Nike s current information systems will be used as a source to achieve greater channel alignment. Nikes supply chain accelerated by new partnership with flextronics the partnership with flex advances this work by bringing new capabilities and expertise outside of the existing footwear industry to create future systems for making product and to catalyze innovation across nikes global supply chain. This system was extension of nike supply chain as discussed earlier. But nike s efforts are based on more than a drive to innovate. As early as 2003, nike developed a baseline of its supply chain general environmental footprint, including inbound logistics and subcontracted manufacturing. Nike seeks to reduce lead times in production supply chain dive. Presenting the mi in a clear dashboard format has helped both. Nike has approximately 1 million employees spread out across 715 factories in over 44 countries.
We expect the same from our business partners, and focus on working with longterm, strategic suppliers that. Pdf using valuechain analysis to discover customers. Two visionaries, bill bowerman and his university of oregon runner phil knight, thought they could do a better job of designing and selling shoes to runners. 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 media uncovered claims of child labor, underpaid workers, and poor working conditions in several. This case study highlights the failure and subsequent success of erp implementation in nike s supply chain project. A few types of metrics that are useful for supply chain digitalization include output metrics, process metrics and value chain metrics. H ere is a fivestep method for discovering a customers particular strategic needs based on a unique application of value chain analysis. As part of the companys climate savers agreement, nike partnered with the university of delaware to develop a model for measuring inbound emissions of product transportation from factory. In between conception and selling, there are six critical process steps. 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. Ardhi puji hariadi aswin budi pratomo danny dharmawan kosasih erry sunarli gede arya wiguna hari tarigan muhammad ahsin rogayya yuri pramono yudho 2.
Using valuechain analysis to discover customers strategic needs. T companies viewed the identity of supplier factories as sensitive business information, and thought. 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. Nike continually evaluates and updates its systems to identify and address risks in its supply chain, including those related to slavery and human trafficking across multiple tiers of our supply chain. But the growth of the global supply chain has also created a new class of ethical. Nikes supply chain accelerated by new partnership with flex. Even more energizing is that this power ed consumer is about to explode in population. Once the supply chain council has set a strategy, the supply chain organization must be prepared to execute. The supply chain management of nike marketing essay. An overview of nikes supply chain and manufacturing strategies.
Supply chain management deals with the management of materials, information, and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers. Nikes purpose is to unite the world through sport to create a healthy planet, active communities and an equal playing field for all. Nike believes that its supply chain strategy is a vital link in maintaining its leading position in the industry, and has stuck with the. An overview of nikes supply chain and manufacturing. Pdf h ere is a fivestep method for discovering a customers particular strategic needs based on a unique application of value chain analysis. 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. Nike, patag onia, and puma have been publishing information on their supplier factories.
It is imperative that a mutual understanding exists between nike and its suppliers to ensure quality throughout the supply chain. May 17, 20 nike s 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. One companys unprecedented disclosures raised the bar for an industry in april 2005, nike surprised the business community by releasing its global database of nearly 750 factories worldwide. This corporatewide organization has oversight over all wafer fabrication factories, all. The team is embedded within and reports to the head of. At nike s october 2017 investor day coo erik sprunk highlighted the impact that flex has had on nike production. This software was developed to help nike to match its supply with demand by mapping out the. This includes working to combat risks of forced labor, modern slavery and human trafficking. As a result, nike has created the following standards for their supply chain. The project has provided a method to evaluate the entire supply chain and determine the area that has the most opportunity for improvement and therefore. Ip sustainable supply chain management winter semester 201617. Other alternatives that will be assessed include customer satisfaction and retention, profitability, return on investment. Nike during 1999 implemented the first part of its supply chain strategy i. Pdf this study tests the hypothesis that lean manufacturing improves the social performance of.
Monica romis lobalization and the diffusion of industry supply chains to developing coun. Nikes approach to managing supplier responsibility has greatly evolved since the 1990s, when the media uncovered claims of child labor, underpaid workers, and poor working conditions in several asian countries. This report explores how nikes approach to improving social and environmental conditions in its global supply chain has evolved. Supply chain management operations and decisions are ultimately triggered by demand signals at the ultimate consumer level. Stanford supply chain forum call it distribution or logistics or supply chain management. Nikes supply chain strategy heavily emphasizes the use of multiple sourcing partners. Hamza amjad daniel arcaro alex quintana brett reardon samir reddy. This report is a part of mits supply chain 2020 sc2020 research project focusing on toyotas production system and supply chain. Operating a responsible supply chain is becoming a higher priority, but theres still a divide between beliefs and actually achieving ethical supply chain goals. The company has been highly successful, with many customers both large and small. Doc global supply chain management case study nike. 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. Nike s response to a supply chain crisis repositioned it as a sustainability leader, and raised the bar for an entire industry.
Now, with somewhere between 4347% of that market, nike is the undisputed leader. Nike supply chain management supply chain free 30day trial. Trends in technology, information and operations management, vol 7, no. Additionally, the companys current supply chain processes will be examined as a benchmark for operational efficiency. Managing ethical missteps sweatshops to leadership.
Nike s scale and our vertically integrated assets into a speed advantage. One significant challenge has been how to organize the function to realize the full potential and benefit of being an effective organization. In this shopping process, nike is looking for, among other things, inexpensive labor, low import taxes, and high levels of efficiency in the manufacturing. Nikes evolving supply chain columbia business school.
Dec 18, 2017 the nike supply chain operations team can reduce lead times by 83. This was a fascinating read its clear that nike is highly attuned to evolving customer preferences in the digital world and managing its supply chain accordingly. A company considering an outsourcing nike supply demand analysis months to six months. Nikes rewire approach to supply chain sustainability has involved making. Since nike s manufacturing strategy is based on outsourcing and contract manufacturing, growing protectionist actions could hit its supply chain process. Ua must continue to develop their supply chain as the company has fallen behind competitors. 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 supplier incentives, and systems innovations intended to prevent problems before they arise. Performance metrics for supply chain digitalization when talking about kpis and metrics, the group had various ideas to measure the success of a digital supply chain. Nikes strategy to improve social and environmental. Nike s plan reflects a larger trend among american companies to cut lead times and reduce production costs. Nike manufacturing and supply chain strategies market. Expectations are set, and the potential supplier can view nike s playbook on how it executes its supply chain operations.
Forced labor in the leather supply chain nike, inc. By whatever name it is the sinuous, gritty, and cumbersome process by. Scmr and loyola university surveyed more than 700 supply chain professionals to discover how their organizations are addressing key issues related to supply chain ethics. Store management process over 2,00,00 retail shops all over the world within the usa there are 18000 stores that retail nikes products nike has a strong network of retailers in 200 countries world wide. This report explores how nike s approach to improving social and environmental conditions in its global supply chain has evolved. As a result, nike is always shopping for new and more productive manufacturing sites around the world. Integration, incentives and innovation nikes strategy to. Locke january 19, 2014 social compliance programs employed by mnes face signi cant challenges in enforcing labor standards across global supply chains. Nike and adidas are two global companies try to improve their competitive advantage through strategically managing and utilizing their supply chain. Most of the successful businesses worldwide have improved their growth rates only by adopting innovative supply chain management practices.
The brand is responding to consumers demand for a greater variety of clothes to be available more often. Nike supply chain collaborative iis mm ugm ap 6b an implementation of information system in company overview nike, the worlds. Management and social performance in the nike supply chain. This case study highlights the failure and subsequent success of erp implementation in nikes supply chain project. Supply chain is the system by which organizations source, make and deliver their products or services according to market demand. 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. 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.
Supply chain risk management at intel spans many business units and functional groups, but is primarily coordinated through a centralized technology and manufacturing group tmg. What digitization and customization mean for nikes supply chain november 26, 2017 jordan martinez says. Social performance in the nike supply chain greg distelhorst, jens hainmueller, richard m. Sustainable business report clean production action. Nike s purpose is to unite the world through sport to create a healthy planet. In 1984, nike owned just 16% of the athleticshoe market, and for much of the 1980s it was running neckandneck with reebok wilson 1. To a company that powers the data center and billions of smart, connected devices. Nike s 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. Nikes supply chain management distribution vertical marketing system horizontal marketing system multichannel marketing system. Supply chain planning tools deliver potentially tremendous savings when well implemented, and wreak havoc when they fail. Source 100% from factories that meet our definition of sustainable protecting the environment making product responsibly. For the third time in the supply chain, nike has to move their goods to another part of the process.
Nike blames both the new supply chain software it installed and i2 technologies inc. The nike supply chain starts when a new product is conceived and ends when the consumer buys the product at retail. Nike s approach to managing supplier responsibility has greatly evolved since the 1990s, when the media uncovered claims of child labor, underpaid workers, and poor working conditions in several asian countries. Nikes strategy to improve conditions in its global supply. In north america, nike s primary consumer base is 50 million people. A mustknow investors guide to nike part 5 of 22 continued from part 4the cogs in nikes supply chain. Capability building and social performance in the nike supply chain greg distelhorst jens hainmueller richard m. For a well known sports shoe and apparel brand, nike has a quite big and well managed supply chain and distribution network. Over 2 billion digital natives in markets like china, india or latin america will join the middle class by 2030. Dallas, texasbased, i2 is a major supply chain software vendor. Mar 05, 2019 large and well managed supply chain and distribution network a large and well managed supply chain and distribution network is also among the key strengths of nike.
Improving the nike supply chain by redesigning its logistics network, improving contact manufacturer relationships, nearshoring more facilities, and investing in automation, lead times for the nike supply chain can be. The importance of innovative supply chain management has been highlighted by scholars and researchers for successful management of businesses in the 21 st century. It stated that disclosure of the factory names, plus details of audits of those factories, would be used by. Nike supply chain collaborative iis mm ugm ap 6b an implementation of information system in supply chain management super chain workgroup. 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. Follow the thread the need for supply chain transparency.
Pdf ip sustainability in global supply chains a stakeholder. While ua was creating visibility throughout their supply chain, nike s was redesigned in its entirety. Every day, each of us comes in contact with a multitude of products that have been produced outside the united states. Nov 01, 2017 nike s goal is a supply chain managers dream. A new supply chain project has nike running for its life.
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