Indra Hardani 
Business Unit Manager 
"
Anticipating and responding to our customers’ needs is a key focus for us.
"
 
Case Study Retail - Nike Indonesia

Supply Chain Optimization and Domestic Distribution

Customer Profile

Nike is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Based in Beaverton, Oregon, Nike employs nearly 35,000 people worldwide.

The Challenge

Nike needed to create a reliable domestic supply chain solution for their operations in Indonesia as they had previously relied on domestic distributors and had no external logistics provider. They required a solution that reduced both supply chain costs and lead times to customers, and also provided real time inventory visibility. Nike needed reliable distribution of its footwear, apparel, and sports equipment across the whole of Indonesia.

Agility’s Solution

Agility established a 4,600 sq. meter facility to cater for Nike’s needs in Jakarta, supporting activities across Indonesia. A team of dedicated Agility employees manage and oversee the supply of products from point of order. In addition, Agility established links into Nike’s order management system to ensure full visibility of products at SKU level throughout the supply chain. Distribution is now carried out to over 140 stores and warehouses across the country.

After goods arrive at the warehouse, Agility receives orders from Nike, processes them, and picks and packs the goods for delivery. Order visibility is provided through Warehouse Management System (WMS) and Radio Frequency (RF), which allow for product tracking. Use of a dedicated truck fleet and preferred vendors ensure that deliveries are made to the proper outlets on a regular basis, depending on requirements. For more remote locations, Agility's branch offices across Indonesia arrange for delivery to retail outlets.

Agility supports Nike’s strong emphasis on recycling cartons and lowering environmental impact by reusing all imported cartons for local delivery. This program is now being extended to include collection and subsequent reuse of cartons from stores. Agility also handles reverse logistics for Nike. Any defective or recalled goods are collected by Agility and inspected as required.

A Word From Nike

"Agility demonstrates their focus on customer delight by being flexible to the changing needs of the customer. Active communication is the catalyst in aligning mutual expectations to prepare for market changes."

Choon Wea Loo
South East Asia Supply Chain Director
Singapore

Special Services provided to Nike

  • A Purpose-Built 4,600 Sq Meter Warehouse
  • Full Inventory Management System
  • Indonesia-wide Domestic Distribution
  • Recycling and Reuse of Cartons
  • Reverse Logistics to Handle Returns or Defective Items