NIKE Inc. is a premium sport wear company which has contributed to the world sport industry for many years. The routine course for the success of NIKE is their culture of innovation which has leads them towards introducing innovative sport wear which would support the success of the sport man.
NIKE’s currently moving towards sustainable innovation where it would focus on reducing the cost of environmental pollution. NIKE considers transparency and accountability as critical success factors to their business and their approach towards sustainability (sustainable performance summary, 2013).
Under NIKE they two co-brands they are Hurly and NIKE Golf which will be reported under the NIKE Brand, While Converse result as a separate reporting …show more content…
Transforming Relationship
NIKE has transformed their relationship with contracted factory to index called “manufacturing Index” which would help NIKE to decide whether to buy from the factory or not. The element included when calculating the index are sourcing and manufacturing sustainability index which is a combination of Lean manufacturing, labor and health, safety and environment are requirements for bronze level status. This index wills also asses the country risk, leadership planning and development where the factory would be entitle for a gold level risk.
NIKE spends 152 days on the selection process. The Sourcing and Manufacturing Sustainability Index (SMSI) provides the base to enhance the performance of the contracted factory. NIKE provide third party auditors to audit the contacted factories categorised as Bronze level or above level where the auditors will begin to offer beyond-compliance assessment to contract factories to achieve and measure high level of performance. The auditors will advice the bronze level factories on human resource, energy and water management. Those rated below bronze – yellow or red when found to have serious or critical violations – undergo management review and assessment and establish remediation …show more content…
NIKE is hoping to achieve 10% reduction in weight of shoebox by 2015 through implementing new design of shoebox. NIKE planning to implement a new design to achieve the 10% reduction in the weight. NIKE continuously exploring options on reduces the weight and makes the boxes smaller. This will help to ship goods in a leaner outer box.
Converse has launched redesigned box which would reduce the weight by 13% compared to previous box.
Measure Waste
NIKE Material sustainability Index and footwear apparel indices. These indexes measure the environmental impact of chosen material and waste efficient design, our design can be better choices. Compared to average apparel the efficient rate of NIKE is 80%, in footwear it is 71%.
Closing the loop
Waste cannot be eliminated completely the only option is to minimize the waste. Closing the loop innovation is an approach conduct by NIKE to minimize the waste. Example material vendor take-back programs and grinding rubber outsole where it get recycled into new outsole; closing loop will asses an option to increase the amount of crap that can be recycled into new outsole. Apart from manufacturing and packaging NIKE planning to reduce the waste generated from cooperate offices due to increase in waste generated from cooperate