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Weaving responsible competitiveness into Nike’s supply chain operations Anna Maria Rugarli 8 June 2010 Nike Inc. in numbers • 33,000 employees (ca. 1,400 in NL) • $19.2 bn revenues in 2009 • Sustainable Business & Innovation team 130 • Sustainable Manufacturing and Sourcing team 70 people • Almost 800,000 workers in 600 factories in 46 countries • 80% Asian women 18 – 24 yr old Worldwide SB&I Moving to Sustainable Business Models Sustainable Business & Innovation Model TO ENABLE NIKE INC. TO THRIVE IN A SUSTAINABLE ECONOMY KEY FOCUS • Help Nike Inc. to fast-track integration of corporate responsibility into its business • Develop scalable solutions to enable Nike’s evolution to a closed- loop business model SB& I STRATEGY • INNOVATE to deliver enterprise-level sustainability solutions • INTEGRATE sustainability into the heart of the NIKE inc. business model • MOBILISE key constituents (civil society, employees, consumers, government and industry) to partner in scaling solutions Nike’s Evolution to Sustainable Manufacturing Generation 1: Generation 2: Generation 3: Generation 4: Presence Interaction Transformation Integration Main Nike Focus Assessment, building Monitoring Monitoring + capacity Sustainable understanding of conditions and building focused on Manufacturing conditions corrective actions root-cause analysis Nike Capabilities •Establishing a •Systematizing the •Building excellence Integrated function work in remediation management of •Fighting Fires •Building •Sustainable sourcing product development •Building a global excellence in strategy working conditions, team management audits •Business integration Environment, Safety •Building an ESH & accountability & Health (ESH) •Establishing throughout supply Partners global process •Factory ownership of chain •Creating CR transparency •Industry Coalitions •Creating ratings Supplier Capabilities Capacity to respond Understand core CR Human Resources Lean and sustainable to brand inquiries / HR functions management capacity production Industry Collaboration Code of Conduct Nike published Building Coalitions Common expectations, supplier lists cooperative monitoring & capacity building Sustainable manufacturing and sourcing Help build an empowered workforce through LEAN manufacturing processes: 1- to deliver highest-quality product while eliminating all types of waste, including loss of time and material 2- to give workers the skills and abilities needed to manage production and immediately address the issues as they arise LEAN merged with energy, waste, water and compliance in Sustainable manufacturing and sourcing Thank you Questions?
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