The Transformation of Nike’s Supply Chain

Editorial TeamEditorial Team
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November 1st, 2022
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3:24 PM

The Nike team is driving the transformation of its supply chain, a change brought on by the pandemic and the need to innovate. 

The leading sportswear brand, Nike has been recognized for its sustainability efforts over the past several years. In 2018, Textile Exchange reported that Nike used the most recycled polyester in the industry. Since 2010, Nike has transformed more than 7 billion plastic water bottles into recycled footwear or apparel.

Known for its comfort and durability, Nike's exclusive Flyknit material, which is used in footwear throughout the brand's catalog, is made in part from recycled plastic.

Certified by the Global Recycled Standard, Nike also launched Flyleather, a new material made from at least 50% of recycled leather fiber. In April 2019, in celebration of Earth Day, Nike collaborated with Steven Harrington and released a collection consisting of an Air Force 1, Cortez and Blazer made with Flyleather.

In addition, since 2008, the iconic Nike Air soles were made with 100 percent renewable energy and used at least 50 percent recycled manufacturing waste. In 2019, Nike launched a sustainable line called the Nike Plant Color Collection, including Air Max 95 and Blazer Low, which uses plant-based dye to create the collection's summery pastel colors.

Currently, 93% of the brand's supplier factories rated bronze or better according to the brand's definition of sustainability. By 2025, Nike plans to power all facilities with 100 percent renewable energy.

 

 

Revamping the Supply Chain

The Nike team is driving the transformation of its supply chain. According to Amy White, who currently leads the global supply and demand management team at the popular sporting goods company, in an interview for AWESOME. White is responsible for leading a cross-functional group consisting of merchandise planning, retail allocations, inventory management, and supply planning, as well as the business analysis team.

The executive stated that in this way the company focused its efforts on serving consumers more directly and driving long-term growth. She emphasized that to execute this plan they attacked three key areas of innovation: building a regional distribution network, leveraging new technologies, and developing a scalable platform.

White detailed that within the firm's distribution centers, some 1,000 collaborative robots are used to help employees sort, pack and move products, as this drives faster order processing and alleviates physical challenges.

 

 

Nike has disclosed that it uses traceable materials from China and Taiwan. Nike also uses real leather that is Leather Working Group-certified. Nike is one of the world's largest users of white leather and teams up with tanners, suppliers, and other distributors to be the most efficient.

The company is leveraging artificial intelligence and machine learning to position the products its consumers like best and get them to them faster with services such as Buy Online, Pick Up in Store, and Ship to Store.

In terms of developing a scalable platform, this one-of-a-kind tool for integrated end-to-end planning connects dynamic demand signals to drive responsive supply actions. In addition, the company maximized its inventory during the holiday season to meet the needs of consumers. Precisely, through predictive analytics, they understood which products people would be looking for the most during the December holidays.