What do Nike outsource?

Nike outsources several aspects of its business operations to third-parties. Here are a few key areas where Nike engages in outsourcing:

Product Manufacturing: Nike outsources a significant portion of its footwear and apparel production to factories in countries like China, Vietnam, Indonesia, and Thailand. These factories are typically operated by independent contractors or suppliers who specialize in manufacturing sports apparel and footwear. Nike works with these suppliers to ensure that products are made according to its quality and ethical standards.

Supply Chain Management: Nike outsources certain aspects of its supply chain management, such as logistics, transportation, and warehousing, to third-party providers. These providers help Nike manage the movement of goods, inventory control, and distribution to retail stores and consumers.

Retail Operations: Nike outsources some of its retail operations, including the management of factory outlet stores and other retail locations, to third-party retailers or franchise partners. These partners operate stores under the Nike brand and sell Nike products, while Nike provides them with support, merchandise, and training.

Customer Service: Nike outsources some customer service functions, such as call center operations and email support, to third-party providers. These providers help Nike handle customer inquiries, complaints, and provide support to customers.

Business Services: Nike outsources certain business services, such as IT services, human resources, and legal services, to third-party providers. These providers help Nike manage its technology infrastructure, employee-related matters, and legal compliance.

By outsourcing these functions, Nike can focus on its core competencies, such as product design, marketing, and innovation, while relying on specialized third-party providers for efficient and cost-effective operations.