1. WHAT DO WE MEAN BY MADE IN THE USA? Made in the USA entails
that we change all processes of the company to be inside the United
States This means that not a single process should be performed
outside of the U.S.
2. THE STAR SPANGLED BANNER: TRY SINGING ALONG
3. Now how did that feel?
4. WHY CHANGE WHEN WHAT WE DO WORKS? Here at Nike, we have huge
success using outsourcing to get our products produced However,
times are changing as well as consumer opinions Despite our efforts
to improve working conditions and rid ourselves of the sweatshop
image over the past 20 years, the image still lingers around
outsourcing This is why I call for the PROACTIVE move to the Made
in the USA model to put us ahead of everyone In addition, it can
create savings in areas that we may lose short term profits
from
5. PROBLEMS WITH OUTSOURCING Although outsourcing may money for
production, it creates costs for transports, customs duties and
time Also with economic downturns, the idea of creating jobs
outside of the U.S. is not favored with many Americans We need to
have a good image with all of our customers!
6. BENEFITS TO LOCAL SOURCING Many benefits come with local
sourcing The factors surrounding sourcing such as transport cost
and time, cultural differences, discrepancies between what we think
is happening and what is actually happening at a factory, and
intellectual property protection are avoided Some customs duties
are as high as 28% Costs of outsourcing are only increasing as well
according to research by Margaret Bishop Business model is more
transparent According to the Boston Consulting Group, both American
and Chinese consumers will pay more for U.S. made products
7. EXAMPLE OF AMERICAN APPAREL Looks like theyre doing
something right at American Apparel! They have created their own
image by making everything on American soil Although we have our
own image already, a little bit of change never hurt anyone
8. EXAMPLE OF AMERICAN APPAREL Under-One-Roof Strategy This
strategy allows for all processes to be completed under one roof,
in the same building This process cuts out the time it takes to go
back and forth between manufacturers to find a problem in
production or quality Allows for the best products to be churned
out as quickly as possible
9. EXAMPLE OF AMERICAN APPAREL American products made by
American people Transparency American Apparels business model also
gives them a sense of transparency Their employees are paid fairly
and provided good working conditions and fair pay This builds even
more brand trust that can help more people relate to the brand on a
personal basis Any country can relate to the sense of pride they
have in their country
10. PROOF OF CHANGING CONSUMER OPINIONS Marsha A. Dickson -
2001 Conducted a study to relate consumer buying decisions to a
label that showed that the product was not produced by sweatshops
Found no significant relation 2013 Walmart factory fire in
Bangladesh Factory was deemed unsafe months prior to fire, yet work
continued Ended in a catastrophe, which could have been prevented
Working conditions and laws are not the same abroad as they are in
the U.S. Many people protesting working conditions abroad,
including unions More and more people fighting idea of sweatshop
produced clothes
11. WORKER SAFETY We dont want this to happen at our
factories
12. WE NEED TO MAKE THE CHANGE TODAY I understand we have a
good process with outsourcing currently, but the downsides of
changing to a Made in the USA business model are outweighed by the
upsides Changing consumer opinions and increasing costs of
outsourcing, although they have yet to affect us, are future
threats for us at Nike Making the proactive change frees us of
these and helps us build an even stronger image to remain the
front-runner of sports apparel