Improving the nike supply chain by redesigning its. Since nikes manufacturing strategy is based on outsourcing and contract manufacturing, growing protectionist actions could hit its supplychain process. Nikes manufacturing network has over 525 factories. Nike statement on forced labor, human trafficking and. Supply chain management corina botnarevschi, ehab etani, akbar khan, amir garranah 2. 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. Knight, a director since 1968, is chairman emeritus of nike, inc.
Nikes supply chain management distribution vertical marketing system horizontal marketing system multichannel marketing system. Nike should take efforts to shift from upper right hand cell to lower right hand cell. Locke august 29, 2015 management science, forthcoming. Nike enjoys a strong brand, wellmanaged distribution processes and a compelling product offering. Nike during 1999 implemented the first part of its supply chain strategy i.
Knight is a cofounder of the company and, except for the period from june 1983 through september 1984, served as its president. Nikes express lane strategy is on the way to cutting lead times in half and driving doubledigit growth in many of our key cities, ceo mark parker. Store management process over 2,00,00 retail shops all over the. The importance of innovative supply chain management has been highlighted by scholars and researchers for successful. Nike supply chain collaborative iis mm ugm ap 6b an implementation of information system in company overview nike, the worlds. Supplier practices examine the best practices within a specific supply chain. Nikes bold commitment to transparency through this supply chain research helped identify a stark fact about global supply chains. Qualified applicants will receive consideration without regard to race, color, religion, sex, national origin, age, sexual orientation, gender identity. They required a solution that reduced both supply chain costs and lead times to customers, and also provided real time inventory visibility.
Products move from several distribution centers across a network of thousands of retail. Nikes strategy to improve conditions in its global supply. Integration, incentives and innovation nikes strategy to. Nikes failure in adopting supply chain information system. Nike manufacturing and supply chain strategies market realist. For a company that moves over 900 million units per year, these savings amount to a serious. Integrating sustainability with supply chain management rewiring nikes approach to supply chain sustainability has involved changes both at the company level and with its suppliers. Comparison supply chain management practices of nike. Thomopoulos 2014a unfortunately before they could implement the new software nike had already hit their rock bottom. Nike decided to adopt a supply chain management system from i2, a major competitor in the field of erp systems. The importance of innovative supply chain management has been highlighted by scholars and researchers for successful management of businesses in the 21 st century.
The american manufacturer, through its marketing strategy which rests on a favorable brand image, has evolved into a large. This report explores how nikes approach to improving social and environmental conditions in its global supply chain has evolved through integrated management of sustainability and innovation, increased. It is imperative that a mutual understanding exists between nike and its suppliers to. Indeed, sustainable supply chain management can be a strong driver of value and success for business as. One companys unprecedented disclosures raised the bar for an industry in april. Sepatu nike grand indonesia termurah pdf mapping supply chain. Nikes dtc approach is twoprongedthe nikeowned retail stores, which are the brickandmortar stores, and its digital platform. Apple and amazon, or the sustainability leadership of supply chain organizations like unilever, nike and schneider electric, has been a big help. It includes selecting and contacting the right suppliers for the right goods and services. Doc global supply chain management case study nike. Management and social performance in the nike supply chain greg distelhorst jens hainmueller richard m. Nikes vision of a lean, green, equitable and empowered sustainable supply chain required a fundamental shift in business relationships, but is now embedded within the new manufacturing index.
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. This process includes information from external sources such as risk assessments for key human rights risks, supplier specific risk profiling based on location including the employment. Nikes response to a supply chain crisis repositioned it as a sustainability leader, and raised the bar for an entire industry. Nike manufacturing and supply chain strategies market. Our approach also supports better outcomes for our suppliers, the people who work in our supply chain. However, with new competitive entrants with better service and lead time, and even fashion brands moving into their market space, supply chain excellence has been elevated in the past few years, and is viewed as a competitive weapon. An overview of nikes supply chain and manufacturing. Nikes strong, longterm relationships with suppliers help us create innovative product responsibly. Expectations are set, and the potential supplier can view nikes playbook on how it executes its supply chain operations. In more detail, it looks at testing performance in nikes restricted substance list program, water program, and energy and. This system was extension of nike supply chain as discussed earlier. Nike has approximately 1 million employees spread out across 715 factories in over 44 countries. Since nike s manufacturing strategy is based on outsourcing and contract manufacturing, growing protectionist actions could hit its supply chain process.
Analyzing nikes distribution channels and retail strategy. Nikes evolving supply chain columbia business school. Every day, each of us comes in contact with a multitude of products that have been produced outside the united states. Perceived risk a measurement methodology and preliminary findings.
The infographic below shows an overview of those different stages or tiers of our. Nike continually evaluates and updates its systems to identify and address risks in its supply chain, including those related to slavery and human trafficking. Nike has a global procurement team to manage the procurement part of its supply chain management. Nike wins 2019s company of the year award for its acquisition of artificial intelligence ai and predictive analytics startup celect the culmination of a threepart, threeyear strategy to. The challenge nike needed to create a reliable domestic supply chain solution for their operations in indonesia as they had previously relied on domestic distributors and had no external logistics provider. But the growth of the global supply chain has also created a new class of ethical. The nike supply chain operations team can reduce lead times by 83. A mustknow investors guide to nike part 5 of 22 continued from part 4the cogs in nikes supply chain. The new case studies trace nikes journey as one of the first companies faced with issues in its global supply chain to one that now actively pursues sustainable innovation as a part of the.
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