Nike outlines operating updates
01/02/2022
It has opened regional service centres to increase capacity and speed. Prior to winter 2020, in North America, Nike had operated almost entirely through national distribution centres in Memphis. It has added service centres near Los Angeles, in Bethlehem (Pennsylvania) and in Dallas.
In Europe, Nike added a regional service centre in Madrid to begin evolving its distribution network beyond its European Logistics Campus in Belgium.
Andrew Campion, Nike chief operating officer, said: "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. And we are just getting started.”
Within distribution centres, Nike has deployed more than 1,000 “cobots” (collaborative robots) to aid the sorting, packing and movement of products.
It is also using AI and machine learning services such as Buy Online, Pick Up in Store (BOPIS), Ship to Store, the No Rush Shipping and Direct Order Drop.
By reducing the number of split packages and leveraging pop-up cartons that are made of 65% recycled content and 35% virgin material, Nike says it has optimised its packaging.
Ground-only shipping, available across the US, provides a less carbon-intensive option than air freight and initiatives such as Nike Refurbished extend the life of products.
It also enhanced protocols and sick leave and pay continuity for workers in manufacturing, distribution centres and retail stores.
“Our teams are fuelling a supply chain and technology transformation that will enable Nike to more directly serve consumers over the next 50 years,” added Mr Campion.
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