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
Nike NIKE (NI-KEY) is a winged goddess of victory according to Greek mythology. She is said to sit at the side of Zeus. The twentieth century Nike footwear lifts athletes to new achievements. The ‘swoosh’ resembles the winged goddess who was an inspiration to warriors since the beginning of time. Phil knight had two influential people that inspired him to create Nike.
Unlike its competitors, Crocs had a highly responsive and flexible supply chain. Owing to the Crocs executives’ experience in electronics industry, they were accustomed to producing what the customer needed and when it was needed. Thus the business model was focussed on customer needs and responded promptly to changes in demand and trends. The retailers of shoes, therefore, had neither the pressure to forecast exact demand nor the obligation to order bulk orders several months before the selling season.
Whirlpool Europe’s implementation of an enterprise resource planning (ERP) system is a positive business investment. One of the biggest challenges that Whirlpool Europe faces is a disconnect in the information systems. This disconnect has led to a decrease in product availability, loss in sales, and an unreasonably high inventory. A new system will allow Whirlpool Europe to improve operating effectiveness and efficiency. The cost of implementation of the ERP is quite substantial. However, the benefits do outweigh the costs when net present value is calculated and compared. Once the ERP system is implemented, sales offices will be able to view inventory across the entire supply chain to determine what
For Nike's business model to continually flourish and stay profitable, the senior management team and strategic planners must continually monitor short, intermediate and long-term economic factors that will affect their operations. Nike's business model is heavily dependent on supply chains, as the majority of their products are manufactured in Asian nations, either in their own manufacturing centers or contract manufacturing partners. Sales forecasts for next-generation shoes, apparel and sporting equipment must be accurate to ensure the supply chain estimates and forecasts can meet product demand. The influence of economic factors on sales and marketing planning and strategy development is among the most immediate and significant for any enterprise operating in global markets (Cerullo, Avila, 1975). Strategic planners at Nike, working in conjunction with product development and product launch teams, must understand the price elasticity of demand for a given new product or an entirely new division before launching it. Economic data gives Nike senior management and strategic planners the insight necessary to determine which new products to launch or not, when, and in which specific regions of the world. Economic variables will in short tell Nike's senior management how to navigate risk and capitalize on opportunities as quickly as possible.
Our criteria were given weights of .41 for availability of information, .35 for scope of improvement, .1 for familiarity of the product, .08 for complexity of the process, and .06 for personal interest. Under these criteria out alternatives returned values of .47, .4 and .125 for Dell, Herr’s, and Nike respectively with an inconsistency of .017. Prior to conducting the analysis, we felt Herr’s would be the best company for the project due to our familiarity with the company’s products, its nearby headquarters and the availability of a tour of the manufacturing process. However, Dell made a much larger amount of information more easily accessible to the general public which we determined would be more beneficial for us during this project.
Nike Inc. was established in 1972, from Blue Ribbon Sports Company that was formed earlier in 1964, by Bill Bowerman and Philip Knight. The company first specialized in athletic footwear until in 1979, when it introduced the apparel line. The equipment division was later introduced in 1996. The company grew spontaneously to become the world's largest supplier of all sportswear, equipment, and apparel. The level of its infrastructure could only be compared to that of Adidas, which has been its main competitor over the decades. Currently, Mark
For Loblaw the continual improving of electronic initiatives including the adoption of the ECCNet standard and the development of more advanced support of demand planning, ERP integration of supply chain planning and execution, have given the company a defendable position with suppliers. The supplier community in retailing tends to dominate the smaller retailers, yet the converse is true with the larger,
This is a case study analysis on Nissan Canada Inc. (NCI) and its plan to move from a “make to stock” to a “make to order” process and the implementation of NCI’s Integrated Customer Ordering Network (ICON). Involved in the implementation of ICON, NCI is faced with several challenges in the conversion of its outdated ordering process to Manugistics, an Enterprise Resource Planning (ERP) system. (Hunter, 2007)
Brands use different strategies to create competitive advantages to beat with their rivals. Some companies use “Overall Cost Leadership” to increase profit by reducing costs and increase market share by lowering price. Some companies use “Focus Strategies” to select a group of market and tailor its strategy to serve that group. The others use “Product Differentiation” as a strategy to obtain a premium price by making unique products. Nike, with its differentiation strategy, the company is continuing to separate its self from the competitors by using its superior technology and innovation. This paper mainly discusses on the company’s product differentiation and analysis how the company using this strategy to build its brand image and become a market leader in sportswear industry. A brief discuss about Nike competitive advantage which related to its broad differentiation aspect and the company product life cycle are also presented on this paper.
In spite of the fact that Nike confronted monstrous misfortunes and substantial specialized issues, they didn't falter when the framework did not work appropriately. The association acquired specialists to manufacture databases to sidestep segments of the i2 application. They likewise assembled spans inside of the product to empower information sharing. Nike exchanged its short and medium ran tennis shoe wanting to the SAP ERP framework, which utilized a more prescient calculation for assessing interest (Koch, 2004). Discovering a recently discovered admiration towards the SCM framework, Nike concentrated vigorously on preparing it's workers. Representatives got 140-180 hours of preparing to see how the framework functions (Koch, 2004). Nike
Nike was founded under the name Blue Ribbon Sports in 1964. In 1972 the first pair of sports shoes was sold and experienced enormous growth and achieved a 50% market share within the sports shoe market in the US only eight years later.
Supply management is a complex function that’s critical to business success, responsible for delivering efficient costs, high quality, fast delivery and continuous innovation throughout companies’ entire supply chains. The strategic contribution of supply management is measured not only in savings made, but also in increased shareholder value (Niezen, Weller & Deringer, 2007). Nike and Adidas are two global companies try to improve their competitive advantage through strategically managing and utilizing their supply chain. The purpose of this report is to compare and evaluate the supply chain management practices of Nike & Adidas.
Many of us know Nike for the clever maketing campaigns, celebrity athelets, "swoosh" logo, and "Just Do It!" slogan. In 1963 the world's largest athletic shoe company was founded by Philip Kight and Bill Bowerman for $500 apiece and a handshake, and today has over $9 billion in revenues.
My operations management coursework was based on the ECCO A/S – Global Value Chain Management case study which is an interesting paper on ECCO A/S (ECCO) who have been very successful in the footwear industry by focusing on production technology and assuring quality by maintaining full control of the entire value chain from “cow to shoe.”.
The aim of this project is show Nike supply chain strategy. Firstly, there are some basic information about Nike, then definition and explanation of supply chain. It can be seen in example of Nike how supply chain works in reality. Secondly there is example of implementing new technologies and software. We can see also explanation of strategic fit and competitive advantage and how Nike achieve it.