WAREHOUSING OF NIKE - Tài liệu tham khảo | Đại học Hoa Sen

HOA SEN UNIVERSITY FACULTY OF
LOGISTIC – INTERNATIONAL TRADE FINAL REPORT
SUPPLY CHAIN MANAGEMENT ------&------ TOPIC: WAREHOUSING OF NIKE Course ID : BA401DE01
Instructor : NGÔ HỮU KHÁNH LINH Group:
1. Nguyễn Thị Tuyết Ngân - 22004931
2. Nguyễn Quỳnh Nhã Phương - 22012492 3. Phan Thuý Ngân - 22012494
Thành phố Hồ Chí Minh, ngày 01 tháng 07 năm 2023. HOA SEN UNIVERSITY FACULTY OF
LOGISTIC – INTERNATIONAL TRADE FINAL REPORT
SUPPLY CHAIN MANAGEMENT ------&------ TOPIC: WAREHOUSING OF NIKE Course ID : BA401DE01
Instructor : NGÔ HỮU KHÁNH LINH Group:
1. Nguyễn Thị Tuyết Ngân - 22004931
2. Nguyễn Quỳnh Nhã Phương - 22012492 3. Phan Thuý Ngân - 22012494
Thành phố Hồ Chí Minh, ngày 01 tháng 07 năm 2023. TABLE OF CONTENTS
TABLE OF CONTENTS ............................................................................................... i
LIST OF FIGURES ..................................................................................................... iii
LIST OF TABBLES ..................................................................................................... iv
INTRODUCTION ......................................................................................................... 1
1. THE OVERVIEW OF NIKE .................................................................................... 2 1.1
Introduction of Nike ................................................................................................. 2
1.1.1 Historical development of Nike ............................................................................................... 2
1.1.2 Logo and slogan of Nike ........................................................................................................... 2
1.1.3 Nike timeline .............................................................................................................................. 4 1.2
Organizational structure of Nike ............................................................................. 6 1.3
Main products of Nike .............................................................................................. 8 1.4
Market of Nike ........................................................................................................ 10 1.5
Industry Competitors of Nike ................................................................................ 11
2. LITERATURE REVIEW ABOUT WAREHOUSING .......................................... 14 2.1
Warehousing Strategies .......................................................................................... 14 2.2
Stock Controls ......................................................................................................... 15 2.4
Material Handling ................................................................................................... 16 2.5
Technology Adoption .............................................................................................. 16 2.6
Supply Chain Collaboration .................................................................................. 17 2.7
Sustainability Initiatives ......................................................................................... 17
3. CURRENT SITUATION OF IMPLEMENTING WAREHOUSE OF NIKE ..... 18 3.1
Warehouse Infrastructure ...................................................................................... 18 3.2
Inventory management ........................................................................................... 20
3.2.1 The effectiveness of the strategy ............................................................................................ 21
3.2.2 Limitations and vulnerabilities .............................................................................................. 21 i
3.2.3 Alternative Inventory Strategy .............................................................................................. 21 3.3
Automation and Technology Integration .............................................................. 22 3.4
Supply Chain Resilience ......................................................................................... 25
4. DRAWBACKS ......................................................................................................... 27
5. PROPOSED SOLUTION ....................................................................................... 29
CONCLUSION .............................................................................................................. v
REFERENCES ............................................................................................................ vi ii LIST OF FIGURES
Figure 1: Nike logo evolution (Source: Footy Headlines) ............................................. 3
Figure 2: Organizational leadership structure of Nike (Source: Organimi) ................. 6
Figure 3: Nike Air Max was released in 1987 ............................................................... 8
Figure 4: Some of the major Nike product lines (Source: Business Apac) .................... 9
Figure 5 Some models of Nike training and casual clothes (Source: Pinterest) ........... 9
Figure 6: The percentages of workers and total sales in each country of Nike ........... 10
Figure 7: Top 10 countries with the most Nike factories in the world ........................ 11
Figure 8: Warehousing Strategies ............................................................................... 14
Figure 9: Stock Controls .............................................................................................. 15
Figure 10: Operations Management Warehouse ......................................................... 15
Figure 11. Robots support Nike’s supply chain logistics ............................................. 16
Figure 12 Move to zero the journey of nike ................................................................. 17
Figure 13: Sustainability Initiatives of Nike ................................................................ 18
Figure 14. Nike Warehouse Indianapolis .................................................................... 19
Figure 15. Nike Warehouse Bethlehem Pa Address .................................................... 20
Figure 16. Robotics of Nike ......................................................................................... 22
Figure 17. Artificial Intelligence (AI) and Machine Learning of Nike ........................ 23
Figure 18. Warehouse Management Systems (WMS) of Nike ...................................... 24
Figure 19. Mobile Technology of Nike ........................................................................ 24 i ii LIST OF TABBLES
Table 1: Comparation the success factors of Nike and Adidas 12 i v INTRODUCTION
Nike is a renowned name in the world of athletic excellence and global
innovation, recognized for its cutting-edge designs and unwavering commitment
towards pushing boundaries. The brand has become a symbol of distinction in the realm
of sports. At the core of this extensive empire lies a concealed powerhouse - the Nike
Warehouse. This report aims to provide an intriguing insight into the internal operations
of this remarkable facility, scrutinizing its significance within Nike's supply chain and
the impact it has on the brand's global operations.
The Nike Warehouse enables the smooth movement of products that empower
athletes and enthusiasts across the globe, and serves as a dynamic space where raw
materials undergo a transformation to emerge as cutting-edge footwear, apparel, and
equipment that redefine performance and inspire excellence. The Nike Warehouse use
wherein cutting-edge technology is in perfect harmony with the expertise of skilled
professionals. Each stage of the journey, from conception to final delivery, is
meticulously planned and executed to ensure optimal efficiency and customer
satisfaction. Moreover, the Nike Warehouse embodies the brand's commitment to
sustainability and responsible manufacturing beyond its role in the global supply chain.
Nike has implemented innovative practices within the warehouse to reduce its
environmental footprint, such as energy-efficient systems, waste reduction initiatives,
and responsible sourcing of materials. By combining efficiency with environmental
stewardship, Nike serves as a profound example for the industry, demonstrating that
excellence and sustainability can indeed go hand in hand.
In this report, we will conduct a comprehensive exploration of the core of the
Nike Warehouse, where we will uncover its state-of-the-art technologies, innovative
procedures, and the individuals responsible for facilitating it all. We will delve into the
inventory management systems and quality control protocols that enable Nike to
distribute its renowned products to customers worldwide. 1
1. THE OVERVIEW OF NIKE
1.1 Introduction of Nike 1.1.1
Historical development of Nike
The antecedent of Nike was the Blue Ribbon Sports Company, which was
founded by Phil Knight in 1964 with the aim of importing reasonably priced Japanese
athletic footwear, specifically those bearing the Onizuka brand, into the United States.
Phil Knight's collaboration with Bill Bowerman, who subsequently became Nike's most
ingenious sports footwear designer, was significant in contributing to the global success
of Nike shoes within the sports footwear manufacturing industry.
Nike, a supplier of athletic clothing and equipment, is headquartered in the
United States, specifically in Beaverton, situated in the Portland metropolitan area of
Oregon. Nike's name is derived from the winged deity associated with triumph in Greek mythology.
Several subsidiaries of Nike are presently dispersed across the globe. In addition
to the highly recognized Nike brand, Nike also possesses many other renowned brands
such as Cole Haan, Converse Inc., Hurley, LLC, and Nike Gold. Having a workforce
that can number in the thousands, the organization employs staff members in various
Asian countries including China, Indonesia, Vietnam, the Philippines, Taiwan and Korea. 1.1.2
Logo and slogan of Nike
In 1971, Blue Ribbon Sports (BRS), which is now known as Nike, enlisted the
services of Carolyn Davidson, a college student, to construct the brand logo. Davidson
not only created the logo and christened it "Swoosh," but also recommended that the
brand name be changed from Dimension 6, which was originally proposed by founder Phil Knight, to Nike.
Recognizing that the Nike font in the Nike logo was too juvenile and unathletic,
Nike opted to modify the font to Futura Bold, a sans-serif font that was overhauled and 2
replaced in 1978. The new Nike logo font is remarkable, appealing, and commanding,
with all parameters being meticulously calculated and the distances between the letters
being precisely proportioned. If one scrutinizes the Nike logo closely, they will observe
that the letter "E" in the Nike logo concludes with a connection to the swoosh logo.
The 1985 Nike logo underwent a transformation that involved the addition of a
black square to the logo, but this alteration was brief.
Nike's current logo has undergone a transformation by removing the brand name,
resulting in a minimalist design featuring only a comma. The iconic Swoosh has become
the embodiment of athleticism, speed, excellence, and resilience, and is recognized as
one of the most recognizable symbols globally. Due to its simple nature, the Nike logo
has become a reliable indicator of progress and prosperity.
Figure 1: Nike logo evolution (Source: Footy Headlines)
The motivational slogan 'Just do it' by Nike, which dates back to 1970, was
created with an aim to encourage people to persevere. The inception of this catchphrase
has been speculated upon, but what remains noteworthy is the slogan's widespread
acceptance and endorsement by Americans, which has solidified its status as one of the
most impactful and memorable catchphrases in history. 3 1.1.3 Nike timeline
In 1964, Blue Ribbon Sports was established by Phil Knight and Bill Bowerman.
In 1971, Nike Inc. was formed after severing ties with Onitsuka Tiger (now Asics), with
a swoosh logo designed by a student from Portland State University, Carolyn Davis, for
a fee of $35. During the same year, Bowerman devised the iconic sole pattern for Waffle
Trainers by incorporating rubber into a waffle iron.
In 1972, Ilie Nastase, a Romanian tennis player, became the first athlete to sign an endorsement deal with Nike.
In 1979, Nike introduced a patented technology called "Air" with the new Tailwind shoe.
In 1980, Nike completed its IPO with a price of 18 cents per share.
In 1984, Nike signed Michael Jordan, which resulted in the launch of the Air Jordan series.
In 1987, Nike released an advertisement for the new Air Max shoes, utilizing The
Beatles' "Revolution," which marked the first time that the band's music was used in an advertisement.
In 1988, Nike launched its first "Just Do It" campaign, which featured Walter Stack, an
iconic 80-year-old runner, dashing across the Golden Gate Bridge.
In 1989, Nike launched another ad campaign called "Bo Knows," which showcased the
talent of baseball and football star Bo Jackson.
In 1990, Nike opened its first Niketown store in Portland, Oregon, marking a significant
milestone in the company's history.
1991 was a year of controversy for Nike, as Jeff Ballinger, an activist, published a report
that exposed the low wages and poor working conditions faced by workers in 4
Indonesian Nike factories. The company responded to this by implementing its first factory codes of conduct.
In 1996, Nike signed the legendary Tiger Woods.
In 1998, Nike faced widespread protests and criticism, which prompted the company to
raise the minimum age of its workers, increase monitoring, and adopt U.S. OSHA clean-
air standards in its overseas factories.
In 1999, saw the unfortunate passing of Nike co-founder Bill Bowerman at the age of 88.
In 2002, Nike acquired Hurley, a surf-apparel company, further expanding its portfolio.
In 2003, Nike continued to strengthen its roster of athletes by signing Lebron James and Kobe Bryant.
In 2004, Nike acquired Converse for a whopping $309 million. As the same year, Phil
Knight steps down as CEO and president of Nike, but retains chairman role as William
D. Perez becomes the company's new CEO.
In 2008, Nike signs Derek Jeter.
In 2012, Nike becomes official supplier for NFL apparel.
In 2015, Nike becomes official supplier for NBA apparel.
In 2018, Nike unveils ad campaign featuring athlete and political activist Colin
Kaepernick, garnering a mix of public approval and backlash. 5