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SCM presentation

NIKE
by

Jonathan Oshida

on 22 April 2011

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Transcript of SCM presentation

Strategic Goals of Supply Chain Management and Nike Presented to: Dr Minjoon Jun
by: Enrique Trujillo, Ben Santana, Amy Arenas,
Jonathan Oshida, Krista Allen, And Emanuel Green
4-19-11 Distribution Distribution network Location and network of suppliers, warehouses, customers, production facilities, etc. Distribution Strategy-Delivery Scheme Direct Shipment, Pool Point Shipping, Cross Docking, Direct Store Delivery (DSD) Transportation-trucking, railroads, airfreight, waterways, and pipelines Replenishment Strategy Logistics NIKE DISTRIBUTION Utilizes Vertical Marketing System Mainly Retail Point-of-sale (POS) computer program China Distribution Center Distributes on Level Basis Producer Channel Mega Distribution Center Perks LEED certified Leadership in Energy and Environmental Design Transportation ChoosingTransportation Rapid or low response How much money are they willing to spend How much inventory to transport Space available for inventory More Criteria Controls Type of communication, financial transactions, product design, logistic scheduling Environment Tariffs, security screening, natural disaster, currency fluctuations #1 Factor COST Reducing cost Logistics Management Logistics Management: is the process to obtain effeciency of operation through the integration of all material acquisition, movement, and storage activities. Logistics Management Some methods of reducing cost with adherence to logistics management. Outsourcing,
E-procurement,
Electronic ordering,
Electric Funds Transfer (EFT) Five Major forms of Transportation 1. Trucking 2. Railroads 3. Airfreight 4. Waterways 5. Pipeline -One of the biggest forms of transportation used. -Shipping made easy-Secure product at low cost-New methods of reducing cost -Large amounts of products
-Growth of Just-in-time has hurt this sector -Smallest form of transportation used today
-Used for lightweight products i.e oil -Bulky, low-value cargo (excluding oil) -Crude oil, Natural gas Big Aspects of Nike and Transportation Emphasize speed $500 million spend on logistics management Change has caused gross margin to change from 39.9% to 42.9% Lead time from 9 to 6 months Raw Materials Environmentally Preferred Materials (EPM) Organic Cotton Market Risks Supplier Diversity Manufacturing Final Consumer Sustainability Analyzing Manufacturing Goals 1. Create a strategy that places the consumer in the center 2. Achieve collaboration internally 3. Achieve collaboration externally
4. Fold manfacturing processes to strategic plan 5. Cut costs out of the supply chain and
manufacturing processes Automation vs. Non Automation -What is automation? Advantages Disadvatages Conduct monotonous tasks
Increases Accuracy
Keeps workers from doing dangerous tasks
Increases efficiency and productiveness High start up costs
Rapid growth of technology
displaces workers Argument Automation displaces workers What is non Automation? Product Design Has to align with needs and wants of consumer Feasability studies Streamline design Standardization Mass Production Began in the Industrial Revolution uses a push system Car industry Mass Customization Lean Manufacturing Nike Factory Watching Competative advantage Steps in mass customization process 1. Acquisition of customer requirements
2. Modeling of generic product families
3. Planning and control of mass customization processes Customers
“If you have a body, you are an athlete” Value of the products Nike is known as the number one sports brand in the world. Retailers Nike has over 47,000 branches in over 200 different countries across the world. Portfolio brands Elimination of waste and non-value adding processes overproduction
waiting
transportation
non value adding processing
inventory
under utilizing people 8 types of waste Oil
Market prices (raw materials)
Global Stability Nike Considered Design Considered Index Reuse-a-Shoe Program Nike Grind Processes Raw materials, Component availablitiy, quality of products Useless Motion Defects
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