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25 August 2016

Nike plans to "revolutionise" apparel supply chain

Content team

Nike has announced details of a new strategic partnership, the key aim of which is to rethink and revolutionise apparel manufacturing and supply chain management in the Americas.

The company, which is one of the world's biggest suppliers of sportswear and equipment, is working with affiliates of Apollo Global Management to enhance its regional manufacturing capabilities and facilitate quicker delivery of customised products to consumers.

Further investment in sustainability is also set to be a focus of the new partnership.

The venture has been facilitated by the creation of a new supply chain company, which has already acquired existing clothing suppliers in North and Central America including New Holland, an apparel manufacturer, and ArtFX, a warehousing and logistics operator.

Further acquisitions are set to follow as Nike and Apollo seek to create a vertically integrated supply chain.

The ultimate goal is for the new supply chain company to control a unified apparel "ecosystem" encompassing materials suppliers, manufacturers, final embellishment, warehousing and logistics.

Eric Sprunk, chief operating officer at Nike, said: "We are excited to be working with Apollo to rethink a new supply chain model to revolutionise apparel manufacturing in the Americas.

"The new company, under Apollo's leadership, is committed to embedding sustainability and transparency into the business, investing in new technology, vertically integrating critical elements of the supply chain and delivering the best Nike performance product to our retail and sports partners."

Josh Harris, co-founder and senior managing director of Apollo, said the rising demand for responsive apparel manufacturing represents a "tremendous opportunity" for businesses eager to meet changing consumer expectations.

Nike's latest financial results showed that the company's revenues were up by six per cent in the quarter ending May 31st 2016, reaching $8.2 billion (£6.2 billion).
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Content team, Bureau van Dijk

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