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In: Economics

an example of supply chain for a specific product and mention the raw materials, components, final...

an example of supply chain for a specific product and mention the raw materials, components, final products, and buyers

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Nike is a shoe brand, its supply chain functions around the three essential principles. I.e, save cost and outsource, to minimize the risk and diversify and manage the corporate social responsibility and manage the impact on the world. The company's supply chain saves over $0.15 per unit as compared to the traditional model of distribution. The process itself also relies on the independent contractors for sourcing of raw material for its products from the countries in which they are produced. Its supply chain extends to many nations worldwide, the products are made in over 42 countries at 567 factories which employ almost 1 million people.
The raw materials used in production of nike shoes are, cotton, polyester, rubber, foam, leather etc. It uses 19% of polyester and that to recycle, 70% rubber, eva foam which is environment friendly.
Nike produces an extended range of sports equipment. Their first product is running shoes and sneakers. They have now started making jerseys, cleats, shorts, and a very wide range of equipments for every type of sport.
It focuses on young customers. It has a ladies, gents and kids section with all the sports related things one can think of according to every age. It mainly focuses on the active and young customers as it produces sports related commodities.


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