Nike Heightens Its Emphasis on Customer Service With New Supply Chain Transformation

In an effort to serve its consumers more directly, Nike has released a plan of action that details an innovative approach to transforming its supply chain. The company issued a statement listing four key components to help make its goal successful.

First, Nike intends to open several regional distribution centers across the US and Europe, in addition to having its own dedicated train – the Nike “Sole Train” – to increase capacity and speed, and help power long term growth. This step would transform the brand’s central distribution centers in Memphis, TN, into omni-channel facilities.

Second, the brand will leverage technology by using AI and machine learning to deliver products faster and more precisely. Nike will deploy over 1,000 “cobots” – collaborative robots – to assist teammates with sorting, packing and moving products. Current sales services including “Buy Online, Pick Up in Store,” “Ship to Store” and “No Rush Shipping” will also allow consumers to have items when and where they desire.

Thirdly, without compromising sustainability, Nike will optimize packaging with the use of “pop-up cartons” made of 65% recycled content and 35% virgin material. As well, the “Nike Refurbished” initiative will take gently worn and slightly imperfect sneakers and refurbish them by hand, to sell at select Nike Factory, Unite and Community stores.

Lastly, Nike will continue to prioritize the health, safety and well-being of its teammates, and will further invest in career development, training and community volunteer opportunities. A partnership with the University of Memphis also offers online degree programs that focus on personal achievement and career development, in an effort to provide resources to employees.

Discussing this public plan of action, Nike’s Chief Operating Officer, Andrew Campion said, “From early in the global pandemic, we knew that our recovery and return to growth would neither be linear nor intuitive, 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.”

“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. 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,” he added.

More information about Nike’s supply chain transformation can be found on its website.

In other consumer news, Presentedby opened a new store in Doha design district.