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NIKE - Operations Management

Marketing Student
by

Ouiam Chibani

on 19 May 2016

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Transcript of NIKE - Operations Management

FOUNDED AS
BLUE RIBBON SPORTS
BY BILL BOWERMAN & PHIL KNIGHT (OREGON)
THANK YOU
NIKE'S OPERATION STRATEGY
THANK YOU
NIKE'S OPERATION STRATEGY
NIKE 'S REVENUES ARE $60,000
RISE TO $49 MILLION BY
1982
$9 BILLION BY
1995
1964
$
NIKE'S
SUCCESS STORY ?
AN EFFECTIVE OPERATIONS STRATEGY!
First supply outsourcing contracts started in
JAPAN
Supply base was shifted to
VIETNAM, SOUTH KOREA
&
TAIWAN
to reduce costs in the 1980s
By 1990,
INDONESIA
and
CHINA
replaced previous supplying countries. Indonesia has 8 factories.

Questions?
By Ouiam Chibani
OUTSOURCING
INVENTORY
MANAGEMENT
SCHEDULING
STRATEGY
MAINTENANCE -
AFTER-SALES SERVICES
These countries are ideal because of:
Low wages
Docile workforce
Labor: $3.37
Manufacturer's Overhead: $3.41
Materials: $14.60
Profit to Factory: $1.12
Factory Price to Nike: $22.50
Wholesale Price: $45
Retail Price: $90
BY THE NUMBERS
NIKE moved ~900 million units through its supply chain in 2015
Manufacturing Network consists of over 700 factories in 42 countries
SUPPLY CHAIN MANAGEMENT
HR STRATEGY:
NIKE'S
CONTROVERSY
COST CONTROL
2016 ?
WHAT'S NEXT?
31 Billions !
NIKE'S
SUCCESS STORY ?
AN EFFECTIVE OPERATIONS STRATEGY!
QUALITY
COST CONTROL STRATEGY
Process
Mixed Strategy
H.R
Low Labor Costs
LOCATION
Outsourcing all manufacturing
SUPPLY CHAIN
Reduced COGS - Lean manufacturing
NIKE'S
SUPPLY CHAIN MANAGEMENT
THE MIDDLEMEN
NIKE owns
NO
factories for manufacturing its products : Outsourcing to third parties
Raw materials:
sourced in the manufacturing host country by independent contractors (
middlemen
)
LEAN MANUFACTURING
By the end of 2013, between 70% and 76% of its apparel and 85% of its footwear products were manufactured on lean lines.
Savings Made = $0.15 per unit
HR MANAGEMENT
INVENTORY MANAGEMENT
SCHEDULING STRATEGY
MAINTENANCE - LOGISTIC CENTERS
PRODUCTS?
A HUGE PORTFOLIO!
NIKE'S
PROCESS STRATEGY
COST CONTROL STRATEGY
COST CONTROL STRATEGY
RUN
Full transcript