Before manufacturing can process raw materials, many services that form part of the Supply Chain Management will have to be performed for the purpose of ensuring customer satisfaction. The theoretical end goal is customer satisfaction and efficiency of the company for the best performance in terms of profitability, according to Slack, N.. Chambers, S.. and Johnston, R. (2004). But as of the present, Nike Inc. includes sustainability, green environment advocacy, least wastage, and healthy working conditions or the empowerment of workers as part of the company’s Supply Chain Management (SCM) objectives (Nike Inc. 2012). Figure A shows some of the major services along with the manufacturing function or “make”. It is obvious that factories will not operate unless other major services are operational.
Aside from the services pictured, there are many other services within the organization to support the hundreds of factories (currently over 900 contracted factories) of Nike worldwide (See Figure B). These are management functions like policies and procedures formulation, control over all non-manufacturing operations by regularly auditing, ongoing monitoring activities, an inspection of reports required and submitted. non-management functions like screening of suppliers that can meet the standards of Nike, screening of factories, performance evaluations, payments processing, auditing.
In order for this to happen, the demand of customers would have to know for each given month in various locations worldwide, and the requirements of .manufacturing should be always ready to produce the specific end products at the right quantity with the desired quality. Sales performance and profitability will be affected in case of failure to design the right Supply Chain system and strategies.