Just Do It: Nike Supply Chain Swooshes Around the Globe and Back - Supply Chain Digital

We recently profiled the Top 25 Supply Chains in the world and today we bring you a more in-depth profile of Nike, which was 16th on the list of best supply chains in the world. Although Nike is sports apparel specific, we found that the challenges it faces as a global retailer relates to any company that has to manage an intricate supply chain.

A recent letter from Nike to its shareholders revealed that the company raked in $19 billion in revenue in the last fiscal year, which was a one percent revenue decrease from the previous year. Although revenue was down, gross margins for Nike came in at 46.3 percent, which was a record level. Nike also generated $2.8 billion in free cash flow from operations and now has over $5 billion in cash and short-term investments on their balance sheet—both record levels for Nike.

Nike is ranked 124th on the Fortune 500 and as a global retailer, the supply chain remains one of the most important facets of its entire operation. We dug up a discussion from a supply chain conference that heard Nike’s Global replenishment Director at Nike speak at. The discussion highlighted common supply chain challenges that are applicable to any company.

At the conference Global Replenishment Director Maithili Shenoy underlined four problems that Nike faces with respect to its supply chain.

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Last modified onThursday, 18 November 2010 03:55