We continue to work to deepen our engagement into the lower tiers of our supply chain with a focus on advancing industry approaches and. Supply chain management deals with the management of materials, information, and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers. Supply chain management description of nike company nike inc. Nike manufacturing and supply chain strategies market realist. Chain management lean supply chains and third party logistics pdf. By whatever name it is the sinuous, gritty, and cumbersome process by. This case study highlights the failure and subsequent success of erp implementation in nike s supply chain project. It stated that disclosure of the factory names, plus details of audits of those factories, would be used by.
Vertical integration nikes operations are vertically integrated with a presence in every segment of the value chain from manufacturing down. The nike manufacturing map will begin disclosing information on materials suppliers within our supply chain, including detailed names and location of each factory, beginning in q1 fy2019 june onwards. Nike s product and supply chain positioning matrix. The worlds top sneaker brands are in a race as their efforts to surpass each other continue. Ardhi puji hariadi aswin budi pratomo danny dharmawan kosasih erry sunarli gede arya wiguna hari tarigan muhammad ahsin rogayya yuri pramono yudho 2. Around the world, it can be easily recognized by its swoosh logo. The key to nike s efficiency is its low overhead manufacturing costs. This can be achieved by making few of the products functional and developing a responsive supply chain for the rest of the innovative products. Supply chain strategic management for nike marketing essay. How and why nike recovered from its supply chain disaster. Nike has approximately 1 million employees spread out across 715 factories in over 44 countries. Stanford initiative for the study of supply chain responsibility sisscr. The nike supply chain operations team can reduce lead times by 83.
This report explores how nike s approach to improving social and environmental conditions in its global supply chain has evolved through integrated management of sustainability and innovation, increased supplier incentives, and systems innovations intended to prevent problems before they arise. It is imperative that a mutual understanding exists between nike and its suppliers to ensure quality throughout the supply chain. Nikes manufacturing network has over 525 factories. Nike has evolved from an organization that manufactures for professional athletes to a company that is manufacturing for all ages, demographics and fashion inclined too through technological innovations. Nike believes addressing human rights risks deeper in the supply chain, such as forced labor, requires a collective approach. Apart from these things, the brand is globally popular for its quality of products. Doc global supply chain management case study nike. This site is a tool to learn about the independent factories and material suppliers used to manufacture nike products including the name and location of. Locke january 19, 2014 social compliance programs employed by mnes face signi cant challenges in enforcing labor standards across global supply chains. But the growth of the global supply chain has also created a new class of ethical. The american manufacturer, through its marketing strategy which rests on a favorable brand image, has evolved into a large. Additional cost incurred especially shipping cost spoiled relation with retailer lost considerable market share to rivals new balance especially gained on nike in market share. Of those 715 factories, nike only owns 73 manufacturing centres located in the united states whereas the other 642 are contract factories that nike source product from. Stanford supply chain forum call it distribution or logistics or supply chain management.
Supply chain management adidas free download as powerpoint presentation. Nike believes it will gain an advantage over its competition by improving its supply chain. The current controversy over supply chain practices of global corporations such as disney, walmart and sears in bangladesh reminded me of nike s past and its subsequent corporate sustainability evolution. The value chain as a strategicanalysis tool emerged when nike set a precedent in the. A mustknow investors guide to nike part 5 of 22 continued from part 4the cogs in nikes supply chain. Nikes approach to managing supplier responsibility has greatly evolved since the 1990s, when the media uncovered claims of child labor, underpaid workers, and. Nike supply chain collaborative iis mm ugm ap 6b an implementation of information system in supply chain management super chain workgroup. Sustainable supply chain management semantic scholar. Nike manufacturing and supply chain strategies market. Nike a leading manufacturer of shoes and other sports equipment in the world faced lots of problems in adopting new software to streamline its supply chain and.
Nikes strategy to improve conditions in its global supply. For a company that moves over 900 million units per year, these savings amount to a serious competitive edge. Nike is a celebrity brand of sports shoes, apparel and equipment. By the end of 2018, nike plans to have installed a minimum of 1,200 new automated machines at its asian. Nike has long partnered with multistakeholder and external organizations such as the fair labor association, sustainable apparel coalition, the international labour organizations better work programme, and the better cotton initiative to address labor risks in our supply chain. Watch the video nike supply chain management disaster. Nike moves faster to clean up its supply chain greenbiz.
As a result, nike has created the following standards for their supply chain. Nike s supply chain sources most of its raw materials in the manufacturing host country by independent contractors. A company considering an outsourcing nike supply demand analysis months to six months. We continue to work to deepen our engagement into the lower tiers of our supply chain with a focus on advancing industry approaches and collaborative tools through existing partnerships. Nike leaders realized they were facing a supply chain crisis. Nike is looking to reduce lead times for its orders from 60 days to a mere ten days by redesigning its logistics network, nearshoring more facilities, improving contract manufacturer relationships and investing in automation, quartz reports.
Integration, incentives and innovation nike s strategy to improve social and environmental conditions in its global supply chain angharad porteous and sonali rammohan 19th november 20 nike s approach to managing supplier responsibility has greatly evolved since the 1990s, when the. Answer of question no 3 yes nike been subjected to false statement lawsuits, as mr marc kasky sued nike in april, 1998 for its wrong behavior with the labors. Integration, incentives and innovation nikes strategy to. In response, nike claimed that sharing factory locations with independent third parties on a confidential basis enables the company to monitor its supply chain properly. Capability building and social performance in the nike supply chain greg distelhorst jens hainmueller richard m. Every day, each of us comes in contact with a multitude of products that have been produced outside the united states. Management and social performance in the nike supply chain. Nike supply chain collaborative iis mm ugm ap 6b an implementation of information system in supply chain management super chain. Supply chain management project nike shoes youtube. Pdf using valuechain analysis to discover customers. By referring to legendary trackand field coach bill bowermans quotation, nike states that the vision of their company is to bring inspiration and innovation to every athlete in the world. Nike s supply chain project is supposed to drive the manufacturing cycle for a sneaker down from nine months to. Most of the successful businesses worldwide have improved their growth rates only by adopting innovative supply chain management practices. Products move from several distribution centers across a network of thousands of retail.
Materials suppliers dye and finish the textiles and materials that go into our products. Managing ethical missteps sweatshops to leadership. Nike should take efforts to shift from upper right hand cell to lower right hand cell. Nikes evolving supply chain clelia peters mba 09 these days, your new sneakers are far more likely to have spent more time traveling than you have. Nike and adidas are two global companies try to improve their competitive advantage through strategically managing and utilizing their supply chain. On top of that, media images of children sewing nike soccer balls and running shoes sent social activists, academics and journalists into a costly anti nike campaign. Nike believes that its supply chain strategy is a vital link in maintaining its leading position in the industry, and has stuck with the. Hamza amjad daniel arcaro alex quintana brett reardon samir reddy. The importance of innovative supply chain management has been highlighted by scholars and researchers for successful management of businesses in the 21 st century. Using value chain analysis to discover customers strategic needs.
Upset the supply chain management nikes reputation suffered decline in profits huge number of unpopular models manufactured had to be sold at highly discounted price. Nike supply chain founded in 1957 by philip knight knight, nike manufactures high quality athletic shoes for a variety of sports including baseball, athletics, golf, tennis, volleyball and wrestling. Up 16 stream of the cdp, supply chains are forecastdriven and downstream of the cdp, supply chains are demanddriven 18. An overview of nikes supply chain and manufacturing.
The infographic below shows an overview of those different stages or tiers of our value chain, the main processes within those tiers, and the relative carbon and water impacts of the tiers. Scribd is the worlds largest social reading and publishing site. Nike statement on forced labor, human trafficking and. Fifteen years ago, nike underwent arguably more intense scrutiny and brutal attacks for its global supply chain management policies and priorities.
1043 271 1515 438 708 1065 608 1535 1311 1206 300 788 541 705 584 484 36 1081 668 236 181 690 257 1052 375 1355 26 1441 1276 1235 1229 125 1373 693 230 722 987