Management > ESSAY > Algonquin College - MGT MGT2360NIKE SUPPLY CHAIN.edited. (All)

Algonquin College - MGT MGT2360NIKE SUPPLY CHAIN.edited.

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NIKE SUPPLY CHAIN MANAGEMENT In recent times, the genesis of the digital age has significantly changed the world of commerce simply by tactically aligning end-to-end business process to realize market as well as the economic value. A few years ago, the operations were labor-intensive, time-consuming, high costs involved and extremely disorganized. Gone are those days, delivery times have changed significantly from a month to two weeks to a shift of hours in some cases. Supply chain management has become an integral part of a successful business and had the power to provide the best customer service, generate more profits and maximize productivity. Most of the successful businesses around the world have adopted innovative and efficient supply chain management practices. For example, Nike is a successful global business model based on its solid supply chain management. Nike, Inc is the world’s largest supplier of athletic shoes and apparel and a major manufacturer of sports equipment. Nike has grown its earnings per share at a compounded annual growth rate of 0.13% over the fiscal years between 2004 and 2014. (“Yahoo is now part of oath”.2019). Nike is well known for its product quality, innovative products, and a marketing channel. However, its main contributing factor is its successful supply chain network which it has evolved tremendously over the recent years. Nike ships more than 1 billion units of footwear and apparel every year, its manufacturing network consists of over 700 factories in 42 countries. Each product moves from 57 distribution centers across a system of 18,500 accounts and 140,000 retail doors. (“Yahoo is now part of oath”.2019) Nike's manufacturing model has kept production costs low. Nike's manufactures 99% of its footwear sold in the United States from abroad; it also delivers 85% of its shoes by lean manufacturing lines. Nike doesn't own or operate its factories; instead, manufacturing is outsourced from independent contractors located Vietnam, China and Indonesia because of the cost advantages of doing so. In the fiscal year 2017, 69% of its total Nike brand footwear was outsourced by 5 of its contract manufactures. Nike also outsources its raw materials, and because of this, it has been able to reduce the number of vendors along the chain as well as the material used in the manufacturing process. Nike also introduced just in time approach which facilitates the faster shipment of products worldwide. (Itani,2019) Nike has also been able to minimize its distribution costs through its efficient distribution channels catered to meet its growing demand faster. After the manufacturing process, the shoes

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