Source Chain Managing - Nike & Adidas

 Supply Cycle Management - Nike  Adidas Essay


Supply administration is a complicated function which critical to business achievement, responsible for providing efficient costs, high quality, quickly delivery and continuous creativity throughout companies' entire supply chains. The strategic contribution of supply management is measured not only in savings made, but as well in elevated shareholder benefit (Niezen, Weller & Deringer, 2007). Nike and Nike are two global firms try to enhance their competitive benefit through logically managing and utilizing their supply chain. The objective of this record is to compare and evaluate the supply cycle management techniques of Nike & Adidas.

installment payments on your CORPORATE ACCOUNT

installment payments on your 1 Nike Corporate Account

Based in Beaverton, Oregon, and employing about 29, 500 people globally, Nike Inc. is the world's leading custom made and marketing expert of genuine athletic boots, apparel, products and components for a wide array of sports and fitness activities (Comtex, 2002; Nikebiz, 2007a). Nike retains a thirty-two percent throughout the world market share, a $20 billion dollars market cover (Koch, 2004), has 40, 000 stock-keeping units of products (Mongelluzzo, 2002) and provides over 120, 000 goods in four cycles annually (Koch, 2004).

installment payments on your 2 . Nike Corporate Profile

Adidas is a leading producer of sportswear and sports equipment, supplying its products generally through 4 brands: Nike, TaylorMade-Adidas Golfing, Maxfli and Reebok (Datamonitor, 2007) The Adidas group and its 150+ subsidiaries will be directed from your headquarters in Herzogenaurach, Australia, and make use of 26, 376 people (Adidas, 2007) The Adidas production includes a lot more than 20, 000 items, with thousands of product variations. To maintain market demand, the company changes its product range twice a year; more often if perhaps new technology are available and demand (Webex, 2004).


Nike and Nike are global players throughout a number of product categories. Supply chain supervision practices differ as different products throughout the portfolios work towards different objectives. Due to the large scope of product groups, the following statement limits on its own to analyzing the supply sequence management techniques of Nike and Adidas within the circumstance of the global footwear marketplace. Key source chain processes under examination include;

•manufacturing movement management

•supplier relationship management,

•demand management,

•order fulfillment

•customer companies and marriage management

(Lambert, 2007).


some. 1 Outsourcing as procurement strategy

The international sports activities shoe industry is typified by the mass vertical disintegration of functions and large levels of subcontracting activity. Multinationals such as Nike and Nike no longer production products, depending strongly upon outsourcing almost all production in low-cost offshore labor markets, invariably leading to the majority staying manufactured in Asia. Outsourcing methods allow Nike and Adidas to focus on their core competencies; marketing, style and merchandise innovation, areas in which they will best acquire a competitive benefits (Anderson, 2005). The trade-off to outsourcing to just offshore manufacturers is the fact companies face substantially longer lead-times pertaining to delivery -- typically acquiring six to eleven several weeks to receive products from Asia (Sahling, 2007). Efficiencies obtained in terms of lowered wages will be countered by the increased difficulty of monitoring the product plus the actual operating conditions in the factories (Van Dusen, 1998). Also, Nike & Adidas' production functions are governed by the economical state of emerging market segments; as countries prosper, there is a need to locate new, affordable opportunities. More over, production could also be affected by external factors such as natural problems or politics instability.

4. 1 ) 1 Nike Approach

Asia provides the most Nike's developing and circulation, delivering to more than 85 destinations through the...

References: Adidas, " That which we Do” (2007)

( [Accessed 05/09/07]

Nike, 2002 Twelve-monthly Report (2002) ( [Accessed 05/09/07]

Anderson, W (2005) Speech

Datamonitor (2007) Adidas AKTIENGESELLSCHAFT Company Account, Datamonitor Plc, 19 Mar 2007.

Donaghu, M. & Barff, Ur. (1990) " Nike merely did it: International Subcontracting and Flexibility in Athletic Footwear Production”, Regional Research, 24: six, pp. 537–552.

Field, A. (2003a), " Calling its very own shots”, Record of Commerce, Vol. 4, Issue 44. pp. 20-22.

Field, A. (2003b), " Nike Just Does It”, Journal of Commerce, Vol. 4, Issue 44. pp. 20-22.

Hansen, F. (2007), " A permanent strategy for momentary hires”, Staff Management, Vol. 86, Concern 4. pp. 25-30.

Gernaat, M (2006). The Impact of Lead Time On The Trend Apparel Source Chain, Msc Thesis, Cranfield University

Herzog, N

Holmes, H. (2003), " Nike”, Business Week, Concern 3859. l. 98.

i2, (2004) Example Keeping adidas-Salomon One Stage Ahead of the Competition, ( [Accessed 05/09/07]

Koch, C

Mongelluzzo, B. (2002), " Nike's logistics hierarchy”, JoC Week, Vol. a few, Issue doze. p. twenty four.

Niezen, C., Weller, W

Nikebiz, Company Review, (2007a) (, [Accessed 05/09/07].

Nikebiz, 10k Type (2007b)

( [Accessed 05/09/07].

MSI. (2004), " MSI's Exec Series Features Nike Supply Chain Innovation”, PR Newswire (U. T. ), 15 March 2005.

Pfohl, H. & Buse, H. (2000) " Inter-organizational logistics devices in adaptable production networks”, International Log of Physical Distribution & Logistics Supervision, Vol. 30 No . a few, pp. 388-408.

Piller, Farrenheit., Moeslein, T. & Stotko, C. (2004) " Really does mass customization pay? An economic approach to examine customer integration”, Production Planning & Control, Vol. 15, No . 5, June 2004, pp. 435–444

Porter, M., Harris, M

Productivity Press (2006) Lean Supply String: Collected Methods And Circumstances, Productivity Press.

Sahling, L. (ed) (2007) " Browsing through Today's Source Chain Challenges”, Prologis Source Chain Review, Winter 2007

SAP (2004) SAP Client Success Story: Adidas-Solomon ( [Accessed 05/09/07].

Source Chain Digest (2006) The 11 Best Supply Sequence Disasters, By 2006.

Tibco (2007) Example " Organization integration gets adidas-Salomon in top shape” (, [Accessed 05/09/07].

UPS (2005) Case Study " adidas Costs the Platinum in Client Service” ( [Accessed 05/09/07].

Vehicle Dusen S. (1998) " The Manufacturing Practices from the Footwear Sector: Nike vs . the Competition”, ( [Accessed 05/09/07].

Webex (2004) " adidas-Salomon Improves Item Time to Marketplace With WebEx Online Meetings” Case Study ( [Accessed 05/09/07].

Worthen, B. in Ross, A. (2004), " Why bad forecasts can be good for business…”, Manufacturing Industrial engineer, Vol. 83. Issue several, pp. 26-29.

Total Top quality Management inside the Growing Phone system Industry Article