Supply Chain Management and I2 Implementation Nike
Nike is the world 's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012) (Nike Inc). The brand alone is valued at $10.7 billion making it the most valuable brand among sports businesses (Nike Inc). Starting in 1999, Nike decided to implement the first part of its supply chain strategy; the demand and supply chain planning application software from i2 technologies. Nikes total ERP implementation was estimated to cost $400 million,to upgrade their supply chain and ERP systems, however, the i2 implementation ended up costing Nike an estimated $100 million in lost sales, depressed its stock price by 20%, and triggered a flurry of class action lawsuits (Christopher Koch).
The supply chain software implementation of i2, estimated to cost $40M, was the first part of a (NSC) Nike Supply Chain project. The (NSC) Nike Supply Chain project was a project to rollout an integrated ERP system from SAP, and customer relationship management (CRM) software from Siebel Systems. i2 Technologies was a supply chain management software and services company with software designed to improve the management of inventory, production, shipping, and sales forecasting (I2 Technologies). Nike was specifically looking to use the i2 software to help reduce the amount of manufactured materials needed in their shoe production by better forecasting customer demand and material requirements. Nike’s implementation of i2 software was also targeted to fulfill customers demand quicker. In 2000, Nike launched the i2 software using its old systems rather than launching it during the larger SAP ERP implementation. At the time of the i2 implementation Nike didn’t feel the current software offering had all the required functionality that they needed, and requested i2 customize the software specifically for Nike. In addition, when implementing i2, Nike chose to use a single
The supply chain software implementation of i2, estimated to cost $40M, was the first part of a (NSC) Nike Supply Chain project. The (NSC) Nike Supply Chain project was a project to rollout an integrated ERP system from SAP, and customer relationship management (CRM) software from Siebel Systems. i2 Technologies was a supply chain management software and services company with software designed to improve the management of inventory, production, shipping, and sales forecasting (I2 Technologies). Nike was specifically looking to use the i2 software to help reduce the amount of manufactured materials needed in their shoe production by better forecasting customer demand and material requirements. Nike’s implementation of i2 software was also targeted to fulfill customers demand quicker. In 2000, Nike launched the i2 software using its old systems rather than launching it during the larger SAP ERP implementation. At the time of the i2 implementation Nike didn’t feel the current software offering had all the required functionality that they needed, and requested i2 customize the software specifically for Nike. In addition, when implementing i2, Nike chose to use a single
References: Farmer, M. A. (n.d.). I2-Nike fallout a cautionary tale - CNET News. CNET News. Retrieved March 31, 2013, from http://news.cnet.com/2100-1017-253829.html 049 SCM and ERP Software Implementation at Nike pdf free ebook download from www.andhrauniversity.info. (2012, November 3). EbookBrowse.com. Retrieved March 31, 2013, from http://ebookbrowse.com/049-scm-and-erp-software-implementation-at-nike-pdf-d412507791 I2 Technologies. (2013, March 27). Wikipedia. Retrieved March 31, 2013, from http://en.wikipedia.org/wiki/I2_Technologies Koch, Christopher. "Nike Rebounds: How (and Why) Nike Recovered from Its Supply Chain Disaster." Nike Rebounds: How (and Why) Nike Recovered from Its Supply Chain Disaster. CXO Media Inc., 15 June 2004. Web. 02 Apr. 2013. "Nike Final 's ERP Implementation." Nike Final 's ERP Implementation. Slideshare, n.d. Web. 02 Apr. 2013. Nike, Inc. (2013, March 31). Wikipedia. Retrieved March 31, 2013, from http://en.wikipedia.org/wiki/Nike,_Inc Nike Rebounds: How (and Why) Nike Recovered from Its Supply Chain Disaster. (2004, June 15). Nike Rebounds: How (and Why) Nike Recovered from Its Supply Chain Disaster. Retrieved March 31, 2013, from http://www.cio.com/article/print/32334 SCM and ERP Software Implementation at Nike: From Failure to Success. (n.d.). ICMR. Retrieved March 31, 2013, from http://www.icmrindia.org/casestudies/catalogue/Operations/SCM%20and%20ERP%20Software%20Implementation%20at%20Nike-From%20Failure%20to%20Success.htm "A New Supply Chain Project Has Nike Running for Its Life." A New Supply Chain Project Has Nike Running for Its Life. Pearson, n.d. Web. 02 Apr. 2013.