1. What are the reasons for a company, such as Nike, with a centralized distribution centre to ship some products directly to customers, not through the distribution centre? According to Eric Sprunk, Nike Chief Operating Officer New Court Distribution center represents Nike's continued investment in a fast and flexible supply chain to deliver the full range of our products to consumers when they want it, where they want it. Direct sales to the consumer provide higher margins than do sales to wholesalers. Nike's DTC sales have increased considerably, as has its contribution to its overall sales mix. The company's DTC sales rose to $11.7 billion in fiscal 2019, up from $5.3 billion in fiscal 2014. Direct distribution allowed Nike to further reinforce MSRP (manufacturer's suggested retail price) and communicate directly with consumers about price points. Direct distribution allowed Nike to collect a goldmine of data. Better customer data leads to better promotions, better products, better relationships and more sales.