This episode recounts the inspiring growth story of On Running, highlighting their journey from a small startup to a multi-billion dollar company. It emphasizes how strategic decisions and proprietary technology helped them overcome significant supply chain challenges, providing valuable lessons in resilience and transparent supplier relationships for e-commerce businesses.
Key takeaways
On Running's success, even passing $3 billion in sales, demonstrates the power of a clear vision and effective execution in achieving substantial growth.
The development of proprietary "Cloud Tech" that offers both cushioning and propulsion highlights the importance of innovative product design in gaining a competitive edge.
Their experience with a near-failure due to supply chain issues underscores the critical need for robust and transparent supply chain management, especially for businesses with global operations.
The hosts' reiteration of On's profitability and controlled destiny from early stages shows the advantage of sustainable growth over rapid, venture-backed expansion.
The co-created collection with Zendaya illustrates the impact of strategic brand partnerships in expanding market reach and relevance.
The hosts' reiteration of On's profitability and controlled destiny from early stages shows the advantage of sustainable growth over rapid, venture-backed expansion.
Two years ago we recorded an episode on On Running. This week we're re-airing it, and it holds up better than I expected.When we recorded it in 2024, On had just crossed two billion in revenue and was making big promises about margins and innovation. Since then they passed three billion, hit the margins they were targeting, and their LightSpray technology can now build a shoe in about three minutes.But the part of the story I keep coming back to isn't the growth. It's 2011.Three weeks before Chinese New Year, their factory went bankrupt with 30,000 pairs of unfinished shoes locked inside. Their R&D lead had been on the production floor days earlier and saw nothing wrong. They got the product out, paid another factory triple wages to assemble everything, air freighted it, and wiped out most of their profit for the year. The company almost died in its second season.The lesson they internalized is one most brands still skip: you have to understand your factory's balance sheet. Your supplier is a business too, with cash flow pressure, raw material bets, and payroll of their own. A factory can look busy right up until the day the doors are chained.]]>
What does this episode say about supply chain & operations?
On Running's success, even passing $3 billion in sales, demonstrates the power of a clear vision and effective execution in achieving substantial growth.
What does this episode say about brand & content?
The development of proprietary "Cloud Tech" that offers both cushioning and propulsion highlights the importance of innovative product design in gaining a competitive edge.
What does this episode say about founder & leadership?
Their experience with a near-failure due to supply chain issues underscores the critical need for robust and transparent supply chain management, especially for businesses with global operations.
What does this episode say about product & merchandising?
The hosts' reiteration of On's profitability and controlled destiny from early stages shows the advantage of sustainable growth over rapid, venture-backed expansion.
What does this episode say about supply chain & operations?
The co-created collection with Zendaya illustrates the impact of strategic brand partnerships in expanding market reach and relevance.
