Table of Contents Nike Distribution Channels: Essay IntroductionNike Supply Chain Network and Distribution ChannelsNike Distribution StrategyConclusion and RecommendationsThe Supply Chain Procurement (SC) and supply chain management (SCM) hold a huge share in the area of ​​efficiency. . Supply chain connections and relationships, supply chain management and management traits play an important role in the supply chain field of study. The objective of this short study is to analyze and reveal Nike distribution channels, explore its supply chain and efficiency. The structure of the essay is as follows: introduction, main body (analysis of supply chain and distribution channels), conclusion and recommendations. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Nike Distribution Channels: Essay Introduction The company was founded in 1964 as "Blue Ribbon Sports" under the names of 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 able to run and fly very fast. The Nike Swoosh logo is designed by a 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. Brands designing, designing and marketing sneakers, sportswear and sports accessories. Nike is sold in almost every country in the world. The profit, which was $60,000 in 1972, rose to $27.7 billion in 2014. Ranked 425th in the Fortune Global 500 list. In the Forbes list, it ranks eighteenth in the list of the 100 most valuable brands. 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 carried out by contract factories. It identifies design predisposition and manufactures products in countries with low labor costs. Nike considers itself responsible for marketing rather than production. 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 Channels Nike is the best sports brand in the world. Around 74,000 employees work at Nike. Nike's largest source of revenue is sports equipment, shoes and clothing. The labor cost of production in the United States is very high, which means that most Nike shoes are manufactured outside the United States. According to Nike, 99% of all shoes sold in the United States are made outside the United States. Nike goes a step further by not manufacturing all shoes outside of the United States and shipping 85% of the line manufactured overseas. Nike Companies' lean supply chain saves $0.15 per unit compared to traditional distribution models. Nike saves $900 million in one year. Nike's key factor is efficiency coupled with low manufacturing cost. Nike's footwear division serves 14 countries through independent contract manufacturers. About 96% of factories are located in China, Indonesia and Vietnam, but no single factory accounts for more than 5% of productiontotal number of Nike shoes. Beyond the production process. Nike relies on independent contractors to produce on their own. Nike's production and distribution models will have to deal with automation. In the United States, high labor management, the basic approaches to production, but the basic principle of production, but as robotic technology evolves, in places like Nike, this is untenable, this offers the possibility of increasing launch and production operations. According to Morgan Stanley forecasts; Nearly 20% of Nike shoe production will be produced by automated factories in 2023 thanks to the adoption of a new generation. At that time, many overseas factories will adopt successfully without risking losing their cost advantage over domestic factories. According to reports from the International Federation of Robotics, over the next three years, 1.3 million new robots will be installed in factories. This means that Nike will improve and adopt its production in this area. This will be one of Nike's manufacturing strategies. Nike's distribution channels can basically be divided into two categories. The first is the sale of products to the wholesaler and directly to the consumer or (DTC). Selling products to wholesalers internationally and in the United States. This distribution channel is Nike's largest distribution channel. DTC sales include factory, online and e-commerce sales through the website. Additionally, Nike distributed its products on e-commerce websites like Amazon, Ali Express or other websites. Selling products online directly to the customer is Nike's rapidly growing distribution channel. In Nike distribution channels, distribution channels have also been created for some specific categories for retailer destinations by establishing partnerships with certain shoe retailers such as Foot Locker, Jd Sports, Flo and other shoe retailers. Most of Nike's revenue comes from wholesalers. But the contribution of wholesalers to the sales mix decreased from 83% (2012) to 68% (2019) of tax revenue. In DTC, sales increased from 16% to 32% during the same period. However, the rates of this DTC are lower than those of its 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 with Nike Direct. Nike Direct is a website where you can buy your original Nike products from this website. DTC is Nike's best distribution channel in terms of customer margin. Nike increased its sales thanks to Nike Direct. On the wholesale side at Nike; wholesale customers increased 6% in fiscal 2019 compared to fiscal 2018. Nike still uses wholesalers, but DTC sales fell from $5.3 billion in 2014 to 11 .7 billion in fiscal 2019. Nike's DTC (direct-to-customer) approach consists of two-sided Nike-owned retail stores, which are physical stores and Nike digital platforms. Nike factory provides high-end products at consumers' value. Due to a relevant value proposition to attract higher value to consumers. At the end of fiscal 2019, Nike operated 384 U.S. retail stores and 768 U.S. outdoor stores. In the United States, there are 217 Nike brand factory stores, 29 Nike online stores and the rest 109.