Recommendations

Inventory Management

Dick’s Sporting Goods faces many problems when it comes to inventory management. They order a lot of excess things that do not need to be ordered for certain periods of times. Dick’s Sporting Goods gets shipment of their products multiple times a week; therefore they do not need to order as much certain products. The average product such as a baseball bat will sit on the shelf for 6-8 months before it is sold. The inventory holding cost is astronomical for this company. They would be able to produce a lot more revenue if they ordered the products as they needed them, or if they did not keep as much products in their store at one time.

There are two main ways that Dick’s Sporting Goods would be able to finish this. The first way is to use the Reorder Point System. This system tracks your leftover inventory of SKI each time a withdrawal is made and helps determine whether or not it is time to reorder specific products. With this system, the computers can easily track what items are going in and what items are coming out. Dick’s tracks how many items are going out, but they do not account the new items that come in. They do not add or subtract the quantity that has been previously sold.

For items that do no sell as often, such as baseball bats during the off season, or golf clubs during the winter, Dick’s can use a different kind of approach. This approach is called the Periodic Review System. Inventory is reviewed periodically rather than continuously. Some of the items are not sold as often during a specific time of year, so it is important that the company keeps just a limited amount of these products in stock. When they review them periodically, they will then see what needs to be ordered and what does not. This way they are not wasting their capital by ordering it, and they are not wasting space and having to pay rent for it.

•Reorder Point System- tracks the remaining inventory of a SKU each time it is withdrawn

•Periodic Review System- inventory’s position is reviewed periodically rather than continuously.

Quality and Performance

Quality is very important to the consumer, and Dick’s Sporting Goods has a lot of problems with quality in their products. They are extremely inconsistent, and they have many poor ratings amongst the customers. Dick’s Sporting Goods takes pride in purchasing high-end and high quality products. Along with high quality products, come high prices, and high expectations from the customers stand point. There is a larger decision being made when talking about a high end product. Dick’s is extremely well known for selling high end products, and the customer not being satisfied with the products they get. The customers will spend the money on the product, and have to go back and return the product because they are unsatisfied with the products, or the product does not perform the way it is supposed to. Dick’s promises high quality products, with high quality performance, and they are not known for producing this all the time. DICK'S Sporting Goods understands sometimes your purchase isn't a perfect fit—so we're happy to offer returns within 90 days of purchase.

Keep in mind these factors when returning your item to DICK'S Sporting Goods:

·Returns and exchanges should be new and in the original packaging. Please include all accessories that came with your item.

·Returns with the original sales receipt or packing slip receive a refund based on the initial form of payment.

· In-store returns and exchanges without a receipt or packing slip are offered store credit for the lowest price or offered the manufacturer's contact information.

·Returns with a gift receipt are offered a gift card or exchange.

· If you redeemed a ScoreCard Rewards Certificate or coupon with your return, an adjusted refund amount will be offered.

·Purchases made in store or online can be returned to any DICK'S SPORTING GOODS location. Items purchased online can also be returned via mail, although return shipping charges may apply.

·Original shipping charges are not refunded.

·Items purchased through our Buy Online, Pick Up in Store Program must be returned to a DICK'S Sporting Goods store location. (dickssportinggoods.com)

Unfortunately, some items cannot be returned. Firearms, ammunition and used bikes are not eligible for a return or exchange. Personalized, customized and/or autographed items also cannot be returned. Gas and electric scooters and baseball bats cannot be returned after the original packaging has been opened or the factory seal is broken.

Please note DICK'S Sporting Goods may limit or decline some returns and exchanges.

Dick’s Sporting Goods does not present their customers with a good return policy. It needs to be within 90 days, and needs to be in the original packaging. This does not reflect the overall satisfaction with performance they are trying to obtain. Dick’s Sporting Goods need to implement a better return policy, in case the customers are not satisfied with their high end products, they are able to return them. If the quality is not where it needs to be, the customer should be able to bring the product back to the store, and return it for the money they spent on it. Also, along with performance comes the evaluation of customer service.

Dick’s Sporting Goods has a lot of workers that are under the age of 30 years old. For most of these workers, this is simply a part time job to make a little extra money. Dick’s Sporting Goods does not have very friendly workers. They are not pleasant when presented with questions about where things are, along with knowledge of the products.

A company as large as Dick’s Sporting Goods would really benefit from Six Sigma training. This heavily relies on Total Quality Management and its system for achieving, sustaining, and maximizing business success by minimizing defects and variability in process. Six sigma approach also is driven to understand the customer’s needs. It helps the employee learn the facts and data they need to know, this way they can help support the customer in what they want. If Dick’s Sporting Goods improved their customer service, this would improve the overall performance and quality of the store.