IndexNike Distribution Channels: Introductory EssaySupply Chain Network and Nike Distribution ChannelsNike Distribution StrategyConclusions and RecommendationsSupply Chain (SC) and Chain Management (SCM) have a huge share in the field of efficiency. Supply chain linkage and reporting, supply chain management and managerial traits play an important role in the supply chain field of study. The purpose of this short study is to analyze and reveal Nike's distribution channels, explore its supply chain and efficiencies. The structure of the essay is as follows: introduction, main body (analysis of the supply chain and distribution channels), conclusion and recommendations. We say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original Essay Nike Distribution Channels: Essay Introduction The company was founded in 1964 under the name “Blue Ribbon Sports” with Bill Bowerman and Philip Knight. Jeff Johnson changed the name to Nike in 1971 when he saw Nike, the Greek goddess of victory, in a dream from Greek mythology. Nike is capable of running and flying very fast. The Nike Swoosh logo was designed by a college student for $35 and represents the wings of the goddess Nike. Today Nike is one of the three most recognized sports brands in the world. Sneakers, sportswear and sports accessories by design, design and marketing. Nike is sold in almost every country in the world. Profit, which was $60,000 in 1972, was $27.7 billion in 2014. It ranked 425th on the Fortune Global 500 list. In the Forbes ranking it ranks eighteenth on the list of 100 brands of greater value. Nike Company reaches its customers with five different brands; 1- Nike, 2- Converse, 3- Hurley, 4- Jordan and 5- Nike Golf. Nike has 48,000 employees in offices and stores around the world. All Nike production is supplied by partnered factories. Identify predisposition as design and produce products in countries with low labor costs. Nike sees itself as responsible for marketing rather than manufacturing. It has agreements with 655 factories in 42 different countries. The main producing countries are China, Vietnam, Thailand, Indonesia, Sri Lanka, Pakistan and Malaysia. Nike Supply Chain Network and Distribution ChannelsNike is the best sports brand in the world. Nike employs approximately 74,000 people. Nike's main source of revenue is sports equipment, shoes, and clothing. The cost of manufacturing labor in the United States is very high, which means that most Nike shoes are produced outside of the United States. According to Nike, 99% of all shoes sold in the United States are made outside of the United States. Nike goes a step further: The company does not produce all of its shoes outside of the United States and ships 85% of its produced line overseas. Nike companies' lean supply chain saves $0.15 per unit compared to traditional distribution models. Nike saves 900 million dollars in one year. Nike's key factor is efficiency with low production costs. Nike's shoe division services 14 countries through independent contract manufacturers. About 96% of factories are located in China, Indonesia and Vietnam, but no one factory accounts for more than 5% of Nike's total shoe production. Beyond the production process. Nike relies on independent contractors for its own manufacturing. Nike's production and distribution models will have to deal with automation. High manpower management in the United States,basic approaches to manufacturing, but the fundamental principle of manufacturing, but as robotic technology evolves, in places like Nike this is unsustainable, it offers the opportunity to scale up launch and manufacturing operations. According to Morgan Stanley forecasts; Nearly 20% of Nike shoe production will be produced by automated factories in 2023 that adopt a new generation. In that period many of the overseas factories will successfully adopt without any risk of losing the cost advantage over domestic factories. According to data from the International Robotic Federation, 1.3 million new robots will be installed in factories in the next three years. This means that Nike will improve and adopt their manufacturing in that area. This will be Nike one of the strategies in the manufacturing sector. Nike distribution channels can be broadly divided into two categories. The first is the sale of products to the wholesaler and direct to consumer or (DTC). Sale of products to wholesalers internationally and in the United States. This distribution channel is the largest distribution channel for Nike. DTC sales include factory sales, online sales, and e-commerce through the website. Furthermore, Nike distributed its products on e-commerce websites such as Amazon, Ali Express or other websites. Selling products online directly to customer is Nike's rapidly growing distribution channel. In Nike distribution channels distribution channels have also been created for some specific categories for retailers' destinations by collaborating with some footwear (shoes) retailers such as Foot Locker, Jd Sports, Flo and other footwear retailers. Most of Nike's revenue comes from wholesalers. But wholesalers' contribution to the contracted sales mix declines from 83% (2012) to 68% (2019) of tax revenues. In DTC, sales increased from 16% to 32% over the same period. However, DTC rates are lower than those of rival Nike. However, DTC and wholesale are important to Nike. In the future, Nike may invest money to improve its DTC distribution channels. Nike Distribution Strategy Nike mainly focuses on the DTC (direct to customer) distribution channel. Nike sells its products to customers through Nike Direct. Nike Direct is a website where you can purchase your original Nike products for this website. DTC is Nike's best distribution channel in terms of customer margin. Nike increased sales using Nike Direct. On the wholesaler side in Nike; wholesalers among customers increased 6% in fiscal 2019 compared to fiscal 2018. Nike still uses wholesaler, but DTC sales increased from $5.3 billion in 2014 to $11.7 billion in fiscal 2019. Nike's direct-to-customer (DTC) approach consists of Nike-owned retail stores, which are physical stores and Nike digital platforms. Nike factory provides some premium products for consumers' value. Thanks to the relevant value proposition to attract greater value from consumers. At the end of fiscal 2019, Nike operated 384 retail stores in the United States and 768 overseas stores in the United States. In the United States there are 217 Nike brand factory stores, 29 Nike in-line stores and the other 109 Converse and 29 Hurley. Outside the United States there are 648 Nike brand factory stores, 57 Nike brand online stores, the rest are Convers stores. Online sales are the key factor for this distribution channel. Furthermore, Nike focuses on online distribution channels. In fiscal 2019, Nike's online sales increased 35% year over year. In the company's consolidated revenue, Nike increased by 7% and yes.