Does Anyone Do Supply Chains Better Than Nike?

No, says SLM sourcing expert Phil Berry - because they focus on building real relationships instead of relying on top-down mandates.



Is anyone more sophisticated about managing supply chains than Nike? I admit to being prejudiced after 11 years working there, but this is about the strategy of a major corporation and not about the work of any one person or team.

The most important takeaway from Nike's supply chain effort in Asia is that its shared effort. A supply chain is, or should be, a close relationship between business partners. They share strategy and goals. They share efforts toward those goals – and they openly share data.

In a real supply-chain partnership, both partners participate in sustainability work and share responsibility for outcomes. This means you don’t need to send a supplier survey to see “how green” they are – you already know the people and their operation.

The benefit? Nike and its suppliers are talking about real reductions in energy use and operating costs - complex work in any supply chain. That they can undertake the work is a testament to the partnership. Shared priorities, shared effort, shared benefit.

Where do you start? Define a subset of “strategic suppliers” - those you know are critical to your long-term business goals. And rather than rely on impersonal vendor surveys, build real relationships with those suppliers through meetings and discussions about mutual priorities.

__________

Phil Berry has spent the past 30 years implementing corporate sustainability and lean manufacturing programs at companies large and small, most recently for a global apparel manufacturer. He has worked with more than 400 organizations on five continents (particularly in India and southeast Asia), advising on core product design functions such as waste minimization and toxics reduction. Phil is SLM's expert-in-residence on sustainable product sourcing and innovation, as well as the host of Sustainable Sourcing Update.

Average rating
(0 votes)