Question: Respond to your peer below, evaluate any special requirements for shipping their product safely and successfully, such as refrigeration, time-sensitive travel, fragile packing, and so

Respond to your peer below, evaluate any special requirements for shipping their product safely and successfully, such as refrigeration, time-sensitive travel, fragile packing, and so on. Suggest at least two special requirements and discuss how they might impact your peer's product supply chain?

Nike Sneakers

"99% of all shoes sold in the United States are manufactured abroad " (HighJump, 2018) "Production of Nike sneakers spreads over 54 countries/regions including materials and finished goods manufacturing." (AIO, 2021) 36% of Nike shoes are manufactured in China and Vietnam, Indonesia accounts for 22% and 6% are made in Thailand. (AIO, 2021)

Nike contracts with multiple manufacturers located around the world for their raw materials. (HighJump, 2018) Most of these independent contractors are located in Vietnam, China and Indonesia.(HighJump, 2018) "Though no single facility accounts for any more than 5% of Nike's total footwear output. " (HighJump, 2018) "Nike utilizes many materials to make their products but there are six main materials that make up the majority of all their products: Polyester, Rubber, EVA foam, Cotton, Synthetic Leather, and Leather. "(Cole, 2022)

  • Polyester: 19% of the polyester they use is made from recycled bottles. China and India are the main polyester producers worldwide.(Cole, 2022)
  • Rubber: 70% of Nike shoes utilize an environmentally preferred rubber made by incorporating more benign accelerators and vegetable oils. Thailand, Indonesia, Malaysia are the top producers of rubber around the world. (Cole, 2022)
  • EVA foam: EVA stands for Ethylene Vinyl Acetate. Eva Foam is one of the most efficient and cheap materials that Nike uses in their shoes. The main producers of Eva Foam are located in China. (Cole, 2022)
  • Cotton: Nike gets most of its cotton from suppliers in China, India, Turkey, and the United States of America. (Cole, 2022)
  • Synthetic Leather: Synthetic leather is a manmade fabric the is made to look and feel like real leather but function better then real leather. China and Taiwan are the leading supplier of synthetic leather worldwide.(Cole, 2022)
  • Leather: Nike gets their leather from tanners and suppliers in China and Vietnam.(Cole, 2022)

Nike relies on their independent contractors to source raw materials for its shoes within the countries they are produced cutting down on costs. (HighJump, 2018) Once produced, the raw materials are shipped to the factories that produce the finished goods. Since they are source locally most of this transportation will be over the road.

When the finished goods are produced, they are shipped to 57 distribution centers around the globe. Nike's main facility in the US in located in Memphis, TN. (HighJump, 2018) These finished sneakers are transported to the US via steam ship vessel over the ocean also known as sea freight. "Nike made the decision to transport their products on cargo ships instead of using airplanes. It claimed to have saved Nike $8 million in 2009." (Morey, 2014)

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