Commercial, Demand Management, Energy Efficiency, Energy Procurement, GHG Emissions, Industrial, Commercial, Distributed Generation, Industrial, Solar, Wind  -  May 27, 2016

Nike targets supply chain with massive logistics center run entirely on renewables

When Nike Inc. released its sustainability report a few weeks ago, it made the bold decision to align its carbon reduction goals with the Paris agreement, and said finding efficiencies within its supply chain would be a key path to meeting them. 

Toward that end, Nike on May 26 announced that its newly expanded European Logistics Campus in Belgium will run on 100% renewable energy and serve as an agile distribution center for retailers and consumers around the world. The facility, Nike said in a news release, accelerates the corporation's path toward "the supply chain of the future."

The facility's energy comes from five locally generated sources: wind, solar, geothermal, hydroelectric and biomass. Six on-site wind turbines, Nike said, produce enough electricity to power 5,000 households, and on-site solar panels cover the size of three soccer fields.

The "state-of-the-art centralized distribution network in the center of Europe," as Nike calls it, is expected to increase efficiency, responsiveness  and sustainability, all while enabling growth through serving consumers across Nike.com, Nike retail and wholesale partners in 38 countries. 

"Globally, we ship more than one billion units of footwear, apparel and equipment every year, which demands an agile, innovative and sustainable supply chain,"  Nike COO Eric Sprunk said in the news release. "The expansion of our European Logistics Campus demonstrates our commitment to bring the full range of Nike products to consumers more quickly, where and when they want it – whether it's one pair of Flyknit shoes or a 10,000-item order for a retailer."

Sustainable innovation influenced all aspects of the facility, Nike said, from the drawing board through to final construction, emphasizing the company's vision for "a low-carbon, closed-loop future" as part of its goal to double its business while cutting its environmental impact in half.

Other key features of the facility, according the news release: 

  • It is fed by an infrastructure of canals, railways and highways. 99% of inbound containers reach the local container park, by water, not road, saving 14,000 truck journeys a year.
  • Moving away from a traditional structure that requires more steel and concrete, the warehouse is a rack-supported building, reducing waste and material used, thereby minimizing its footprint.
  • More than 95% of waste generated on-site is recycled. Pathways used by employees around the facility are made from recycled footwear material.
  • Natural light provided by many windows, a unique daylight capture system and smart, automated LED lighting help to reduce electricity costs, reduce environmental impact and provide a more productive workplace.
  • The facility was carefully designed to expand while supporting biodiversity. For example, sheep will help naturally maintain the landscaping, and on-site beehives will contribute to biodiversity through the pollination of flowers around the facility and in the local area.

 

SED's take: Kudos to Nike for this bold step forward in three areas. Their new logistics center in Europe features meaningful innovations in logistics management, integrated renewable energy sourcing and multichannel retail fulfillment. Should we get the opportunity to share more information on this "supply chain of the future" concept, we'll do so. - John Failla for Smart Energy Decisions

 

Keywords: Nike

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