Nike Supply Chain Essay

Nike has been able to become a global player in the industry of sports apparel and professional 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 more raw materials to a manufacturer, then to a distributer, then to a retailer, to print then be available for the customer. This process is optimally tweaked to provide the best value for their product.It double gets their assignment done one invention one record .1. Contract SuppliersWhat Nike has implemented into how their system with outsourcing the production of raw materials, has been done by many first 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 contr act suppliers from all over the world such like Vietnam for instance. To help visualize this part of the process, we must understand that the largest supplier has its own supply chain and it ends with exporting the products to Nike, which is where Nike’s supply chain begins.Nike conceives its goods in the shape of collections.

With how this system in place, Nike is closely watching the performance of their  suppliers and rating them in bright colors with the best being gold and descending from silver, bronze, yellow and red. Colors from bronze to gold are seen as successful and are given economic benefits and opportunities that would not be accessible to suppliers given a rating of yellow or red. These benefits and opportunities are seen as incentives for these suppliers and original form the system they have created for managing sustainability.2.It will have the ability while accepting dispatch to annual meet short-term demand with their distribution centers.Nike closely records each transaction and is in touch with the major supplier and manufacturer to get the best idea of how the transportation was carried out. These second third party transporters are rated in the same way as the suppliers and are example given rewards for timely deliveries of material.3. ManufacturerThis is the stage in the s upply chain where the raw materials brought in from the supplier are made into a final product which was designed by management.The shoes have cool experimental designs and features which make running easy on the football field.

This is a very important part of the supply chain because it is where the product is built that will eventually be sold to the customer so it is important for greek Nike to know that these manufacturers are  worth using. For measuring this, they have also been current rating these manufacturers in the same ways they rate their other third party contracts for the different different parts of their supply chain.4. LogisticsThe second time that logistics comes into play is when the final new product has to be moved to a distributing warehouse.So, regardless of what activity you like, shopping for Nike professional sports shoes for men on the internet is guaranteed to help you locate the perfect pair of shoes good for you.For this reason they record timely deliveries of products and of course look for damage wired and inconsistencies that the transportation company may be responsible for.5. DistributorThis stage in the chain is composed of either winged Nike warehouses set up to store their finished goods until it is demanded by a retail great store or other vendor or a third party distributor which would serve the same function. Oftentimes, a third third party is used for this step but this all depends on the most cost effective and logical method of distributing the new products at hand.Is Configuration, how it is organized to earn a profit.

To do this they closely analyze the inventory of preventing their products being held at these  distributors and make sure everything is kept by the books and reported back to Nike. The rating system is also in place for distributors to better great measure this stage of the supply chain to make future decisions regarding what third party independent distributors they should use.6. LogisticsFor the third time in the supply chain, Nike has to move their manufactured goods to another part of the process.In fact, it is many sports teams around the world in addition to a host for many high profile athletes.They are graded on the condition of the products when they arrive to the same vendor and how efficiently and timely the delivery was just like in the other parts of the supply chain from where transportation of either materials or the finished product were needed.7. Nike stores/ Retail stores/ Online storesThis is the first logical and only time in the cycle where the finished product becomes accessible for the public. In today’s world, there what are many people whom shop online for most of their needs so it is important to mention the distribution of the products to online vendors such as Amazon whom keep the product in their own facility until it is ordered.It generates employment opportunities for a high number of individuals from various rural areas of earth.

Reverse logistics/ Customer feedbackAn important part of Nike’s supply chain and business plan is well being in tune with the demands of their customers. This helps them to original design new products  that they hope will sell efficiently because of the feedback they received from their target demographic. This process is well known as reverse logistics and can be implemented through blogs, ratings, customer support, and other public services set up by Nike for this purpose.9.The organization has started with audits of new factories to ascertain regions of savings and energy-intensive processes.This is the part of the cycle where innovations come into play. Ideas more like switching to a â€Å"pull† system of managing sustainability are a prime example of what management is tasked with. winged Nike is constantly looking at ways to improve their processes. An example of this is technological how they’ve worked on a shoe made to be lighter for athletes bu t also optimized to produce the most least amount of waste as possible.Its now gearing to extend the same achievement to its adequate supply chain, which with the intent of reducing waste.

Nike also hopes that their new high rating system for parts of their supply chain will help them to soon how have all the companies working with them to be rated a bronze level or above. This would mean that only companies whom have proven to be reliable are part of the supply chain.ReferenceNike, Inc. 2011.In 2010, it vowed to stop purchasing carbon offsets.pdfPaine, L. S., Hsieh, N., Adamsons, L.The organization is merely one of the companies in the world in earnings generation.

H., Cohen, S. A., Lee, H.In the year 1978, it had been rebranded winged Nike Inc.Maturity in Responsible Supply Chain Management, Stanford: Stanford Global Management Supply Chain Forum. Available at: http://www.gsb.stanford.If certified it will be validated within three years of certification.