In order to develop your analytical report, you will need to go through the following steps:
1.Choose a company (multinational manufacturer, large retailer, service provider) – make sure the product associated with your chosen company is not too complex.
2.Address all tasks outlined in the list of Detailed Tasks using secondary (e.g. company reports, journal articles, newspaper articles) and/or primary (e.g. interview, survey) data
3.Create a Google Sites page (see below for how to do this), and share the URL with your lecturer .
4.Upload your comprehensive analysis of all tasks outlined in the list of Detailed Tasks to Google Sites (see below), and only include your key findings in your report. A number of analytical tools (from the topics covered during the semester) are suggested throughout the tasks which will assist with the analysis.
5.Discuss the company’s procurement and supply chain analysis, focussing on the synthesis of the findings associated with supply, operations, information, integration and sustainability issues. We suggest that you use the dynamic alignment model (Module 5) as a theoretical framework to synthesis your findings into a meaningful supply chain-wide discussion of issues that the company is facing. This is a fundamental component if the report as you will need to provide an integrated understanding of your analysis which requires delving into the issues of, for example, alignment and systems thinking.
6.Drawing on Step 5, propose and discuss improvement programs focused on supply, operations, information, integration and sustainability which can collectively contribute to mitigate the challenges that the company is facing across its supply chain.
Nike’s mission is to ensure that the athletes are inspired and they act in an innovative manner while providing their performances in their respective fields.
The vision of Nike is to help its customers to achieve satisfaction by providing a sustainable environment. This can help in maintaining a balance between three important aspects in a business environment.
Nike needs to believe in the partnerships that it builds with potential stakeholders. The relationship needs to be cordial so that effective collaboration can be maintained between the organisation and stakeholders of the company (Nike.com, 2018).
The goal of Nike is to manage the footwear that is manufactured. The procurement department manages the footwear in a manner that can help it to classify the products and consequently provide proper supply in the competitive business environment. The important products that Nike manufactures also include other leather items such as sports bags and equipment.
The suppliers of the company are Fulgent Sun International Holding Company, Pou Chen Corporation and PT Pan Brothers TBK. These are world famous suppliers and they help in providing the best quality of raw materials to the company. The international reputation of Nike, the geographical dispersion of the company spreads across various countries (Myerson, 2015).
Reports have shown that Nike has lost quite a lot of market share in the recent times. In the current scenario, the market of Nike has lost its firm hold in the footwear retail market. There have been reports about some of the shoes sold by Nike had wear and tear issues (Nike.com, 2018). Nike can benefit from sourcing services so that a proper cost structure can be developed and it can maintain its reputation in the business market.
Nike selects its suppliers based on the cost of the items that are required for selling the products. Nike ensures that the suppliers are reputed and the raw materials are of the best quality. This provides an advantage as the final products are also manufactured keeping the quality of Nike intact. Hence, the development practices and the programs adopted by Nike include a proper analysis of the competitors, as the suppliers may be involved in transactions with them.
It can be said that some of the challenges faced by Nike may include maintaining the cost of the products and the manner in which the immediate needs of the customers can be analysed. At the same time, the supply chain may help Nike to gain benefits in the industry.
Part A: Findings of supply analysis
Nike has an international reputation and due to this the market in which it sells, its products are vast. According to Monczka et al. (2015), having branches in every country provides it with a competitive advantage. This can provide the company with an opportunity to expand its growth and attain full global recognition.
To forecast a demand strategy, Nike has adopted the survey method. This is because the company can analyse the responses of the customers and based on its strategies for the future can be made. However, it has been stated that Nike uses a completely different approach to predicting its sales in the market (Brindley, 2017). The method of cross-examination the responses of the customers are done while analysing the sales.
One of the safest and reliable approaches adopted by Nike is the Just In Time approach so that it can manage its inventories. According to Estenson (2016), the JIT approach can help the company manufacture the products at the appropriate time. Despite this, there remains one drawback to the technique. The fact that the rate of failure of the suppliers in this technique is high may result in the failure to reach the target of the company.
At the same time, it can be said that the important challenge that the company faces is the fact that despite its high revenue, Nike spends the excess amount in areas that are not useful for the company. Excess cash on an irrelevant purchase may hamper the company from spending in important matters (Christopher, Harrison & van Hoek, 2016).
According to Padmanabhan et al. (2009), the bullwhip effect is a distribution channel that can help in determining any inefficiency in the supply chain management. The causes and remedial factors of the effect may help Nike to analyse the shift in the demand of the customers. The supply chain capabilities that Nike possesses can ensure that the remedial factors of the company can be kept in mind by analysing the effects in the market.
In the modern world, information technology plays an important role in the success of an organisation. Therefore, Nike can use the information technology to improve its supply chain management so that it can engage in the online conference method. Therefore, Nike can improve its supply chain management by analysing the work of the competitors and develop its capabilities. Hence, information technology can help Nike to continue its growth in the effective supply chain management (Stadtler, 2015).
Part B: Findings of operations analysis
It is necessary that the collaboration with the suppliers and customers be maintained so that Nike can maintain its position in the competitive market. A proper foundation can be formed with the stakeholders and therefore, the company to ensure expansion and growth can gain an opportunity. At the same time, Beske and Seuring (2014) stated that Nike may also face certain challenges that can prevent the company to have a positive impact on the minds of the customers.
Nike has its own inventory management system that helps it to maintain its partnerships with the suppliers. As analysed earlier, Nike takes in the raw materials from reputed suppliers across the world. At the same time, the application of technology can help the company to gain credits in the supply chain management policy. Apart from this, Just In Time approach provides the company with a slight risk of being unable to meet its target.
Pagell and Wu (2009) are of the opinion that Nike can use the 9-step framework to analyse the level of integration in the supply chain management. Based on the analysis of the application it has been seen that Nike is placed at the third level. This means that Nike can validate the base line of the supply chain model and analyse the possibilities that Nike may get in order to gain a competitive advantage in the market. Nike can also use the Triple-A approach with effectiveness.
The Triple-A model displays the agility of service delivery of Nike. It has been reported that Nike takes about 72 hours for delivering a particular product to the customers. Despite being formed in the early years, Nike has managed to adapt its strategies with time and ensure that a third party logistics can help in delivering the products on time.
It has been seen that in the modern world, sustainability plays an important role in the success of an organisation. Various ways are adopted that can help in maintaining sustainability in the environment. Nike maintains sustainability by focusing on the proper manufacturing of the products. This includes identifying the best method that can help in preventing any type of environmental degradation (Diaconu, 2014). For example, excess emission of the pollution or slaughtering of animals needs to be reduced so that the local environment can be protected. This can help Nike to maintain its position in the market and ensure an increase in the sale of goods.
Part C: Findings of information analysis
By applying the model proposed by Triggers, it can be seen that Nike is staged that the signal stage. The characteristics of the signal stage include the high ability and high motivation. This is indicative of the motivational factors and the ability of the company to maintain its competitiveness in the market. This can help in analysing the internal as well as the external factors as the two characteristic pertains to both the environment that requires excessive analysis. According to Stevenson and Sum (2015), the high motivation factor indicates that the company takes the interests of the employee into account.
It has been seen that Nike maintains a proper relationship with suppliers and therefore, improve its supply chain management. The location of the company provides it with an opportunity to ensure competitive advantage is maintained and that customer satisfaction is attained. The products manufactured by Nike need to be delivered to the suppliers in a manner that can help it to thrive in the business market. Mangan, Lalwani and Lalwani (2016) stated that the place of interception of the products is the starting point from which Nike procures its supplies to the customers.
Nike also maintains effective collaboration with the customers. The satisfaction of the customers is important for the company as they are an important stakeholder (Hugos, 2018). Therefore, the responses of the customers can help the company to understand the type of products they need to manufacture. One important concern for Nike is that it needs to ensure that situations such as the flaws identified in the Jersey shoes do not occur again. Therefore, it is necessary that the company take certain precautions to decrease the return of the products and ensure that customer satisfaction is maintained effectively (Nike.com, 2018).
In order to gain success in the competitive market, Nike can use the dynamic alignment model. Hence, it is necessary that Nike maintain a couple of things that are important in the application of the model. The first is the continuous improvement of the products so that innovation and quality can be delivered together. The second thing that needs to be done is align the interests of the leaders and managers with the strategies of the organisation. Therefore, the four-part dynamic alignment model can be used by Nike to analyse the current supply chain of the company. It also helps to improve the level of interaction with the partners.
Part D: Findings of integration analysis
After the analysis, it can be seen that Nike follows all the parts that are required for maintaining the effective supply chain. Nike conducts proper strategic planning and establishes clear goals that can be easily attained and understood by the employees. The performance of the company is solely based on the accountabilities and the manner in which the customers respond to the products of the company. It has been seen that the Nike allows its employees to participate in every decision-making session of the company. This indicates the motivating factor of Nike as seen from the analysis of Triggers model (Nike.com, 2018). The company also has the ability to recruit talented employees that can help it to continue work and perform in a manner that can help in establishing an advantage in the market.
At the same time, the analysis of the cause and remedy of the bullwhip effect shows that Nike maintains an air of enthusiasm among the employees. This helps the leaders reach the target and elevates the company that is culturally driven by the partnership it endures with the suppliers and the customers. Fernie and Sparks (2014) observed that such analysis suggest that Nike belongs to mid-level of a hierarchical group with an emphasis on the supply chain management. Therefore, improvement can be made so that Nike can develop the process in the future.
Nike has a supply chain that includes fostering a society that helps in developing a strong work culture. It has been seen that the cultural foundation of Nike is that it maintains the values it posses and ensures that sustainable business practice is maintained. The focus is on sustainability that helps in the development of the products in a manner that can address the environmental issues of a country (Nike.com, 2018). Therefore, in order to maintain it, improvement strategies can be considered so that the effectiveness of the company can be maintained.
Gunn (2015) is of the opinion that the strategies adopted by Nike can assist it in the development and effectiveness of the market. As such, an improvement programme can be made that can be useful in analysing the products manufactured by the company. The manufactured products need to maintain the sustainability so that the factors that affect the sustainability process can be maintained. For example, shoe manufacturing may emit chemical fluids and pollutants are usually harmful to the community. Hence, Nike needs to ensure that such methods are not adopted that can create a hindrance in the society and deviate the company from its cultural values and goals. Thus, proper supply chain management can be maintained in this case.
Part E: Findings of sustainability analysis
Nike also needs to take care of its inventories so that excess manufacturing of the products can be maintained. At the same time, it needs to reduce the flaws and for this reason, maintaining a benchmark is necessary for the company.
Nike can be a successful leader in the footwear industry. The analysis shows that significant improvement can get Nike to continue its business. Nike needs to ensure that major changes are not made in the manufacturing of the company mostly because it does not have to go beyond the natural process of manufacturing. It is important to maintain the mission, vision and goals of the company so that effectiveness in the business can be attained. This can be done by developing a new strategic plan that so that Nike can continue with the sustainable development of its business. Thus, the improvement programmes of Nike need to be based on the policies followed by the company (Jacobs, Chase & Lummus, 2014).
The changed plan can help Nike in keeping the customers aware of the type of retention policies that need to be adopted. The inventory management of the company can be improved and Nike can work its way up to gaining its mission and vision. With the application of the benchmarking process, Nike can ensure that it analyses the competitors. Thereby as stated by Lee, Padmanabhan and Whang (2015) can analyse the strengths of the competitors and develop self-strategies to mitigate the strengths. Therefore, the new system can help Nike to maintain its goals and align it with mission and vision of the organisation.
Conclusion
Based on the analysis conclusion can be made that Nike follows a stable supply chain management. Supply chain management is important for the organisations as the business activities need to be maintained based on its analysis. Nike posses a superior supply chain management over its competitors and because of it, the company is one of the most reputed companies in the world. This can help in attaining the vision of the company and develop its sustainable practices. Nike can even maintain its dominance in the footwear market and continue to design attractive products.
Reference
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