Question
do you agree or disagree with the below, why or why not. Nike is the largest maker of athletic footwear and apparel. Its successful global
do you agree or disagree with the below, why or why not.
Nike is the largest maker of athletic footwear and apparel. Its successful global business model is based on a successful supply chain management. Nike is known for great product quality, innovative product designs, and a unique marketing style. The brand has grown more cautious about its environmental footprint, quality of products and customer service. Its supply chain plays an important role in all the three areas. Overall, Nike has managed a smart, efficient and agile supply chain.
For raw materials and manufacturing, Nike relies completely on external sources. Nearly all its products are manufactured by independent contractors. It has a broad base of suppliers that support its business and growth. There is a global procurement team at Nike to obtain raw materials. It takes care of the entire procurement process from selecting to contracting with the right suppliers for the right goods and services. Its strategic sourcing initiatives have also helped the brand reduce its carbon footprint.
Nike's supply chainextends to several nations. Its products are made in over 40 countries, with nearly 600independent factories and employees more than 1million workers. As a part of its supply chain management strategy the focus is on quality and long term agreements. It hasmade its focus on ethical supply chain practices stronger. Its sourcing strategy focuses on suppliers and prioritises them who have shown leadership in CSR and sustainability and who offer more than the minimum quality standards. Its supply chain partners have agile and resilient management systems to enable them to grow sustainably and with minimized environmental impact. The focus is on fostering a culture of safety, diversity and inclusion down the supply chain.
Nike has set a code of conduct and a code ofleadership standards for its suppliers to follow the best practices. The code of conduct lays down the minimum standards that each of its suppliers factories and facilities are required to meet. It lays down several requirements, chief of which are related to forced labor, child labor, excessive overtime, compensation and freedom of association. The Code leadership articulates the standards according to which the code of conduct must be implemented. It also notes how Nike measures compliance against the set standards.
Nike has an efficient distribution system to cater to the needs of its individual customers really faster. It has established a smarter distribution and logistics network that helps with faster shipments and quicker response to customer demands. These distribution and logistics centers also serve as critical touch points serving the needs of thousands of Nike retail stores, online sales and individual customers. They add speed totheir entire supply chain system. The logistics center offers higher cost efficiency by reducing shipping time and increasing service capabilities. There are several outstanding things about Nike's supply chain, the most important of them are its efficiency, focus on ethics and sustainability and strong physical infrastructure.
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