The Stakeholders
Sustainable manufacturing is a matter of paramount importance in the 21st century in the context of the clothing and footwear industries. Jiang (2019) writes that the popularity of high-end athletic shoes is on the increase, and industry leaders must respond to growing demand. Nevertheless, growing competition poses challenges for Nike in terms of supply chain management and sustainable development. Proper Business Process Management (BPM) is needed to encompass the standpoints of all stakeholders involved (Jeston, 2018). It is also said that the supply and production processes must focus not only on the economic aspect but also on the environmental impact of expanding business activities (Jiang, 2018). All these aspects are crucial in the modern environment, as they determine an organization’s capabilities in terms of sustained manufacturing.
First of all, the range of stakeholders in this context includes Nike’s customers. The company must ensure the proper functioning of the supply chain in order to meet the demand for its product, which would lead to stable revenues. Customers expect Nike to provide them with a stable supply of high-quality footwear, and the success in this regard will be determined by the company’s sales level. At the same time, Nike’s management has its own expectations regarding sustainable manufacturing. Sales figures retain their importance in this scenario, but background processes, usually unseen by customers, also serve as a crucial criterion. Therefore, Nike’s management can evaluate its success depending on the stability of its supply chain and uninterrupted manufacturing. As for a greater context, sustainable manufacturing implies reduced environmental impact, which is why environmental organizations will also play a role.
Metrics
Supply Chain and Production Stability
Definition: If the company is able to ensure stable production at all its facilities, it means that the supply chain is functioning properly. In the case of sustainable manufacturing, such stability would suggest that the company is able to meet its goals and deliver a sufficient amount of product to customers.
Example: If all criteria are met, Nike will be able to provide its stores with stable supplies of clothing and footwear. While its exact production numbers are unknown to the public, a lack of shortage in stores will be the reference in this scenario.
Net Income
Definition: Nike’s sustainable manufacturing must maintain the desired level of sales along with sufficient revenues.
Significance in assessment: Sustainable business processes are important, but organizations must not forget about their revenues. Making profits is essential for the survival of all companies, and Nike must be able to retain and increase its revenues moving forward.
Example: As of August 2020, Nike reported a net income of 1,518 billion dollars in Q2 (“Nike Financials (NKE), n.d.). Accordingly, sustainable manufacturing must ensure a similar level above 1.5 billion dollars.
Environmental Impact
Definition: Sustainable manufacturing implies environmentally aware business practices, reducing the company’s impact on nature.
Significance in assessment: If Nike is able to demonstrate to the stakeholders its commitment to environmentally aware business practices in exact numbers, it will serve as the ultimate confirmation of its success in sustainable manufacturing.
Example: Nike aims at reducing water consumption and, so far, the company has been able to lower the amount of freshwater used by dyeing and finishing suppliers by 20% (“Water,” n.d.). Another twenty-percent decrease can be expected in the upcoming years of sustainable manufacturing.
Quick Wins
First, Nike can reorient its marketing campaign toward sustainable practices. Customers do not usually see internal processes, and it is important to draw their attention to it even before substantial results are achieved. It will provide Nike with a reputational boost, securing its position in the environmentally aware market. At the same time, the company can encourage similar “green” practices among its employees through initiatives, which can be introduced within several weeks. For example, employees may be encouraged to send their old footwear and clothes for recycling and receive rewards, including monetary ones. This way, people will feel motivated and commit to sustainable manufacturing principles, improving Nike’s overall results.
References
Jeston, J. (2018). Business process management: Practical guidelines to successful implementations (4th ed.). Pearson.
Jiang, W. (2019). Sustainable development of supply chain in footwear industry – Take Nike as the case. Asian Business Research, 4(3). Web.
Nike. (n.d.). Water. Purpose Moves Us. Web.
Nike Financials (NKE). (n.d.). Investing. Web.