Nike teams up with Apollo Management to launch supply-chain in the Americas

Aimed at taking control of their production in the American market, Nike has teamed up with investment firm Apollo Management Global to build a supply network that allows them to "increase the capacity of regional manufacturing, allowing faster delivery and more customized products to consumers, and boost investment in sustainability."

Although financial terms of the project were not disclosed, what is known is that the US investment fund has taken control of several textile suppliers already operating in North America and Central America.

Among the recent acquisitions of Apollo, New Holland, a clothing manufacturer that employs 9,000 people, and the logistics operator ArtFX are worth of highlighting. The newly created company has "plans to invest in advancing its manufacturing operations and expertise to produce innovative, technical and customized clothing", as explained in a joint statement by Nike and Apollo.

Looking ahead, the resulting company, formulated as a new subsidiary of the fund, will continue to acquire other vendors to diversify. "This will create a vertically integrated business, from suppliers of materials and manufacturers of clothing, to finishing touches, warehousing and logistics textile ecosystem," added Nike and Apollo.

Nike´s supply-chain to “revolutionize future of clothing manufacture in America

"We are delighted to be working with Apollo in the rethinking of a new supply chain model to revolutionize the manufacture of clothing in the Americas," celebrates Eric Sprunk, Nike's director of operations.

It´s noteworthy that, before making this decision, Nike has faced logistical problems, including delays in product deliveries to retailers. While it is true that the giant sports fashion has already taken some steps to ease the situation, such as opening a distribution center of 2.8 million square feet in Memphis, the alliance with Apollo will allow them to take more control throughout the business, from production to delivery to the final customer.

The third partner in this initiative, as revealed by the ‘Wall Street Journal’, is Flextronics International Ltd., which will be responsible for the automation and customization in the supply chain.

Previously, Nike has been concerned to "accelerate the business unit to provide the supply chain of the future" therefore enlarging last May the Nike European Logistics Campus in Belgium.

Nike, competing for the world’s market of sporting fashion companies like Under Armour and Adidas AG, joined by 6 percent in the last quarter - 8.24 billion dollars - although sales remained stable in North America.

The US multinational, leader in this business segment, has also made it clear that one of the main reasons to give the go-ahead to this initiative has been that Apollo "has committed to integrating sustainability and transparency in business, investment in new technologies, vertical integration of the critical elements of the supply chain and delivering the best products to our partners Nike retail and sport ".

Josh Harris, co-founder and senior director of the investment fund, noted for his part that "we see a tremendous opportunity to meet the growing demand for responsible manufacturing of clothing to meet the growing expectations of consumers for products delivered when and where they want."

"This strategic alliance is a sign of commitment to Nike to increase regional manufacturing capabilities, boost investment in innovation and creating long-term growth," concludes Harris.

Image: Nike Official Web