Factories need to meet the requirements of the code of conduct to be part of nikes sc nike uses different logistic service providers, who are key for the success of nikes supply chain nike is focusing on the use of cleaner transportation methods transportation routes to and. Nike unveils supply chain of the future with new campus. Nike uses the enterprise resource planning erp software, sap to manage all their inventories, deliveries, logistics and supply chain activities. This month the sportswear manufacturer published its first countryspecific supply chain report, revealing some problems. As a result, nike has created the following standards for their supply chain. Nike unveils supply chain of the future with new campus expansion. Nike is the largest supplier of the athletic shoes and manufactures of the sports equipment. Nike is endeavoring to shrink lead times on production while increasing direct sales to consumers as retail partners dwindle, quartz reported last week to achieve these goals, the company is realigning to better drive growth by committing to serve consumers in 12 cities in 10 key countries.
Hamza amjad daniel arcaro alex quintana brett reardon samir reddy. 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. In addition, we advocate for policies that help to ensure that nike, inc. Supply chain 2020 special report the new decade promises to be one of challenge and. What factors led to the i2 technologies implementation being a highly complex project. All too often companies focus on quickfix costcutting opportunities and ignore the longterm, strategic supply chain implications. A mustknow investors guide to nike part 5 of 22 continued from part 4the cogs in nikes supply chain. In an investor meeting, the sports and apparel manufacturer said it would deploy 1,200 new automated machines by the end of the financial year and nearshore production in asia and north america. Our efforts concentrate on ensuring efficient transport, security and safety of nike, inc. Economic order quantity model eoq and the supply chain operations reference model scor are used to fostering operational efficiency. When it comes to business and sport, we value fair play. Nike has joined an innovative partnership that can more quickly clean up its supply chain by giving the company easy access to sustainable materials and chemicals through switzerlandbased bluesign technologies which has created a tool for improving supply chains in the textile industry nikes suppliers will have access to online tools that help them find the most sustainable materials. The main support for its global business empire is the supply chain network. 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 chains.
The rating system is also in place for distributors to better measure this stage of the supply chain to make future decisions regarding what third party distributors they should use. Tugas supply chain management dari mb 3906 nama anggota. Most mergers and acquisitions fail to live up to expectations. Check out a deep study over how nike handles its supply chain.
In this instance, nike will need to upturn how their nike supply chain functions in order to give consumers what they want, when they want it, and where they want it. Nike s dtc approach is twoprongedthe nike owned retail stores, which are the brickandmortar stores, and its digital platform. When two companies merge, the supply chain organizations also must merge. A case study on how does nike manages its supply chain. Within the supplychain, rapid prototyping can be used to accelerate. Nike has approximately 1 million employees spread out across 715 factories in over 44 countries. Larry hartley, the senior vice president of supply chain at office depot, has. Nikes supply chain management distribution vertical marketing system horizontal marketing system multichannel marketing system. It is imperative that a mutual understanding exists between nike and its suppliers to ensure quality throughout the supply chain. Check out the latest issue of supply chain digital. Best practices and future trends critical issues in greening the supply chain the more corporations around the globe focus on sustainability, the more they realize that their greatest challenges and opportunities often lie outside their own offices and manufacturing plants. 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. Nke is making some big changes to how it manages its supply chain.
Working together, nike and flex will deliver footwear innovation that enables product to reach consumers more quickly, with customized solutions and increased performance innovation. 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. Nike supply chain essay example topics, sample papers. It marks the fifth period of growth for the campus. Every day, each of us comes in contact with a multitude of products that have been produced outside the united states. The consumer today expect a premium experience, with innovative product and services delivered faster and more personally, said mark parker, chairman, president, and ceo of. Intel corporation has one of the most resilient and robust supply chains in the world. 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.
Pdf ip sustainability in global supply chains a stakeholder. With strong determination nike was able to emerge successful with sap implementation as a part of nike supply chain project. Nike should take efforts to shift from upper right hand cell to lower right hand cell. Nike enjoys a strong brand, wellmanaged distribution processes and a compelling product offering.
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. Nikes strategy to improve conditions in its global supply. Nike supply chain report reveals problems in china. From a pure supply and demand standpoint, nike has the luxury of handpicking suppliers from across the globe. In the consumer product industry, median distribution and delivery transportation costs alone represent 3. 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. A new supply chain project has nike running for its life. Located in belgium, the logistics campus aims to accelerate nikes drive towards creating a lowcarbon and circular supply chain by utilising a range of renewable generation sources and innovative construction measures. For the third time in the supply chain, nike has to move their goods to another part of the process. Nike and adidas are two global companies try to improve their competitive advantage through strategically managing and utilizing their supply chain. That means downsizing that department, making personnel choices, converging it systems, and meeting the supply chain synergies promised to wall street. Supply chain management description of nike company nike inc.
Nike, adidas adding robots to supply chain to deliver. It advertised its new transparency as evidence of its new commitment to labour practices. Nike turned this unprecedented response to its supply chain crisis into a lucrative marketing opportunity that outweighed competitive risks associated with factory disclosure. Their implementations lead to sequence of failures.
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. A company maybe feels relatively good about security, but theyve just acquired. Doc global supply chain management case study nike. Nike is known for great product quality, innovative product designs, and a unique marketing style.
In an analysis of the top 25 supply chain of 2016, it was listed by analysist firm gartner as number 4. This can be achieved by making few of the products functional and developing a responsive supply chain for the rest of the innovative products. The brand has maintained a strong supply chain network. Nike seeks to reduce lead times in production supply. Analyzing nikes distribution channels and retail strategy. Supply chain strategic management for nike marketing essay. Integration, incentives and innovation nikes strategy to. Nike manufacturing and supply chain strategies market. Forced labor in the leather supply chain nike, inc. Nike has admitted its chinese supply chain is suffering from a lack of transparency, problems with wages and the use of underage workers. Expectations are set, and the potential supplier can view nikes playbook on how it executes its supply chain operations. Issues 1 to study the problems faced in inventory and supply chain management along.
Nikes supply chain accelerated by new partnership with. Waste generated throughout nikes value chain and activities to reduce, reuse, or. I think to improve somewhat fragmented and failing demand forecasting and order activities in nike. Nike will use robots to nearshore production supply. Pdf using valuechain analysis to discover customers. Introduction supply management is a complex function thats critical to business success, responsible for delivering efficient costs, high quality, fast delivery and continuous. To experience the emotion of competition, winning and crushing competitors. Scribd is the worlds largest social reading and publishing site. Sometimes things that go wrong are a surmountable inconvenience. Mergers can go badly wrong, or they can be a new source of competitive advantage. In order to ensure that the supply chain is effective, msi 2004 states that nike uses a single instance of sap r3 which is a single planning engine that centralizes demand management in order to ensure efficient collaboration with the suppliers. Process improvement at first dutch cement industry corporation.
An overview of nikes supply chain and manufacturing. While there is a mutual understading between nike corporate and its supply chain that a codependent relationship must exist for both sides to maintain profitability, it is clear that nike has the upperhand during all negotiations. The merging of sports and technology nike and additive. Using valuechain analysis to discover customers strategic needs. The value chain as a strategicanalysis tool emerged when nike set a precedent in the. Nikes supply chain sources most of its raw materials in the manufacturing host country by independent contractors. 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. By the end of 2018, nike plans to have installed a minimum of 1,200 new automated machines at its asian. Its supply chain model has evolved a lot in this decade. As part of its sustainability report released thursday, the retailer said it plans to launch a new manufacturing index in 2012 that will place factories sustainable practices on equal footing with the traditional supplychain measures of quality, cost and delivery. Bringing the power of gis to supply chain management. Supply chain management adidas free download as powerpoint presentation.
Integration, incentives and innovation nikes strategy to improve social and environmental conditions in its global supply chain angharad porteous and sonali rammohan 19th november 20 nikes approach to managing supplier responsibility has greatly evolved since the 1990s, when the. Nike has also agreed to allow for full transparency into the chemical side of its operations, displaying full. Supply chain management corina botnarevschi, ehab etani, akbar khan, amir garranah 2. Nike supply chain collaborative iis mm ugm ap 6b an implementation of information system in supply chain management super chain workgroup. Nike supply chain disclosure, statement on forced labor, human. Case study on adidas supply chain 7726 words bartleby.
At nike, we believe we have a responsibility to conduct our business in an ethical way. Management and social performance in the nike supply chain. Nike, adidas adding robots to supply chain to deliver shoes customers want faster published. Manufacturing and sourcing index smsi, a system for combining. Ardhi puji hariadi aswin budi pratomo danny dharmawan kosasih erry sunarli gede arya wiguna hari tarigan muhammad ahsin rogayya yuri pramono yudho 2. Nike s factory stores provide a premium product to consumers. Nike has elaborated on plans to use technology and automation to increase the speed at which it brings products to market. Remote work advice from the largest allremote company. Index smsi, a system for combining factory ratings for lean manufacturing and human. This gives the supplier, 7 the receiver and the distribution channel a realtime information on the status of the products. Other times, a supply chain issue can strike to the very heart of both perceived and literal corporate value.
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