Scribd
Upload
206 views3 pages

Inbound Logistics & Operations at NIKE Inc.: Reduction, Differentiation, and Product Development

Nike outsources manufacturing to 592 suppliers worldwide in order to reduce costs and focus on product development and marketing. Nike requires suppliers to comply with sustainability and labor standards through measures like the Manufacturing Index and Restricted Substances List. Nike also emphasizes innovation through collaborating with athletes on product design and offering customization options to customers.

Uploaded by

shubham
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
206 views3 pages

Inbound Logistics & Operations at NIKE Inc.: Reduction, Differentiation, and Product Development

Nike outsources manufacturing to 592 suppliers worldwide in order to reduce costs and focus on product development and marketing. Nike requires suppliers to comply with sustainability and labor standards through measures like the Manufacturing Index and Restricted Substances List. Nike also emphasizes innovation through collaborating with athletes on product design and offering customization options to customers.

Uploaded by

shubham
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 3

Inbound Logistics & Operations at NIKE Inc.

Value-chain analysis has proven immensely valuable in three principal ways – cost analysis and
reduction, differentiation, and product development
• Market or technologies could change in the future. In this case it is often easier to change supply
chain partners than internal processes, hence Outsourcing.
• Manufacturing Index (MI) : introduced in 2012, scores factories on sustainability – including labor
practices – on a par with traditional metrics of cost, quality and on-time delivery.
• Restricted Substances List (RSL) : NIKE requires its finished goods suppliers to verify they are
sourcing materials from vendors that are compliant with NIKE's Restricted Substances List (RSL)
and NIKE’s Code of Conduct
Nike learned that manufacturing had become a commodity that could be outsourced for less
cost and better quality than Nike could achieve with its internal resources. Nike realized that its
core competences were in product development and marketing, and so management grew the
company around a strategy of designing innovative products that met evolving customer needs.
The main strategies implemented as:
• Low Manufacturing Costs, Equal High Gross Margins, High R&D Spend
• R&D is done with the help of sponsored athletes who provide a unique view into the specific
requirements of the sport at their level
• NIKEiD a customer can take an existing Nike product and customize it with their own fabric
and color options

592
592 Suppliers
Suppliers
worldwide
worldwide

Issues
Issues
suppliers’
suppliers’
certification
certification
of
of material
material
• NIKE's Supply Agreements also explicitly require suppliers to comply with all local and
country-specific labor laws and NIKE’s Code of Conduct and Code Leadership Standards.
• Nike Re-use-a-shoe strategy receives up to 9.6 million pairs of shoes on top of the scraps that
come from manufacturing. Totally they have dissembled and recycled over : 6 million pairs of
shoes!
• For B2B service-providers seeking to do business with Nike, this suggests that some of the
most lucrative opportunities are in supporting new-product development (shoe design and
materials technologies), branded-store architecture, and choosing store locations.

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy