Company Assessment Research Paper Example | Topics and Well Written Essays - 2500 words - 1

Company Assessment - Research Paper Example China, which is Nike's largest single sourcing country, employs more than 210,000 people and has over 180 manufacturers. The supply chain management was affected by the issues of unpaid wages, presentation of falsified documents, and underage employees. (Global Supply Chain Council, 2008) Nike tried to make sure that its code of conduct was followed by the Chinese manufacturers, in addition to Chinese laws. The official report released by Nike stated that labor-related issues such as hiring practices, inadequate grievance system for workers, falsified payroll records, and underage workers, were of great concern. (Global Supply Chain Council, 2008) When an identity check was carried out on 150,000 of Nike's workers in China, it was found that 167 employees were underage at the tie of recruitment and two of them were still underage. Paid wages were also not as per the raises mandated by the government. Moreover, the report stated that some of Nike's Chinese contract factories were playing tricks so they don't have to alter the wage levels. (Global Supply Chain Council, 2008) Nike is building a logistics centre in eastern China, which is to complete by the end of next year. This facility, like that in Jiangsu province, will be using high-tech conveyers and sorters for tracking and mobility of its products.Radio frequency technology will also be used to enhance efficiency and accuracy. Nike China is working hard to develop a state-of-the-art logistics facility and exhibit its expertise in supply chain management. It's also working to resolve labor issues, which leave a bad impact on company's reputation. Employing underage workers is the violation of international human rights and working laws. Moreover, many countries, such as USA are very particular about not doing trade of items that involve underage labor. This does not only harm company's prestige but also its revenues. (Gabe Perna, 2009 and Portland Business Journal, 2009) Recently, a Greenpeace report named "Slaughtering the Amazon" had identified different shoe companies that were held responsible for deforestation in the Amazon. Nike was one of them. Last month Nike announced its new leather policy of no sourcing from Amazon rainforest. It conducted extensive discussion with the suppliers and claimed that it is going to make sure that leather used in Nike products is not coming from Amazon rainforests. However, as there is no standard tracing systems a yet, the company cannot give a 100% guarantee. (Global Supply Chain Council, 2009) Nike has called its suppliers to develop a tracking system that would make sure that the leather used does not come from cattle raised in Amazon Biome. Suppliers are to come up with a transparent and traceable tracking system by July 1 next year. Incase suppliers fail to do so; Nike will extend the area outside of Amazon as its leather source. Suppliers are also required to become members of Leather Working Group by the end of this year. Nike is working with this group to create an industry standard traceability system. (Global Supply Chain Council, 2009) References Nikebiz, Company Overview, 2009, ,