Nike shoes commodity chain. Commodity Chain for Nike Shoes 2019-01-04

Commodity Chain Analysis of Nike Shoes Essay

Oh, how I was wrong! Names and other details of authorized printers will be added subsequently. Company states that its supplier factories use minimal subcontracting. No additional commitments to meet Pledge standards; maintaining status quo. Where appropriate the list of companies in each category will be revised, based on the disclosures and commitments that these companies make in the interim period. Publishing supplier factory information can also help apparel companies avoid reputational harm.

Copy of Nike Shoes Commodity Chain Analysis by Kayci Barnett on Prezi

Nike's largest concentrations of factories are in China, Vietnam and Indonesia. This design occurs in the Nike headquarters in Beaverton, Oregon. Athletes at every level utilize Nike equipment to excel at their respective sports. Reference this commodity chain map to better understand the information on this page. Names of all factories where they Òsource apparel and footwear directlyÓ with country of manufacture but not street address. To support this accustomed part of our culture, it involves a complex supply chain that allows those coffee beans to turn into a cup that can be consumed. Nike also incorporates the use of cause-related marketing which boosts their image and draws attention away from negative light.

Commodity Chain for Nike Shoes

These efforts should include expanding traceability and transparency beyond the cut-make-trim manufacturing phase to other aspects of the supply chain, including manufacture of yarn, fabric, and other inputs, and the production of raw materials like cotton. Typically, in these countries, the minimum wage laws were violated and workers were weakly unionised to bargain for higher wages. Universities included supply chain disclosure as part of their licensing agreements with top athletic apparel companies that produced their college logo apparel. To build momentum toward supply chain transparency and develop industry minimum standards, a coalition of labor and human rights groups asked 72 companies to agree to implement a simple Transparency Pledge. This is not a comprehensive list.

Step 1: Extraction

So, production chains are multi-steps-systems of production including serial processing, component assembly and internal division of labor. Production of the footwear is based on a vertically integrated model. By publishing factory names, street addresses, and other important information, global apparel companies allow workers and labor and human rights advocates to alert apparel companies to labor rights or other abuses in their supplier factories. No commitment to publish current own-brand supplier factory information. An example for a production chain of jeans is the following: The material is harvested in Kazakhstan before is manufactured into yarn in Turkey. The security guard, though very kind, was clearly not letting in people that shouldn? Some brands have already taken steps that prove more is possible.

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There was negative media attention drawn to the use of child labor in creating their products, mainly shoes. Names and addresses of all facilities in its vertical supply chain, including subcontractors, where Disney intellectual property is located. In a way, these countries also do not have strict measures in terms of environmental pollution as the companies have been condemned by environmentalists for polluting the environment. Lack of strong activist campaigns in the countries will also derail the process of labor reform in those areas. Factory workers in Bangladesh or Romania could have made clothes only weeks ago that consumers elsewhere are eagerly picking up. The group states on its website that it produces for Forever 21, Zara, and other brands that do not publish their supplier factory information; Ha-Meem Group, accessed March 3, 2017 and screenshot on file with Human Rights Watch. A Summary about Nike Nike, Inc.

Nike Shoes Commodity Chain Analysis by Blakely Harrington on Prezi

First, the concept of each shoe is designed. This way, it will be a win-win situation for the suppliers, the workers and the company. While supply chain transparency is widely recognized as an important pillar on which corporate accountability is built, transparency alone does not result in improved working conditions or accountability. Commodity chain analysis of a Nike Shoe Introduction Since its creation, Nike has proven itself as a popular brand and it has created niches by selling products such as footwear, apparels and various types of sports equipment. Therefore, agreements will be drawn between the potential suppliers and the main companies Nike indicating the terms that should be adhered to. When implemented effectively, such initiatives serve important human rights due diligence purposes. International Trade Union Confederation: Alison Tate, director of economic and social policy.

Extraction of Raw Materials

This analysis informed the content of the Transparency Pledge, as explained in. Commodity chain analyses allow modern day geographers to understand the process in which a resource is gathered, transformed, and distributed as a commodity to consumers. If apparel companies published the names and addresses of all authorized supplier factories and their subcontract facilities, workers and other interested parties would know which factories are authorized to produce for the company and which are not. Letter from Columbia Sportswear to the coalition, December 20, 2016 on file with the coalition. The design elements and functional characteristics of the product itself are just part of the overall marketing process. The Pledge aims for consistency in disclosures, which is sorely needed, as shown by an analysis carried out by coalition members of supply chain information published by September 2016 by 23 global apparel companies.

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New Balance, which was already publishing factory names and addresses, committed to adding product categories. Moreover, Adidas brings new technology into those countries as well. These may include some processes like printing, washing, and so on, but not all authorized subcontractors. So sourcing in those countries instead of planting them in German, Adidas have saved lots of money. Increasingly, brands and retail chains are beginning to understand that being an ethical business requires them to publish where their own-brand clothes or footwear are being made. Therefore, commodity chains enable us to map out and visualize production and consumption processes of day to day commodities and hence more knowledge on what we consume. Consumption and distribution is also more in those countries; however, more of the commodity is sold to foreign markets.