NIKE PRODUCT
JUNE 2024
GROUP 2
Supply Chain Management
Sportswear Industries
NIKE
GROUP 2
1 . N g u y n N g u y t A n h - 1 1 2 3 0 7 3 3
2 . V ũ P h ư ơ n g A n h - 1 1 2 3 0 7 3 6
3 . V ũ K h á n h L i n h - 1 1 2 3 0 7 6 0
4 . N g u y n T h T h u P h ư ơ n g - 1 1 2 3 0 7 7 0
SPORTSWEAR INDUSTRIES
SPORTSWEAR INDUSTRIES
TABLE OF
CONTENT
I . C o m p a n y O v e r v i e w
I I . N i k e s B u s i n e s s S t r a t e g y
I I I . E s t a b l i s h i n g S C M
A t t r i b u t e R e q u i r e m e n t s
I V . N i k e S u p p l y C h a i n
INTRO-
SPORTSWEAR INDUSTRIES
F oun d e d : 1 9 6 4 a s B l u e R i b b o n S p o r t s
b y P h i l K n i g h t & B i l l B o w e r m a n
I.COMPANY
OVERVIEW
R e n a m e d : N i k e , I n c . i n 1 9 7 1
H e a d q u a r t e r s : B e a v e r t o n , O r e g o n , U S A
C o r p o r a t e M o d e l : C e n t r a l i z e d c o r e f u n c t i o n s
( d e s i g n , R & D , b r a n d m a r k e t i n g ) i n t h e U S ;
g l o b a l i z e d p r o d u c t i o n & d i s t r i b u t i o n n e t w o r k
PRESENCE
&
POSITION
PRESENCE & POSITION
100+
Countries of
operation worldwide
#1
Worldwide in athletic
footwear & apparel supply
$46.3B
In total revenue
(FY2025)
~14%
Global market share,
largest in the industry
SPORTSWEAR INDUSTRIES
SPORTSWEAR INDUSTRIES
IMPORTANCE
OF FOOTWEAR
F i n a n c i a l B a c k b o n e
~ 6 6 % o f t o t a l r e v e n u e ( F Y 2 0 2 5 ) N i k e s
l a r g e s t a n d m o s t p r o f i t a b l e p r o d u c t c a t e g o r y
I n n o v a t i o n H u b
T h e f o c a l p o i n t f o r a l l R & D a n d c o r e
t e c h n o l o g i e s
C u l t u r a l P o w e r
E m b o d i e s N i k e s g l o b a l i d e n t i t y & e m o t i o n a l
c o n n e c t i o n
E g : A i r J o r d a n ( s i n c e 1 9 8 4 ) f r o m s p o r t s
g e a r t o c u l t u r a l i c o n
SPORTSWEAR INDUSTRIES
Footwear is not only a source of
revenue but also the center of
innovation and brand building for
NIKE
IMPORTANCE
OF FOOTWEAR
SPORTSWEAR INDUSTRIES
II. NIKE'S BUSINESS
STRATEGY
Corporate Strategy
Functional Strategy
Product Strategy
S P O R T S W E A R I N D U S T R I E S
1.CORPORATE
STRATEGY
Core Competency Focus &
Global Production Model
1.2
Innovation Leadership
1.1. CORE COMPETENCY FOCUS &
GLOBAL PRODUCTION MODEL
Focus on design, R&D, and global marketing
100% outsourced production Vietnam
(51%), Indonesia (28%), China (17%)
Low risk & CAPEX, high cost efficiency and
flexibility
Knowledge-based model built on brand and
innovation
S P O R T S W E A R I N D U S T R I E S
1.2. INNOVATION LEADERSHIP
Continuous investment in product & digital
innovation
Technologies: Flyknit, ZoomX, Air units
Use of AI & data analytics Nike Fit, Nike
By You
Drives product differentiation, brand
loyalty, and premium pricing
S P O R T S W E A R I N D U S T R I E S
SPORTSWEAR INDUSTRIES
2. FUNCTIONAL
STRATEGY
O b j e c t i v e : M a r k e t le a d e r s h i p th r o u g h Su p e r i o r
V a l u e ( T e c h n o l o g y / B r a n d ) , a v o i d i n g p r i c e
c o m p e t i t i o n
T h e c o m b i n a t i o n o f r a p i d i n n o v a t i o n a n d s t r o n g
b r a n d i n g c r e a t e s h i g h l y v o l a t i l e d e m a n d . T h i s
s t r a t e g i c en v i r o n m e n t ma n d a t e s th a t t h e Su p p l y
C h a i n b e a n i n t r i n s i c a l l y R e s p o n s i v e S y s t e m
DIFFERENTIATION
DIFFERENTIATION
3. PRODUCT STRATEGY
P r i c i n g :
P r e m i u m P r i c i n g ( G r o s s M a r g i n
~ 4 4 . 7 % ) .
D i s t r i b u t i o n :
C h a n n e l R e b a l a n c i n g S t r a t e g y
( W h o l e s a l e i n c r e a s e d 5 6 %
5 8 % ; D 2 C d e c r e a s e d 4 4 %
4 2 % )
S u s t a i n a b i l i t y :
C l o s e d - L o o p M o d e l D e m a n d s
e f i c i e n t R e v e r s e L o g i s t i c s
SPORTSWEAR INDUSTRIES
SPORTSWEAR INDUSTRIES
III
.
ESTABLISHING SCM
ATTRIBUTE
REQUIREMENTS
III.ESTABLISHING SCM
ATTRIBUTE REQUIREMENTS
GROUP 2
SPORTSWEAR INDUSTRIES
1.UPSTREAM CONTROL
REQUIREMENT
R e q u i r e m e n t : C a p a b i l i t y f o r r e m o t e
m a n a g e m e n t o f Q u a l i t y a n d E t h i c a l
L a b o r s t a n d a r d s
S C M A c t i o n : I m p l e m e n t S t a t e g i c
S u p p l i e r E v a l u a t i o n P r o g r a m s ( T i e r
1 & T i e r 2 ) t o m i t i g a t e
C o n c e n t r a t i o n R i s k s .
SPORTSWEAR INDUSTRIES
2. RESPONSIVENESS
REQUIREMENT
R e q u i r e m e n t : S C m u s t b e A g i l e a n d
s u p p o r t t e c h n o l o g i c a l s u p e r i o r i t y .
S C M A c t i o n : E n a b l e r a p i d
T e c h n o l o g y T r a n s f e r f r o m R & D
( R a p i d P r o t o t y p i n g ) a n d u t i l i z e
A g i l e m o d e l s l i k e E x p r e s s L a n e t o
r e d u c e T i m e - t o - M a r k e t .
SPORTSWEAR INDUSTRIES
3.DOWNSTREAM
OPTIMIZATION REQUIREMENT
R e q u i r e m e n t : M u s t o p e r a t e a
u n i f i e d , O m n i c h a n n e l d i s t r i b u t i o n
s y s t e m
S C M A c t i o n : E s t a b l i s h U r b a n
D i s t r i b u t i o n C e n t e r s ( U r b a n D C s ) f o r
s u p e r i o r L a s t - M i l e D e l i v e r y S p e e d
a n d b u i l t r o b u s t R e v e r s e L o g i s t i c s
s y s t e m s f o r t h e C l o s e d - L o o p M o d e l
IV
.
SUPPLY CHAIN
MANAGEMENT OF NIKE
IV. SUPPLY CHAIN
MANAGEMENT OF NIKE
SPORTSWEAR INDUSTRIES
GROUP 2
R&D
SOURCING
Supplier
Tier 1
Supplier
Tier 2
MANUFACTURING
DISTRIBUTION
CUSTOMERS
Wholesales
1.NIKE SUPPLY CHAIN
STRUCTURE
LOGISTICS
UPSTREAM
D2C
Customer Service Marketing
DOWNSTREAM
2.1.DESIGN AND RESEARCH
& DEVELOPMENT (R&D)
P h i l o s o p h y :
" A t h l et e - c e n tr i c , " le v e r a g in g d e e p i n s i g ht s
i n t o th e i r n ee d s t o d r i v e in n o v a t io n .
T e a m :
C o n s i st s o f mu l t i - d is c i p l i na r y i n -h o u s e
e x p e r ts ( b i o me c h a n i cs , c h e mi s t r y ,
e n g i n ee r i n g ) a n d a n e x t e r n al n e t w or k o f
a d v i s or s i n c lu d i n g at h l e t e s, c o a c he s , a n d
m e d i c al p r o f es s i o n a ls .
*IF YOU
HAVE A BODY,
YOU ARE AN ATHLETE.
*IF YOU
HAVE A BODY,
YOU ARE AN ATHLETE.

Preview text:

Sportswear Industries NIKE Supply Chain Management NIKE PRODUCT J G U R N O E U 2 P 0 2 24 GROUP 2
1 . N g u y ễ n N g u y ệ t A n h - 1 1 2 3 0 7 3 3
2 . V ũ P h ư ơ n g A n h - 1 1 2 3 0 7 3 6
3 . V ũ K h á n h L i n h - 1 1 2 3 0 7 6 0
4 . N g u y ễ n T h ị T h u P h ư ơ n g - 1 1 2 3 0 7 7 0

SPORTSWEAR INDUSTRIES TABLE OF CONTENT
I . C o m p a n y O v e r v i e w
I I . N i k e ’ s B u s i n e s s S t r a t e g y
I I I . E s t a b l i s h i n g S C M
A t t r i b u t e R e q u i r e m e n t s
I V . N i k e S u p p l y C h a i n

SPORTSWEAR INDUSTRIES - O I.COMPANY R OVERVIEW
F o u n d e d : 1 9 6 4 a s B l u e R i b b o n S p o r t s T
b y P h i l K n i g h t & B i l l B o w e r m a n
R e n a m e d : N i k e , I n c . i n 1 9 7 1
H e a d q u a r t e r s : B e a v e r t o n , O r e g o n , U S A
C o r p o r a t e M o d e l : C e n t r a l i z e d c o r e f u n c t i o n s IN
( d e s i g n , R & D , b r a n d m a r k e t i n g ) i n t h e U S ;
g l o b a l i z e d p r o d u c t i o n & d i s t r i b u t i o n n e t w o r k
SPORTSWEAR INDUSTRIES
SPORTSWEAR INDUSTRIES 100+ $46.3B Countries of In total revenue operation worldwide (FY2025) #1 ~14% Worldwide in athletic Global market share, footwear & apparel supply largest in the industry
PRESENCE & POSITION
SPORTSWEAR INDUSTRIES IMPORTANCE OF FOOTWEAR
F i n a n c i a l B a c k b o n e
~ 6 6 % o f t o t a l r e v e n u e ( F Y 2 0 2 5 ) N i k e ’ s
l a r g e s t a n d m o s t p r o f i t a b l e p r o d u c t c a t e g o r y
I n n o v a t i o n H u b
T h e f o c a l p o i n t f o r a l l R & D a n d c o r e t e c h n o l o g i e s
C u l t u r a l P o w e r
E m b o d i e s N i k e ’ s g l o b a l i d e n t i t y & e m o t i o n a l c o n n e c t i o n
E g : A i r J o r d a n ( s i n c e 1 9 8 4 ) → f r o m s p o r t s
g e a r t o c u l t u r a l i c o n
SPORTSWEAR INDUSTRIES IMPORTANCE OF FOOTWEAR
Footwear is not only a source of revenue but also the center of
innovation and brand building for NIKE
II. NIKE'S BUSINESS STRATEGY
SPORTSWEAR INDUSTRIES Corporate Strategy Functional Strategy Product Strategy
SPORTSWEAR INDUSTRIES 1.CORPORATE STRATEGY 1.1 Core Competency Focus & Global Production Model 1.2 Innovation Leadership
1.1. CORE COMPETENCY FOCUS & GLOBAL PRODUCTION MODEL
SPORTSWEAR INDUSTRIES
Focus on design, R&D, and global marketing
100% outsourced
production → Vietnam
(51%), Indonesia (28%), China (17%)
Low risk & CAPEX, high cost efficiency and flexibility
Knowledge-based model built on brand and innovation
1.2. INNOVATION LEADERSHIP
SPORTSWEAR INDUSTRIES
Continuous investment in product & digital innovation
Technologies: Flyknit, ZoomX, Air units
Use of AI & data analytics → Nike Fit, Nike By You
Drives product differentiation, brand
loyalty, and premium pricing

SPORTSWEAR INDUSTRIES 2. FUNCTIONAL STRATEGY DIFFERENTIATION
O b j e c t i v e : M a r k e t l e a d e r s h i p t h r o u g h S u p e r i o r V a l u e
( T e c h n o l o g y / B r a n d ) , a v o i d i n g p r i c e c o m p e t i t i o n
T h e c o m b i n a t i o n o f r a p i d i n n o v a t i o n a n d s t r o n g
b r a n d i n g c r e a t e s h i g h l y v o l a t i l e d e m a n d . T h i s
s t r a t e g i c e n v i r o n m e n t m a n d a t e s t h a t t h e S u p p l y
C h a i n b e a n i n t r i n s i c a l l y R e s p o n s i v e S y s t e m 3. PRODUCT STRATEGY
SPORTSWEAR INDUSTRIES P r i c i n g :
P r e m i u m P r i c i n g ( G r o s s M a r g i n ~ 4 4 . 7 % ) .
D i s t r i b u t i o n :
C h a n n e l R e b a l a n c i n g S t r a t e g y
( W h o l e s a l e i n c r e a s e d 5 6 % →
5 8 % ; D 2 C d e c r e a s e d 4 4 % → 4 2 % )

S u s t a i n a b i l i t y :
C l o s e d - L o o p M o d e l → D e m a n d s
e f i c i e n t R e v e r s e L o g i s t i c s
SPORTSWEAR INDUSTRIES III.ESTABLISHING SCM ATTRIBUTE REQUIREMENTS GROUP 2 1.UPSTREAM CONTROL REQUIREMENT
R e q u i r e m e n t : C a p a b i l i t y f o r r e m o t e
m a n a g e m e n t o f Q u a l i t y a n d E t h i c a l
L a b o r
s t a n d a r d s
S C M A c t i o n : I m p l e m e n t S t a t e g i c
S u p p l i e r E v a l u a t i o n P r o g r a m s
( T i e r
1 & T i e r 2 ) t o m i t i g a t e
C o n c e n t r a t i o n R i s k s .
SPORTSWEAR INDUSTRIES 2. RESPONSIVENESS REQUIREMENT
R e q u i r e m e n t : S C m u s t b e A g i l e a n d
s u p p o r t t e c h n o l o g i c a l s u p e r i o r i t y .
S C M A c t i o n : E n a b l e r a p i d
T e c h n o l o g y T r a n s f e r f r o m R & D
( R a p i d P r o t o t y p i n g ) a n d u t i l i z e
A g i l e m o d e l s l i k e E x p r e s s L a n e t o
r e d u c e T i m e - t o - M a r k e t .
SPORTSWEAR INDUSTRIES 3.DOWNSTREAM
OPTIMIZATION REQUIREMENT
R e q u i r e m e n t : M u s t o p e r a t e a
u n i f i e d , O m n i c h a n n e l d i s t r i b u t i o n s y s t e m
S C M A c t i o n : E s t a b l i s h U r b a n
D i s t r i b u t i o n C e n t e r s ( U r b a n D C s ) f o r
s u p e r i o r L a s t - M i l e D e l i v e r y S p e e d
a n d b u i l t r o b u s t R e v e r s e L o g i s t i c s
s y s t e m s f o r t h e C l o s e d - L o o p M o d e l
SPORTSWEAR INDUSTRIES
SPORTSWEAR INDUSTRIES IV. SUPPLY CHAIN MANAGEMENT OF NIKE GROUP 2 1.NIKE SUPPLY CHAIN STRUCTURE Supplier Wholesales Supplier Tier 1 Tier 2 DISTRIBUTION CUSTOMERS R&D SOURCING MANUFACTURING D2C Marketing Customer Service UPSTREAM DOWNSTREAM LOGISTICS
2.1.DESIGN AND RESEARCH
& DEVELOPMENT (R&D) P h i l o s o p h y :
" A t h l e t e - c e n t r i c , " l e v e r a g i n g d e e p i n s i g h t s
i n t o t h e i r n e e d s t o d r i v e i n n o v a t i o n . T e a m :
C o n s i s t s o f m u l t i - d i s c i p l i n a r y i n - h o u s e
e x p e r t s
( b i o m e c h a n i c s , c h e m i s t r y ,
e n g i n e e r i n g ) a n d a n e x t e r n a l n e t w o r k o f
a d v i s o r s i n c l u d i n g a t h l e t e s , c o a c h e s , a n d *IF YOU
m e d i c a l p r o f e s s i o n a l s . HAVE A BODY, YOU ARE AN ATHLETE.