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Nike Erp Supply Demand Study

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Udo R. Mohr C.A.P. Smith CIS601 Fall 2014 14 September 2014 Implementation Paper - Nike ERP Supply-Demand Study Summary In 2001 Nike Inc., the world’s top athletic shoemaker, implemented new ERP software intended to assist the company with their new supply chain strategy that was intended to resolve supply-demand issue the company was dealing with. The software selected was produced i2 Technologies, a Texas based major supply-chain software vendor at cost of over US $40 million dollars (400 million for larger ERP system, which includes all costs). The results of the system’s forecasts were a major failure, the overproduction unpopular shoes and the underproduction of popular designs, with both parties blaming each other for the issues …show more content…

S. Steel. Rapid growth for the company was seen in in the early turn of the century with the company breaking the $1 billion dollar in 2000, around the same time Nike hired them. The company was purchased by JDA Software Group in January of 2010. Estimated and actual costs/duration of implementation The estimated costs for the total deployment of Nike’s ERP system was over 400 million dollars but it is estimated that Nike only spent around 10%, $40 million, on the specific i2 software that was blamed on the market forecast failures. There are no conclusive findings in research showing that this project subset had a budget over-run. It is noted that there were estimated loss in the sum of $100 million because of the forecast issues. The implementation of the project began in June of 2000 and the first reports of system results are one year later, early- to mid- 2001, indication the system had been deployed and in use by then. There are also no found conclusive data showing that the duration of the project did not meet the required timelines, in fact it was an extremely short period to deploy a system of this magnitude. Implementation strategy: direct, phased, pilot, parallel The i2 supply management software was rolled as third party integration to directly replace 27 jerry-rigged systems previously taking care of the SCM processes

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