Nike Erp

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Nike Case Study Nike roots trace themselves back to the 1950s with University of Oregon field coach Bill Bowerman. Bowerman was always trying to find a competitive advantage for his track runners and had the idea of a lighter show. He would late team up with recent graduate Phil Knight and create the first Nike shoe, “the Swoosh”, which debuted in 1972. Through the years, Nike would continue to create innovative sports apparel, expand into new markets, and challenge the way people look at athletics. Forty years later Nike continues “to seek new and innovative ways to develop superior athletic products, and creative methods to communicate directly with customers” (nikeinc, 2012). Nike is one of the leading distributor and manufacturer of…show more content…
They also built bridges within the software to enable data sharing. Nike switched its short and medium ranged sneaker planning to the SAP ERP system, which used a more predictive algorithms for estimating demand (Koch, 2004). Finding a new found respect towards the SCM system, Nike focused heavily on training it’s employees. Employees received 140-180 hours of training to understand how the system works (Koch, 2004). Nike implemented a phased geographical approach when implementing its new SCM, CRM, and ERP systems. Though envisioned as a 2-3 year implementation, it took Nike 6 years, and an upwards of 500 million dollars to properly implement the supply chain management system (Koch, 2004). Since Nike implemented an ERP, CRM, and SCM system all at once, they experienced a multitude of benefits. Benefits linked to the i2 management system were that they now had better collaboration with their Far East factories. This would reduce the amount of “pre-building” time required per shoe from 30 percent to roughly 3 percent (Koch, 2004). The amount of time from initiating and completion of the shoe was reduced from nine to six months allowing faster product-to-market cycle time. Inventory levels were reduced from cutting interval time from one month to one week (Koch, 2004). The system also allowed better demand forecasting, and demand visibility. A reduced risk of experience a bullwhip effect. Lastly major cost reduction through reduced inventory,
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