Summary
Sustainability coordinator, Wendy Ye conducted an analysis regarding the effectiveness of Nike’s textile supply chain. “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. Under focused and experienced management, its supply chain has grown from these principles into one of the most effective and responsible large international supply chains operating in 2020.” (Ye, 2020)
“Nike contracts 100% of its manufacturing for footwear and apparel out to independent suppliers. It was one of the earliest multinationals to adopt this approach. Thanks to effective management, Nike’s supply chain team quickly learned to manage the additional logistical complexity involved in this outsourcing and have seen significant cost savings over the years as a result. Outsourcing is inherently a risky approach, but by extensively diversifying its supplier base, Nike successfully mitigated this risk from the beginning. In 2019, Nike’s footwear components were supplied by 112 different factories in 12 countries, with no factory accounting for more than 9% of branded footwear. Not being overly reliant on any one site means Nike is less vulnerable to unpredictable occurrences, such as accidents and extreme weather events.” (Ye, 2020)
Analysis
Nike distribution of work and prioritization of objectives is something that could be replicated on a much smaller scale. In the context of the capstone, it would be advantageous to utilize the range of resources that are at my disposal at Priority Design. This is particularly true in regards to prototyping. The firm’s workshop houses workers with multi-disciplinary backgrounds. From engineers to soft good experts, all can provide valuable insight into the fabrication of the wearable.
Attributing these three core principles could result in a product that encapsulates the following: minimal adverse effects to the environment based on textile choices, a level of consistency among product and branding due to consultancy.
Sources
Ye, W. (2020, May 12). How does Nike’s supply chain work? CleanChain. Retrieved September 21, 2022, from https://www.cleanchain.com/blog/how-does-nikes-supply-chain-work
