About Nike Arrow Next Transform Manufacturing

About Nike Arrow Next Transform Manufacturing

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We are transforming manufacturing at every level by changing the way we work, who we work with and what we expect of our partners. We know that real progress happens when factory management understands that a lean, green and equitable workplace is a productive, profitable and successful business model. 

Redesigning our supply chain

Every supplier factory in our supply chain is subject to a rigorous set of compliance standards, which starts with Nike’s Code of Conduct – the minimum standard we expect each factory or facility to meet. In addition, we evaluate supplier factory performance across sustainability – including labor and environmental practices – on a par with cost, quality and on-time delivery. 

This evaluation encourages factory performance improvement and drives more business to those factories with the best performance. Future supplier factory partners will be those that invest in transforming their manufacturing model with workers at the center.


We believe that a skilled, valued and engaged workforce is key for growth and sustainability. We rely on a source base that is high performing, resilient and agile, with workers that are motivated and fairly compensated to deliver high productivity and world-class product.

We are continuously looking at innovating new approaches. For example, we are running pilot research programs dedicated to engaging and connecting workers to healthcare, education and finance networks to make positive changes inside and outside the workplace.

Innovating the role of technology

We've invested in a significant portfolio of work that is reinventing what a footwear factory looks like and how footwear is made. 

Nike Flyknit technology enables designers to micro engineer every stitch of an upper – scientifically tuned to meet the exact specifications of athletes – while also shaving ounces off each shoe upper. Flyknit reduces waste by about 60% on average compared to cut and sew footwear, and through Spring 2016, has reduced nearly 3.5 million pounds of waste since 2012.

Call to Action

To transform our industry, compliance needs to be a given. Inconsistent standards and monitoring prevents progress. Download infographic to learn more. 

We have a call to action to create change:

  • A single code of conduct

    Enabling a convergence toward a single Code of Conduct across the industry is critical. If each brand is holding a factory to a different standard, imagine the confusion for the factory and the wasted time attempting to comply with each, rather than investing in one. Nike has been a part of discussions and commits to partnering further to accelerate this conversation and move toward action.

  • Industry wide protocols

    To ensure the independence of monitors, the right checks and balances need to be in place with auditors trained against a common protocol to deliver uniform depth and quality of work. Auditing to Nike’s Codes demands specific skills and auditing expertise. We commit to engaging in multi-stakeholder discussions on this, and enabling independent research to help us find common ground.

  • Driving Transparency & Tools

    We believe greater levels of transparency across the industry - around the factories where all companies source - will enable coordinated enforcement of a standard Code of Conduct and joint remediation efforts where issues of non-compliance are found.

Nike’s Commitment to Transparency

Transparency and accountability are fundamental to Nike’s sustainable business approach. The Nike Manufacturing Map discloses the names, locations and demographic information about the workforce at the factories we contract to make our product, and holds us accountable for our chosen source base. 

Our 2020 Targets to Transform Manufacturing:
• Source 100% from factories that meet our definition of sustainable
• Ensure contract factory workers share in productivity gains
• Establish partnerships supporting the needs of factory workers both inside and outside the factories 

For a detailed list of our FY20 targets and FY15 performance, check out the full report below.