Logistics Supply and Management in Nike Company

This report analyzes the procurement and supply chain dynamics in Nike Company. It examines the company's mission, vision, and strategy goals, supply, operation, information, integration, and sustainability issues, procurement chain analysis, and improvement programs.

Running head: LOGISTICS SUPPLY AND MANAGEMENT
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Logistics Supply and Management
Name of the Student
Institution Affiliation

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Table of Contents
Executive Summary.................................................................................................................................3
Mission, Vision and Strategy Goals.........................................................................................................3
Supply Issues...........................................................................................................................................3
Operation Issues......................................................................................................................................4
Information Issues...................................................................................................................................5
Integration Issue......................................................................................................................................6
Sustainability Issues................................................................................................................................7
Procurement Chain Analysis...................................................................................................................8
Improvement Programs...........................................................................................................................8
Improvement Programs that can assist the company to achieve its mission, vision and strategy.............9
Conclusion.............................................................................................................................................10
References.............................................................................................................................................11

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Executive Summary
The document presented is an analytical report of Nike mapping and dissecting all the
dynamics that are involved in the department of procurement and supply chain in Nike. The
document also exhaustively examine every one of the discoveries that are found and the pertinent
upgrades the organization is making so as to stay at the pinnacle of its prosperity. It also gives
the relevant improves that the Nike Company needs to make so as to make a positive progress
towards its mission, vision and strategy.
Mission, Vision and Strategy Goals
NIKE is one of the prominent companies that focus on the production of shoes in the
entire world. The companies focus on the view that every person of the company is to take
inspiration together with innovation to all the athletes in the entire world. The mission of the
company is to do everything possible to guarantee that the human potential is expanded. It is a
multinational corporation and has become widely known in the entire world for the supply of the
athlete’s shoes. The company is also notably known for providing quality shoes that are durable,
reliable and dependable on.
Supply Issues
Procurement is one of the most vital departments of in any company. The procurement
department in Nike is concerned with the purchase of materials that are needed in the production
of the footwear (Mahdi, Abbas, Mazar & George, 2015). It is also concerned with the raw
materials that are used in the production of the products that are used by the company. The
company does not have factories in place that it utilizes in the production of the footwear that it
produces. The company utilizes the system of re-appropriating to outsiders and this has helped it
to spare a great deal on expenses. It allows third-party manufacturers to sell products through

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their trademarks. The raw materials are sourced by the host countries through the use of
independent contractors. In fact, most of the footwear's are not made within the country, US. The
supply issue usually includes factories in countries like China and Vietnam among many. The
company faces a number of challenges where the consumers do not want to spend money on
their clothes. Another challenge that is faced by the company is the crowds on the women
athleisure that is taking place day by day. The popular products of the company are also going
out of style. It has been able to make profits through sourcing of the products. The company has
some of the item that the organization produces which incorporate wearing balls, eyewear among
an assortment of different items in the Company.
Operation Issues
The company has an assortment of clients yet it is concentrating on just three sorts of
clients more explicitly. One type of consumers that the company is focusing on is the women
wear. These include sports bras and other women apparels. In recent years has experienced much
growth from the growing demands of the women products. The women who are athleisure
especially in their 20s and 30s wear most of the company products at various, for example, the
rec centers (Lewandowski, 2018). The young athletes are the next group of consumers that the
companies supply products with. Most of the kids use NIKE product and thus they play an
important role in the customers who support the company by buying the products of the
company (Malinowska & Rzeczycki, 2017). Sprinters are another gathering of client who
bolsters the organization in a major manner through purchasing a large portion of the
organization items, for example, donning shoes and attires (Childs & Jin, 2018). The company
focuses on the geographical segments to look for the markets in specific regions. It targets
explicit locales that have the ability to purchase its items. In the year 2000, t had many stock

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difficulties which made it to make a great deal of misfortunes (Fang, 2018). It faced a few
difficulties as it endeavored to adapt the new software into its activities. The company utilizes
request to decide the ideal dimensions of the stock and this was an immense issue for the
company. The concentration for the appropriation of the product was to enable it to improve its
coordination however what pursued were numerous disappointments. However, it was able to
handle the challenges and emerged successful in the market.
Information Issues
The company was started in the year 1972 by Bowerman and was in the first case
producing shoes for the athletes only. As time proceeded onward it began delivering attire for the
amusements work force. In the year 2015, it operated 184 stores in the United States and the rest
190 stores in other parts of the world. The company is a global company though many think it is
a small company and it operates on the diversity principle. Its image was propelled amid the
Olympics in the United States in 1972 and Steve was the first athlete to wear the shoe and this
was the first time that the company was marketing its product (Mani, Gunasekaran,
Papadopoulos, Hazen & Dubey, 2016). It has been able to expand through the sporting alliances
and today it has been able to expand its market globally. It has remained in the market for quite
some time and this has enabled the company to make many products that have been used in
many parts of the world (Tai, 2018). It has been getting a charge out of high benefits in view of
the capacity to make the prevalent shoes that have been utilized by many donning work force
particularly the athletes (Fang, 2018). If has deployed many strategies that have focused to lead
the industry in the provision of good products. It is widely known in many parts of the world and
many of its products are used in many parts of the world.

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Integration Issue
The company has integrated its marketing strategy from the time it began and as time
moves on it has continued to use new mechanisms to do the marketing of its products. One of the
methods that it uses includes the use of advertisements through television and print media such
as magazines. This has made the company to be widely known in many parts of the world and
the products that it produces. This has also made it to maximize the number of sales in many
parts of the world.
It has been able to use the internet and other types of media in the advertisement of its
products. This has enabled the company to connect with many types of consumers in all parts of
the world (Kashmanian, 2018). The other media platforms the company has been able to
integrate the marketing and ensure that the company achieves more sales in the entire world. The
company has also been able to make many advertisements through YouTube platforms and other
media channels with the intention to get more clients to buy the products. In Facebook and
Twitter, the company has been able to make several amicable advertisements
The company has been able to use other mechanisms like celebrity endorsement and
through the sponsorships (Larson & York, 2017). It has been able to make much sponsorship
deals with many companies and even the individuals and this has made it to achieve market share
in the entire world. This has made it to be widely known in many parts of the world and this has
been a big push to market the brand of the company. This has helped it to even grow further and
expands its market tremendously. It has also sponsored some events such as holding football and
soccer tournaments. Which has indeed boosted its sell and expanded the market globally.

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Sustainability Issues
The company has applied a number of strategies to ensure that it is successful and has
gained a strong market share. The products of the company are sold in many countries around
the world and its slogan is just so it. The descriptive analysis of company sustainability is one of
the strategies that the company has used in its development, (Young & Watch, 2015). The
company is socially responsible to the communities that live near its environments. The strategy
has a focus to ensure that the company has a stable supply of raw material and this will ensure
that there is a continuous flow of the products to the markets. The strategy has also been
beneficial because it ensures environmental concerns and ensures that it does not pollute the
environment but does protect. This has helped it to achieve much growth through playing a role
of social responsibility to the communities and this too has made the company to achieve much
progress in the entire world.
The products are sent to the markets through regional offices (Lewandowski, 2018). The
company purchases the best raw materials and many nations are involved in the supply chain.
The company has got one of the most innovative strategies that have helped in the success in the
supply of the raw materials for the company (Christopher, Mena & Van Hoek, 2018). a good
supply chain has been beneficial to many companies in the entire world. A good supply chain
has been reflected in the products that have been made by the company. The company relies on
the external in the souring of the raw materials. The company selects the best suppliers in the
market to ensure they get the best products and supply the customers with the best products in
the different parts of the world.

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Procurement Chain Analysis
The team is especially dedicated to guaranteeing that the organization gets the correct
crude material for every one of its processes. Almost all the products of the company are made
by independent contractors which are very reliable and effective in supplying. The team has been
of great help in the reduction of the carbon footprint. It has employed more than one million
people in the entire world. The company has got a code of conduct that has helped in the
standards of the company where the minimum standards have been set and all the suppliers have
to adhere to failure to which they cannot supply the raw materials to the company (Kaufman,
2016). As time moves on the models of the providers have been rising. The providers need to
agree to the neighborhood and universal work laws to guarantee the nature of the results of the
company. Time to time the company leads a review to the provider plants to guarantee
consistence with the set guidelines.
It takes into consideration the needs of individual customers through a good logistics
system where the customer goods have been shipped very fast to the customers. The customer
demands have been responded faster where even though the online platforms the customers have
been helped through the online platform. It has been able to fasten the shipment of the goods
where the products have been transported exceptionally quickly to the clients. It has one of the
best channel models in the supply chain. The primary members of the chain are autonomous
companies.
Improvement Programs
The company has applied several measures to ensure that the improvements have been
made the company is successful. t has joined forces with accomplices to guarantee that it prevails
in the footwear wear. It has improved much on the nature of the items that it produces to

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guarantee it accomplishes much development contrasted with its rivals. It has utilized numerous
creative approaches to guarantee that it accomplishes advance. This has been thought about from
the supply of the crude materials that the company gets from the providers.
It has concentrated on the improvement of value footwear to guarantee that the interests
of the buyers have been tended to. The vast majority of the children use NIKE item and thus they
play an important role in the customers who support the company by buying the products of the
company. Sprinters are another group of client who underpins the organization in a major
manner through purchasing the greater part of its items, for example, brandishing shoes. The
organization centers on the topographical fragments to search for the business sectors in explicit
locales. It targets explicit areas that have the ability to purchase its items. In the year 2000, it had
many inventory challenges which made the company to make a lot of losses. It faced several
challenges as it tried to adopt the new software into its activities.
Improvement Programs that can assist the company to achieve its mission,
vision and strategy
Today the company has been able to provide many types of solutions to many people
around the world and this has enabled the company to even grow further. It has been able to do
very well in the market through producing quality products and this has given the company
higher capacity to serve its customers better. It does not have factories in place that it uses in the
production of the footwear that it produces. It uses the strategy of outsourcing to third parties and
this has helped the company save a lot of costs. The company allows third-party manufacturers
to sell products through their trademarks. The audit of the company and the quality assurance
have focused on the quality from the raw materials to the products that are taken to the market. It
has been able to turn into a multinational company through providing of the foods to all the
people in the different parts of the world. The company has been able to make profits through

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sourcing of the products. The company has made many improvements from the time the
company was launched because it has been able to provide a variety type of products to the
customers in the different parts of the world. The basketball players are some of the people who
have benefited a lot in the product that it has been able to develop for them and this has enabled
them to grow the type of the games among the athletics and many others.
Conclusion
In conclusion, the company has been able to move from a very long way where it has
been able to expand new markets in different areas around the world. In order for the company to
make even more tremendous growth, it should expand endorse influential celebrities such as
musicians, movie stars, etc. to market their product.. This will indeed their annual sales with a
bigger margin. In additional, sponsoring some events may indeed also boost the sale of the
company. The company may also consider developing their resources instead of outsourcing
which will indeed save the annual expenditures that are used in outsourcing materials

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References
Childs, M., & Jin, B. (2018). Nike: An Innovation Journey. In Product Innovation in the Global
Fashion Industry (pp. 79-111). Palgrave Pivot, New York.
Christopher, M., Mena, C., & Van Hoek, R. (2018). Leading procurement strategy: driving value
through the supply chain. Kogan Page Publishers.
Fang, J. (2018). STUDY OF RELATIONSHIP BETWEEN LIQUIDITY RISK (QUICK
RATIO) AND INTERNAL AND EXTERNAL FACTORS IN NIKE COMPANY. Pdf
Kashmanian, R. M. (2018). Supplier codes of conduct: Company authorization of
subcontractors. Environmental Quality Management, 27(4), 9-27.
Kaufman, A. C. (2016). Nike is now making most of its shoes from its own garbage. Huffington
Post.
Larson, A., & York, J. (2017). Nike: Moving Down the Sustainability Track through Chemical
Substitution and Waste Reduction. Darden Business Publishing Cases, 1-4.
Lewandowski, M. W. (2018). Analysis of consumer behavior towards the brand on the example
of Nike (Doctoral dissertation, Kolegium Nauk Ekonomicznych I Społecznych w Płocku).
Mahdi, A., Abbas, M., Mazar, T. I., & George, S. A. (2015). A Comparative Analysis of
Strategies and Business Models of Nike, Inc. and Adidas Group with special reference to
Competitive Advantage in the context of a Dynamic and Competitive
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Malinowska, M., & Rzeczycki, A. (2017). Implementation of the Enterprise Resource Planning
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Mani, V., Gunasekaran, A., Papadopoulos, T., Hazen, B., & Dubey, R. (2016). Supply chain
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Putra, P. Y., & Ningrum, S. (2019, February). The Influence of Celebrity Endorser, Brand
Image, and Brand Trust on Consumer Purchasing Decisions of Nike Brand Sports Shoes
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Tai, S. (2018). Food Supply in the Age of Global, Complex Supply Chains.
Young, A., & Watch, C. L. (2015). China Strike Update: Company Making Shoes For Nike,
Timberland, sand Kenneth Cole Agrees To Pay Workers Their Housing Fund Money.