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Nike’s digital ambitions hit meatspace supply chain snags, as two worlds collide

Published by The Stack
September 24, 2021 @ 3:56 PM

The Stack is one of the UK’s fastest growing business technology publications. Founded in late 2020 by Edward Targett, the former editor of Computer Business Review, it regularly features interviews with some of the world’s most influential digital leaders, along with think pieces, news, and business intelligence. You can follow The Stack on LinkedIn here.

Nike’s digital ambitions hit meatspace supply chain snags, as two worlds collide

nike's digital ambitions
 A garment factory in Vietnam. Illustration purposes only. © ILO/Aaron Santos. Creative Commons 3.0 IGO License.

More than “growth” (33 mentions), “revenue” (20 mentions), “retail” or “pandemic” (both got 17 mentions), “sports” (11 mentions) or “sneakers” (just four mentions) it was all things digital that dominated Nike’s fiscal Q1 2022 earnings call – with the word “digital” itself mentioned no fewer than 47 times.

Yet the September 23, 2021 earnings call was a tale of two worlds colliding: Nike’s sophisticated, consumer-facing digital front-end performing buoyantly, while behind the scenes, transit times from Asia to the US doubled from 40 to 80 days amid “container shortages, port congestion, rail congestion and labor shortages” — while nearly half of the company’s apparel factories in Vietnam were forced to closed due to Covid.

Posted in:CIONET UK

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