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Internal Supply Chain Analysis

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Submitted By Griffon
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Introduction Nike is a name of the major manufacturer of athletic footwear, apparel and equipment for a wide-ranging of sports from the United States. According to Ashford (1997) it was established in 1963 by Phil Knight as ‘Blue Ribbon Sports’ and began as an importer for the running shoes, which were imported from Japan. In 1972, the new name ‘Nike’ has introduced with an extensive product range to more variety of footwear and apparel for sports. Since then, Nike sales grew progressively to be the leading sportswear company. While, growth went beyond its national home base, especially in European region. Since 1980s, after firstly success with local distributors, Nike decided to possess its own distribution centres by acquired its distributors business in all the leading countries and integrated into its owned subsidiaries. However, each country still ran its operations such as warehousing and logistics separately. Hence, in 1992, Nike made up its mind to reorganizing its European internal supply chain management and logistics (Ashford 1997). Because the entirely synchronized of materials flow and customer demands for the finished goods, that produces is the idyllic implementation for an internal supply chain management (Waage 2008). If the company do not achieve this ideal, it might lead to uncoordinated forecasts and decisions that produce inadvertent accumulation of inventories, excessive lead times, delays in production and product being left unsold finally. In this report consisting of four parts, a number of internal supply chain issues will be examined. In the first part, three items of concern will be analysed and illustrated based on the case study of Nike Europe as following. a) Analysis of the supply chain structures by showing the physical flow of goods, an information management and the organisational structures, b) Supply

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