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Op-Ed: Is Sourcing The Next Great Disruptor?

Nike recently formed a strategic partnership with affiliates of Apollo Global Management to create a new supply chain company designed to greatly enhance regional manufacturing capabilities and enable quicker delivery of more customized product to consumers, while driving investment in sustainability.

This partnership was initiated in a series of transactions where Apollo acquired two existing regional suppliers to Nike, New Holland Apparel and ArtFX, both companies represented by MMG Advisors.

These suppliers, both located in the Western Hemisphere, bring onshore and nearshore manufacturing and embellishment capabilities to Nike. The new venture, which will encompass additional acquisitions, is intended to become an end-to-end solution for the sports apparel market by linking entities spanning textile manufacture, garment production, embellishment, distribution and logistics.

The success of this new model may not only revolutionize the way sports apparel is produced and distributed, but may also hasten a fundamental change in the way the apparel industry thinks about sourcing and distribution.

From Nike’s perspective, Eric Sprunk, the company’s chief operating officer, says the objective is to, “Rethink a new supply chain model to revolutionize apparel manufacturing in the Americas. The new company, under Apollo’s leadership, is committed to embedding sustainability and transparency into the business, investing in new technology, vertically integrating critical elements of the supply chain and delivering the best Nike performance product to our retail and sports partners.”

Read more at Sourcing Journal.