One company that comes to mind that outsources the majority of its products
is Nike. Nike is one of the most popular sports apparel and shoe companies in
the entire world. They can provide consumers with all of these products by
outsourcing their supply chain. “In 2019, Nike’s footwear components were
supplied by 112 different factories in 12 countries, with no factory accounting
for more than 9% of branded footwear.” (Ye, 2020). Having so many different
factories that Nikes outsources from is a benefit for the company. It lowers
liability for the factories having fewer supply demands and less risk for the
company if the shipments get delayed. Outsourcing their supply chain helps
Nike get supplies for cheaper and helps meet the high demand from
consumers. Nike does this supply chain method for the organization and the
customers. Outsourcing the supply chain helps decrease supply expenses for
the organization which increases profits and it helps create products in faster
quantities to help supply customers with the products they want. Also, Nike
has made it a mission to only get supplies from factories that have adequate
conditions for factory workers. “In 2019, Nike sourced 93% of its products
and materials from sustainably run factories, well on its way to its target of
100% by the end of 2020.” (Ye, 2020). b b b
Reference
Ye, W. (2020, May 12). How does Nike's supply chain work? CleanChain.
Retrieved from https://www.cleanchain.com/blog/how-does-nikes-supply-
chain-
work/#:~:text=The%20key%20principles%20behind%20Nike's%20supply%
20chain%20are%20outsourcing%20and%20diversification.&text=Than
ks%20to%20effective%20management%2C%20Nike's,the%20years%20as%
20a%20result.
