NIKE's Coronavirus Playbook

NIKE is well known for its expertise in supply chain and logistics; for example, the company has ranked at the top of Gartner’s list of the world’s top 25 companies in supply chain management for many years, most recently in tenth place (The Gartner Supply Chain Top 25 2019). In these times, NIKE is demonstrating how its agile supply chain provides a unique ability to manage uncertainty. The company has long since established an RFID-based system that allows it to track virtually all of its products, thereby gaining visibility into which products are available for sale and where they are located. Ultimately, the system ensures that customers can have their goods delivered quickly and accurately. The system gives NIKE a key competitive advantage at a time when restrictions have been imposed on the transport of both goods and people. In addition to RFID tracking, NIKE has developed the capability to collect and analyze data and optimize its S&OP planning, which is said to provide the company with an agile end-to-end supply chain. All of NIKE’s e-retailers and a large number of traditional retailers share their inventory and sales data with NIKE to ensure that the company’s global inventory levels are maintained at the appropriate levels. Overall, NIKE notes that this gives the company the ability to better manage the crisis in an uncertain environment with fluctuating demand.

https://news.nike.com/earnings

 

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