This website uses cookies to ensure you have the best experience. Learn more

Internal Supply Chain Analysis

1956 words - 8 pages

Introduction

Nike is a name of the major manufacturer of athletic footwear, apparel and equipment for a wide-ranging of sports from the United States. According to Ashford (1997) it was established in 1963 by Phil Knight as ‘Blue Ribbon Sports’ and began as an importer for the running shoes, which were imported from Japan. In 1972, the new name ‘Nike’ has introduced with an extensive product range to more variety of footwear and apparel for sports. Since then, Nike sales grew progressively to be the leading sportswear company.

While, growth went beyond its national home base, especially in European region. Since 1980s, after firstly success with local distributors, Nike ...view middle of the document...

In the second part, it will identify Nike’s main issues and problems. Then, it will address the generation and evaluation of alternative solutions for Nike. Lastly, this report will provide the recommended solution and justification for those issues.
1: Situation Analysis

A) Supply Chain structures

Nike has to understand the needs of local customers and how they can be served. Its products and service must be recognised by its customers as representing excellent value for money (Walters 2008). Because of this, it must ensure that the products that its customers order are available on the shelf at each store at all times. So that, planning and controlling the procurement and distribution of its substantial product range from suppliers to customers is one of the Supply Chain structure (Harrison & van Hoek 2008). According to Vaaland and Owusu (2012) Supply Chain structures are including two strategic flows: (Figure: 1)

- Physical flow of goods from its suppliers through the distribution centres to stores;
- Information flow management from the end users demand back to their purchasing and to suppliers, and reference information from suppliers to the retailer, therefore, physical movement of products can be properly planned and controlled.

The task of managing physical and information flow is an essential part of supply chain management. Supply chain management can be defined as the management of the whole chain of processes, from raw material allocation, production, packaging and delivery to the end users (Vaaland & Owusu 2012).

Physical Flows
Retailer Store&
End-customer
(Europe)
Retailer Store&
End-customer
(Europe)
Retailer DC
(Europe)
Retailer DC
(Europe)
Manufacturing
& Assembly
(Far East)
Manufacturing
& Assembly
(Far East)
Parts &
Raw materials
Parts &
Raw materials
Distribution Centre
(Europe)
Distribution Centre
(Europe)


Information Flows

Figure 1: Flow of Goods and Information Flow (Source: Harrison & van Hoek 2008)
In this case, Nike’s Physical and information flows of goods can be divided into two main groups; footwear and apparel. At first, the national subsidiaries collect future orders from customers and send to the consolidating office in Hilversum, Netherland. Then, this small function passes the information to Nike’s Hong Kong office, which organises procurement and production. After that, all footwear is manufactured in the Far East and then imported to Nike’s port of entry in Europe by using container loads (Ashford 1997). Next, these products are sent to approximately 20-stockholding point in the 11 countries all over Europe. Second, while all of its footwear is imported from the Far East, apparel is more diverse. Apparel is sourced from low-cost countries in or near Europe. Finished goods from these manufacturers are normally transported by full truck loads to Nike’s main distribution centres.

B)...

Other Papers Like Internal Supply Chain Analysis

Student Essay

1022 words - 5 pages Bullwhip Effect Analysis A significant phenomenon in supply chain management (SCM), first observed by Forrester (1961), shows that the orders variability along the upstream direction is amplified in supply chain networks. Subsequently this observation was termed as bullwhip effect by Lee, Padmanabhan, and Whang (1997a, 1997b). Such extreme distortion for the actual end customer demand to upstream have been proved to significantly increase costs

Dfgdgd Essay

258 words - 2 pages avails manage the Make component of SCM. TheDistribute component benefits from truck and shipment tracking as well. While the Returncomponent benefits from kenning precisely what product is being returned, along with itsentire history through the supply chain, sanctioning managers to identify issues along thechain through cluster analysis. 2) What other businesses could use RFID to streamline their supply chain? As always, you are encouraged to

Iecj Coors Cs

4948 words - 20 pages project. Matt: My project team was excited to see that our CEO discussed the supply chain project in his 1997 shareholder letter. He said that significant productivity gains in 1997 were due to our project that streamlined purchasing, brewing, packaging, transportation, and administration of the supply chain. Ken: Perhaps an economic value added (EVA) analysis could be done to assess these supply chain productivity gains. Matt: That’s an

Information Technology Of Supply Chain In Pt Ccai

3522 words - 15 pages adalah make-to-stock, dimana persediaannya dalam bentuk produk jadi. Secara umum, anggota supply chain dalam coca cola terdiri dari supplier, internal supply chain dalam perusahaannya sendiri, dan konsumen. a) Jaringan supplier terdiri dari semua supplier yang menyediakan bahan baku mentah dan jasa pada coca cola secara langsung maupun tidak langsung. Bahan baku mentah dan jasa yang ada ini diolah oleh internal supply chain perusahaan menjadi

Chain

6682 words - 27 pages The Apple Supply Chain: The Best in the World? by Steve Banker July 2nd, 2012 Many supply chain professionals consider Apple’s supply chain to be the best in the world. I don’t. The reasoning appears to be that since Apple is one of the fastest growing and most profitable companies in the world, it must surely have one of the best supply chains too. This is a “halo effect” fallacy. Apple is the best in the world at innovative product

Staples

1538 words - 7 pages elasticity of demand was low when one firm scenario prices were compared markets with other warehouse clubs. Also the internal documents obtained from the companies in which the companies referred to the competition as the office superstore industry and the distinctive features like appearance variety of items etc. offered at a store helped define the market as office superstore. With the relevant market now constrained to office supply stores

Logistic

1202 words - 5 pages chain management is compiled of many different levels to include sub-suppliers, suppliers, internal operations, wholesale customers, retail customers, and end users. Not only are these individuals a part of the SCM process SCM also encompasses the management of materials, information regarding the material, and the funds to supply the materials for the raw production stage. . Supply Chain management is a process that is continuous, but can slow

Week 3 Risk Analysis

2646 words - 11 pages options, supply chain, and environmental factors. Political, Legal, and Regulatory Exchange Germany as part of the European Union (EU) is a relatively low risk target for political considerations with Forbes citing the region has the most positive regional outlook with 47% of member countries exhibiting a decline in risk ratings (Rapoza, 2013). A.M. Best (2014) rated Germany as one of the best in nine areas with the only exception attached to

Coca Cola

4111 words - 17 pages strength to rule market’ ‘Another internal force’ known with the coca-cola company is the franchised distribution channel which the company has successfully achieved in over 200 countries in which local / regional bottlers after production, get it down to the consumers through the supply chain. This in developing countries still has huge cost of leadership with other companies since the main cost of management is paying for labour; this is

Case Study Of Walmart

1408 words - 6 pages ANALYSIS Strengths ♦ Cost advantages over rivals. Costeffective supply chain management practices. Weaknesses ♦ A strategy that does not have proprietary protection and therefore can be copied by competing retailers who “wal-martificates” their supply chain. (Lack of sustainable competitive advantage). ♦ Distinctive competence in distribution systems; automated and efficient distribution of goods into its stores, from manufacturers to its

Syllabus Of Mba 3rd Trim(Gitam, Hbs)

2945 words - 12 pages management; Goals and objectives, Business Vision, Mission and Objectives. UNIT II: Environment and Resources Analysis: Environmental Analysis, Industry and Competitive Analysis, the External Factor Evaluation (EFE) Matrix, Competitive Profile Matrix (CPM), Internal Analysis; Internal Factor Evaluation (IFE) Matrix, Porter’s Five Forces Model, SWOT Analysis and VRIO framework. UNIT III: Strategy Formulation: Porters Value chain - Generic

Related Essays

Value Chain In Engineering Essay

1261 words - 6 pages globalization have changed the focus of companies from internal efficiency to the creation of value in the extended enterprise, including their suppliers, alliance partners, distributors and customers. The concept of value chain has attracted a great deal of attention from managers and researchers. Porter (1985) described the value chain as a complex series of activities through which a product or service is designed, produced, marketed, delivered and

An Introduction To Supply Chain Management Commerce Essay

6951 words - 28 pages nature and this variability arises due t fluctuation in supply and demands conditions. Moreover the interplay of the complex considerations for the analysis of the supply chain analysis is the jest of supply chain management and have significant impact in bearing the outcomes. According to RCG (1999) There are six key elements to a supply chain; production, supply, inventory, location, transportation of the goods and information. Production

Process Design And Supply Chains Pt1

954 words - 4 pages Process Designs and Supply Chains Jennifer M. Conlin OPS/571 September 17, 2015 Arun Iyengar Process Designs and Supply Chains Businesses large and small utilize different process designs and supply chains to keep their company competitive, reduce cost and increase profits. The focus of this paper will be to identify Empire Today’s supply chain and analyze one of their internal processes. The author will also identify an appropriate

Tesco Essay

2509 words - 11 pages BRIEFING PAPER KEY ELEMENTS OF THE VALUE CHAIN APPROACH WHY USE THE VALUE CHAIN APPROACH? Many people talk about the “value chain approach” but interpretations of what this approach entails—the principles upon which it is based and how these principles are applied through analysis, project design and implementation—vary. Moreover, donors and their implementing partners have different motivations for drawing upon the approach. This paper outlines