Using valuechain analysis to discover customers strategic needs. Products move from several distribution centers across a network of thousands of retail. Supply chain management of nike management paradise. Managing ethical missteps sweatshops to leadership in employment practices introduction phil knight and his university of oregon track coach bill bowerman founded blue ribbon sports, later renamed nike, in 1964. Nike, adidas adding robots to supply chain to deliver. Ardhi puji hariadi aswin budi pratomo danny dharmawan kosasih erry sunarli gede arya wiguna hari tarigan muhammad ahsin rogayya yuri pramono yudho 2. The 5 most notorious supply chain ethics scandals of 2016. A mustknow investors guide to nike part 5 of 22 continued from part 4the cogs in nikes supply chain. Managing ethical missteps sweatshops to leadership. Ali mahdi1, mohammed abbas2, taher ilyas mazar3 1,2,3mba student, university of bahrain, kingdom of bahrain dr. As a result, nike has created the following standards for their supply chain. 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.
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. These will be based on intellectual capitalbrands, technology, new product development, new channel strategieswith operations activities largely outsourced. Senate adopts rules for trump trial after heated first day cbs news 22,717 watching live now. Nike manufacturing and supply chain strategies market realist. Thomopoulos 2014a unfortunately before they could implement the new software nike had already hit their rock bottom. Mar 27, 2008 nike has admitted its chinese supply chain is suffering from a lack of transparency, problems with wages and the use of underage workers. To help visualize this part of the process, we must understand that the supplier has its own supply chain and it ends with exporting the products to nike, which is where nikes supply chain begins. The company is headquartered near beaverton, oregon, which is part of the portland metropolitan area. This includes working to combat risks of forced labor, modern slavery and human trafficking. Apr 30, 2014 harvard and stanford examine nike, inc. The findings of the study highlight nikes strategies which. A comparative analysis of strategies and business models of. An overview of nikes supply chain and manufacturing strategies.
Nike, inc was founded in 1964 in the state of oregon, us. The supply chain of the future nike unveils advanced. The manufacturing restricted substances list mrsl industrywide tool assists brands, their supply chains and the broader industry to adopt an aligned. The company employs about 3,000 people at the site, and said the expansion would make its european operations more efficient, responsive and sustainable, enabling growth by serving consumers across, nike retail and wholesale. This month the sportswear manufacturer published its first countryspecific supply chain report, revealing some problems. Hamza amjad daniel arcaro alex quintana brett reardon samir reddy.
Nike head of supply chain management salaries glassdoor. Nike unveils supply chain of the future with new campus expansion 1 june 2016, source edie newsroom global sportswear giant nike has reiterated its commitment to promoting a closedloop business model by unveiling the latest expansion of its 100% renewable european logistics campus, which aims to maximise performance while minimising. Nike, adidas adding robots to supply chain to deliver shoes customers want faster published. Now, with somewhere between 4347% of that market, nike is the undisputed leader. 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. Engage your students during remote learning with video readalouds. Nike s value chain and competitive forces in 1984, nike owned just 16% of the athleticshoe market, and for much of the 1980s it was running neckandneck with reebok wilson 1. The company was found at january 25, 1964 and they change its name to nike on may 30, 1971. Nike manufacturing and supply chain strategies market. Nike supply chain disclosure, statement on forced labor, human trafficking and modern. Retail stores number nike brand factory stores 176 nike brand inline stores, including niketowns and employeeonly stores 33 converse stores including factory stores 84. Management and social performance in the nike supply chain article pdf available in management science 633 march 2016 with 1,736 reads. 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.
Nikes strategy to improve conditions in its global supply. An overview of nikes supply chain and manufacturing. Nike unveils supply chain of the future with new campus. Nike supply chain collaborative iis mm ugm ap 6b an implementation of information system in supply chain management super chain workgroup. Nke is making some big changes to how it manages its supply chain. 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. Nikes new supply chain project essay 1189 words cram.
Another important decision may be transportation planning. Expectations are set, and the potential supplier can view nike s playbook on how it executes its supply chain operations. This estimate is based upon 1 nike head of supply chain management salary reports provided by employees or estimated based upon statistical methods. The supply chain of the future nike unveils advanced, sustainable distribution center. Forced labor in the leather supply chain nike, inc. Ali mahdi et al international journal of business management and.
But the growth of the global supply chain has also created a new class of ethical. Nike is the largest seller of athletic footwear and apparel in the world. Nike supply chainsupply chainfreedom of association. Nike statement on forced labor, human trafficking and.
Duke university global value chains center duke gvcc erwin mill building, suite a116 2024 w. Nikes supply chain issues back in 2000 and 2001 nike spent. A comparative analysis of strategies and business models of nike, inc. A comparative analysis of strategies and business models of nike. Nike has approximately 1 million employees spread out across 715 factories in over 44 countries. It is imperative that a mutual understanding exists between nike and its suppliers to ensure quality throughout the supply chain. We are updating nikes code and codeleadership standards to make clearer the responsibility of contractedfactories to respect their employees right to freedom of association andcollective bargaining to the extent permitted by local law. Every day, each of us comes in contact with a multitude of products that have been produced outside the united states. Jun 07, 2016 nike has unveiled the latest expansion of its european logistics campus at laakdal, some 45 miles east of brussels in belgium. Nke is a major publicly traded sportswear and equipment supplier based in the united states.
Nike didnt apply that same patience to the implementation of the first part of its supply chain strategy. The american manufacturer, through its marketing strategy which rests on a favorable brand image, has evolved into a large. Approximately 50 kilometers outside of antwerp, amongst green fields and alongside the albert canal, nikes newly expanded, stateoftheart european logistics campus in belgium will serve consumers faster as part of a more responsive and sustainable supply chain. 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. 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. Factories need to meet the requirements of the code of conduct to be part of nike s sc nike uses different logistic service providers, who are key for the success of nike s supply chain nike is focusing on the use of cleaner transportation methods transportation routes to and. Doc global supply chain management case study nike. Economic order quantity model eoq and the supply chain operations reference model scor are used to fostering operational efficiency. Value chain for nike the decision that would be made for the inbound logistics may include what level of inventory to hold. The idea, born as a result of a paper written by knight. In the 90s there were serious allegations of unethical practices carried out by nike in terms of their asian suppliers and how services were. The value chain as a strategicanalysis tool emerged when nike set a precedent in the.
Most of the successful businesses worldwide have improved their growth rates only by adopting innovative supply chain management practices. Dec 18, 2017 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. Supply chain strategic management for nike marketing essay. The major way we see supply chain management meeting future needs is through virtual organizations. 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. 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. Read more students demand georgetown university cut nike contract amid reports of supply chain abuses. Nike supply chain essay example topics, sample papers. 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. Pdf using valuechain analysis to discover customers.
669 1118 679 944 556 104 1267 1267 1063 1373 785 558 232 809 1355 657 871 123 531 1369 6 956 956 269 80 1299 440 1333 1444 332 1159 1158 1306 1419 1343 1144 1039 502 487 479 741 855 1357