Nike Supply Chain in the New Digital Age
In spite of being succesful in supply chain operations thru wholale and physical retail channels, NIKE wants to redesign the logistics network strategy to achieve the expected digital revenue growth. A new program called "NIKE Digital First Supply Chain" aims to fulfil and deliver to NIKE online direct customers with products in two days across Europe. Carlos Bermejo, Senior Director of Strategic Programs at NIKE is about to develop a new decentralized logistics network plan with a first pilot in Madrid. Open questions are to be solved regarding omnichannel fulfllment, inventory management, returns, service levels, operational costs and sustainability impact.
Collection: IESE (España)
Ref: P-1199-E
Format: PDF
Number of pages: 16
Publication Date: Mar 15, 2022
Review date: May 13, 2026
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Description
In spite of being succesful in supply chain operations thru wholale and physical retail channels, NIKE wants to redesign the logistics network strategy to achieve the expected digital revenue growth. A new program called "NIKE Digital First Supply Chain" aims to fulfil and deliver to NIKE online direct customers with products in two days across Europe. Carlos Bermejo, Senior Director of Strategic Programs at NIKE is about to develop a new decentralized logistics network plan with a first pilot in Madrid. Open questions are to be solved regarding omnichannel fulfllment, inventory management, returns, service levels, operational costs and sustainability impact.
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Year: 2021
Geographic Setting: Spain
Industry Setting: Cosmetic, Fashion and Jewelry
Learning Objective
This case aims to discuss the evolution and redesign required in logistics networks to compete in e-retailing direct to consumer strategies. Evaluate the advantages of centralized vs decentralized logistics networks. What capabilities are required to compete with own brand e-commerce solutions with Amazon or other marketplaces. How to manage fulfillment and logistics operations in the omnichannel space considering cost, inventory, customer expectations, returns and sustainability factors.
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