OUR APPROACH TO SOURCING
At Nike, we build long-term relationships with our contract manufacturing suppliers (suppliers)
because we know having trust and mutual respect supports our ability to create product more
responsibly, accelerate innovation and better serve athletes*. Over 90% of Nike footwear and branded
apparel is made by factory groups that we have worked with for over 15 years.
Nike is growing with suppliers that share our commitment to sustainability and understand that
‘empowered workplaces are productive, profitable and successful. We scale capability building
programs, such as Worker Engagement, Culture of Safety, and Environmental Minimum Programs
with suppliers that share our values, Learn more about these programs here.
Incentivizing Suppliers to Constantly Improve Sustainability Performance
We encourage improvements in sustainability through a scorecard that assesses supplier
performance on quality, delivery, cost, and sustainability. We also have tools that assess growth and
potential in leadership, operations, innovation, product creation, and sustainability, We use the
information to inform our long-term sourcing strategy, increasing business with the best performing
supplier. Harvard Business School published a case that explores the evolution of Nike's globalSupporting Suppliers to Meet Our Standards
We help our key suppliers advance sustainability by providing resources that create more
transparency and predictability. Our sourcing teams provide multi-year sourcing forecasts and have
processes designed to help address the issue of excessive overtime and other issues that can be
associated with overly disruptive fluctuations in demand. The Fair Labor Association reaccredited
Nike's social compliance program in February 2019 and evaluated Nike's responsible purchasing
practices, among other aspects of our sustainability strategy. The FLA Reaccreditation Report can be
found here.
Nike collects feedback from suppliers through Better Buying, an anonymous rating initiative that
collects supplier feedback on purchasing practices. Nike collaborated with Better Buying to invite our
suppliers to participate and we use the information to help inform system and process improvements.
Nike's strong, long-term relationships with suppliers help us create innovative product responsibly.
Our approach also supports better outcomes for our suppliers, the people who work in our supply
chain and for the planet.
Related Topics
View All Topics