Progress in knitting technology will mean supply chain shift, says Nike
Nike’s progress in its manufacturing revolution will enable it to create more woven styles and bring some manufacturing back to the US, said its CEO Mark Parker.
He was addressing investors on a call to announce the company’s fourth quarter and fiscal year 2015 results.
He said Flyknit has created a new model for design and manufacturing and the innovations team is finding new ways to use it every day.
Passage of the Transpacific Partnership would provide some duty relief that would enable the group to investing in a manufacturing supply chain efforts in the US. “That’s our goal,” he said.
“We are pushing ourselves to create products and experiences that consumers want and some they never thought possible,” he said.
“You’re going to see the overall supply chain geographically shift a bit here and there with the advancements of new manufacturing innovation. That is a major priority for Nike. It will give us the flexibility to create more localised manufacturing over time, and that will put us closer to market and again allow us to advance products, particularly in the customisation area and to meet more local demand as well.”
Outgoing chief financial officer Don Blair said the company has been working with suppliers to improve costs in the factories. “We’ve been doing things that are more evolutionary like lean manufacturing, working all the way to break through things like Flyknit. We’re starting to see some of the newer technologies coming on stream now and so that’s a part of the equation for financial year 2016.”
