Nike is investing in a new manufacturing centre in the US to meet demand for its Air footwear
Nike is investing in a new manufacturing centre in the US to meet demand for its Air footwear

Nike invests in tech to halve product creation cycle

4 July 2019

Nike has invested in responsive manufacturing and a connected inventory with the aim of cutting its product creation cycle in half. 

The sportswear brand needs to create a supply chain which can respond to shifts in consumer demand quickly, said Nike CEO Mark Parker on a quarterly earnings call.

“Speed remains an incredible opportunity. We’re well on our way towards cutting our product creation cycle in half. And we’re investing in responsive manufacturing, connected inventory and optimising data to capitalise on real-time consumer demand.”

Parker said Nike would be making a “significant investment” in its manufacturing capabilities with an additional Air footwear manufacturing centre in the US.

“The consumer demand for Nike Air is currently outpacing supply. This investment will help us better meet that demand and accelerate new innovations for one of our most distinct platforms,” he said.

“We also continue to build our capabilities in data and analytics, digital demand sensing and connected inventory to create a supply chain that anticipates and responds to shifts in consumer demand quickly.”

Parker said the brand had placed RFID tags on “hundreds of millions” footwear and apparel products which has given the brand the “most complete view” of its inventory.

“It’s quickly become the most precise tool in our arsenal… to meet an individual consumer’s specific need, at the exact right moment,” he said. 

Parker also discussed Nike’s sustainability targets and said the brand is diverting 50m lbs of waste from landfills each year by using recyclable materials in the soles of its trainers. 

“These are the kinds of steps and transparency that consumers expect today. And as we share our stories, we’re bringing even more dimension and value to the Nike brand,” he said.

Meanwhile, Nike-owned brand Converse launched its Renew collection which uses upcycled textiles, recycled plastics and recycled cotton canvas blends to create new shoes in its All Star style.

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