Supply Chain Management - Nike Adidas - 4205 Words

1. INTRODUCTION Supply management is a complex function that’s critical to business success, responsible for delivering efficient costs, high quality, fast delivery and continuous innovation throughout companies’ entire supply chains. The strategic contribution of supply management is measured not only in savings made, but also in increased shareholder value (Niezen, Weller Deringer, 2007). Nike and Adidas are two global companies try to improve their competitive advantage through strategically managing and utilizing their supply chain. The purpose of this report is to compare and evaluate the supply chain management practices of Nike Adidas. 2. CORPORATE PROFILE 2.1 Nike Corporate Profile Based in Beaverton, Oregon, and†¦show more content†¦Yantian currently handles about 20% of Nikes volume from China, and approximately 10% is shipped from the port of Qingdao (Field, 2003a). The Yantian port has increased efficiency due to the close proximity to the Nike factory base, and quicker transits to the States (Field, 2003a). Nike places more importance on choosing the right local partners, not just the right ports. Nike doesn’t own any of its facilities, and local partners make important logistics decisions (Field, 2003a). To manage relationships, Nike has both a global and regional vendor management team – as output volume increases, Nike don’t expand the number of suppliers, but increase the volume of business they do with each supplier (Field, 2003a). The Nike production system can be stratified into three classes; developed partners, volume producers and developing sources (Donaghu Barff, 1990). Although Nike has developed different levels of supplier relationships with each class the production network is commonly classified as a ‘virtual enterprise’ where independent firms work together based on shared values and a common way of doing business to exploit a business opportunity through joint manufacturing (Pfohl Buse, 2000). 4.1.2 Adidas Approach Adidas has also been referred to as a ‘virtual enterprise’ however, it may be better characterized as a ‘strategic network’ because itsShow MoreRelatedOutsourcing Practices of Adidas, Converse, Nike, and Reebok1079 Words   |  4 PagesOutsourcing Practices of Adidas, Converse, Nike and Reebok Introduction Apparel and shoe manufacturers continued to offload the more costly yet easily replicated part so their business models to concentrate on brand building, marketing, sales and attaining greater distribution channels globally. 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