With construction under way in the first quarter of 2009, Nike’s new China logistics centre will become Nike’s largest such centre in Asia, according to a Reuters report. The site is expected to be completed at the end of 2010 and will help direct the flow of Nike shoes and apparel in China, Nike’s second-largest market after the US and one of its fastest growing.
Sized at almost 1.3 million square foot, the new Nike China Logistics Centre (NCLC) in Jiangsu will initially house Nike China’s footwear, apparel and equipment products. The new distribution and logistics centre in eastern China will afford space and capacity for expansion. According to media reports, the site could also house an affiliated Nike business.
Nike has been at the forefront of bringing many firsts to the sportswear industry in China — the NCLC is no exception,” Willem Haitink, Vice President and General Manager of Nike China. “This state of the art logistics facility will showcase the best of our global supply chain expertise and ensure faster delivery of product to our retail partners across thousands of locations around the country – a further demonstration of our long-term and unwavering commitment to China.”
Nick Athanasakos, Nike’s Vice President for Global Supply Chain, noted that the new facility will be one of the first to use high-tech sorters and conveyers for moving and tracking products. It will also employ radio frequency technology to improve accuracy and efficiency.
The expansion comes as Nike has been forced to take a new focus on cost-cutting in order to cope with the global recession. Nike recently announced up to 1,400 job cuts, or 4% of its workforce.
