Nike Sourcing Process

703 Words3 Pages
Quick overview of NIKE Nike, Inc was established in 1964 in the state of Oregon, US. Nike is the world’s largest producer of athletic footwear and apparel in the world. Its core business is in the design and development of high quality footwear, apparel, and equipment. Products are sold to retail shops via NIKE owned stores and via World Wide Web, independent distributors in 170 countries around the world. Nike has outsourced the manufacturing of Footwear and apparel products while equipments are produced both in US and outside US. Nike conduct their manufacturing operations in factories operated by independent contractors Nike’s footwear products dominates its market share and footwear’s are designed for aquatic activities, baseball, tennis,…show more content…
This is where the quality origins. They follow a rigorous procedure and conduct a detailed analysis compared to past in their sourcing process which helped them to improve the quality of their manufacturing partners. In the past Nike has taken 246 days to conduct their evaluation process in order to select their partner. But now they complete the same job within 152 days. This means it takes Nike 38% less time evaluating a manufacturing partner. This reduction in time can be considered as a great achievement by them. In terms of quality, Nike is successful in increasing its quality while assisting the contract manufacturing partners to reach Nike’s higher standards. Sourcing and manufacturing sustainability index is a measure use to grade the manufacturers. This index extends from lower level manufacturers to world class manufactures indicated through a color code ranging from red to gold. Currently Nike has no manufacturers in Gold category, only one manufacturer in Silver, 535 manufacturers in Bronze, 156 manufacturers in Yellow and 77 manufacturers in Red. Nike continuously spends time, energy and resources on guiding the lower grade manufacturers to reach Nike’s higher standards while helping their world class contract manufacturers to maintain their higher…show more content…
This is actually a business system and continuous improvement philosophy that aims to provide the highest quality product while eliminating waste including lost time and material. Top Management of Nike believes that lean can empower workers and teams. They can implement a successful of the lean approach by implementing physical changes to production processes, increasing leadership capabilities and the developing an empowered workforce. As we all know, people are at the heart of an operation. Nike has spent a lot of energy in training and up skilling their contract manufacturers in Lean. According to them, Lean helps their people in following
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