Nike is revolutionizing the supply chain industry with its innovative solutions and sustainable practices. From its new regional service centers to its advanced technology platforms, the company is committed to serving customers more efficiently and sustainably. In this Video, we take a closer look at how Nike is changing the supply chain game.
1. Regional Service Centers for Increased Capacity, Speed, and Precision
Gone are the days when Nike operated through a centralized distribution center in Memphis, Tennessee. The company now operates a multi-node network, with new regional service centers located in Los Angeles, Bethlehem, PA, Dallas, and Madrid. These centers are supported by advanced technology platforms that help Nike predict consumer demand and plan inventory accordingly. According to the company, its digital-first supply chain has already tripled its capacity to serve consumers in North America, Europe, the Middle East, and Africa over the past two holiday seasons.
2. Automation and Technology at the Service of the Consumer
Nike is using artificial intelligence and machine learning to improve its operations and better serve customers. The company has implemented new technology platforms and automation systems, as well as processes such as Buy Online Pick-Up in Store (BOPIS), Ship to Store, and Direct Order Drop. Within its distribution centers, Nike has also deployed over 1,000 cobots to aid in the sorting, packing, and movement of products, which has increased speed and allowed for a focus on higher-value activities.
3. Sustainability in Packaging, Shipping, and Refurbishing
Nike is committed to protecting the planet and reducing its carbon footprint. The company has reduced the number of split packages and optimized its packaging with pop-up cartons made of 65% recycled content and 35% virgin material. Ground-only shipping is also available for a more environmentally friendly option, and initiatives like Nike Refurbished extend the life of eligible products by refurbishing them by hand.
4. Empowering the People Who Power Nike
At Nike, it's both business and personal, as the company prioritizes the health, safety, and well-being of its employees. During the pandemic, Nike enhanced COVID protocols and provided COVID sick leave and pay continuity for essential workers. The company also invests in career development, training, and community volunteer opportunities for its employees, with a partnership with the University of Memphis offering online degree programs.
In conclusion, Nike is paving the way for a more sustainable and efficient supply chain. With its innovative solutions and commitment to empowering its employees, the company is set to continue its transformation and better serve customers in the coming years.
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