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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