Supply chain statistics
To keep up with demand for its vast array of athletic apparel and equipment, Nike, INC. currently employees over one million contract labor workers in 785 contract-factories operating in 43 countries. It has one of the large supply-chain infrastructures in the world, which allows the company to deliver shoes made in Madagascar to a retail store in Toronto in less than 24 hours. Cooperation between both corporate management and contract-factory owners is critical to the success of both entities, they are co-dependent upon one another.
Using sophisticated technology and a user-friendly Web site, http://manufacturingmap.nikeinc.com/ Nike is able to provide data on all of its prime suppliers. From the location of the contract-factory to the type of products manufctured there, Nike does its best to create an ultra-transparent environment. It goes on to list the number of total workers, the amount of line workers, percentage of female workers, and the percentage of migrant workers. After years on scrutiny for not tracking or providing these data figures, Nike has made a 180-degree transformation in its reporting structure. With a few keystrokes, and a few more clicks on the mouse, the casual viewer or New York Times reporter is inundated with information on how Nike carries out is supply chain operations.
Using sophisticated technology and a user-friendly Web site, http://manufacturingmap.nikeinc.com/ Nike is able to provide data on all of its prime suppliers. From the location of the contract-factory to the type of products manufctured there, Nike does its best to create an ultra-transparent environment. It goes on to list the number of total workers, the amount of line workers, percentage of female workers, and the percentage of migrant workers. After years on scrutiny for not tracking or providing these data figures, Nike has made a 180-degree transformation in its reporting structure. With a few keystrokes, and a few more clicks on the mouse, the casual viewer or New York Times reporter is inundated with information on how Nike carries out is supply chain operations.
supply chain partnership strategy
When a factory owner wants to become a Nike supplier, he or she can visit https://www.nikeinclicensees.com/being-a-licensee/ to get an in-depth understanding of how Nike does business with its suppliers. Expectations are set, and the potential supplier can view Nike's "playbook" on how it executes its supply chain operations. It is imperative that a mutual understanding exists between Nike and its suppliers to ensure quality throughout the supply chain.
As a result, Nike has created the following standards for their supply chain:
LEAN - A behavior of
mproving efficiency and reducing waste
GREEN - Environmental
Sustainability (ES)
EQUITABLE - Wage
structures & incentives, services and support
EMPOWERED - Human
Resource Management (HRM), Health, Safety and Environment (HSE) &
Energy
On its licensee page, Nike goes on to state "We ensure continuous improvement of our own performance and expect lean manufacturing performance and responsible leadership from our Licensee/Agents." Here, Nike is reaffirming its committment to its customer base and stating its expectations to its suppliers. For Nike to remain successful, meet customer demand, and continue sustainable growth it must have cooperation from its suppliers.
SUPPLY CHAIN PROGRAM FUNDAMENTALS
On its program fundamentals page, https://www.nikeinclicensees.com/being-a-licensee/program-fundamentals/, Nike further outlines its supply chain expectations:
"You are an extension of the Nike, Inc. brands. We expect excellence in conduct, leadership and absolute compliance from you and all contractors, whether they are directly contracted or indirectly contracted. All Licensee/Agents must comply with and have the ability to communicate and educate Nike, Inc.'s Code of Conduct (COC) and Code Leadership Standards (CLS) across its supply base."
NIKE CODE OF CONDUCT OVERVIEW
While Nike has been under intense scrutiny for poor working conditions and low wage in its contract-factory partners, not all of the blame should have been placed on Nike, as many of these factories made products other than Nike apparel. However, due to its size and recongizance, Nike was deemed as the key perpetrator. As a result, Nike's corporate management has implemented standards to be upheld by any factory making Nike products. The Code of Conduct (COC), found at https://www.nikeinclicensees.com/being-a-licensee/program-fundamentals/, explains what can be found in the COC;
"The Code of Conduct (COC) outlines the minimum standards we expect our factories to meet. We intend to work with factories who understand that meeting these minimum standards is a critical baseline from which manufacturing leadership, continuous improvement and self-governance must evolve.
It is essential that our factories comply towards these standards as they are an integral component to how we approach NIKE, Inc. sourcing strategies, how we evaluate factory performance, and how we determine with which factories Nike will continue to engage and grow our business."
This Code applies to all employees in the contract factories, not just the employees making Nike, Inc. products.
As a result, Nike has created the following standards for their supply chain:
LEAN - A behavior of
mproving efficiency and reducing waste
GREEN - Environmental
Sustainability (ES)
EQUITABLE - Wage
structures & incentives, services and support
EMPOWERED - Human
Resource Management (HRM), Health, Safety and Environment (HSE) &
Energy
On its licensee page, Nike goes on to state "We ensure continuous improvement of our own performance and expect lean manufacturing performance and responsible leadership from our Licensee/Agents." Here, Nike is reaffirming its committment to its customer base and stating its expectations to its suppliers. For Nike to remain successful, meet customer demand, and continue sustainable growth it must have cooperation from its suppliers.
SUPPLY CHAIN PROGRAM FUNDAMENTALS
On its program fundamentals page, https://www.nikeinclicensees.com/being-a-licensee/program-fundamentals/, Nike further outlines its supply chain expectations:
"You are an extension of the Nike, Inc. brands. We expect excellence in conduct, leadership and absolute compliance from you and all contractors, whether they are directly contracted or indirectly contracted. All Licensee/Agents must comply with and have the ability to communicate and educate Nike, Inc.'s Code of Conduct (COC) and Code Leadership Standards (CLS) across its supply base."
NIKE CODE OF CONDUCT OVERVIEW
While Nike has been under intense scrutiny for poor working conditions and low wage in its contract-factory partners, not all of the blame should have been placed on Nike, as many of these factories made products other than Nike apparel. However, due to its size and recongizance, Nike was deemed as the key perpetrator. As a result, Nike's corporate management has implemented standards to be upheld by any factory making Nike products. The Code of Conduct (COC), found at https://www.nikeinclicensees.com/being-a-licensee/program-fundamentals/, explains what can be found in the COC;
"The Code of Conduct (COC) outlines the minimum standards we expect our factories to meet. We intend to work with factories who understand that meeting these minimum standards is a critical baseline from which manufacturing leadership, continuous improvement and self-governance must evolve.
It is essential that our factories comply towards these standards as they are an integral component to how we approach NIKE, Inc. sourcing strategies, how we evaluate factory performance, and how we determine with which factories Nike will continue to engage and grow our business."
This Code applies to all employees in the contract factories, not just the employees making Nike, Inc. products.