Nike: Supply Chain Management Challenges and Solutions

RUNNING HEAD: MANAGEMENT 1
NIKE
LOGISTICS AND SUPPLY CHAIN MANAGEMENT
Student
5/27/2019

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Executive Summary
Sports are an important activity, which not only keeps us healthy but also makes us strong and
competitive. It boosts our confidence level. However, when consumers go out to purchase a
sportswear brand, they always look for something that gives them the utmost satisfaction and Nike is
one of the brands that has stood on their expectations. Nike is a no. 1 brand who is manufacturing
the comfortable and stylish sportswear for its customer. The company does not only produce
sportswear but also emerged successfully with other products such as casual footwear, apparel, and
sports equipment. Nevertheless, while fulfilling the needs of the customer Nike has analyzed various
loopholes in its system. Therefore, the focus of the report will on the analyzation of a problem in the
supply chain, marketing strategy and in supply chain sustainability and on how these problems can
be overcome.

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Contents
Introduction............................................................................................................................................5
JUST DO IT.......................................................................................................................................5
A. Supply Analysis:..........................................................................................................................6
i. Key Products:...........................................................................................................................7
ii. Supply Market, Suppliers and Its importance..........................................................................7
iii. Selection, Evaluation and development:..................................................................................8
iv. Challenges and Opportunities of Supply Market:...................................................................8
B. Operation Analysis:.....................................................................................................................9
i. Sales market and Key Customers:...........................................................................................9
ii. Forecasting Techniques used by Nike:..................................................................................11
iii. Inventory management techniques:.......................................................................................12
iv. Challenges..............................................................................................................................12
C. Information analysis:.................................................................................................................12
 Bullwhip effect causes and its remedies:...............................................................................12
D. Integration Analysis...................................................................................................................13
a. Diagram: CONSUMERS.......................................................................................................14
b. Triple-A Strategies:...............................................................................................................15
E. Sustainability Analysis..............................................................................................................15

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F. Improvement Policy:.................................................................................................................16
G. Achievement:.............................................................................................................................17
Conclusion...........................................................................................................................................18
Bibliography........................................................................................................................................19

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Introduction
JUST DO IT
This phrase empowers people “to run until you achieve your dreams”. Nike is the most renowned
sports brand, which has made a thousand dreams true. The company manufactures, develops and
supplies the best quality sports apparel, footwear and sports accessories for everyone. It believes
that anyone can attain sportsmanship if he has an athletic body and has nice shoes to wear. It is
known for the comfortable sole, innovative and stylish designs, high-quality clothing and value
for money (Nike, 2019).
Along with its subsidiaries company, it has made its mark in all the classes whether it is business
class or athletes. It is the largest supplier, which trades more than 900 million (Fact Shop,
2019)products on the global level on the annual basis, own retail outlets, and has chosen the
platform of e-commerce to connect and supply its product. To connect with masses, Nike has
collaborated with sports stars like Cristiano Ronaldo, Michael Jordan and LeBron James.
Launched in 1964 by Bill Bowerman and Phil Knight, Nike Company has shown exceptional
growth in the sports industry from production to endorsements (Anon., 2018).In 2018, as per the
Forbes “World’s most valuable sports brand” Nike holds the first position with a brand value of
worth $15,000,000,000 (Forbes, 2018). Moreover, it not only manufactures and designs sport
wears but also entered the market of casual footwear, clothing, and accessories with its
secondary companies that is Jumpman and Converse.

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Mission and Vision:
Nike Company has flourished and is still improving because of its3 major principles:
 its Originality of products
 Boundless Zest to bring change in the market of the sportswear industry
 Moreover, it puts emphasis on the contribution to sustainable development.
The company goal is to inspire every sportsperson to play hard so that can discover his or her
athletic skills. Its objectives to bring various innovations in the field of sports so that the
individual to develop his/her potential. It trades its shoes, clothing, and sports kits around the
world, as Nike believes that if anyone has an athletic body, then he/she can become a sports
person. Moreover, it perception is to guide Nike so that it can create a sustainable environment
where the society, Earth and dividend are balanced. The mission and sight of the company are to
collaborate with the partners to re-conceptualize, mold, and examine the challenges.
However, while operating its functions Nike is facing issues in the supply chain management so
the objective behind this report is to identify various challenges that the company is facing and to
evaluate the possible ways through which a company can solve and improve its conditions.
A. Supply Analysis:
Nike is the best sportswear brand, which has tremendously managed its supply chain
management. From the procurement to the production, Nike depends upon its individual
supplier, who supports mechanism of the company. Nike cares for its products and clients and
does not compromise with the quality of its product. Therefore, to maintain the best quality of its
product, it evaluates and chooses the best raw material and supplier for the company. To procure