Nike collects feedback from suppliers through Better Buying, an anonymous rating initiative that collects supplier feedback on purchasing practices. Nike collaborated with Better Buying to invite our suppliers to participate and we use the information to help inform system and process improvements.
In this post
What is Nike’s supplier responsibility?
Nike’s supply chain functions around three core organizational principles: outsourcing, to save costs; diversification, to minimize risk; and corporate social responsibility, to manage its impact on the world it works in.
Who is Nike’s biggest supplier?
Key Takeaways
- Nike is the largest seller of athletic apparel and footwear, generating nearly $37.5 billion in sales.
- Most of its products are sourced from China, Vietnam, Indonesia, and Thailand.
- Major suppliers include Pou Chen, PT Pan Brothers, Fulgent Sun International, Delta Galil, and Eagle Nice.
Who supplies Nike with their materials?
Like footwear, all of NIKE’s apparel is manufactured outside the US by independent contract manufacturers. In fiscal year 2014, NIKE was supplied by ~430 apparel factories operating in 41 countries. China, Vietnam, Thailand, Indonesia, Sri Lanka, Pakistan, and Malaysia accounted for most of the apparel production.
How does Nike get their materials?
Nike gets their leather from tanners and suppliers in China and Vietnam. Nike uses 1,500 different material vendors, suppliers, and companies. All the companies that they buy from are independent businesses.
How can Nike improve its supply chain?
To combat the current issue, Nike outlined its four changes amid supply chain issues:
- New Regional Service Centers. Increasing capacity, speed, and precision (sustainably)
- Automation and Technology.
- Sustainable Packaging.
- Career Development, Training, and Community Volunteer Opportunities.
What is Nike’s supplier code of conduct?
Nike’s code of conduct lays out the minimum standards that every supplier facility or factory must meet. The code of conduct for suppliers includes standards related to freedom of association, hiring practices, wages, and health and safety.
Where does Nike source and produce their products?
Almost all Nike shoes are manufactured outside of the United States. The leading manufacturer of Nike shoes is China and Vietnam each accounting for 36% of the total manufactured world wide. Indonesia accounts for 22% and Thailand for 6% of the Nike shoes that are being produced world wide.
Does Nike use child labor?
Nike has admitted it cannot guarantee that its products will not be made using child labour in a report designed to address the accusations that have plagued the company.
What raw materials are used to make Nike shoes?
Nike uses six raw materials for its footwear manufacturing: Polyester, Rubber, EVA foam, Cotton, Synthetic Leather, and Leather.
Where does Nike source their raw materials?
Generally, raw materials are purchased directly by the independent contractors and suppliers which manufacture our branded footwear, apparel and equipment. Tanneries currently supplying leather for Nike products are located in China, Vietnam, Indonesia, South Korea, Taiwan, Thailand, Australia, and Brazil.
What resources do Nike use?
The natural resources Nike uses is cotton for the fabric, water to grow the cotton, and oil to run the machines. The man made items used in production is fabric, sewing machines, and computers. Nike is the world leader in athletic shoes.
What production strategy does Nike use?
But, these days, it is a well known fact that Nike does not produce its own shoes. In short, Nike Production Strategy is summarised by one word – outsourcing.
How does Nike manage their inventory?
NIKE manages inventory to a 95% item fill rate for all replenishment products. Highly seasonal products generally have unpredictable demand patterns which lead to either stock outs or excess inventory. These imbalances in inventory occur without fully understanding the cost and benefit of holding the inventory.
Are Nike products environmentally friendly?
As of 2020, all of Nike’s Air Manufacturing Innovation facilities in North America are powered by 100% renewable wind energy. We reuse more than 90% of the waste from materials used for our Air soles to make new, innovative cushioning systems.
Where does Nike manufacture their clothes?
There are about 600 factories located in 46 different countries that exclusively manufacture Nike shoes. Out of these Nike vendors, about 36% are located in China and Vietnam each. Another 22% are located in Indonesia. Specializes in: Winter jackets, shorts, golf shirts, etc.
How does Nike fix supply chain problems?
How Nike transformed supply chains to survive Covid
- Nike accelerated automation and increased geographical diversity within supply chains to overcome challenges posed by Covid-19.
- 1) Greater regional diversity.
- 2) Investing in inventory optimisation technology.
- 3) Accelerating automation.
Is Nike having supply chain issues?
But nearly two years into the coronavirus pandemic, supply chain issues mean the company is struggling to meet that demand and grow its business. Nike sales increased just 1% to $11.4 billion in the quarter ended November 30, the US footwear giant reported after the closing bell on Monday.
What is Nike’s biggest problem?
Nike is facing snarls in its supply chain that are slowing imports from its Asian factories and dragging down sales. Consumers’ preferences, priorities, and values are reshaping industries.
Nike’s Community Support Program. As part of their community outreach program, Nike spent more than $89 million in 2020 to help over 17 million kids around the world get active in sports and exercise. Nike also committed to training nearly 100,000 coaches to help communities most in need.
How is Nike an ethical business?
Nike uses some eco-friendly materials, including organic and recycled cotton and polyester, and has water reduction initiatives in its supply chain. The brand has also set a deadline to eliminate hazardous chemicals by 2025 and the good news is that it is on track to meet its target.