Nike and Direct-to-Consumer: Just Doing It

Nike and Direct-to-Consumer: Just Doing It

May 5, 2021
Lisa M. Spencer

Nike continues its march towards more direct-to-consumer (DTC) sales, notifying seven more distributors that they will no longer be selling its products.

The last shipments to DSW, Macy’s, Urban Outfitters, Big Five, and several others are likely to go out in October 2021. The move follows Nike’s cut of nine wholesalers last fall, and continues a push towards more digital sales.

Its DTC model that began about a decade ago has been accelerated and positively affected by the pandemic.

Video Spotlight: 

This post is based on the Retail Dive article, Nike drops DSW, Urban Outfitters, Macy’s in quest for more DTC sales , by Cara Salpini, March 26, 2021; the Retail Dive article, How Nike is using DTC and data to expand its empire, by Cara Salpini, March 23, 2021; and the YouTube video in the Spotlight. Image source: Paulaphoto/Shutterstock

Discussion Questions:

1. How will Nike reach consumers if it bypasses the many wholesalers and retailers on which it has traditionally relied?

Guidance: Nike plans to use more digital sales in its app-driven stores, and it plans to open about 200 Continue reading →

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UPS and FedEx Manage Capacity for Peak Vaccine Shipping

UPS and FedEx Manage Capacity for Peak Vaccine Shipping

April 4, 2021
Lisa M. Spencer

UPS and FedEx are planning to increase vaccine delivery capacity threefold by May.

As of February 2021, the two companies were delivering about 14 million doses per week.  UPS in particular believes it can still prioritize timely vaccine delivery when increased production by multiple manufacturers allows triple the volume in May 2021.

Video Spotlight: 

This post is based on the Bloomberg article, UPS expects 40% jump in vaccine doses next week, peak in May, by Thomas Black,  February 25, 2021, and the YouTube video in the Spotlight. Image source: FG Trade/Getty Images

Discussion Questions:

1. How have distribution points grown since the start of 2021?

Guidance: Distribution points are becoming increasingly varied as local and state governments open up stadiums, arenas, amusement parks, and other large-scale venues in addition to smaller outlets like pharmacy and grocery chains.  Whereas there were about 14,000 distribution points in the vaccine supply chain when UPS and FedEx began deliveries, there were 100,000 as of late February 2021, with that number increasing rapidly.  As distribution points open up, more delivery capacity is needed Continue reading →

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Home Depot’s Dallas DC: Running on Hydrogen

Home Depot’s Dallas DC: Running on Hydrogen

April 1, 2021
Anita Lee-Post, Ph.D.

Home Depot is partnering with Plug Power to build a 1.5 million square foot distribution center in Dallas, Texas.  The new distribution center will use Plug Power’s zero-emission hydrogen fuel cell systems to power material handling equipment such as forklifts.

The fuel cell systems also become the infrastructure for storing, compressing, and dispensing hydrogen fuel.  The partnership is heralded as a fulfillment of Home Depot’s sustainability commitment to its supply chain and operations.

Video Spotlight: 

This post is based on the Hydrogen Fuel News article, Home Depot to build zero-emission hydrogen fuel cell powered Dallas distribution center, by Angie Bergenson,  February 18, 2021, and the YouTube videos in the Spotlight. Image source: Syda Productions/Shutterstock

Discussion Questions:

1. What is Home Depot’s sustainability strategy and goal?

Guidance: Home Depot’s sustainability strategy is to reduce the environmental footprint for its supply chain and operations.  The goal is to leverage the value and environmental advantage of Continue reading →

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