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It is indirectly or directly involved in the process of satisfying costumer demand rely mainly on demand planning and forecasting function; co-ordinating with the demand forecast and communicates the forecast with all the suppliers. Many organizations are familiar with information technology, globalization and outsourcing for the past decades and Nike is one of them. Interesting thing about Nike is that it does not manufacture any thing itself all the product come in the brand of Nike are all due to outsourcing. The main aim of any supply chain is to make profit by satisfy customer demand by producing a competitive product in the market. The flow of information, funds and product are the main decision taken in the supply chain management and these decisions have a great impact that can cause the failure or success. As we discuss earlier that the main motto of supply chain is to maximize the profitability by producing a control flow of product, funds and information in order to maintain the cost low and facilitate the product availability to the costumer.
Supply chain management in the retail industry and the impact on customer services is an interesting subject, attracts me to study this subject because for the industry who doing the outsourcing and how they satisfying there customer demand by the effective operations, wanted to study the supply chain management because it is a back bone of any industry and the technique used to satisfy the customer demand and the reasons of any successful supply chain specially adopted by the Nike currently. In addition, I try to find the new techniques and ideas in order to improve the efficiency of the supply chain management for the firm.
1.2 Background of the Organization:
Goddess of victory-NIKE- was launch in 1972 and went into public in December 1980, employs more than 33000 people globally. Its headquarter based in Beaverton, Oregon is home to more than 7,000 employees, its record revenue is about $19.2 billion for the fiscal year ending May 31 2009, 3% increase compare to 2008. Nike sells there product across the continents in 180 countries through retailers, distributors and license, having a 27000 retail accounts excluding USA.
1.3 Purpose of Research:
Supply chain management in Nike and the impact of supply chain management on customer services is an informative and technical subject, attracts me to study this subject because for the industry who doing the outsourcing and how they satisfying there customer demand by the effective operations, wanted to study the supply chain management, technique used to satisfy the customer demand and the reasons of any successful supply chain specially adopted by the Nike currently. In addition, I try to find the new techniques and ideas in order to improve the efficiency of the supply chain management for the firm.
1.4 AIMS AND OBJECTIVES:
The objective is to find out the influence of supply chain management in customer satisfaction, possible changes to the process or method of supply chain management in the retail industry and find out the maximum responsive supply from the supply chain process.
To study the positive and negative aspects of the current supply chain model and how to improve them.
Identify potential ideas to improve good practice in the retail sector.
Follow-up a special study of retail sales of Nike and find the best supply chain success.
Identify the various option of supply chain management, which can be used to meet the customer demand when they come to shopping.
Survey of behavior of the consumer of Nike, and find out there demand.
Recommendation for successful responsive supply.
Supply chain is a set of firms that pass materials forward. Normally, several independent firms are involved in manufacturing a product and placing it in the hands of the end user in a supply chain-raw material and component producers, product assemblers, wholesalers, retailer merchants and transportation companies are all members of a supply chain (La Londe and Masters 1994).
Ayers et al(2008), " Product life cycle processes comprising, information, financial, and knowledge flows whose purpose is to satisfy end - user requirements with physical products and services from multiple, and linked, suppliers".(P- 7)
Objectives of supply chain:
The objective of every supply chain is to maximize the overall value generated. The value a supply chain generates is the difference between what the final product is worth to the customer and the effort the supply chain expends in filling the customer's request. For most commercial supply chains, value will be strongly correlated with supply chain profitability, the difference between the revenue generated from the customer and the overall cost across the supply chain. (Chopra, Sunil and Peter Meindl. Supply Chain Management. 2 ed. Upper Saddle River: Pearson Prentice Hall, 2004)
2.3 Supply chain profitability:
Supply chain profitability is the total profit to be shared across all supply chain stages. The higher the supply chain profitability, the more successful the supply chain. Supply chain success should be measured in terms of supply chain profitability and not in terms of the profits at an individual stage. (Chopra, sunil and Peter Meindl, 2004).