Distribution

Distribution is a process that normally includes the producer, one or more wholesalers, and a retailer. Nike's role in the distribution system is the producer aspect. Nike has made plans to expand their current distribution center in Wilsonville, Oregon, and establish a state of the art distribution center in Memphis, Tennessee. The one million square foot building will cost Nike an estimated 107 million dollars. Nike has projected that their investment will save for itself and their retail customers more than 200 million in cost efficiencies, as well as reduced shipping times and increased service capabilities.