Supply Chain Management for Nike: Processes, Challenges, and Recommendations

Running Head: SUPPLY CHAIN MANAGEMENT 1
Supply Chain Management
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SUPPLY CHAIN MANAGEMENT 2
Supply Chain Management
Nike has been one of the leading companies in designing, developing and manufacturing
of footwear, equipment, apparel, accessories and services (Bob, 2012, P. 201). In Kuwait, this
company is located at 360 Mall and serves people within the Kuwait city and other parts of the
country. Although Nike strives to position itself as the best in footwear, equipment and apparel,
it faces competition from various companies that include, Adidas and other local firms that
produce similar products.
According to Sarkar (2017, P. 98), products moves through different stages before they
reach to the final consumer. For sports shoe from Nike for instance, which is my recent purchase,
it passes through various processes, including the use of Nike’s reuse-A-shoe program which
helps the company to recycle its sneakers to produce new footwear. Other raw materials
involved in making this product comprise of Polyurethane, Phylite, Phylon and synthetic rubber.
According to Fbci (2011, P. 115), this company uses a supply chain that is lean, fast,
agile and centered on its customers. The company has contracted various factories to undertake
produce its products because does not own a manufacturing plant. At upper stream, its supply
chain comprise of tier 3, tier 2 and tier 1(contract suppliers) who deliver the products to Nike.
After this receiving the brands from its contract suppliers, the company uses distributors to link it
with retailers who finally sell the products to consumers.
In its supply chain, the company uses vertical integration which ensures its operations are
vertically integrated in every segment of the value chain from manufacturing down to sales. The
vertical integration that exist in the supply chain is between manufactures, suppliers, retailers and