Analyzing Nike's Logistics Mix and Supply Chain Management Strategies

This report provides an in-depth analysis of Nike's management operations, with a specific focus on its logistics and supply chain management. It begins by defining logistics and its five key elements: packaging, inventory, transportation, and channels. The report then examines Nike's strategies for each element, including packaging materials, inventory management software, transportation methods, and distribution channels, with an emphasis on the shift towards direct-to-consumer (DTC) sales. Furthermore, the report explores the importance of business relations within the supply chain, highlighting the benefits of strong supplier relationships, such as risk mitigation, performance optimization, cost reduction, and the fostering of loyalty. The report concludes by emphasizing the significance of an effective supply chain for Nike's success, particularly in terms of cost reduction and competitive advantage. The report uses Nike as a case study to illustrate key concepts and strategies in logistics and supply chain management.

Management
Operations

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Logistic Mix.................................................................................................................................3
Managing business relations with supply chain...........................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Every business of organization functions management in its operations. Management
refers to planning, organizing, staffing, directing and controlling of activities. Same functions
applies with operational department of an organization. When talk about management logistics
and supply chain requires a major focus to manage. The organization has to set its management
such that the supply chain should be very much efficient and effective. It must supply good or
materials to the company at the required time. Apart from supply chain the logistics of the
company should also be very effectively managed that it should not create any of confusion or
cost. For reference purpose this report has taken an example of a company, Nike. Nike is a
multinational national company which is engaged in designing, development and marketing the
apparel, footwear, sports equipments, and accessories and so on to its market (Chopra, Meindl
and Kalra, 2013). It is an American organization which was established in the year 1964 by Bill
Bowerman and Phil Knight.
This report discusses about logistics mix and business relations for supply chain for Nike
Company.
TASK
Logistic Mix
Logistics refers to the managing the flow of things which comes between the point of
origin and the consumption point in order to meet the needs and requirements of the customers.
The organization manages these logistics in such a way that it the system of operation is not very
much complex, it should be every much simple and clear to the employees and it must be utilize
properly without incurring an extra cost to the company. The resources which are managed in
logistics may include food, materials, machineries, equipments, raw materials and etc.
Coordinations the officials is the bit of nimbly chain the administrators that plans, realizes, and
controls the gainful, convincing forward, and switch stream and limit of product, benefits, and
related information between the reason for cause and the motivation behind usage in order to
meet customer's necessities. The multifaceted idea of coordination’s can be illustrated,
dismembered, imagined, and updated by gave generation programming. The minimization of the
use of advantages is a run of the mill motivation in all coordination’s fields. A specialist working
in the field of coordination’s the board is known as a logistician (Christopher, 2016). There are
five elements of logistics which are as follows:
Packaging: A major definition of logistics is the consideration and state of an item. Packaging is
vital piece of that. Unitization also considered as an important part as it includes transporting and
storage. Moving and storing the products in a cube is the easiest that is why the companies or the
organization focuses on performing the cubical shape packaging of all their products or items for

connivance purpose only. As in the case with nike, the company has uses the simple and modern
packaging style. The packaging boxes are made up of recycled cardboards and materials.
Inventory: inventory is taken as a part of logistics which is majorly influenced by the space and
type of warehouse. It includes that how much inventory a company should hold with themselves,
where they suppose to store and how much stock they need to keep with themselves for future
needs. In short inventory gets controlled about how much a company or an organization need to
distribute into the market for sell and how much percentage they need to keep with themselves.
How organizations accomplish this? The organization like Nike use their past data or
information about the sales, production, raw materials, demand and so on and then they use some
of the scientific and quantitative instruments to foresee how much level for inventory would be
needing by the company at this particular time (Cozzolino, 2012). Inventory management is not a
rocket science, although it helps in ascertaining the level of materials to put on request and
production activities, it also helps in deciding the effective and efficient supply chain for the
organization. As in the case with Nike, the company takes the help of software to decide for
inventories needed. This software helps the company in maintaining all the data or information at
one place, enters the information and make them able to share it. This enables the company in
making the corrective decisions about their stock management. Here is the procedure more or
less –
The company Nike set up a system in which it take into account its previous demand and
supply for some of its products which were in high demand in the previous year. They trend to
group them then. They make assembling arrangements which help them in taking all the
information and data. After performing various measurable and reasonable calculations they
decide their inventory management strategies.
Transport: It is consider as a vital component by all the organizations. Transportation includes
all the available methods for transport which are road vehicles, trucks, cargos, loading transports
and air planes. It is also obvious that without the proper transports the goods cannot get transfer
from one place to another. A few products with short flexibly chains, for example, nourishments,
don't go far. Other progressively complex items comprise of numerous parts that can be moved
from everywhere throughout the world. As in the company, Nike, it transports or delivers it
products from 3 major channels which are: offering the products to the wholesalers present into
the market; through direct from shop that deals in line and retail store of industrial facility and
lastly through internet. At the internet the customers can buy the products by visiting to the
company’s official site which is www.nike.com, where they can visit and look for the products
which they want and can purchase it through digital transactions. At present the company is
majorly focusing upon DTC activity where they can directly sell the products to their customers.
Nike major percentage of sales does come from DTC. The company is focusing upon DTC
because they are planning to cut down all the middle men or intermediaries between them and
customer as these middlemen increase into the cost for the company, so to reduce the cost and
maintain a direct contact with the final customer the company is trying for DTC.

Channels : Channels refers to the modes or the mediums used by the company to deliver the
materials, goods or the products to the actual customers. Company always tries to opt for that
channel which delivers the products of the company to the customers which speed and also it
cost very low to the company. They chose channel ought to fulfill the both time and item utility.
Time utility alludes to the accessibility of the item at time and item utility alludes to the
accessibility of the items at the stores. An organization has various routes or channels through
which it can distribute its products or services. From the available channels for distribution the
company opts out that distribution channel which delivers the products or materials speedy and
also which incurs less cost to the organization (Grant, Trautrims and Wong, 2017). As in the case
with Nike, it uses the traditional system for distributing its products to the customers via vendors.
But, introduction to social media changed everything. Social media has forced the business to
change its business structure and systems and as of Nike. Nike used the social media for its
promotional and advertising activity. And later it also starts selling the products via online by
opening up its own nike.com at which the customers can directly purchase the products.
Managing business relations with supply chain
Supply chain is the chain or the system of activities, operations, people, information and
resources which are involved in delivering a product or a service to the ultimate customer. The
main purpose of the companies for adopting the supply chain is to reduce the costs and to gain
the competitive advantages. The supply chain management is very much crucial process because
an optimize supply chain process cost low to the company and provides faster productivity cycle.
A proper supply chain is consists of proper steps for progression of item at a particular way
which would get delivered to the ultimate client. It means moving the items in a designed way so
that they can properly circulate to the end users. The parties or elements which are included in
this process are sellers, warehouses, transportations, retailers, wholesalers and etc
Managing the supply chain very effectively enables the organization in gaining the
competitive advantage. As with the proper and effective supply chain the organization can saves
a lot of its money. For this it needs to talk to many suppliers and needs to come up with in
supplier which can transport the good at the most effective and efficient way, here the cost is also
included. This also helps the company in gaining a lift into their operations. Proper supply for
materials would help in timely availability of products at the right place. Whereas an ineffective
supply chain can cause the company an expensive amount and also generate low to them.
Relationship management is an activity in which the organization maintains a good
relation with their other parties. These parties may include suppliers, clients, retailers, whole
sellers and etc. Maintaining a good relation with these parties is very much essential as they
would help the organisation at some point of time. The relationship can be maintain through the
collection of required information or data about these parties and have a touch with them through
emails, telephones, messages and etc (Islam and et. al., 2013).

Maintaining a relation with supply chain is very much necessary because it helps the business in:
Migrating Risks: To viably diminish provider dangers, regardless of whether as far as tasks,
unexpected cost suggestions, or administrative consistence, you need expanded deceivability.
Merchant the board can follow your providers and give the information you have to recognize
provider chances so you can find a way to moderate them, or pick an elective seller. You can
undoubtedly check provider data, for example, capabilities and confirmations, track execution,
and even investigate the provider's financials to get a more extensive image of their hazard level
so as to ensure your association
Optimize performance: once the supplier is active in an organization vendor system, an
organization can track the performance against that contract. This unable a company for
optimum utilization. When the performance is been utilized it will ultimately would help the
organization in doing better performance for the business. Supply chain management is very
much useful in maintain a company’s performance (Li, 2014).
Decrease Costs: When you have expanded deceivability, you can see undetectable costs that you
would then be able to all the more likely control so as to save money on costs. Moreover, having
solid associations with your providers, because of viable techniques and procedures on account
of merchant the board can assist you with negotiating better rates and approach limits and
impetuses that can expand your overall revenue.
Make Loyal Relationships: Good merchants are difficult to find. In case you're working with
astounding providers, you ought to do all that you can to fortify your associations with them so
as to manufacture unwaveringness. With compelling provider the executives, you can guarantee
efficiencies that lead to smooth procedures, which can assist you with building the steadfastness
you have to keep your extraordinary providers as a major aspect of your gracefully chain as long
as possible.
For raw materials and for the process related with assembling the company is hugely
dependable upon sources from outsiders. The process for fabrication has totally given to other
parties for performing the work. The company has a very huge base for providers which can help
the Nike in its business and its development. For company quality is the major focus for them.
they put a major focus and attention upon choosing their parties which provide them with raw
materials. They have a particular set for quality which they believe the next party for which they
are hiring for fabricating would stand up that. The parties which the company chooses should
also be very well advanced that it encourages the low emission of carbons (Mangan and Lalwani,
2016).
As in the case with Nike, the company has put major focus upon its quality. This is one
factor in which the company just cannot compromise upon. They choose their parties with full
attention and rely upon only those who promised them to stand upon their quality terms. Apart
from this the company also focuses upon its CSR activities. It performs its CSR activities in such

a way that they perform their marketing activity along with the social responsibility activity.
They have the motive for empowering every human being and from their promotional and
advertisements activities they show the same very well. They believe in incorporating the
business in most simple and decent way. They incorporates their supply chain activities in a
decent way, they reduce the path which leads them to complexity and the like.
To make sure that the providers or the parties of the company provide them as accepted, they
have a set of rules and principles in which they have stated the norms which these parties have to
follow strictly (Wang and et. al., 2016). In those norms the company has successfully noted
down all the principles which they need to follow regarding the production activity, norms which
are related with quality and product specifications, principles regarding remunerations and
opportunities which the parties can get from Nike Company. Nike also makes sure that these
parties do not feel bounded in working with them. The company also gives them the par
opportunities to grow more and work with them at a more promising way. The company has set
up a more effective circulation for their products which make them very fast and speedy in
delivering the products to their end users. They also have proficient circulation for production
and assembling activities.
CONCLUSION
From the report discuss above, the supply chain management and logistics management
has been mentioned. For reference purpose, the report uses a company Nike and has present how
Nike has managed his logistics and supply chain relations. There are few elements of a logistics
mix i.e. packaging, transportation, inventory and channels. The report also includes the
importance of maintaining a relation with supply chain as they can help in Migrating Risks,
Optimize performance, Decrease CostsMake, Loyal Relationships and etc.

REFERENCES
Books and Journals
Chopra, S., Meindl, P. and Kalra, D. V., 2013. Supply chain management: strategy, planning,
and operation (Vol. 232). Boston, MA: Pearson.
Christopher, M., 2016. Logistics & supply chain management. Pearson UK.
Cozzolino, A., 2012. Humanitarian logistics and supply chain management. In Humanitarian
logistics (pp. 5-16). Springer, Berlin, Heidelberg.
Flint, D.,and et. al., 2012. A reviewer's guide to the grounded theory methodology in logistics
and supply chain management research. International Journal of Physical Distribution
& Logistics Management.
Grant, D. B., Trautrims, A. and Wong, C. Y., 2017. Sustainable logistics and supply chain
management: principles and practices for sustainable operations and management.
Kogan Page Publishers.
Islam, D.M.Z.,and et. al., 2013. Logistics and supply chain management.Research in
Transportation Economics. 41(1). pp.3-16.
Li, X., 2014. Operations management of logistics and supply chain: Issues and
directions. Discrete Dynamics in Nature and Society, 2014.
Mangan, J. and Lalwani, C., 2016. Global logistics and supply chain management. John Wiley &
Sons.
Myerson, P., 2012. Lean supply chain and logistics management. New York, NY: McGraw-Hill.
Wang, G.,and et. al., 2016. Big data analytics in logistics and supply chain management: Certain
investigations for research and applications. International Journal of Production
Economics. 176. pp.98-110.