...Nike footwear Nike footwear Supply chain analysis report Supply chain analysis report RMIT International University Vietnam Bachelor of Commerce Program Subject Code: | ACCT2118 | Subject Name: | INDUSTRY PROJECT | Location & Campus (SGS or HN) where you study: | RMIT Vietnam (Hanoi Campus) | Title of Assignment:(In the form of a question) | Intro to logistic – Nike – Group 2 | File(s) Submitted: | 1 | Team Name | Group 1 | Student names: | Nguyen Tuan Thanh – S3393110Tran Hai Dang - S3462793Bui Ngoc Phuong – S3462090Vo Hai Phuong – S3483004 | Lecturer and Group number: | Nguyen Manh Hung - Group 1 | Assignment due date: | 21 December 2014 | Date of Submission: | 21 December 2014 | Number of pages including this one: | 20 | Word Count: | 3298 | Assignment Cover Page Table of Contents Executive summary 1 I. Introduction 2 II. Function 4 1. Distribution 4 1.1 Task 4 1.2 Issue 5 2. Transportation 6 2.1 Task 6 2.2 Issue 7 3. Distribution 9 3.1 Task 9 3.2 Issue 12 III. Conclusions 14 IV. Appendix 14 V. Reference list 17 * Executive summary Nike is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and selling of athletic footwear. At the moment, Nikes bases its factory at three Asian countries: Vietnam, India and China. Because the distance from factories to distribution channels and warehouses is far, this makes distribution...
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...Article: Nike sets date to eliminate toxic chemicals from supply chain This article was posted after disapprovals from environmental campaigners, as they were complaining about clothing brands such as Nike and its group. The campaigners complained about hazardous chemicals being disposed into Chinese rivers, these chemicals were used in the manufacturing process and released on the rivers afterwards. However, the clothing group, which includes the Nike, Cole Haan, Converse, Hurley, and Umbro brands, reacted to this disapproval and stated they will immediately work with their contract factories to prevent this matter. Nike stated to work on this environmental issue within its supply chain and have an action plan in the next two months using their resources; the company also invited other companies to collaborate in this action plan in order to expand it. As a result they got a rival sport company to immediately react, Puma. After acknowledging this matter, Puma decided to also remove hazardous chemicals from the product making of their goods and promised to get this done by 2018. In conclusion, Greenpeace wanted these very popular brands to create a toxic-free future and build a better environment, to stop using hazardous chemical to make their products and dispose them into Chinese rivers subsequently. In fact they got Puma to make a enormous modification in their manufacturing processes, they later stated they would go toxic-free, no more usage of hazardous chemical were...
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...Challenge After the widespread report on the workers of Nike in the plantation in 2005, Nike worked on the reports of social and environmental practices. Nike needs to consider the welfare of the workers and the profits they are earning. Nike’s future depends on the reconstructing the information that are being sent to customers, suppliers, investors, so that company is sustainable as well as profitable. Changing the rules and regulation is not only enough but they should also engage in transcending leadership and should be able to resolve systematic problems to achieve the goals of the organization. If they don’t make any changes in the financial markets, all their changes are worthless. 1) What are the challenges regarding corporate social responsibility that companies in the apparel industry face in its supply chains around the world? * There were many cases found such as mistreating employees in more than one third of Nike’s south Asian plants. There were also reports claiming most of the factories in the same region didn’t allow access to toilet or to drink water. And in some factories the workers were forced to work all seven days of the week. They were also paid below the minimum and were also punished if they refused to work overtime. They wanted to reconstruct the signals being given out so that they could be sustainable as well as profitable. 2) Discuss the meaning and implications of the statement by a Nike representative that “Consumers are not rewarding us...
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...“Nike: Just Do It” By Adam Fernald ETH/316 John Bevell In the past Nike has been accused of using child labor in the production of its soccer balls and sweatshop conditions in suppliers’ overseas factories. Nike has about 28,000 employees globally and over 800,000 workers who are employed by its suppliers in 52 countries and create sports and fitness footwear, apparel, equipment, and accessories for worldwide distribution (Trevino, L.K. & Nelson, K.A., 2011). Nike has worked to improve labor conditions in their footwear, apparel and equipment supply chains for more than 15 years. Key issues in which they have engaged include the health and safety of the workers who make their products, excessive overtime, the ability of workers to freely associate, and child labor and forced labor (Nike Inc., Labor, 2013). Since these accusations were brought to the publics attentions Nike has been focused on improving the monitoring of the organizations supply chain, sent auditors to evaluate conditions and enforce the company code. About a decade after Nike was first targeted they released factory names and locations of their suppliers. A MIT professor was brought in to assess Nikes audit data and the results were disappointing. Most suppliers’ factories had not improved, and some even got worse (Trevino, L.K. & Nelson, K.A., 2011). Nike's entrance into the Pakistani markets was the part of its long term strategic planning. Although Pakistan has laws against child labor...
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...Chapter 2 Case Study 1. Corporate Social Responsibility challenges that companies in the apparel industry face in its supply chains around the world: Corporate social responsibility (CSR) has become a subject of increasing significance. Companies are usually faced with the benefits versus harm created by their operations around the world. In spite of the benefits a company may enjoy in their business venture, there are several social downfalls that they need to take responsibility for. Such downfalls include but are not limited to, lack of equality, employee safety & welfare, both of the home countries and the host countries. The opening profile highlighted the subcontracting of child labor by Primark. The case study highlighted the issue of work treatment & conditions by Nike. In addition, workers were underpaid & punished for refusing overtime. At this level, the ethicality of the companies are being challenged, with varying legal and cultural limits across borders. The main question a company should answer is how should their ethical standard be based? Should it based on the home country or the host country or can it be reconciled? If the company ignores its ethical responsibility to workers, how will that affect production and sales? Association in unethical business operations can be quite disastrous to companies. Another ethically challenging aspect is that companies are also limited by jurisdiction. In the instance of the host country, legislations may...
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...1. The challenges regarding corporate social responsibility that companies in the apparel industry face in their supply chain around the world is very complex. Apparel is something that everyone can make, so for companies they need to find a way to keep their prices competitive but also provide quality products. In this case we see some evidence of what was going on in The South Asian plants that produce Nike’s shoes. These poor conditions are not caused by Nike but they are caused by the subcontractors trying to provide Nike the products fast enough so they don’t go to another plant. The workers at these plants are not given a day off, they are restricted from using the restroom and drinking water during the work day, and they work 60 hour weeks. 2. When the Nike representative states that “consumers are not rewarding us for investment in improved social performance in supply chains” they mean that all the good that Nike is doing doesn’t mean anything to the consumer, ultimately most consumers are just worried about getting the best bang for their buck, otherwise known as getting the best deal. Unfortunately for Nike investment in improved social performance will costs them more money which will lead to product prices to rise. 3. To have an open-systems approach means that although businesses must make a profit in order to survive, they must equal out their desire for profits against the needs and desires of the society. The parties involved would be the company and...
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...Patil, Yash Robert Tanner 5/11/2014 BIP: Final Paper Time to do the Laundry At 9am on the 24th of April, a textile manufacturing building in Dhaka, Bangladesh collapsed due to oversight from supervisors. 1129 people were killed and an additional 2515 were injured as a result. Many of the higher floors didn’t have permits to be legally constructed[1]. The workers were making 52 dollars a month in wages and lived below the poverty line. The clothes manufactured here would be exported and sold in stores like Walmart. Situations like these exist around the world, but only get recognized when disaster occurs. Businesses are some of the biggest entities in the world. Some companies are even bigger than nations; 50 of the largest economies in the world are run by multinational companies; like General Electrics and British Petroleum which are bigger than UAE and Vietnam respectively[2]. The United States Government does provide 21 billion dollars in non-military aid to foreign countries, but this is nothing compared to the impact businesses can have. The textile industry in America alone generates 248 billion dollars in revenue and employs 75 million people globally. Businesses have the capability to empower workers and improve their mission while creating shared value[3]. What is shared value? CSV or Creating Shared Value is the process of aligning economic interests with societal interests to create value for stakeholders and shareholders. Corporations have taken on CSR or...
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...International Management Part 1: The Global Manager’s Environment Part 2: The Cultural Context of Global Management Part 3: Formulating Strategy Part 4: Global Human Resources Management The University of Western Australia Strategic Planning and Strategy Strategic Planning • The process by which a firm’s managers evaluate the future prospects of the firma and decide on appropriate strategies to achieve long-term objectives Strategy • The basic means by which the firm competes., that is, its choice of business or businesses in which to operate and the ways in which it differentiates itself from its competitors 63 How does globalisation, risk, political-legal-ethical and culture affect the value chain that a firm manages and operates to create ‘value’ = strategic planning +strategy = STRATEGIC FIT between ‘inputs’ and ‘outputs’ Porter, M (1985) Competitive Advantage: creating and sustaining superior performance. NY: Free Press The University of Western Australia Steps in Developing International and Global Strategies Mission and Objectives Environmental Assessment and Scanning (PEST, PESTEL, Risk) Internal and Competitive Analysis (SWOT) Global Integrative and Entry Strategy Alternatives (Export, JV, Strategic Alliance, CAGE) Strategic Choice, Implementation, Feedback, and Control (Governance) Copyright ©2014 Pearson Education Realize that much of international business is conducted through strategic alliances...
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...The situation and key fact H&M has become a second largest fashion retailer, but it is criticized by the campaigners many times, such as in 2011, Frauzel (2011) reported that the clothes from H&M contained an amount of hazardous substances, such as nonylphenol, ethoxylates (NPEs) and the toxic nonylphenol (NP). Because these clothes contain chemicals, the water which is used for washing clothes would also contain chemical substances at the same time . And then the suppliers discharged the polluted water into China’s rivers, which can devastate the biological chain and food chain, and also can affect the people’s lives. Meanwhile, She mentioned that after the issue had been exposed, H&M committed to its customers that it would make a toxic-free production line to decrease pollution. However, the way is not washing clothes. Besides, Frauzel (2011) also mentioned that compared with other two controversial companies, Nike and Adidas...
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...Introduction Nike is a name of the major manufacturer of athletic footwear, apparel and equipment for a wide-ranging of sports from the United States. According to Ashford (1997) it was established in 1963 by Phil Knight as ‘Blue Ribbon Sports’ and began as an importer for the running shoes, which were imported from Japan. In 1972, the new name ‘Nike’ has introduced with an extensive product range to more variety of footwear and apparel for sports. Since then, Nike sales grew progressively to be the leading sportswear company. While, growth went beyond its national home base, especially in European region. Since 1980s, after firstly success with local distributors, Nike decided to possess its own distribution centres by acquired its distributors business in all the leading countries and integrated into its owned subsidiaries. However, each country still ran its operations such as warehousing and logistics separately. Hence, in 1992, Nike made up its mind to reorganizing its European internal supply chain management and logistics (Ashford 1997). Because the entirely synchronized of materials flow and customer demands for the finished goods, that produces is the idyllic implementation for an internal supply chain management (Waage 2008). If the company do not achieve this ideal, it might lead to uncoordinated forecasts and decisions that produce inadvertent accumulation of inventories, excessive lead times, delays in production and product being left unsold finally...
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...Business as Usual is Not an Option Supply Chains and Sourcing after Rana Plaza Sarah Labowitz and Dorothée Baumann-Pauly April 2014 About the Center for Business and Human Rights at New York University Stern School of Business “At NYU Stern, we develop people and ideas that transform the challenges of the 21st century into opportunities to create value for business and society. Our Center for Business and Human Rights is the embodiment of that mission. By creating a safe haven for open dialogue and convening relevant voices for discussion around practical solutions to some of the world’s most pressing problems, the Center, and by extension this report, demonstrate that profit and principle can co-exist. ” –Peter Henry, Dean NYU Stern School of Business Dean Henry launched the Center for Business and Human Rights in March 2013 with a strong belief in the power of business to create positive change in society. In that spirit, the Center’s mission is to challenge and empower businesses to make practical progress on human rights in their own operations. It is the first center to focus on human rights as an integral part of a business school. We start from the premise that business can and does work for the good of society. We support the goal of business to create value while emphasizing high standards for human rights performance. Each year, we take on a major project around a set of human rights challenges in a sector that is of foremost concern for companies, consumers...
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...Nike I2 ERP Implementation Failure Case Study February 9, 2014 Shafer Minnick Morgan Correll Jeff Harvey Nike stands as the World’s leading producer of Athletic Footwear, Apparel and Equipment. As of 2013 they held complete ownership or joint venture in the following companies: Nike Brand Cole Haan Converse Hurley International Umbro Athletic Wear Nike Golf Jordan Brand This is a rather long and somewhat surprising list to many, based on some of these brands are portrayed as competitors in the daily consumer market. Nike products are sold in over 170 countries worldwide through their network of 700 retails stores. They have 38,00 Nike employees worldwide, based in those retail store, or one of 65 administrative offices or 10 plus Sales Offices or showrooms worldwide. Nike products are manufactured through a contract manufacturing partnership consisting of 900 contract plants worldwide using over 1 million contract employees. These same plants are managed by their local ownership, but Nike spends significant time and money coaching these plants in the Nike sustainable manufacturing plan. The Nike Strategy The Nike Business strategy focuses on Innovation. First the “Innovation to Serve the Athlete”-meaning they desire to design and produce the best products for athlete safety and performance. They want to be the leaders in new and improved products to advance athletic performance. Secondly, “Innovation to Grow the Company”- Nike wants...
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...NIKE SUPPLY CHAIN MANAGEMENT INSERT NAME HERE INSERT UNIVERSITY/COLLEGE NAME HERE INSERT SUBMISSION DATE HERE2 TABLE OF CONTENTS 1 INTRODUCTION...................................................................................................................................................3 2 OVERVIEW OF NIKE...........................................................................................................................................4 3 NIKE SUPPLY CHAIN PROCESSES...............................................................................................................5 3.1 Nike Product Development....................................................................................................................5 3.2 Nike’s Manufacturing flow management........................................................................................6 3.3 Lean manufacturing ..................................................................................................................................6 4 NIKE SUPPLY CHAIN ASPECTS.....................................................................................................................7 4.1 Nike Vertical Relations.............................................................................................................................7 4.2 Horizontal Relations .................................................................................................................................8 5 NIKE...
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...KNOWLEDGE ACQUIRED BY NIKE OVER THE YEARS STRATEGIC KNOWLEDE * Knowledge of their customers * Marketing * Design and Development of new products * Their Supply Chain Customers and customer knowledge When Phil Knight and Bill Bowerman formed the company, its products were targeted at the narrow market sector of serious, competitive athletes. Of course, most serious athletes are young men and women, so that Nike’s main customers were in their late teens and early 20s. The targeting of this customer group of serious athletes led Nike to focus on the development of high performance running shoes. Having been keen amateur athletes themselves, Knight and Bowerman had considerable tacit and explicit knowledge of the performance that athletes demand from their shoes. In fact, it was their personal dissatisfaction with existing athletic shoes, which led them to set up Nike to produce shoes, which were fit for purpose in terms of comfort and durability. They launched their offerings at the US Olympic track and field trials and in the mid-1970s they developed the first impact-absorbing sole drawing upon their tacit knowledge of runners’ needs and their explicit knowledge of the properties and potentialities of modern materials. This combination of tacit knowledge of customer needs and explicit knowledge of technology was translated into their knowledge based core competences in design and development, and became their earliest source of CA. These core competences combined...
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...The article „Nike says Time to Team up” was published in the Journal of Corporate Citizenship in Autumn 2005, written by Jem Bendell from Auckland University of Technology The text deals with the challenge of Corporate Social Responsibility, being progressively reflected and implemented by Nike´s Management. Nike, as many other companies, outsources the production in different countries (for example Vietnam), which lowers costs and makes it possible to sell products for cheap all over the world. However, the employees in the factories are suffering from bad working conditions, including very low wages, prohibitions to go to the toilet and drink water during the workday. These conditions are enlightened by non-governmental organizations (NGO), recognizing that other competitors have the same issues. But Nike is the only one who has invested more in improving conditions. Aiming to “create systemic change in the industry”, Nike has successfully started to improve conditions in Asian factories, and to seek good “societal relations” which are considered “good for society and good for profitability”. Therefore, Nike seems to comprehend profit and success as a broader concept, which is not only growing on financial grounds, but depends on every single stakeholder, and their relations to the company and each other. This new strategy is depending on changes in frameworks - concerning strategy and leadership. The transcending leadership model is one approach to neglect strict borders, but...
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