Supply Chain Management (SCM)
Nowadays, businesses are not only requires to operate at lower cost to compete, it must also develop its only competencies to differentiate itself from competitors. Supply Chain management plays an important role in determining operation effectiveness in an organization.
Supply chain management (SCM) is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. Supply chain management plays an important role in successful running of any business. SCMhas allowed company to rethink their entire operation and restructure it so that they can focus onits core competencies and outsource processes that are not within the core competencies of the company NIKE is heavily dependant on information technology systems across their supply chain, including for design, production, forecasting, ordering, manufacturing, transportation, sales, and distribution. Their ability to effectively manage and maintain their inventory and to ship products to customers on a timely basis depends significantly on the reliability of these supply chain systems. Over the last several years, as part of their ongoing initiative to upgrade their worldwide supply chain, they have implemented new systems in all of their geographical regions in which they operate. Over the next
Nike in Brazil
Athletics footwear giant Nike reported total revenue of almost $21 billion in 2011, a 10% increase over the previous year. The Beaverton, Oregon-based company says its products are manufactured at about 600 contract factories that employ more than 800,000 workers in nearly 50 countries.
Several of the factories are in Brazil, which will host the soccer World Cup in...