Sie sind auf Seite 1von 15

Nike, Inc was founded in 1964 in the state of Oregon, US.

Nike is the largest


seller of athletic footwear and apparel in the world. Its main business is in the
design, development and marketing of high quality footwear, apparel, and
equipment and accessory products. Products are sold to retail accounts via NIKE
owned stores and online sales, independent distributors and licensees in 170
countries across globe. Footwear and apparel products are manufactured outside
Unites States while equipments are manufactured both in US and outside US.
Nike's products are produced in factories owned/operated by independent
contractors
Nike's footwear products dominates its market share and footwear's are designed
for aquatic activities, baseball, cheerleading, football, golf, lacrosse, outdoor
activities, skateboarding, tennis, volleyball, walking, wrestling, and other athletic
and recreational uses. (Nike 2010) Nike's accessories and apparels are designed
to match its footwear and performance equipment like bags, socks, sport balls,
eyewear, timepieces, electronic devices, bats, gloves, protective equipment, golf
clubs are also manufactured. Plastic products are produced in Nike's self owned
subsidiary, NIKE IHM, Inc. Other wholly owned subsidiaries of Nike are Cole
Haan, Converse, Hurley and Umbro.

Supply Chain Process Overview:


Business related operations like marketing and contracts with the factories for
product development activities is executed in Nike's headquarters in Beaverton,
Oregon. Nike's global operations are largely categorized into four geographic
segments - United States; Europe, Middle East and Africa (EMEA); Asia Pacific
and Americas (includes Canada, Mexico and other Latin American countries of
Chile, Brazil and Argentina). Nike has outsourced its manufacturing activities
across globe since mid-1970s. And the products are developed at factories
owned and managed by business partners. (SCM are ERP Implementation at
Nike: From Failure to Success 2005)

United States Market:


Fig 1.1: Nike US Retail Stores
Source: Nike Annual Report
Fig 1.2: Nike Non-US Retail Stores
Source: Nike Annual Report
plastic and metal hardware, and specialized performance fabrics designed to
repel rain, retain heat, or efficiently transport body moisture. NIKE's contractors

and suppliers buy raw materials in bulk. Most raw materials are available in the
countries where manufacturing takes place.

Supply Chain Framework:


The three components of SCM framework are Supply chain network structure,
supply chain business processes and the supply chain management
components. The three vital components of supply chain network structure are
members of the supply chain, structural dimension of the network and various
types of process links across the supply chain(Lambert and Cooper 2000). Key
members involved in supply chain should be identified. "Primary members of a
supply chain to be all those autonomous companies or strategic business units
who carry out value-adding activities (operational and/or managerial) in the
business processes designed to produce a specific output for a particular
customer or market .In contrast, supporting members are companies that simply
provide resources, knowledge, utilities, or assets for the primary members of the
supply chain" (Lambert and Cooper 2000). Structural dimension of the network
assist in evaluating and managing the supply chain. Horizontal structure means
the number of tiers across supply chain and vertical structure means number of
suppliers/customers within each tier. Any changes in structure impacts supply
chain and proper analysis should be done before making modifications.
Successful SCM needs a shift from handling individual processes/functions to
integrating activities across supply chain. GSCF identified eight supply chain
processes - Customer service management, Customer relationship management,
Demand management, Order fulfilment, Manufacturing flow management,
Procurement, Product development and commercialization and Returns.
There exist 4 types of links in business functionalities. They are Managed
business process links, monitored business process links, not-managed business
process links, and not-member business process links. Managed process links
are links that the firm
views them as vital to integrate and deal with. These are the links that exists
between firm and tier1 customers/suppliers. Monitored process links are albeit
not crucial, but vital to the firm and they are the links existing with other member
companies. Not-Managed process links are not crucial and the firm is not directly
involved in managing them but assign the job of managing the links to member
factories. Non member process links are linkages between the firm and other
non-members of the supply chain.
The nine management components for successful SCM of Nike would be
planning and control; work structure; organization structure; product flow facility

structure; information flow facility structure; management methods; power and


leadership structure; risk and reward structure; and culture and attitude.

Supply Chain Process and Objectives of


Nike:
Precision :
The objective is to satisfy customers through product delivery and information
accuracy. Nike follows few methods to measure precision - DIFOT (Delivery in
Full- on Time) and Time to provide resolution to customer queries.
The products are produced in factories based on the orders and the developed
finished goods are consolidated and then distributed by air/water/road ways to
NIKE Customer service centres
Fig 1.3: Nike Delivery process
Fig 1.4: Nike Apparel and Footwear Product Flow
Fig 1.5: Nike Previous Supply Chain Model and desired Simplified Model
Fig 1.6: Pictorial representation of Inventory management
Fig 1.7: Life Cycle Cost Analysis
Fig 1.8: Supply Chain Objectives of Nike

Nike's i2 implementation failure :


Supply and demand issues need to be paid utmost attention particularly in retail
industry as it has to deal with wide choices for each product category like size,
color etc. The huge SKU which signifies varied inventory pictures a hurdle to
supply chain management.
The manufacturing cycle before the implementation of software solutions is
generally 9 months. Hence the need for demand planning system arose and
Manugistics software was implemented. Due to various limitations in the
software, in march 1999, Nike decided to implement software from i2
Technologies for managing its supply and demand. The desired functionality of
the software was to match its supply with demand by mapping out the production
of varied products at manufacturing units.
"The module should have been implemented and linked to ERP and other
backend functionalities but however Nike implemented software from i2 using the

legacy systems rather than implementing as part of its SAP ERP Project" (SCM
and ERP Implementation at Nike: From Failure to Success 2005 )
In 2000, after the implementation of i2 software, NIKE stated that it resulted in
stock pile up for slower-selling shoes and shortages for high demand shoes. Nike
blamed i2 software for poor planning forecast which was actually developed to
reduce production days. Investors believed Nike's blame game and the shares of
i2 dropped severely. But i2 managers claimed that Nike's issues were not linked
to software but the way the software was implemented. They did not use the
standard template offered by i2 for its footwear division. But i2 accepted the
blame of not being forceful in compelling Nike to stick onto their implementation
methodology and the bitter truth was i2 desired to solve Nike's complex issue of
tracking every shoe model it manufactures. Nike experienced some major issue
and hence i2 thought resolving those legitimate issues would really serve as
value addition to i2 Technologies. Joshua Greenbaum, a consultant stated that i2
software is not known for technical failures but it is well known for its complexity
and the issue here is that Nike went "go-alive" with the new software even before
they were ready to go live which resulted in major chaos.
Lessons learnt by Nike : Implementation issues in supply chain can have
disastrous effect in Supply chain process of an organization and hence great care
should be taken while implementing software solutions for managing supply
chain. If a standard template is customized as per the clients requirement then
the service provider should monitor that the client adheres to implementation
procedures as instructed. If a solution is being offered to address complex issues,
then the system should not go-live before appropriate testing to check if all the
needs of clients are better served. Premature switching has devastating effect on
the organization which Nike has learned at its cost.
Fig:1.9: Nike's latest SAP IT Solution to manage supply chain functionalities
Nike owns a system "Futures" wherein the retailers place orders 3-6 months in
advance which does assist in demand and forecast planning. But the scenario is
different for it Football Team Sports (FTS) category which constitutes 10% of its
overall market. Its FTS line comprises about 100 varied styles and it uses a
unique fabric Dri-Fit that absorbs sweat. Usually sports team places the order,
expects delivery in a week's time, demands more customized options and hence
prestocked items doesn't hold good for all customers. The challenge for FTS
apparel lies in its supply chain. Nike has to seek ways to reduce current lead time
like modifying demand planning/ forecast system, shifting production base from
Asia to Europe and preordering undyed fabric called greige and contracts with
strategic suppliers/manufacturers can result in faster delivery even amidst last
minute orders. (Nike:Just Do it - But How? 2009)

Evans and Danks model :


Fig 1.10: Evans-Danks Model
Source: Evans and Danks (1998) Strategic supply chain management - Creating
shareholder value by aligning supply chain strategy with business strategy. In:
Gattorna, (ed.): Strategic supply chain alignment, Hampshire: Gower, pp. 18-38

Sourcing Strategy :
Global Commodity Chain (GCC) perspective provides greater insights on design,
distribution and marketing activities. Nike has captured a greater place in US
athletic footwear market albeit its manufacturing activities are held overseas,
formulating Nike to be archetype of global sourcing strategy. Its successful
execution of sourcing strategy can be best known in Nike's effort to retain its
power and authority over its highly profitable nodes of the footwear commodity
chain which offers them the strategic and geographical mobility. Nike's distribution
network was broadened by forming strategic alliance with retail outlets. It shifted
its manufacturing base from high cost production countries to low cost countries
like Taiwan, South Korea, Asia etc. The merits of producing goods in developing
nations have to be weighed against the demerits of other costs like sourcing,
production flexibility, transportation and storage. Nike took advantage of global
sourcing as a way to reduce cost and in 1980s relocated its plants to Taiwan,
South Korea and in 1990s to China, Indonesia and Vietnam. In 2006,over a half a
million workers were engaged in 700 factories in 51 countries, although the firm
had around 23000 employees in its payroll.(Lechner and Boli 2004). The efficient
management of sourcing strategy obtained Nike to manufacture goods as low
cost and thereby its market share and profitability increased.
Nike's Futures system is order and planning system which serves to resolve
inventory and financial bottlenecks. Nike had more flexibility options like
modifying design specifications by dealers which offered competitive advantage
over its competitors like Adidas. Donaghu and Barff categorised and identified 3
sets of Nike's factories - developed partners, volume producers and developing
sources. Developed partners are Nike's first/upper tire suppliers who are
accountable for innovative and stylish/premier models. Volume Producers
produce products in large quantities but selected products. Developing sources
are recent factories that have enticed Nike due to low labor cost.
Various steps are involved in making a atheletic shoe - designing, model and
pattern making, molding of soles, material cutting, stitching, lasting, finishing, final
inspection and packaging which requires little skill. Hence unskilled workforce
and lower wage rate are quintessential in manufacturing shoes competitively.

Nike did not own a factory in Asia but had contracts with partners who
manufacture apparels and footwear. Nike took the ownership of the products only
after they are finished and delivered from factories.
Fig 1.11: Members within Nike's Supply Chain Process
Fig 1.12: Nike Brand Factories across globe
Source: Nike website

Demand Flow Strategy:


Nike uses "Futures Order" system to manage its supply with demand. Nike sells
its product through various channels - Nike owned stores, online, independent
distributors and licensees. Nike doesn't own a factory but outsources its
manufacturing activities to subcontrators across globe. Nike's manufacturers
deploys 'Just-in-Time' principles to manage inventories.

Supply Chain Integration Strategy:


Information integration, Decision integration, Financial integration, Operational
integration and Physical or Virtual links are the key factors of Supply chain
integration.
Nike uses SAP software solutions to manage its supply chain processes. Nike
never manufactures but establishes contracts with subcontractors across globe.
Since 1972, Sojitz Corporation of America ("Sojitz America"), a large Japanese
trading company has been offering financial assistance in exports-imports of
Nike's products. It offered purchasing and financing services for Nike's goods in
Argentina, Uruguay, Canada, Chile, Brazil, India, Indonesia, the Philippines,
Malaysia, South Africa, China, Korea, and Thailand, excluding products produced
and sold in the same country. (Nike 10K Report, 2010) . Any disruption/failure
from it would affect Nike's power to buy goods from suppliers and to sell goods to
customers.

FishBone Diagram:
Fig 1.13: FishBone Diagram for Nike

Time Compression:
Time is a critical factor in today's supply chain. Time compression can be defined
as reducing the amount of time taken for a process in a business operation ie
inputs is being transformed to expected/desired outputs in a process but in a

compressed period of time. To achieve time compression for the holistic supply
chain, activities that does not add value to the process should be identified which
is achieved by removing waste and refocusing on the process steps. The
horizontal and vertical structure which forms the basis of supply chain must be
properly integrated. The structural and infrastructural linkages in a supply chain
depicts how efficiently resources, inventory are utilized. (Beesley 1996)
Few generic principles to identify and understand supply chain process:
The end users in a supply chain are customers who demand speed and adhere
to delivery. Nike customers demand variety in products ranges and hence Nike
strives to manufactures wide range of products but maintains a minimal stock so
as to accommodate many varieties. Customers are not willing to pay extra cash
for speedy delivery because similar services are offered by its competitors also.
Many firms are just order qualifiers and not order winners.
The call for JIT inventory can be satisfied by maintaining correct proportion of
stocks in stores. Positioning of resources and inventory also plays a vital role in
maintaining a optimal supply chain.
Burbidge and Forrester states that the effect of demand variation in a supply
chain oscillates out of control and impacts the lower level of supply chain.
Fig 1.14: Internet Driven Supply Chain Model

Wireless Technology and RFID are used


by Nike at a minimum level. Efforts are
taken to widely utilize it across its
factories. The usage of RFID however
raised some privacy concerns and hence
Nike is striving hard to resolve such
issues and trying to make use of the
technology in the best possible way.
Globalisation does impact Nike and offers many challenges. Global sourcing and
reduced tariffs in developing countries have created complicated webs in supply
chain.
Infrastructures in developing economies are not well developed and hence it
requires partnerships with 3PL providers who possesses better knowledge on

market and in few cases Nike has to build its distribution centres. Periodically
detailed research has to be done to understand infrastructure issues.
Consumer expectation varies in different countries. "One size fits all" rule doesn't
apply anymore. Customization plays a vital role in acquiring customer
satisfaction. Product proliferation challenges can be tackled by being more
responsive and quick in addressing the needs of the end users. Nike needs to
adapt lean and agile manufacturing programs based on their volume-variety
formulae.
Retailing customers demand for shorter lead times and faster inventory turns and
they make attempts to push the products upstream. As a reciprocative action,
Nike offers out-of-stock and replenishment programs but should strive to
improvise/speed-up 'time to market' and reduce lead times.
Conflict exists between cost and flexibility. Manufacturing lead time is longer due
to technical complexity associated with fabrics and products require complex
innovation which ultimately results in cost of time and delays.

Supply Chain Integration Issues and


Recommendations for Nike
The key thing to focus is to understand the nature of the demand for the products
in supply chain. Functional products are those products that fulfil minimum
needs', don't alter to a large extent over time, possesses stable and expected
demand and lengthy life cycles. Innovative products are expected to have short
life cycle and unpredictable demand. Innovative products' supply chain differs
from functional products' supply chain. Two types of supply chain are Physically
efficient supply chain and Market Responsive supply chain. The below table
shows the attributes of two supply chain. To develop an ideal supply chain
strategy, the nature of demand for products is plotted against their respective
supply chain. The 2*2 matrix thus depicts if the existing supply chain matches the
right demand for the products. The supply chain strategies are perfect if the
functional products possess efficient supply chain and innovative products
possesses responsive supply chain.

Physically Efficient Process


Market Responsive Process
Primary Purpose

Supply predictable, demand efficiently at the lowest possible cost.


Respond quickly to unpredictable demand inorder to minimize stockouts,
markdowns and obsolete inventory

Manufacturing focus
Maintain high average utilization rate
Deploy excess buffer capacity

Inventory strategy
Generate high turns and minimize inventory throughout the supply chain
Deploy significant buffer stocks of parts or finished goods.

Lead Time focus


Shorten lead time as long as it doesn't increase cost
Invest aggressively to reduce lead time

Approach to choosing suppliers


Select primarily for cost and quality
Select primarily for speed, flexibility and quality

Product design strategy


Maximize performance and minimize cost
Use modular design inorder to postpone product differentiation as long as
possible.
Table 1.1: Attributes of Physically efficient and Responsive Supply Chain
Source: Fisher,M.L., "What is the Right Supply Chain for your Product? A simple
framework can help you figure out the answer
Functional Products
Innovative Products
Efficient Supply Chain

Match

Nike's atheletic shoes and casual shoes,


sports equipment, apparels and
accessories.
Mismatch
Nike's shoes for diabetic patients, Zoom
Air shoes for athletes, high technology
sports equipment.
Responsive Supply Chain
Mismatch
Match
Table1.2: Nike's product and supply chain positioning matrix
Nike should take efforts to shift from upper right hand cell to lower right hand cell.
This can be achieved by making few of the products functional and developing a
responsive supply chain for the rest of the innovative products. Nike can handle
unceratinty by three ways - 'reducing leadtime and becoming agile such that
products are produced only when there is market demand; searching for new
information that act as indicators and sharing a common platform and
components for varied products and demand becoming predictable; hedging
against outstanding ambiguity with buffers of inventory' (Fisher )

Arcs of Integration:
Ragatz et al (1997) claims that the "effective integration of suppliers into product
value/supply chains will be a key factor for some manufacturers in achieving the
improvements necessary to remain competitive".The two types of integration are :
delivery integration or forward integration which involves the flow of material
between suppliers, manufacturers and customers (Saunders 1997, Trent and
Monczka 1998) and Information integration or backward integration that include
the effective functioning of IT and flow of data between customers and suppliers
(Martin 1992, Trent and Monczka 1998).
Tan et al (1998) state that when firms integrate and act as single unit, overall
performance is improved across the supply chain. Manufacturers should decide

in which direction (customers or towards suppliers) and to which extent (degree


of integration), they should undertake upstream and downstream integration.
Fig1.15: Integration in the Supply Chain
Source: Frohlich, M.T., Westbrook, R., 2001., Arcs of Integration: an international
study of supply chain strategies. Journal of Operations Management, 185-200
Fig1.16: Nike striving to move towards outward facing Arc of Integration
Source: Frohlich, M.T., Westbrook, R., 2001., Arcs of Integration: an international
study of supply chain strategies. Journal of Operations Management, 185-200

C2C Cycle:
Fig 1.16: Nike's 5 year trend of Operation Cycle
Source: Thomson One Banker
Agility is defined as a capability to meet demands of end users and to warrant
that supply matches the demand. The key factor is flexibility and time to market in
response to demand is crucial. Transforming the supply chain from make-to-sell
to make-to-order is the desire of any organization that wants to gain competitive
advantage via supply chain management. Nike's objective is centralization and it
is achieved by information sharing through the effective implementation of IT.
Nike's claims its lead time is 6 months due to technical complexity associated
with producing fabrics and products. In this competitive world, 6 months is a wide
gap for any rival to gain access competitive advantage. Nike should adopt
following ways to reduce lead time gap.
Postponement Strategy: Postponement or delayed configuration is a way of
manufacturing products in common platforms, components or modules but the
final assembly or customization does not happen until the final market destination
and or customer requirement is known (Christopher 2000). Inventory levels can
be maintained at a generic level which results in lower stock keeping variants and
flexibility it offers in greater. Forecasting is easier at basic level than for a final
product. Customizing a product locally means more variety at less cost which
paves way for "mass customization". Through Localization, postponement
strategy is fully achieved which implies that the final product is finished in the
local region.
The hurdle for efficient SCM is to build 'lean strategies' till the decoupling point
and 'agile strategies' further than that point (Christopher 2000). Decoupling point
is the point at which demand diffuse through the supply chain. "The flow of
product upto the decoupling point should be forecast driven and the flow of
product after the decoupling point should be demand driven" (Christopher 2000).

The two decoupling points are - material decoupling point where inventory is
stocked as its basic form and it should continue as far downstream as likely ;
information decoupling point which should be available as far upstream as likely
to which data about demand diffuses. Nike should seek ways to handle the two
decoupling points thereby becoming more agile than competitors and reducing
Bullwhip or Forrester effect.
In most of the processes it is the lead time of the suppliers that restricts the firm
to be more agile to customers' demand.
Order to Delivery Cycle: Order cycle time is defined as the time consumed from
placement of order by customers to delivery of the product to them. The
components of order to delvery cycle are order communication, order entry and
processing, order picking or production, transportation, customer receiving. Each
of these steps consumes time and any bottlenecks associated with any of the
processes would result in increased cycle time. Optimum Production Technology
categorizes any activity as 'bottleneck' and 'non-bottleneck'. Nike should focus on
bottlenecks to which capacity can be reduced and set-up times can be reduced.
The firm should also focus on 'non-bottlenecks' in a similar fashion.

SCOR and DCOR model:


Supply Chain Operations Research Model is used to analyse the current position
of the organization's business processes and functions. It possesses a set of
metrics to be evaluated and can be compared with the benchmark data.
Design channel Operations Research Model links business processes and
functions, metrics, good practices and technology attributes into a single unified
model to support communication within design chain partners and to improve the
effectiveness of extended supply chain.

Sustainability:
Nike has taken steps towards sustainable business and the need of the hour is to
take proactive steps by focusing on sustainable manufacturing, sustainable
product development and developing a sustainable marketplace. Nike should
take efforts to identify closed loop models and processes which would enhance
sustainability across supply chain. Nike must follow an integrated approach in
tackling supply chain by fusing lean, energy, water, waste and compliance teams
into one model: sustainable manufacturing and sourcing. Sustainability is the
path to forthcoming profitability. (Nike Corporate Responsibility Report 2009 )
Nike deals with many contractors and hence Nike should seek long term sourcing
consolidation strategy and rationalize its supply chain functionalities. "Nike has to

take steps to build a sustainable base , align with strategic manufacturers who
are able to deliver high end products and are highly innovative, building
relationships with contractors willing to adhere to Nike's corporate responsibility.
Fig 1.17: Nike's Supply Chain towards Sustainability
Source: Nike Corporate Responsibility Report

Environmental Impacts:
Waste is produced at every step of supply chain. In FY2006, Nike conducted
waste mapping study and discovered that 75% of waste is generated from supply
chain activities outside factories and when measured by weight, about 40% of the
purchased materials end up as waste.
One-third of waste footprint is generated from retail packaging and from shipping
& packaging. Nike operates 5 waste management centres in 4 countries and
about 50 products are transported to material vendors so as to recycle them to
materials from which Nike repurchases. Nike should focus to utilize more waste
effectively to sustainable uses. The firm should seek ways to reduce waste in
design stage rather than seeking ways to reduce waste in downstream supply
which would decrease costs and waste materials being generated.
Fig 1.18: Percentage of Waste generated across Nike's supply Chain Process
Source: Nike Corporate Responsibility Report
Fig 1.19: Nike's Reuse-a-Shoe Program
Source: Nike Corporate Responsibility Report
Fig 1.20: Greenhouse gas emissions across various supply chain process of Nike
Source: Nike Corporate Responsibility Report

Supply Chain Mapping Tools:


Various supply chain mapping functionalities are available which can be utilized
by Nike to determine its current position and future growth prospects.

Demand Density Mapping:


Sales Territory Mapping:
Gross Margin Map:

Customer/DC Allocation Map:


Isochrone Mapping:
Centre of gravity mapping:
Table 1.3: Supply Chain Mapping Tools
Source: Types of Supply Chain Map, 2007.
Nike should manage the business process links based on its objective such as
product variety, improvising quality, lowering cost across supply chain. Number of
links should be monitored and managed with great care any decision to change
links should be well analysed before incorporating amendments.
Owing to high variability in customers' expectations, Nike should focus more on
demand management to gain a sustainable competitive position in the volatile
market.
Nike can utilize Point-Of-Sale (POS) systems and "key" customer data to
effectively manage demand and supply thereby lowering uncertainty and offering
smooth flow across supply chain. Order fulfilment activities should be given high
priority and customer needs should be satisfied greatly which requires proper
integration with Nike's manufacturers, distributors and logistics providers. Nike
should seek to partner with fourth party logistic providers depending on the
marketplace and other benefits.
Innovation is the lifeblood of Nike to stay competitive and hence new product
development process needs high attention. Nike's should identify end users'
articulated and unarticulated needs; identify strategic suppliers and forms efficient
links for a smooth supply chain.
Nike should leap forward towards "Joint planning and control" approach so as to
effectively operationalize its functions globally. Nike has failed to monitor its
contractors' factories who have employed underage kids and haven't adhered to
minimum wage rates. Owing to this, Nike's brand names have been associated
with child labour and Nike has to face loads of labour rights issues which
defamed its brand. Nike has been really doing well in managing its supply chain
integration. However if it maps and analyzes every bit of linkages across the
chain and takes corrective actions, it can gain a well established position in the
market and thereby reducing the cost by a large amount.

Conclusion:

The mapping of SCM process results in understanding the existing issues and
paves way for defining solutions. Identifying the critical members of the supply
chain, kind of functionalities to be connected and what nature/degree of
integration is necessary for each link are key factors that require deep insight.
The goal of SCM is to create the highest possible value not only for the specific
firm but across the supply chain including end-consumers. Aligning the product
supply with their appropriate supply chain is also vital for increasing sales.
Amplification caused by uncertainty can be reduced by adopting rapid response
programs that involves supply chain re-engineering and agility. Lead time can be
reduced by all possible means and time compression should be adhered
throughout supply chain to gain competitive advantage. Nike should strive to
adopt the recommendations after thorough analyses and understanding of
existing structure. Nike needs to excel in lean management, become more agile,
develop methods to compress lead times, operationalize linkages functions and
processes across supply chain and re-engineer the business processes to gain
overall success in supply chain management.
APPENDIX:
Various Performance Measures that can be utilized by Nike:
Table A1.1: Performance Measures
Source: Fiksel, 1996, Guide, et. al., 1997b, Krupp, 1992, and Schmidheiny, 1992
Table A1.2: Decision Factors
Source: Fiksel, 1996, Guide, et. al., 1997b, Krupp, 1992, and Schmidheiny, 1992
Table A1.3: Macro market and Supply Chain key factors
Source: Fiksel, 1996, Guide, et. al., 1997b, Krupp, 1992, and Schmidheiny, 1992
Table A1.4: Tactical and Demand Management factors
Source: Fiksel, 1996, Guide, et. al., 1997b, Krupp, 1992, and Schmidheiny, 1992