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Nike Announces Supply Chain Changes, Improving Customer Experience

Luis Torres

Nike is using its resources to tackle the supply chain issues affecting everyone, including consumers.

As a result of the pandemic, the global supply chain has worsened week after week with countless delays, a lack of moving products, and cancellations hurting boutiques and the general public alike.

“From early in the global pandemic, we knew that our recovery and return to growth would neither be linear nor intuitive,” said Andrew Campion, Nike Chief Operations Officer. “We believed that the immediate and significant shifts we were seeing in consumer engagement would be systemic. So we took decisive action and began building a digital-first supply chain to power Nike’s more direct, faster, and precise service of consumers, all while prioritizing sustainability.”

To combat the current issue, Nike outlined its four changes amid supply chain issues:

  1. New Regional Service Centers

    • Increasing capacity, speed, and precision (sustainably)

    • In addition to its Memphis facility, Nike is launching new regional service centers outside of Los Angeles to serve the West, in Bethlehem, Pa., to serve the East and in Dallas to serve the South
    • “As we continue building a digital-first supply chain globally to serve consumers more directly at scale, we have already tripled our capacity to serve digital consumers in North America and Europe, the Middle East, and Africa over just the past two holiday seasons,” says Campion. “And we are just getting started.”
  2. Automation and Technology

    • Buy Online, Pick Up in Store (BOPIS), Ship to Store, and No-Rush Shipping options for consumers prioritizing sustainability
    • “At Nike, adversity has always been a catalyst for innovation and fueled our competitive separation, and the past two years have been no different,” says Campion. “The challenges and constraints imposed by the pandemic have driven our teams to transform how we serve consumers through the implementation of new technology platforms, automation, and process improvement in our operations.”
  3. Sustainable Packaging

    • Nike is reducing the number of split packages and utilizing pop-up cartons that are made of 65% recycled content and 35% virgin material, optimizing its packaging for consumers and the environment in the long term
    • Ground-only shipping to reduce air freight usage, providing a less carbon-intensive option
  4. Career Development, Training, and Community Volunteer Opportunities 
    • Nike provides employees with resources through a partnership with the University of Memphis’ online degree programs focusing on personal achievement and career development.
    • “Based on an operating and supply chain model conceived by Phil Knight in business school, we have effectively and efficiently served and provided innovation to athletes* for the past 50 years,” says Campion. “Today, our teams are fueling a supply chain and technology transformation that will enable Nike to more directly serve consumers over the next 50 years. Their resiliency, strength, and creativity will continue powering Nike. Our teams at Nike have been and continue to be our single greatest competitive advantage.”

Stay tuned to SoleSavy for more sneaker-related news from your favorite brands, including Nike.


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