Role of Information System
Nike’s supply chain is centralized since designing of the product, outsourcing, and logistics are all undertaken from the company’s headquarters in Beaverton, Oregon. The effective supply chain is the result of SAP, which is a single planning engine that centralizes demand management in order to ensure efficient collaboration with the suppliers. The single shared platform, according to Mongelluzzo (2002) explains that Nike had achieved the key objective of supply chain strategy. Up to data information, improved financial visibility, accurate projections, and forecasting and better reallocation of the Company’s resources had played a key role in ensuring that the supply chain is more efficient at all times.
Leverage …show more content…
In 2001, Nike had updated their inventory management software (Inventory Management, 2013). Its purpose was to help predict which products would sell the most which can therefore help the company prepare the correct amount of supply to meet their demand.
For more than a decade, Nike has worked with DHL supply chain to streamline and integrate its logistics operations in Brazil (University Alliance, n.d.). Nike wanted to cut costs while boosting service and delivery, as well as controlling changes in its supply chain and responding to volume spikes. Slates of improvements were introduced to Nike’s supply chain, including implementing RFID monitoring of products in warehouses and distribution, and providing real-time delivery information (University Alliance, n.d.). As a result, delivery errors were reduced by using pre-shipping identification labels.
Impact of Outsourcing
Nike has hundreds of factories and various subcontractors it uses to design and manufacture its products. Outsourcing the supply chain has many possible advantages and disadvantages for …show more content…
There is a huge opportunity in minimizing logistics cost by partnering with 3PL. For example, Nike had partnered with DHL in Brazil to mitigate challenges such as rapid growth projections, improve service, traceability and delivery. Nike can duplicate the same model in other markets to strengthen the supply chain and meet Company 's objectives.
Fourth, outsourcing is the strength of Nike and this strategy has been successful. Yet, it recommended to know the key success or management techniques to operate the outsourcing successfully and maintain that success. There are some signs to tell the company to identify new supplier. For example, late shipments cost the company and customers extra money. If the problem is persistent and the information technology fails to track the shipment movement, new supplier should be a solution. Further, it is necessary to evaluate is the new supplier is meet the expectations of
Nike’s supply chain is centralized since designing of the product, outsourcing, and logistics are all undertaken from the company’s headquarters in Beaverton, Oregon. The effective supply chain is the result of SAP, which is a single planning engine that centralizes demand management in order to ensure efficient collaboration with the suppliers. The single shared platform, according to Mongelluzzo (2002) explains that Nike had achieved the key objective of supply chain strategy. Up to data information, improved financial visibility, accurate projections, and forecasting and better reallocation of the Company’s resources had played a key role in ensuring that the supply chain is more efficient at all times.
Leverage …show more content…
In 2001, Nike had updated their inventory management software (Inventory Management, 2013). Its purpose was to help predict which products would sell the most which can therefore help the company prepare the correct amount of supply to meet their demand.
For more than a decade, Nike has worked with DHL supply chain to streamline and integrate its logistics operations in Brazil (University Alliance, n.d.). Nike wanted to cut costs while boosting service and delivery, as well as controlling changes in its supply chain and responding to volume spikes. Slates of improvements were introduced to Nike’s supply chain, including implementing RFID monitoring of products in warehouses and distribution, and providing real-time delivery information (University Alliance, n.d.). As a result, delivery errors were reduced by using pre-shipping identification labels.
Impact of Outsourcing
Nike has hundreds of factories and various subcontractors it uses to design and manufacture its products. Outsourcing the supply chain has many possible advantages and disadvantages for …show more content…
There is a huge opportunity in minimizing logistics cost by partnering with 3PL. For example, Nike had partnered with DHL in Brazil to mitigate challenges such as rapid growth projections, improve service, traceability and delivery. Nike can duplicate the same model in other markets to strengthen the supply chain and meet Company 's objectives.
Fourth, outsourcing is the strength of Nike and this strategy has been successful. Yet, it recommended to know the key success or management techniques to operate the outsourcing successfully and maintain that success. There are some signs to tell the company to identify new supplier. For example, late shipments cost the company and customers extra money. If the problem is persistent and the information technology fails to track the shipment movement, new supplier should be a solution. Further, it is necessary to evaluate is the new supplier is meet the expectations of