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Nike inks new supply chain deal


Nike has formed a supply chain partnership with private equity firm Apollo Global Management LLC. The deal is designed to “create a more vertically integrated apparel ecosystem.”

Dow Jones reported that under the terms of the deal, a new apparel supply chain company is buying existing Nike apparel suppliers in North and Central America and will buy more. So far it has acquired apparel maker New Holland plus embellishment, warehousing and logistics business ArtFX.

Nike has no investment in the new company but has been working to overcome a number of supply chain issues that last year saw retailers complaining of product delays.

It opened a 2.8m sq ft distribution centre in Memphis last summer and also recently partnered with Flextronics International Ltd to boost automation and customisation.

Outside of the US, this year it expanded its Belgian European Logistics Campus in order to “accelerate the company’s drive toward the supply chain of the future.”

#Nike

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