-conscious consumers (Keränen et al., 2020). Figure 4 Contributions of Discretionary and Essential Consumption to Quarterly GDP Growth in Australia (Volume Measures, Seasonally Adjusted) Source: (Australian Bureau of Statistics, 2025) 11 3. SOURCING SUPPLIERS 3.1. Bill of Materials (BOM) The Nike Premier League Academy 2024/25 football is a combination of many high-performance materials, to meet durability and aerodynamic precision, each material plays an extremely important role. The supply chain of the production process is researched extremely precisely from the selection of raw materials to the assembly stage, and finally the packaging, and shipping. To ensure the most cost optimization, the choice of raw material origin will come from many countries, especially Asia such as China, Japan, and Thailand. Figure 5 Nike Premier League Academy 2024/25 Football’s bill of materials Core Bladder and Inner Bladder are the first parts of the ball. The center is the part that holds the air and is produced from Butyl rubber in Thailand. Raw Butyl rubber must go through a series of processes such as refining, blending, and vulcanization to increase the ability to hold air. Then the liquid Butyl compound will be molded into a hollow sphere shape. The thermoplastic elastomer (TPE) valve assembly will be linked from the outer shell to the Inner Bladder to pump air in. The Inner Lining and Reinforcement Layers, below the PU layer, require multiple reinforcement layers to ensure the ball's impact resistance. These layers are made with a ratio of 13% 12 Polyester, and 10% Ethylene Vinyl Acetate (EVA), this formula provides the best elasticity. Polyester yarn is the raw material provided by Tier 2, which then goes through a weaving process to increase the toughness and elasticity. The function of the lining also helps to evenly distribute the impact force on all surfaces of the ball, which helps to maintain its shape during use. Outer shell and structural components. The material for the outer layer of the ball is made from 10% Polyurethane (PU) produced in China, with the function of abrasion resistance and water resistance, ensuring durability and flexibility during use. To improve the surface grip, a surface coating will be applied to the PU layer through the polymerization method. Then, for aerodynamic uniformity, the PU sheets are cut into regular hexagonal pieces, each piece consisting of 4 hexagons. Once the PU sheets are ready, they are bonded together with 100% Polyester thread, specially designed for products subject to strong physical impacts such as footballs. After completing the assembly steps, the brand will be printed on the ball using specialized inks, flexographic printing and offset techniques to ensure texture and clarity. The 3D ACC ink is made in Japan, leading to the difference in the type of ink used for the ball, the brand ensures to optimize the friction between the ball and the contact points, avoiding the blurring of the details linked to the ball surface. Each ball before packaging must undergo a general quality test, including verification of roundness, elasticity, pressure retention, and impact resistance. This rigorous test ensures that the ball will meet international football standards. The final step of the production process is packaging. The Premier League Academy ball will be put into a plastic bag and the outermost will be the outer box. Nike's main packaging uses recycled materials to protect the environment while still protecting the ball during transportation. Bio-adhesive tape is also used to reinforce and protect the sustainability of the product. The shipment is packaged in a five-layer carton to optimize production costs, transportation, and storage space. Manufacturing always requires meticulousness in every step from raw material selection to transportation, by taking advantage of low-cost raw materials but still achieving high efficiency and standards, choosing to source from Asian countries is extremely reasonable. The assembly process takes place at a centralized production center, where Tier 2 raw materials are transferred to a processed state by Tier 1 before achieving production efficiency. Post-production and transportation are carefully designed to minimize costs but still ensure product quality standards and timely delivery to distribution centers across Australia. 13 To ensure supply disruption risk, each raw material has at least three sources of supply. The following suppliers have been researched and selected based on the highest quality, scale and comprehensive capabilities (Appendix 2). Table 1 Bill of materials of Nike Premier League Academy 2024/25 football ball and supplier information (A detailed BOM is provided in Appendix 3) 14 3.2. Supply Chain Diagram Figure 6 Nike Premier League Academy 2024/25 Football’s supply chain model. Note. The Nike Premier League Academy 2024/25 Football’s supply chain model is established based on Nike’s supply chain model (Castorena & Monroy, 2020). A detailed Nike’s supply chain model is provided in Appendix 4. 15 4. PLACE, TIME AND QUANTITY UTILITY Place utility ensures that Nike Premier League Academy 2024/25 Football items are offered in appropriate areas that satisfy client demand at Rebel Sports-Australia (Widyarto et al., 2012). Data on store locations, warehouse capacity, and distribution infrastructure are required to be utilized to implement effective IFM strategies. Real-time tracking of vehicles, routes, and carriers allows efficient delivery (Kontaxis et al., 2021). Supplier coordination is based on information concerning supplier locations, timetables, and inventory levels (Chandra and Fisher, 1994). Omnichannel connection monitors e-commerce and physical shop demand to maintain inventory availability (Derhami et al., 2020). Time utility includes making sure products reach Rebel Sports at the appropriate time to match client expectations (Foldesi & Sule, 2009). Tracking order processing, lead time, and inventory levels can help you prevent delays (Jain, 2017; Cachon & Fisher, 2000). Supplier lead time data is important for tracking production schedules and raw material availability in order to minimize supply disruptions (Amelia et al., 2019). Finally, logistics scheduling synchronizes supply schedules with Rebel Sports demand cycles to assure timely replenishment. Quantity utility guarantees that chosen items are delivered in precise amounts, preventing stockouts and high inventory holding costs (Senthilnathan, 2019). Effective information flow guarantees order accuracy through automated verification, while sales and reorder analytics adjust inventory levels in response to demand changes. Returns and reverse logistics data also efficiently handle product returns, allowing inventory to be reallocated where it is required while minimizing waste (Olorunniwo & Li, 2011). To reach these requirements, a comprehensive workflow has been developed, spanning important phases ranging from order forecasting to post-delivery evaluation, providing smooth cooperation between Rebel Sports, Nike, and logistics suppliers via organized communication and digital technologies (Table 2). 16 Table 2 Information Flow Management 5. SUPPLY CHAIN PERFORMANCE MEASUREMENT Performance measurement in logistics and supply chain management is critical to competitiveness in the global economy (Gunasekaran & Kobu, 2007). Aside from financial measurements, critical variables such as order cycle time, inventory turnover, stock availability, and shipping expenses help chosen items reach Rebel Sports-Australia effectively (Stewart, 1995). The SCOR model (Figure 7) monitors performance throughout the Plan, Source, Make, Deliver, and Return processes, whereas the Balanced Scorecard (Figure 8) connects logistical indicators with strategic corporate objectives (Curbelo & Delgado, 2013). ERP systems (such as SAP and Oracle) provide for real-time inventory and supplier performance tracking (Erkayman, 2018), while Supplier Performance Dashboards monitor dependability, lead times, and defect rates (Giunipero, 1990). Logistics and Transportation Management Systems (TMS) also optimize route planning and freight costs, and real-time tracking capabilities improve supply chain visibility (K. Osipova et al., 2020). By combining these techniques, Nike can improve productivity, reduce delays, and assure consistent product supply. 17 Figure 7 SCOR process-related indicators. Source: (Santos & Leite, 2018) 18 Figure 8 Relationships between supply chain management and the BSC Framework Source: (Bryceson & Slaughter, 2010, p.7) 6. DISTRIBUTION 6.1. Distribution Route The primary objective of the distribution operation at the logistics center is to optimize vehicle utilization and determine the most economical driving route map to ensure on-time delivery of goods to customers. Nike utilizes contract manufacturing firms worldwide to manufacture 19 products in the inter-country channel. Under Nike’s pre-order system, retailers place orders 5–6 months in advance, allowing for precise demand forecasting and efficient inventory planning. Once manufactured, finished products are shipped to Nike’s regional distribution centers (DCs) worldwide, where they are allocated based on real-time market demand. Nike’s extensive supply chain includes over 1 million workers across 566 factories, shipping approximately 1.3 billion units annually through 75 DCs to serve more than 30,000 retailers in 190 countries (Lopez & Mckevitt, 2017). For the Nike Premier League Academy 2024/25 Football, production is outsourced to Tremon Sporting Goods Enterprise Co., Ltd., a key contract manufacturer in Vietnam specializing in Nike’s equipment production, including soccer balls (Eximpedia, n.d.) (Appendix 5). Figure 9 Nike’s Contract Manufacturing Facility in Vietnam – Tremon Sporting Goods Enterprise Co., Ltd. Source: (Nike, n.d.-b) 20 Given that the Nike Premier League Academy 2024/25 Football is classified as a low-value, high-volume product, the most suitable transportation mode for shipping soccer balls from Vietnam to Australia is intermodal transportation, specifically a combination of inland trucking and ocean freight (Table 3). While ocean freight has limitations in terms of speed and accessibility, it orders significant advantages that cater to Rebel’s needs such as low cost, consistent service availability for international shipments, and the high capacity to handle large cargo volumes (Rodrigue, 2017). Table 3 Comparison of Modal Capabilities Source: (Coyle et al., 2020, p.441) The transportation process begins with inland trucking, where the cargo is picked up from the manufacturing facility in Trang Bang, Tay Ninh, Vietnam, and transported by truck to the Port of Ho 21 Chi Minh (VNSGN), Vietnam. At the port, the goods are loaded onto a container ship and transported via ocean freight to the Port of Singapore (SGSIN), Singapore, which serves as a major transshipment hub for international trade. The next leg of the journey involves another ocean freight shipment, transferring the goods from Singapore (SGSIN) to Fremantle (AUFRE), Australia. Upon arrival at Fremantle Port, the cargo undergoes customs clearance before being transferred to a truck for inland distribution to Nike’s distribution center in Ravenhall, Victoria, Australia. At this stage, the products are sorted and processed based on demand forecasts before being distributed via Nike’s internal logistics network to Rebel’s distribution center in Bankstown, NSW. From Rebel’s distribution center, the inventory is further distributed to retail stores across Australia through regional trucking networks, ensuring seamless last-mile delivery. Additionally, some inventory is allocated to e-commerce fulfillment centers, supporting direct-to-consumer online orders. Figure 10 Distribution Route of Nike Premier League Academy 2024/25 Football For this transaction, FOB (Free on Board) is the most suitable Incoterm, as it optimizes cost efficiency and risk allocation between Nike (buyer) and Tremon Sporting Goods Enterprise Co., Ltd. (seller), a contract manufacturer in Vietnam. ● Seller’s Responsibilities (Tremon Sporting Goods Enterprise Co., Ltd., Vietnam) 22 Tremon, as Nike’s contract manufacturer, is responsible for manufacturing the soccer balls, export packaging, loading charges, export duties, taxes, customs clearance, and transportation to the Port of Ho Chi Minh (VNSGN). Their liability ceases once the goods are securely loaded onto the designated vessel for export. ● Buyer’s Responsibilities (Nike, Inc.) Upon loading, Nike assumes full responsibility for all subsequent costs and risks, including ocean freight to Fremantle (AUFRE), insurance (if required), import duties, taxes, customs clearance, inland transportation to Nike’s distribution centers (Ravenhall & Bankstown), unloading, and last-mile delivery to Rebel Sports retail stores and e-commerce fulfillment centers. 6.2. Estimated delivery time The estimated delivery time for Nike Premier League Academy soccer balls follows a structured and efficient supply chain, minimizing transit delays while ensuring timely fulfillment. The estimated delivery time journey from the manufacturing facility in Trang Bang, Vietnam, to Rebel Sport retail stores and e-commerce customers across Australia is approximately 15 days. This timeframe accounts for inland transportation, multiple ocean freight legs, customs clearance, and distribution through Nike and Rebel Sports logistics networks. The table below provides a detailed breakdown of each stage in the delivery process. 23 24 Figure 11 Specific route and estimated time of transportation from Vietnam to Australia 6.3. Private fleet or contract 3PLs 6.3.1. Private fleet Owning a private fleet would give Nike and Rebel Sport full control over deliveries, ensuring optimized schedules and branding benefits. Vehicles could be customized to reinforce Nike’s 25 presence, and direct management would enhance service reliability (Coyle et al., 2022). However, high capital investment, fleet maintenance, and fluctuating demand pose significant challenges. (Rushton et al., 2014) note that private fleets can be a financial burden, particularly when shipping volume fluctuates. Given the seasonal demand for soccer balls, a private fleet may not be cost-effective in the long run. 6.3.2. 3PLs Partnering with a 3PL like DHL or Toll Group allows Nike to reduce costs, scale operations, and leverage advanced tracking technologies. (Jr, L., & Capgemini., 2023) highlight that this flexibility is crucial for managing international freight from Vietnam to Australia and ensuring timely store replenishment. However, outsourcing means reduced control, requiring clear service agreements to maintain reliability (Coyle et al., 2022). → On balance, contracting a 3PL is the most strategic choice for Nike and Rebel Sport. It provides cost savings, flexibility, and technology-driven logistics without the financial burden of fleet ownership. By leveraging 3PL expertise, Nike can optimize global shipping, maintain inventory efficiency, and ensure long-term supply chain resilience. 6.4. Private or contract warehouse 6.4.1. Private warehouse By establishing the warehousing, “Direct Control” will be awarded to Nike and Rebel Sport over inventory management which will enable specific storage solutions and processes. This act of control may improve the efficiency of Nike Premier League Academy soccer ball handling in response to particular business objectives. However, the significant capital investment required for infrastructure, technology, and skilled personnel presents notable challenges (Coyle et al., 2022). In addition, the warehouse operations have to be constantly monitored with respect to the changing regulations and industry standards. In the context of dynamic demand for products such as seasonal sports items, keeping adequate inventory levels may cause overallocation of resources while stock fill rates may suffer due to underutilization of resources. 26 6.4.2. Contract warehousing: Alternatively, a contract warehousing provider allows Nike as well as Rebel Sport to get flexibility and scalability in their storage needs. Most of these providers have great systems and expertise and can help businesses match market changes without any fixed assets. By doing this Nike is able to focus on their core competency, product innovation and marketing and relieving them of logistics by using the logistical strength of their specialized partners. Nevertheless, going to outsource warehousing functions can result in reduced direct control of inventory processes. That is why it is necessary to set clear service level agreements and to ensure good communication channels with the third party provider to mitigate potential risks. → Based on the strategic goal and operational efficiency, Nike and Rebel Sport are found to be more advantageous to contract with a specialized services provider in their warehousing. The advantage of this strategy is that it provides a means of scaling operations according to market needs without the need for large amounts of capital spending. Besides keeping a complete concentration on supplying top quality products and sustaining from the competitors, Nike can entrust warehousing functions to the experts. 27 7. CONCLUSION This report outlines a supply chain strategy for the Nike Premier League Academy 2024/25 Football within Rebel Sport Australia's retail network for the period of January to December 2024. It addresses key challenges such as demand forecasting, sourcing complexities, and logistics optimization. The ARIMA model was selected as the most effective forecasting method, adept at handling seasonal variations and market trends. Additionally, the BOM highlighted the product's intricate global sourcing and underscored the importance of maintaining diverse supplier relationships to mitigate risks. Recommendations include adopting contract third-party logistics (3PL) and warehousing solutions to enhance logistical flexibility and cost efficiency, along with implementing robust ERP systems for real-time tracking and performance measurement. These findings emphasize the necessity of data-driven forecasting, the benefits of outsourcing non-core logistics functions, and fostering strong supplier relationships. While limitations were acknowledged, such as reliance on historical data and secondary sources that may not capture sudden market disruptions, future research should focus on integrating primary data, like real-time sales information and supplier feedback, to validate and refine the insights. In summary, by effectively leveraging data, optimizing supplier networks, and refining distribution strategies, Rebel Sport can successfully meet market demand for the Nike Premier League Academy 2024/25 Football. 28 REFERENCES A. Goldstone, J. (2008). SpeCial RepoRt. ABS. (2022, April 28). Household Income and Wealth, Australia, 2019-20 financial year. Australian Bureau of Statistics. https://www.abs.gov.au/statistics/economy/finance/household-income-and-wealth-australia/lat est-release?form=MG0AV3 Al-Mohannadi , A. 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A financial valuation and strategic forecast on Nike, Inc. Highlights in Business, Economics and Management, 34, 58–63. https://doi.org/10.54097/3sg56a84 43 APPENDIX Appendix 1: Product Range and Customer Segment of Rebel Sport Product Range Customer Segment 44 Appendix 2: Geopolitical Risk When Selecting Suppliers 45 Appendix 3: BOM 46 Appendix 4: Nike’s supply chain model Source: (Castorena & Monroy, 2020) 47 Appendix 5: Why Choose Tremon Sporting Goods Enterprise Co., Ltd. in Vietnam? 48
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