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Introduction
The importance of greening supply chains is rooted in reputational and profit-related gains from such endeavors. Being focused on reductions in environmental pollution from manufacturing, supply chain greening in the form of green manufacturing produces financial benefits by lowering raw materials costs, boosting production efficiency, and strengthening the company’s corporate image by making pro-environmental narratives incorporated into its advertising strategies (Tseng et al., 2019).
Discussion
Greening promotes reduced waste disposal expenses and overhead costs while maximizing profitability by fulfilling companies’ potential for recycling (Tseng et al., 2019). In general, having green supply chains means achieving stable reductions in activities’ unwanted environmental impacts along the product’s life cycle, from its introduction to decline. Business entities with green supply chains have logistic structures that are conducive to environmentally conscious manufacturing and distribution while striking the right balance between the matters of biodiversity and the company’s profits.
Nike’s Sustainable Business Practices
As a prominent market player in the global footwear industry, Nike employs a green supply chain. Since 2012, Nike (n.d.) has been investing in supply chain greening initiatives that involve innovation-focused collaboration with logistics service providers. New production technology, including digital knitting used in Nike’s Flyknit footwear series, has promoted the greening of the company’s supply chain by causing an 80% reduction in waste associated with upper-section manufacturing (Jiang, 2019). The management’s determination to pursue supply chain reunification initiatives has caused some examples of administrative innovation. Specifically, Nike’s designers invented the Considered Index (CI) and implemented it into the company’s responsible sourcing initiatives, and Nike further revolutionized its traditional supply chain metrics to consider manufacturers’ performance (Jiang, 2019).
Conclusion
Thus, both innovation and technology support Nike’s green supply chain. Aside from instrumentalizing new technology and innovative processes, Nike’s supply chain keeps the company sustainable by facilitating the selection of the most eco-friendly raw materials to produce less waste.
References
Jiang, W. (2019). Sustainable development of supply chain in footwear industry – Take Nike as the case.Asian Business Research, 4(3), 86-93. Web.
Nike. (n.d.). Supply chain sustainability index. Web.
Tseng, M. L., Islam, M. S., Karia, N., Fauzi, F. A., & Afrin, S. (2019). A literature review on green supply chain management: Trends and future challenges.Resources, Conservation and Recycling, 141, 145-162. Web.
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