REI is ranked among best 100 companies to work for in the US. It is a retail organization that acts as a cooperative for consumers; that distributes gear for outdoor recreational activities, sportswear, and other clothing products. To enhance the channeling and distribution of their products, REI has several stores in over 33 states in the US. Customers can access and purchase products from these stores. REI also has a website that customers can access and purchase products (Kraabel, 2005).
REI capitalizes on Supply Chain Management, and this has facilitated its rapid growth and expansion. The organization acquires brand-name merchandise from other companies and harbors them in its stores. Customers can visit the stores physically to purchase products. On the other hand, consumers can order goods on the organization’s website where free delivery services are offered to customers who purchase goods online (Baverman, 2011). REI also distributes its goods and services to consumers by having free clinics on outdoor topics as well as organizing trips where local hikes and cycling paths are explored by REI’s employees and customers.
REI’s supply chain management has been very effective. This is owed to the fact that more customers have been attracted to the organization, and there has been an annual increase in its gross sales with the company recording $1.3 billion dollar gross sales in 2007 (Baverman, 2011). The SCM’s effectiveness is also evident in the organizations efforts to give annual donations to conservation groups.
However, REI still needs to improve its Supply Chain Management system. The organization should increase the number of stores across states in the US to cater for the ever-increasing number of customers. REI should also extend its free delivery services to customers who purchase products from the organization’s stores.
Baverman, L. (2011). “REI to open at Rookwood Commons”. Cincinnati.com. Available online at: http://www.cincinnati.com/communities/
Kraabel, B. (2005). Recreation Equipment, Inc. E-Marketing Analysis. MBA Internet Marketing. Available online at: http://bkraabel.free.fr/publications/white_papers/Recreational_Equipment_Inc.pdf