6/26

Several news outlets -- and a company financial statement -- indicate that Finish Line, the Indianapolis-based retailer of athletic shoes, lost over $30 million when a new supply chain system did not operate as anticipated. According to the company:

“Our third quarter performance was severely impacted by a disruption in our supply chain following the implementation of our new warehouse and order management system,” said Glenn Lyon, Chairman and Chief Executive Officer of Finish Line. “Specifically, in October, we began experiencing issues flowing fresh inventory into our stores as well as fulfilling online orders as the new system was unable to process freight at volumes necessary to support our sales plans. 

According to RetailDive,

Sportswear retailer Finish Line Inc. will close up to a quarter of its 600 name-brand stores, and replace CEO Glenn Lyon, the company said Thursday. President Sam Sato, a Nordstrom veteran of more than 20 years, will replace Lyon, who will remain as executive chairman through the end of the year and then serve as nonexecutive chairman. The store closures reverse the company’s expansion efforts. The company lowered earnings estimates for the year; including Thursday’s share price loss of 11%, its stock has fallen 33% in the past 12 months.

It is worth remembering that both Nike and Starbucks (more) have experienced epic failures of supply chain implementation.