Nike reaps benefits of short lead times, RFID

Supply chain and logistics news

Nike is reaping the benefits from years of effort to speed up its supply chain through the use of digital tools. In 2018, the company posted a 7% revenue bump for the year without a substantial increase in inventory, according to executives on the company’s recent third-quarter earnings call.
CEO Mark Parker said roughly half of the products in Nike’s Chinese New Year Collection in 2018 were produced using shorter lead times, under a program deemed the Express Lane. “Through our Express Lane initiative, we are using closer to market consumer insights to update key styles with new materials, print and colors on significantly shorter timelines,” said CFO Andy Campion, adding that the Express Lane products made up 10% of the company’s revenue in its third quarter.
In 2018, operating in the Express Lane meant staging materials at factories so additional manufacturing could begin as soon as possible while also continuing to introduce new digital tools for demand sensing, inventory tracking and supply chain visibility.

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