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Nike Finals Erp Implementation 120549747734470 3

Nike Finals Erp Implementation 120549747734470 3

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Published by Shashank Nagrale

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Published by: Shashank Nagrale on Mar 14, 2012
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SCM & ERP Software Implementation At Nike: from Failure To Success

GR OUP - E ARVIND ACHANTA HARINI CHODAGAM MANISH KHURANA MUDITA MEHROTRA NITHEEN PATRIC PRATEEK BAJORIA SAKET KHANDELWAL S P PARHI SWATI

OVERVIEW OF THE CASE
• • • • • • • • Introduction: NIKE Supply chain management NIKE’S supply chain i2’s debacle Reasons for i2’s software failure Implementing SAP AFS Benefits Conclusion

. • Manufacture: – – – – Sports equipment Sports wear Apparels Accessory products • Products sold in over 140 countries.Introduction: NIKE • Founded in 1957 by Philip Knight.

SUPPLY CHAIN MANAGEMENT • SCM is a business network covering from buying. making. warehousing to selling Making Buying Moving Selling Ware housing . moving.

NEED FOR SCM .

& CRM Software onto a single SAP Platform. Vice President of Supply Chain and Steele.  Supply Chain Management was inadequate. Supply Chain.  Initiative of “Shelley Dewey”.NIKE’S SUPPLY CHAIN • In 1975. Nike introduced Future Program. .  1998. Nike’s global operations were broadly divided into 5 geographic regions.  Nike’s profit dropped by 50% from US$ 798 million to US$ 399 million.  Implement its ERP. • Launched NSC Project.

NSC PROJECT .

NSC IMPLEMENTATION STRATEGY .

i2’s Software Implementation • First part of supply chain strategy. • To reduce the amount of raw material. . • Used it as a legacy system rather than as apart of SAP ERP project. • Cost of this project was US $40 million. • To match supply with demand.

channel collaboration Improved customer service Supply planning Determine what to make and when and how to profitably distribute supply Determine what to produce and when Size and complexity of problem Collaboration. Improved due date performance Production Managing material & capacity trade offs is complex Fast finite material & capacity planning & scheduling . optimization. Speed Global visibility and coordination . fast reaction to changes Reduced inventory.i2 Trade Matrix Plan Solution Solution Objective Challenge Capability Benefit Strategic Planning Maximize profitability by optimally allocating resources Anticipate and influence demand Unclear parameters Optimization Long term profitability Demand management Accurate demand estimation is difficult Demand planning.

Pilot test. Customization.REASONS FOR i2’S SOFTWARE FAILURE • • • • • Third party integrator. . Trying to forecast too far out ahead. Inexperience of i2.

. . •Problems in smooth integration. •Complication of NSC project. •Review meetings. .Continued. •Inadequate information. •Changing market conditions.

Implementing SAP Apparel and Footwear Solutions (AFS) SAP E RP Projec t Big Bang Approach Single Instance Strategy R/3 Variant Purchased in1998 .

lan estin P &T . a il t l Bu ba o Gl plate m Te me nt a n ti o e los sC er tn Par ip h n itio ng ns Tra Traini g . .Im pl e Continued. .

After Learning the Lesson i2 Software The SAP AFS Just Do It .

BENEFITS .

.

Measures to overcome demand forecasting problem .

Importance of demand forecasting • Determining the quantities. • Efficient forecasting . • "make to stock" rather than "make to order“ • Reduces supply time.

Ways to avoid supply chain problems .

Lessons Learned Be Patient Define a business Goal Re-engineering Process Just Do It Over Keep your eye on the price .

. • Evaluating pros and cons. • Adaptability • Importance of pilot test. • Continuous assessment.CONCLUSION • Implementation is a complex process.

T an yo h k u Just do it .

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