Nike

-5.45%

1. Difficulty in finding suppliers: With preferences for suppliers usually changing according to geographic locations and Nike’s complex supply chain, it makes it difficult to find and engage with new suppliers.

2. Supplier burnout: Suppliers are subject to physical and financial strain in order to keep up with the demands of a Nike’s production schedule. This can lead to overworking, exhaustion and potentially burnout for the supplier.

3. Compliance risks: With Nike operating across multiple countries, production processes must adhere to differing regulations, ranging from tax laws to human rights. Failing to respond to changing legislation in each country can result in fines and potential reputational damage for the brand.

4. Low labor wages: By automating certain processes and using cheap labor, there is the risk of unethical labor practices such as low wages or the violation of human rights.

5. Lack of visibility: An opaque and complicated supply chain system can make it difficult to identify areas of vulnerability such as manual errors, quality issues, and counterfeit products that may unintentionally be entering the supply chain.

6. Inventory issues: An imbalance of inventory can lead to scarcity or overstocking, which can lead to unnecessary product costs and storage fees.