How The Super Brand Nike Make Supply Chains Sustainable?

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Part 2 - How to Make Supply-Chains Sustainable? Introduction The super brand Nike produce approximately 900 million units of apparels and footwear annually through the supply chain involving over 16,000 selected materials from more than 1,500 different vendors, chosen from a staggering 80,000 material options (Nike, Inc. FY12/13). For example, a single pair of shoes can be made up of 30-plus materials on average (Nike, Inc. FY12/13). These materials include natural fibers such as cotton and wool to technical synthetic materials such as polyester, nylon, rubber, synthetic leather and ethylene vinyl acetate (EVA) (Nike, Inc. FY12/13). Given the long list of materials used for making a single product, Nike will have to carefully select the…show more content…
This provides incentives to suppliers for performances, in a “pull” approach, rewarding where credit is due and help develop suppliers to growing their business using social and environmental performances as a source of competitive advantage. Furthermore, Nike have partnered various third parties such as Fair Labour Association (FLA) Global Alliance in developing a set a set of standardised measurements to enable clear reporting of the labour priority. Additionally, Nike has invested in the community, providing kids with access to sports to encourage kids to be active, leveraging brand power through various brand-sponsored projects and partnerships, and most importantly employee engagement where employees can volunteer to service for community activities that matter most to them including disastrous response. The community investments would create a strong market for Nike as well as fading the much controversial past. Environmental bottom line Nike’s main environmental impacts, by far, is in the products that they sell and the materials used to make them. From growing cotton and harvesting rubber, to raise livestock for leather and extracting oil for polyester represents 21% of the total energy used throughout the value chain, 73% water consumption and 33% CO2 emission (Nike, Inc. FY12/13). Despite
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