When did the supply chain problems with Nike start?
When did the supply chain problems with Nike start?
Problems began for Nike in 1991 with reports about poor working conditions at the Nike factories in Indonesia. At this time, Nike’s response was to deny responsibility for monitoring malpractice for suppliers. Nike became a target of campaigners, and because of this a global boycott began.
Why are there so many challenges for Nike?
And even without a trade war, there’s always the chance that the dollar will strengthen or weaken relative to other currencies, causing Nike’s costs to fluctuate in turn. An additional challenge is that the primary raw material for Nike’s shoes, rubber, is primarily cultivated in southeast Asia.
What are the challenges of a global supply chain?
Even though these contract manufacturers aren’t Nike employees, Nike will be held responsible in the court of public opinion if something goes wrong. But these aren’t the only challenges of running a global supply chain. Nike also has to worry about tariffs and fluctuations in foreign currencies .
Why is Nike so dependent on contract manufacturers?
Thus, Nike is completely dependent on these contract manufacturers for its products. If the manufacturer ships the product late, ship poor quality product, or go out of business, Nike could run out of inventory. This might explain why Nike relies on hundreds of factories spread across many countries.
What kind of Audit does Nike do on factories?
Conduct a basic audit: Nike introduced the SHAPE internal monitoring system to provide it with an initial assessment of whether a proposed new factory was near satisfying the code of conduct. Factories flagged as high risk would also undergo a more comprehensive “M-audit.”
Why is CSR important to the Nike brand?
Nike believes that “ In sustainability – as in sports – what counts is how you perform on the field .” A sound game plan or strategy is essential to success.” Since 2005 they have been consistently updating consumers and the general public on their commitments, standards, and audit data as it relates to CSR in their operations. What Happened?
When did Nike get accused of child labor?
This was proven in the 1990’s when Nike was under accusations for tolerating sweatshops and child labor. With all this in mind, it is fitting that we explore one of the biggest media blow ups relating to this issue in recent years.