Nike is shifting away from owning a large part of its fulfillment and distribution network, COO Venky Alagirisamy told employees, Bloomberg reported. He said Nike will leverage partners instead. Third-party providers already run three of Nike’s eight major US distribution centers.
Nike’s annual report lists the eight DCs:
Two near Memphis are owned
Two more near Memphis are leased
Three are leased and run by third-party providers: near Indianapolis; in Dayton, Tenn.; and in Bloomington, Calif.
Converse's DC in Ontario, Calif., is leased
Outside the US, Nike ships from 65 centers, down from 72 a year earlier. It owns four of its largest: in Laakdal, Belgium; Taicang, China; Tomisato, Japan; and Icheon, Korea.
The distribution shift is part of Pace, a four-part restructuring plan Nike announced last week. CEO Elliott Hill said the changes will include “technology solutions and a more variable cost structure” and lead to “fewer roles across Nike.” Decisions on those roles will begin in 2027.
Nike also plans to increase nearshore sourcing for North America and Europe, the Middle East and Africa. Vietnam, Indonesia and China made 52%, 27% and 16% of Nike Brand footwear last fiscal year, respectively, or 95% combined. Alagirisamy said China and Vietnam “will continue to play a significant role.”
Puma took a similar step last month, handing its three US DCs to Maersk to run.
