Nike supply chain 2019

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Nike supply chain 2019

Nike is a member of a number of corporate responsibility and sustainability organizations and we are committed to solving critical issues that affect the people in our value chain.

Below is an outline of our commitments. The Ceres BICEP Network comprises influential companies advocating for stronger climate and clean energy policies at the state and federal level in the U. The Corporate Eco Forum and The Nature Conservancy worked with 24 major companies to agree to incorporate ecosystems and biodiversity into their business strategies.

We Mean Business is a coalition of organizations working to accelerate the transition to a low-carbon economy by forming a common platform to amplify the business voice, catalyze bold climate action by all and promote smart policy frameworks. A collection of businesses and investors who have re-affirmed their deep commitment to addressing climate change through the implementation of the historic Paris Climate Agreement.

AFIRM provides a forum to advance the global management of restricted substances in apparel and footwear, communicate information about the AFIRM restricted substances list to the supply chain, discuss concerns, and exchange ideas for improving the AFIRM restricted substances list management.

The Zero Discharge of Hazardous Chemicals Foundation takes a holistic approach to tackling the issue of hazardous chemicals in the global textile and footwear value chain. These signees champion the greater use of more sustainable cotton in marketplaces globally. They are aiming to ensure that percent of the cotton they use comes from the most sustainable sources by They will individually report on their use of more sustainable cotton on an annual basis starting in In signing this pledge, Nike is committed to not knowingly source Uzbek cotton for the manufacturing of any of our products until the Government of Uzbekistan ends the practice of forced labor in its cotton sector.

In signing this pledge, Nike is committed to not knowingly source Turkmen cotton for the manufacturing of any of our products until the Government of Turkmenistan ends the practice of forced labor in its cotton sector. The United Nations Global Compact is a call to companies to align strategies and operations with universal principles on human rights, labor, environment and anti-corruption, and take actions that advance societal goals. The goals are a call to action to promote prosperity while protecting the planet.

The G7 Fashion Pact is a collection of fashion brands that have set sustainability targets that are needed to bend the curve on climate, biodiversity and the fight against ocean pollution. Nike stands for equality and inclusion for all, and opposes laws and policies that facilitate discrimination and limit human potential.

We believe the U. Military should embrace all citizens who choose to honorably serve—regardless of their gender identity or expression—and we are grateful to those who are proudly serving today. For Nike, diversity is about acknowledging and valuing our differences and appreciating that everyone brings unique experiences, perspectives and ideas to the team.

In keeping with our culture and what we stand for as an organization, we remain committed to equitable pay and rewarding performance across all roles for all Nike team members.

Year signed: Learn More. Valuing Natural Capital.

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We Mean Business. The Better Buildings Challenge.

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Commitments to Paris Climate Agreement. We Are Still In. Oregon Business Alliance for Climate. Science Based Targets Initiative. Approved: August Zero Discharge of Hazardous Chemicals Foundation. Sustainable Cotton Challenge. General Commitments. Transparency Pledge. G7 Fashion Pact. Related Topics View All Topics. At Nike, we hold ourselves to the highest standards and we take our local and global responsibilities seriously.Adidas is one of the leading players in the sports shoe industry with a large market base and a strong sales and distribution network spread worldwide.

The brand is a leading competitor of Nike and has continued to grow its market share through focus upon product quality and marketing. Adidas has made several important changes to its business operation, marketing and supply chain strategies during the recent years.

These changes have resulted in rising sales and revenue for the sports shoes, apparel and hardware brand.

nike supply chain 2019

However, excellent marketing only works when you are committed to quality, have an excellent supply and distribution chain, great production capabilities as well as a deep understanding of market trends. The brand has formulated a great supply chain strategy that ensures high quality standards, higher availability as well as timely delivery at competitive costs.

Its Global Operations function covers three major areas — Product development, sourcing and supply chain management. An agile supply chain is like the backbone of a global company and in case of Adidas which has kept increasing its number of customer touch points over years, its supply chain plays the role of a central pillar of business driving speed and performance.

Adidas has been able to improve its supply chain efficiency through its Global Operations functions making it highly competitive which is absolutely essential to survive the tough competition from the nearest and biggest competitor Nike. There are three main areas of strategic focus for Adidas that its Global Operations function is delivering against.

They are:. The Global Operations function of Adidas while focusing on these three strategic priorities uses infrastructure and process efficiencies to ensure a highly competitive digital ecosystem and supply chain. It expects to achieve more in the coming years.

The target of Adidas is to become a fast sports company. It has made speed a strategic priority and its global Functions Operation is a key facilitator helping it bring fresh ideas to the market faster.

Faster movement of products and ideas across its wholesale, retail and e-commerce channels is essential if Adidas wants to retain its competitive position against market leader Nike. Majority of the production of Adidas products takes place through independent suppliers. Most of these suppliers, around 80 percent are in Asia.

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Adidas has outsourced its production nearly percent to the independent third party suppliers. It provides its suppliers with the detailed specifications of productions and delivery.

However, the suppliers are able to produce high volume good quality footwear cost efficiently. Adidas selects the suppliers that have excellent expertise in this area.

It has also formed close and strong relationships with its suppliers and its products are made at manufacturing facilities worldwide. Adidas has set specific criteria for its suppliers and its Global Operations function regularly measures their performance against these criteria. However, apart from these suppliers, Adidas also has a few assembly sites in U. This is done in order to ensure that the factories meet the standards the customers expect. Quality and material claim procedures are used to constantly measure the effectiveness of product quality standards.

The brand promotes social and environmental standards and ensures adherence to them.NIKE, Inc. They act as liaisons embedded in business functions and geographies.

Their talents — problem solving, organization, time management and more — help fuel the success of their teams. The Nike Advanced Innovation team strives for lighter, faster, bigger, smarter, smaller, more efficient, more sustainable and more personal. They imagine, research, analyze and invent the next industry-changing technology to advance athletic performance. In roles that span research, design, materials and manufacturing, the Advanced Innovation team looks to the future and focuses on making the seemingly impossible, possible.

Since Nike introduced the Air sole inno technology has become more synonymous with Nike than Air. Masters of teamwork, we challenge assumptions in order to get faster, drive efficiency and fine-tune technology to deliver quality performance plastic.

At our state-of-the-art facilities located in Beaverton, Ore. Charles, Mo. Around the world, the Nike Aviation Team oversees flight operations to ensure safety, productivity and connectivity within the company. The teams provide care for children, ranging from infants to age 5.

Nike earnings: Adidas supply-chain shortage will benefit Nike

Nike has partnered with Endeavor Schools to help more Nike families gain access to quality childcare within minutes from the main campus. The plan is to open a new center accessible by the Nike transportation network.

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The projected timeline for the transition to the new center is approximately 18 - 24 months, starting May Customer Service teams provide service and support for retail partners who carry Nike products. They build and maintain strong relationships, manage and track orders through delivery, respond to questions and work with internal partners to resolve complex customer issues.

We're a team of strategists and scientists. Inquisitors and interpreters. Designers and innovators. We're big thinkers and detail enthusiasts. Data wranglers and insight creators. NIKE Inc. We use personalization science by leveraging AI and machine learning to build solutions to ingest, integrate and transform data into useful formats to do more of what we do best.

nike supply chain 2019

Together, we pair the science of data and analytics with the art of functional expertise to support NIKE, Inc. The Design teams include artists, inventors and specialists, all with different focuses, including color and material experts, and apparel, footwear and graphic designers.

Nike designers look to the future, aggressively pursuing materials, ideas and forms that further elevate the athlete experience, raise the bar for modern style and reduce environmental impact. From our flagship website and five-star mobile apps to the retail store experience, our digital teams at NIKE are reimagining how design and technology meet to serve consumers more directly and personally.To browse Academia.

nike supply chain 2019

Skip to main content. Log In Sign Up. Global supply chain Management - case study Nike. Chukwuemeka Ogbuehi. The core business of Nike is design, development and marketing and sells of athletic footwear, equipment, apparel, accessories and services. Almost all Nike products are manufactured abroad by different subsidiaries and independent contractors. Footwear and apparels are produced outside the US while equipment are produced both in US and abroad.

Nike has its presence about factories in 14 countries, sources products inclusive of raw material from 44 countries. The products are sold in more than countries Kernaghan, In Argentina, Brazil, India and Mexico are independent contractors with agreement to manufacture Nike products for their local consumption.

Nike has an established presence in six continents, with staff strength of about 30, employees worldwide with more thanworkforces in subsidiaries, and contract factories. Nike products are distributed under the Nike brand and Nike Inc. NIKE Inc, In recent years there has been all sorts of concerns with their labour wage, poor working conditions in Vietnam, Cambodia and Pakistan.

There was a strike in china, in a factory that also produce for Nike because an employee was underpaid, this practice has been on going for about 20 years.

nike supply chain 2019

Another error in jusdement, was the endorsement of American sprinter, Justin Gatlin who has previously served two term suspension for doping. Through their sustainability program most of these issues are resolved. To maintain a coordination with all the different subsidiaries globally, Nike has about 67 factories in Vietnam with aboutworkers producing a wide range of sports wear, shoes and apparels. The choice of Vietnam as allocation is primarily for the labour cost is deemed very cheap compared with European communities and USA.

The average wage to to Vietnamese factory worker is 69 cents for an hour.Nike is the world's number 1 maker of athletic footwear and clothing. After a concerted campaign in the s regarding working conditions in supplier factories, the company was said to have turned over a new leaf.

Nike earnings: Adidas supply-chain shortage will benefit Nike

But just how successful was that campaign in the long term and what of Nike's ethical record in other areas such as the environment? This report captured the areas where companies needed to take actions to eradicate forced labour from their supply chains.

The report stated:. Nike Inc Compared tothe company improved its rank from tenth to ninth. Sincethe company has improved its performance and disclosure by updating the forced labor provisions of its supplier standards, providing translations of the standards, and communicating the updates to its first- and second-tier suppliers.

The company further disclosed its second-tier supplier list, audited some second-tier suppliers, instituted a process to assess forced labor risks, and engaged with local stakeholders in Turkey and Malaysia on migrant workers and with the Mexican government on freedom of association. Nike scored 63 out of overall. The company's manufacturing was carried out in Sri Lanka, Bangladesh and Pakistan.

All these countries are on Ethical Consumer's list of oppressive regimes. In Nike received a middle rating for Ethical Consumer's environmental reporting category. The report discussed waste, carbon emissions, energy efficiency, renewable energy use, water use, the use of toxic chemicals and the sourcing of materials.

Overall, the company was felt to have a reasonable understanding of its key environmental impacts. However, as the report was not externally verified, Nike received a middle Ethical Consumer rating for its environmental reporting. Merino sheep are specifically bred to have wrinkled skin, which means more wool per animal.

Attracted to the moisture, flies lay eggs in the folds of skin, and the hatched maggots can eat the sheep alive. We deemed this statement somewhat vague, and when we identified many Nike products that contained merino wool, including a fleece running top, we found that it was unclear whether or not this wool was sourced from Australia.

In we saw that Nike had a company structure which included several subsidiaries considered likely to be used for tax avoidance strategies, so it received Ethical Consumer's worst rating in this category.

The company listed subsidiaries which at the time of writing Ethical Consumer considered to be located in tax havens.

Nike earnings: Adidas supply-chain shortage will benefit Nike

To access all of our tools and data - and get the Ethical Consumer print magazine - start your subscription today. Share this:. Is Nike ethical? The report stated: Nike Inc Nike scored the following in the report's themed scores: Commitment and Governance 85 out of Traceability and Risk Assessment 50 out of Purchasing Practices 69 out of Recruitment 34 out of Worker Voice 57 out of Monitoring 70 out of Remedy 75 out of Nike scored 63 out of overall. Environment In Nike received a middle rating for Ethical Consumer's environmental reporting category.Inwe were the first company in our industry to publicly disclose our factory base, in the interests of transparency and collaboration.

The interactive map is updated on a quarterly basis to reflect changes in our source base. This resource provides extensive details about the factories Nike contracts with around the world. For each factory, you are able to learn more about the types of products made, the factories that supply our collegiate product, demographic statistics about workers at each factory and the factory address and contact information.

The Nike Manufacturing Map will begin disclosing information on materials suppliers within our supply chain, including detailed names and location of each factory, beginning in Q1 FY June onwards. Materials suppliers dye and finish the textiles and materials that go into our products. Nike's Manufacturing Map.

Related Topics View All Topics. Making Product Responsibly.

Supply Chain management at Adidas

How we make our products is as important as what we make. We work with suppliers who share our commitment to respecting the environment and people. Learn More. When it comes to business and sport, we value fair play. We believe world-class manufacturing is grounded in standards that respect the environment, the people who work in factories and the principles of a healthy and safe workplace.Delivery precision is important for a multi-product and multi-jurisdictional company like Nike, Inc.

It improves margins, lowers inventories, minimizes price markdowns, and makes sure that the customer receives the right product on time.

Products move from several distribution centers across a network of thousands of retail accounts. Yet Nike owns no factories for manufacturing its footwear and apparel. Instead, Nike outsources its manufacturing to third parties.

Nike logistics Center

The strategies of Under Armour Inc. LULUand Adidas also include overseas manufacturers.

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Nike is one of the pioneers of the manufacturing outsourcing strategy. It optimizes the manufacturing and production processes. Plus, continued innovation and product quality are keys to success. Also, it drives quality and productivity. Material consolidation, manufacturing innovation, and modernization support the manufacturing process.

In the fiscal yearfootwear factories in 12 countries supplied Nike. In the fiscal yearapparel factories operating in 36 countries supplied Nike. Also, Nike has license agreements that permit unaffiliated parties to manufacture and sell Nike-owned trademarks, apparel, digital devices and applications, and other equipment for sports activities. Nike has six primary distribution centers in the US. Notably, four are located in Memphis, Tennessee. Among those four, two are owned and two are leased.

The other two are located in Indianapolis, Indiana, and Dayton, Tennessee. Third-party logistics providers run these two distribution centers. Also, Nike-branded apparel and equipment products ship from a distribution center in Foothill Ranch, California.

The company had 67 distribution centers outside the US at the end of the fiscal year However, Nike, through its Consumer Direct Offense strategy, is growing its digital business. The digital business will speed up revenue growth and supports margin expansion.


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