nike supply chain

Summary Nike has been able to become a global player in the industry of sports apparel and athlete endorsements because of many different factors that are outlined in the way they manage their company. By analyzing the business plan of Nike we can see how their supply chain is set up as is illustrated above. The supply chain is very important for the transfer of their goods from the supplier of raw materials to a manufacturer, then to a distributer, then to a retailer, to then be available for the customer. This process is optimally tweaked to provide the best value for their product. One factor that Nike has strived to make as a standard for their company is the idea of reverse logistics. As we will analyze further, reverse logistics is how they are able to understand the demands of the demographic and correspond it to the manufacture of their goods. This is seen as a vital tool for product research and development at Nike. As we explore the different parts of the chain, it is important to keep your mind on the big picture and how this process comes together.
1. Contract Suppliers What Nike has implemented into their system with outsourcing the production of raw materials, has been done by many large apparel companies and is seen as something that can be highly profitable rather than producing the materials within the company. So what Nike has done, is brought in contract suppliers from all over the world like Vietnam for instance. 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 Nike’s supply chain begins. In the 90’s there were serious allegations of unethical practices carried out by Nike in terms of their Asian suppliers and how services were being carried out. In an effort to get away from this image that was painted of them, Nike has taken strides to implement disclosure to how the supply chain is run. Over the years, they had been