The supply chain is the heart of a companys operations. Nike supply value chain manufacturers suppliers consistent with its original strategy, nike outsourced virtually all of its footwear manufacturing to lowcost asian or south american manufacturers. Nike is using a new system to measure the sustainability performance of more than 800 factories. Nike manufacturing and supply chain strategies market. Most of the successful businesses worldwide have improved their growth rates only by adopting innovative supply chain management. Nike supply chain collaborative iis mm ugm ap 6b an implementation of information system in supply chain management super chain. 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. Introduction supply management is a complex function thats critical to business success, responsible for delivering efficient costs, high quality, fast delivery and continuous innovation throughout companies entire supply. It was realized by nike, after the debacle that the supply chain management implementation using the erp system software cannot and should not be lightly considered nike inc 2012. Pdf ip sustainability in global supply chains a stakeholder. Sustainable supply chain management semantic scholar. Indeed, sustainable supply chain management can be a strong driver of value and success.
The practice of supply chain management incorporates myriad concerns environmental issues, wages as well as health and safety conditions. Products move from several distribution centers across a network of thousands of retail. A mustknow investors guide to nike part 5 of 22 continued from part 4the cogs in nikes supply chain. Nike statement on forced labor, human trafficking and. Andy campion leads nike s global technology and digital transformation, demand and supply management, manufacturing, distribution and logistics, sustainability, workplace design and connectivity, and procurement. Management and social performance in the nike supply chain greg distelhorst jens hainmueller richard m. Because the supply chain spans multiple jurisdictions from raw. I think to improve somewhat fragmented and failing demand forecasting and order activities in nike. Economic order quantity model eoq and the supply chain. The purpose of this report is to compare and evaluate the supply chain management practices of nike. What factors led to the i2 technologies implementation being a highly complex project. By 1999, the primary locations for nike production were indonesia, vietnam, korea and china.
Not because it was a huge disaster that nearly destroyed a company, but because a lot can be learned from nike s response. To make the best decisions, managers need access to realtime data about their supply chain, but the limitations. Through the globalization of supply chain has happened, the risk. Nike s supply chain sources most of its raw materials in the manufacturing host country by independent contractors. This month the sportswear manufacturer published its first countryspecific supply chain. Nike has a geographic divisional organizational structure. An overview of nikes supply chain and manufacturing. Supply chain management corina botnarevschi, ehab etani, akbar khan, amir garranah. Supply chain management of nike management paradise. 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 and adidas are two global companies try to improve their competitive advantage through strategically managing and utilizing their supply chain. Nike by cgt staff 12262018 get great content like this right in your inbox. In general terms, supply chain management can be defined as the man. Doc global supply chain management case study nike.
Nike s failure in adopting supply chain information system 2001 in the 1970s, retailers would have to place orders with nike 9 months in advance before the delivery date. Internship program is the ideal opportunity to explore the intersection of all nike. This report explores how nike s approach to improving social and environmental conditions in its global supply chain has evolved through integrated management of. Nike is working towards mapping these risks further up the supply chain. Integrating sustainability with supply chain management. Nikes approach to managing supplier responsibility has greatly evolved since the. Located in beaverton but recruited from all over the world, nike s u. Supply chain management project nike shoes youtube. This paper seeks to study the problems faced by nike in inventory and supply chain management and to recognize the importance of supply chain. Supply chain strategic management for nike marketing essay. Integration, incentives and innovation nikes strategy to. Firms across industries were required to deal with huge demand supply.
Hamza amjad daniel arcaro alex quintana brett reardon samir reddy. A case study on how does nike manages its supply chain. The importance of innovative supply chain management has been highlighted by scholars and researchers for successful management of businesses in the 21 st century. Ip sustainable supply chain management winter semester 201617. Its kind of a gross understatement to say that nike. By way of definition, below is my favorite take on modern supply chain management. Since then, nike has been continually improving and promoting csr in their supply chain and otherwise. For a company that moves over 900 million units per year, these savings amount to a serious competitive edge. What can other organizations take from nike s experience to avert their own supply chain crisis. 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. Thomopoulos 2014a unfortunately before they could implement the new software nike had already hit their rock bottom. Nike has admitted its chinese supply chain is suffering from a lack of transparency, problems with wages and the use of underage workers.
Its excellent supply chain management is also a key source of competitive advantage for the brand. With a proper supply chain management, nike can buy material which are used for producing products at a lower rate, so that the expenses for production will not increase and then sell the product at a higher rate, with this nike will increase the profits coyle and et. Most of the successful businesses worldwide have improved their growth rates only by adopting innovative supply chain management practices. A brief history of modern supply chain management and best. Nikes evolving supply chain columbia business school. Nike manufacturing and supply chain strategies market realist. Every day, each of us comes in contact with a multitude of products that have been produced outside the united states. This structure is based on the companys needs in its global organization, as well as the uniqueness of conditions in regional markets. Nikes manufacturing network has over 525 factories. Supply chain management corina botnarevschi, ehab etani, akbar khan, amir garranah 2.
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