Last month, Nike Inc. presented how it plans to change its way of manufacturing by reducing the company’s long supply chains. As a result, Nike consumers will be able to get the products to its consumers in a faster manner.
Most of Nike’s goods are currently made in Asia, but the talk now is about moving more of its manufacturing to closer North America. By moving manufacturing to these areas, the labor costs are lower and the products are being made by automation and distributed quickly because of this near-shore model.
Eric Sprunk, Nike’s chief operating officer, noted how 25% of Nike shoes will now be made on a “responsive model.” Rather than starting to manufacture when the company received future orders, the company’s model will now focus on “moving toward manufacturing quickly in response to what consumers are actually buying.” Sprunk concludes that this “allows us to take our standard time from just manufacturing to market, from about 60 days to 10 days or less.”
Although Nike is not the only company that is taking this approach. One of its biggest competitor, Adidas, is counting on its “Speedfactory” in Germany and one that will shortly open in Atlanta to speed up the manufacturing for customers in North America.