nike supply chain
Supply Chain: Nike, Inc.
Mariapaz D. Ruiz
University of Phoenix
MBA 550
Supply Chain: Nike, Inc.
The supply chain plays a critical role in the transformation and global growth of a company especially in the current economic situation. The global supply chain is the transformation flow linking the raw materials, parts suppliers, manufacturers, and service support operations into products and services and distributing these products locally for consumers (Chase, 2005). According to Sridharan, Caines, and Patterson (2005), difficulties encountered in the implementation of supply chain management software designed to maximize the value of a company can result in a disruption of its supply chain, causing losses and a decline in its value thus resulting in the shareholders’ disappointment. Nike’s concept for its supply chain management are process innovation (do it different), continuous improvement (do it better), and execution discipline (do it right) (IBM and Stanford University, 2006).
Nike, created in 1971 began outsourcing in mid 1970s. Currently, Nike is largest athletic shoe company in the world, controlling more than 36% of the US athletic shoe market and has more than 33% of the global athletic footwear market. Nike’s products include apparel and sports equipment (Nike, Inc, 2009). Out of Nike’s 830 suppliers, 70 of it produce shoes. Nike employs more than 600,000 workers in 51 countries in 2004, manufacturing Nike products. Nike has direct employees of 24,291 with vast majority in the US and had about $12.2 billion in revenues of which $6.5 billion came from footwear sales and $3.5 billion from apparel in 2004 (Locke and Romis, 2007).
Nike’s supply chain started in the1990’s when Nike was a criticized involving underpaid worker in Indonesia, child labor in Cambodia and Pakistan, and poor working conditions in China and Vietnam. Further allegations of wage law violations, excessive overtime,
Mariapaz D. Ruiz
University of Phoenix
MBA 550
Supply Chain: Nike, Inc.
The supply chain plays a critical role in the transformation and global growth of a company especially in the current economic situation. The global supply chain is the transformation flow linking the raw materials, parts suppliers, manufacturers, and service support operations into products and services and distributing these products locally for consumers (Chase, 2005). According to Sridharan, Caines, and Patterson (2005), difficulties encountered in the implementation of supply chain management software designed to maximize the value of a company can result in a disruption of its supply chain, causing losses and a decline in its value thus resulting in the shareholders’ disappointment. Nike’s concept for its supply chain management are process innovation (do it different), continuous improvement (do it better), and execution discipline (do it right) (IBM and Stanford University, 2006).
Nike, created in 1971 began outsourcing in mid 1970s. Currently, Nike is largest athletic shoe company in the world, controlling more than 36% of the US athletic shoe market and has more than 33% of the global athletic footwear market. Nike’s products include apparel and sports equipment (Nike, Inc, 2009). Out of Nike’s 830 suppliers, 70 of it produce shoes. Nike employs more than 600,000 workers in 51 countries in 2004, manufacturing Nike products. Nike has direct employees of 24,291 with vast majority in the US and had about $12.2 billion in revenues of which $6.5 billion came from footwear sales and $3.5 billion from apparel in 2004 (Locke and Romis, 2007).
Nike’s supply chain started in the1990’s when Nike was a criticized involving underpaid worker in Indonesia, child labor in Cambodia and Pakistan, and poor working conditions in China and Vietnam. Further allegations of wage law violations, excessive overtime,
References: Chase, R, Jacobs & Aquilano. (2005). Operations Management for competitive advantage. McGraw -Hill. IBM and Stanford University. (2006). Supply chain transformation is becoming a critical element for driving business results. IBM Global Business Services. Retrieved March 26, 2009 from ProQuest database. Lim, S. & Phillips, J. (2008). Embedding CSR Values: The Global Footwear Industry 's Evolving Governance Structure. Journal of Business Ethics, 81(1), 143-156. Retrieved March 27, 2009, from ProQuest database Locke, R. & Romis, M. (2007). Improving Work Conditions in a Global Supply Chain. MIT Sloan Management Review, 48(2), 54-62. Retrieved March 25, 2009, from ProQuest database. Locke, R., Kochan, T., Romis, M. & Qin, F. (2007). Beyond corporate codes of conduct: Work organization and labour standards at Nike 's suppliers. International Labour Review, 146(1/2), 21-40. Retrieved March 26, 2009, from ProQuest database. NIKE, Inc. Announces Nike Brand Geographical Restructuring to Enhance Consumer Focus. (2009, 20 March). Business Wire. Retrieved March 27, 2009, from ProQuest database. Sridharan, U., Caines, R., & Patterson, C. (2005). Implementation of supply chain management and its impact on the value of firms. Supply Chain Management, 10(3/4), 313-318. Retrieved March 27, 2009, from ProQuest database.