The case gives a detailed account of the failure of Supply and Demand Planning software implementation at Nike, a leading Footwear and Apparel company. The case traces the history of supply chain and ERP software implementation at Nike and presents the rationale behind their implementation. It details the circumstances that led to the SCM software implementation failure and also examines the steps taken by Nike to fix the problem. Finally, the case explores how Nike was able to use the learning from the failure to its advantage and emerge successful with the SAP implementation, a part of the Nike Supply Chain Project.
Issues:
» Study and analyze the problems faced in supply chain management (SCM) and ERP software implementation
» Examine the reasons for SCM software implementation failures
» Analyze the suitability and implications of 'Single Instance Strategy' of Nike for global ERP projects
» Understand how companies can learn from their mistakes in SCM and ERP software implementation
Introduction 1
Nike's Supply Chain 2
The i2 Debacle 4
Was it Avoidable? 5
The Lessons Learned 6
Implementing SAP Apparel and Footwear Solution (AFS) 8
The Benefits 9
Exhibits 13
Keywords:
Nike, Supply Chain Management, SCM, Software Implementation, Failure Enterprise Resource Planning, Single Instance Strategy, Enterprise Application Implementation, Nike's Supply Chain Project, i2 TradeMatrix Plan Solution, Demand Planning, Business Contingency Planning.
"We became a poster child for failed implementations."1
- Roland Wolfram, Vice-president - Global Operations, Nike Corporation, commenting on the i2 software implementation failure in 2000.
"The lesson of Nike's failure and subsequent rebound lies in the fact that it had a sound business plan that was widely understood and accepted at every level of the company. Given that resiliency it afforded the company, in the end the i2 failure turned out to be just a speed bump."2
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