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NIKE: INTRODUCTION
Started in 1957 as an athletic footwear distribution company called Blue Ribbon Sports By Bill Bowerman Phil Knight : Track and field coach : Runner
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NIKE: INVENTORY MANAGEMENT
Mid-1980, demand management system managed inventory Gloabal operations from US, Europe, middle east and Africa, asia pacific and LAC
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NIKE: I2 SCM
Supply chain software implemented by I2 Technologies in 1999
Expected Benefits To increase the scope of operations To help take orders from the customers and inventory management
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NIKE: I2 SCM
To always ensure that supply always meets the demand as per the
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WHILE IMPLEMENTING
Nike refused to use templates & methodologies System was too customized Increased employee turnover affected the system No third party integrators
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NIKE & i2: ERRORS COMMITTED
Customization Improper Implementation No Sampling Process
Inexperience of i2
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NIKE: I2 DEBACLE
Over estimate demands to some shoes and Under estimate demand to some shoes System sent flawed data to Manufacturers
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NIKE: I2 DEBACLE CONSEQUENCES
Not able to cater demands Reputation Lost Market Share Forced to sell in discounted prices
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NIKE: SAP ERP TAKES OVER
Implemented sap along with its variant R/3 specifically designed for apparel and footwear industry Designed to streamline communications & lower operation costs
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NIKE: SAP ERP TAKES OVER
SAP AG and Siebel Systems for CRM Pilot testing of sap netweaver platform Implemented for business information warehouse
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NIKE: SAP ERP Benefits
Nike spent six years and $500 million on the project By 2004, the project was 80% complete Inventory levels declining Quicker design and manufacturing
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FINALLY DID IT !