Complied Nike Case

16

Transcript of Complied Nike Case

Page 1: Complied Nike Case
Page 2: Complied Nike Case

SCM & ERP Software Implementation At Nike: from Failure To Success

Submitted To:Prof. D.N. Verma

Submitted By:Aakriti AnandAnkit Singh RathoreArnab SenguptaJasneet KaurShivani SalujaShreen Singh.....

Page 3: Complied Nike Case

CONTENTS

• Introduction: NIKE• NSC, SCM and i2• i2’s debacle• Reasons for i2’s software failure• SAP AFS ERP Implementation• Benefits • Conclusion

Page 4: Complied Nike Case

Introduction: NIKE

• Founded in Jan 1964 by Philip H.Knight and his coach as Blue Ribbon Sports

• Rechristened as Nike in 1978 • Manufactures:– Sports equipment– Sports wear– Apparels – Accessory products

• Sales in over 140 countries

Page 5: Complied Nike Case

Q.EXAMINE THE ROLE OF ACCURATE

DEMAND FORECASTING FOR A BUSINESS.

Page 6: Complied Nike Case

Enhances the Company’s ability to respond to changing conditions

Reduces the Inventory and Capital Investment risk

Improves Process, Information and product quality

Improves service to meet the customer needs.

DEMAND FORECASTING

Page 7: Complied Nike Case

Examine the limitations of the Demand Planning Software.

Integration with existing systems

Slow due to heavy customization

Vulnerability to crashes

Unable to handle the required variables to generate forecasts

Page 8: Complied Nike Case

Reasons for failureIgnored i2 recommendations to minimize customization

Tried to accomplish too much too fast

Failed to realise what is achievable

Did not hold review meetings to discuss computerized forecasts

Page 9: Complied Nike Case

Elaborate on the measures that can be taken to overcome demand forecasting problems

Page 10: Complied Nike Case

DEMAND FORECASTING OF NIKE

• i2 software implementation to match supply with demand.

• Cost of this project was US $40 million.• i2 was implemented to reduce the amount of

raw materials.• Due to heavy customization, the software

became slow and proper demand could not be generated.

Page 11: Complied Nike Case

MEASURES TO OVERCOME DEMAND FORECASTING

• Well equipped and competent system.

• Continuous interaction with customers.

• Proper analysis of data.

• Supplier and retailer feedback.

Page 12: Complied Nike Case
Page 13: Complied Nike Case

Nike`s i2 debacle softwareImplemented in 1991. But many problems

arose:-

1. i2 was inexperienced2. Nike demanded high degree of customization

3.nike put up too strict deadlines.

Page 14: Complied Nike Case

ERP from SAP

• Integrated AFS from SAP, i2 planning software and Siebel CRM software.

• This was based on orders and invoices rather than forecast.

• Training and testing was done from the very beginning.

• Resulted in :-Decrease in lead time Better integration of departments.