Supply Chain Management - Woolworths and Nike

1585 Words Nov 5th, 2010 7 Pages
Supply Chain Management

Supply Chain Management (SCM) is a systematic integration of suppliers, Original Equipment Manufacturer (OEM), distributors and customers in order to produce and distribute the right quantities, to the right time, and at the cheaper cost, while satisfying the entire supply chain partners (Balsubramanium & Roosebelt). In simple words, it is a process of moving goods from manufacturers to a consumer. Today successful companies, uses softwares or web based application service provider (ASPs) to provide them a better supply chain solutions. Technology has been the life and blood in all the fields since many years but in supply chain, it is playing an extraordinary role. Not only by cutting the cost, enhancing
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The company also uses WebMethod Integration platform which is also known as Software AG, helps them in cost effectiveness and reduce duplication of within the Woolworths’ IT system. The company has invested more money in its supply chain development program by bringing in Business Process Management (BPM) capabilities (Reuters 2009). In 2005 Woolworths became a major competitor to local supermarkets. The company hire “ECN Group” which are specialised in providing integration and messaging solutions that enable business to electronically manage and exchange a broad range of information flows across their organisations (The ECN Group 2009). ECN’s key focus is inside the supply chain and logistic of Retailer and Suppliers market. Events across supply chain impact on every business and the ability to meet customer’s anticipation. ECN helps Woolworths to obtain visibility of and mange these events which eventually lead to gain competitive advantage.

The above example gives a clear idea that how one company can save millions of dollars just by managing their supply chain accurately.

Below you will find some of the pit falls or disadvantage by using extensive SCM where Nike suffered million dollars of loss.

Nike is one of the largest company in the world who manufacture and distributes sports and fitness products worldwide. Nike employs more than 33,000 people

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