1. The pandemic hit hard at Nike’s distribution, third-party manufacturing, and logistics operations. For 2020, net income before taxes fell by 40% over the prior year to $2.9 billion, according to its July annual report. After the pandemic forced Nike to shutter stores first in its brisk China market and then around the globe, inventory swelled 31% to $7.4 billion by fiscal year end on 31 May, compared to $5.6 billion at the end of fiscal 2019. Reduced shipments to wholesalers, labour shortages, and other “supply chain effects” curtailed Nike’s ability to calibrate supply and demand and increased costs of production and distribution.
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3. As the Supply Chain Director of Nike, discus how you could move the supply chain function from a competitive perspective of suppliers to a more collaborative approach to its value chain and value add.
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5. Emphasize why this change in approach is more desirable in a crisis situation and assess the advantages for Nike adopting a more collaborative approach.