The purpose of this report is to compare and evaluate the supply chain management practices of Nike & Adidas. Nike Direct sales have high margins. 13d. The counterpart will be the emergence of powerful supply chain specialists. Additionally, the company’s current supply chain processes will be examined as a benchmark for operational efficiency. Plus, the channel mix shift (direct-to-consumer) will support the margins of athletic footwear and apparel companies. Activity Feed. 1. Lululemon’s direct-to-consumer net revenues made up 24.6% of total net revenue in Q2 2019. The supply and production of Nike’s products depend on independent manufacturers. In the early stages of its pioneering approach to outsourcing manufacturing, Nike chose not to engage in centrally monitoring supplier practice. It set up a department tasked solely with improving the lives of factory workers, and in 1999 was instrumental in the creation of the Fair Labor Association (FLA). Nike Case Study Supply Chain Case Solution, Analysis & Case Study Help Free and affordable personalized and small small business cloud storage is all over the place. Nike has a global procurement team to manage the procurement part of its supply chain management. Contact us to learn more about how we can work with you to design custom solutions for your sustainable supply chain. She is skilled in collecting, normalizing, and analyzing data and synthesizing analysis outcomes in a comprehensive report to guide decision-making. The biggest strength of Nike is that it is an extremely competitive organization with its approach of “Just Do It” slogan for its brand epitomizing its attitude towards business. Before joining FCS, Wendy has had years of experience in sustainability-related market research and quantitative analyses, business sustainability, and environmental accounting projects. For fiscal 2020, Nike expects gross margins to grow by 50 points to 75 basis points. Can Improving Supplier Relationships Really Improve Compliance? Nike contracts 100% of its manufacturing for footwear and apparel out to independent suppliers. Keeping a tight grip on costs is important for any company’s profitability and for shareholder returns. However, Nike has diversified its sources of supply, which lowers the impact of higher tariffs. Nike took responsibility for the monitoring of the operations within every link of their supply chain. We rely on logistics service providers for all of our transportation and much of our distribution center operations and work with them to drive efficiency improvements and innovations to make our supply chain more sustainable. gross profit margin grew by 150 basis points to 45.7%, Nike expects gross margins to grow by 50 points to 75 basis points, high single-digit revenue growth per year, gross margin expansion of 50 basis points per year through mix shift to higher-margin NIKE Direct business. It improves margins, lowers inventories, minimizes price markdowns, and makes sure that the customer receives the right product on time. Nike’s current information systems will be used as a source to achieve greater channel alignment. Notably, four are located in Memphis, Tennessee. From around 1996, Nike started making significant progress towards bringing corporate social responsibility to the heart of its operations. Also, Nike-branded apparel and equipment products ship from a distribution center in Foothill Ranch, California. Like footwear, NIKE’s apparel is also made outside the US by independent contractors. Also, any changes in the trade policies could hit its production. Looking Ahead: Supply Chain Management Trends for 2020, CleanChain: 2019 Supply Chain Sustainability Journeys, The Top 5 Challenges in Retail Supply Chains. NIKE’s long-term financial goals through fiscal 2023 include: NIKE enjoys large pricing power in the marketplace. The company’s lean manufacturing improves efficiency, optimizes production, and lowers waste. Their success has been attributed by many to the proactive approach of their supply chain management. Working knowledge of supply chain management concepts preferred. Currently, revenues through Nike Direct operations make up about 32% of the sales mix. Academia.edu is a platform for academics to share research papers. Key Qualities of a Transparent Supply Chain. Previous Job Searches. The other two are located in Indianapolis, Indiana, and Dayton, Tennessee. Nike SWOT analysis elaborates Nike’s internal strengths, weaknesses, opportunities, and potential threats. Coupled with its iconic “Swoosh” logo and its equally catchy tagline, Nike’s strength is that it has emerged as a “Can Do” company. Supply Chain Sustainability Index Partnering with our logistics service providers on sustainability is critical. Nike: The Challenges of a Global Supply Chain. 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