Nike Global Supply Chain Management

NIKE GLOBAL SUPPLY CHAIN MANAGEMENT
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Abstract
Nike implements global supply chain management in order to maximize its profits and minimize
wastages. Nike is an American multinational that is engaged in designing, development,
manufacturing and worldwide marketing of footwear, equipment, apparel, accessories, and
services. This report highlighted some of the recommendations that Nike needs to apply in its
global supply chain management strategy. Nike will adopt the necessary procurement changes in
order to achieve the recommendations provided in the supply chain analysis. Procurement for
Nike involves the process of acquiring raw materials, products, its components and other
necessary resources from suppliers in order to achieve the operation. Nike is a large company
having a tie-up with various suppliers. Suppliers of the Company include vendors, preferred
partners, and preferred suppliers. Nike has a demanding supplier selection process that is used to
select the best supplier in the region. In order to select a supplier for the Company, it adopts an
appropriate selection criterion that process supplier capability and aims at enhancing quality with
a focus on reduced costs. Sourcing from global suppliers means the organization can improve its
products and services by hiring prospective suppliers beyond national borders. The process of
buying from global suppliers can be categorized under sourcing and procurement. It can be
concluded by advising that before deep localizing sourcing in Africa, Nike should check whether
the recommendation is feasible enough. Logically, they should carry out a model study in any of
the African nations that have a comparatively better infrastructure, and improvise upon the
results obtained if required.
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Table of Contents
Abstract............................................................................................................................................2
1. Introduction..................................................................................................................................4
2. Changes in Global Procurement..................................................................................................4
3. Selecting International Supplier..................................................................................................5
4. Managing Suppliers and Development........................................................................................8
6. Buying from international Suppliers.........................................................................................11
7. Global Supply Chain Network...................................................................................................13
7.1 Technology and Knowledge Transfer..................................................................................13
7.2 Improving Absorptive Capacity...........................................................................................13
8.0 Conclusion...............................................................................................................................14
9.0 References................................................................................................................................15
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1. Introduction
Global supply chain management incorporates the distribution of goods through trans-national
companies in the global network (Melo, Nickel, and Saldanha-Da-Gama, 2009, pp. 410). Nike
implements global supply chain management in order to maximize its profits and minimize
wastages. Through logistic management, customer orientation, competitor orientation, supply
management, coordination of supply chain and operations management, global supply chain
manages business operations. Nike is an American multinational that is engaged in designing,
development, manufacturing and worldwide marketing of footwear, equipment, apparel,
accessories, and services. In the report Coursework 1, details regarding Nike's international
business strategy had been discussed. The report highlighted some of the recommendations that
Nike needs to apply in its global supply chain management strategy. The recommendations
aimed at adopting Africa within the production and distribution networks. Africa will offer the
opportunity to enter new markets and make use of cheap labor availability. With setting up of the
production facility, Nike will able to source its distribution network located in South Africa and
also expand existing networks (Mangan, Lalwani, and Lalwani, 2016, pp. 16). Varied
distribution centers can be set up for specific sub-brands and styles; it will enable the brand to
expand the market capacity, allowing the supply chain to move faster.
2. Changes in Global Procurement
Nike will adopt the necessary procurement changes in order to achieve the recommendations
provided in the supply chain analysis. Procurement for Nike involves the process of acquiring
raw materials, products, its components and other necessary resources from suppliers in order to
achieve the operation (Jain, Girotra, and Netessine, 2013, pp. 1210). Procurement can be
undertaken by in-hours operators or by outsourced parties. As in the above recommendations, it
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