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SCM & ERP Software Implementation At Nike: from Failure To Success
Submitted To:Prof. D.N. Verma
Submitted By:Aakriti AnandAnkit Singh RathoreArnab SenguptaJasneet KaurShivani SalujaShreen Singh.....
CONTENTS
• Introduction: NIKE• NSC, SCM and i2• i2’s debacle• Reasons for i2’s software failure• SAP AFS ERP Implementation• Benefits • Conclusion
Introduction: NIKE
• Founded in Jan 1964 by Philip H.Knight and his coach as Blue Ribbon Sports
• Rechristened as Nike in 1978 • Manufactures:– Sports equipment– Sports wear– Apparels – Accessory products
• Sales in over 140 countries
Q.EXAMINE THE ROLE OF ACCURATE
DEMAND FORECASTING FOR A BUSINESS.
Enhances the Company’s ability to respond to changing conditions
Reduces the Inventory and Capital Investment risk
Improves Process, Information and product quality
Improves service to meet the customer needs.
DEMAND FORECASTING
Examine the limitations of the Demand Planning Software.
Integration with existing systems
Slow due to heavy customization
Vulnerability to crashes
Unable to handle the required variables to generate forecasts
Reasons for failureIgnored i2 recommendations to minimize customization
Tried to accomplish too much too fast
Failed to realise what is achievable
Did not hold review meetings to discuss computerized forecasts
Elaborate on the measures that can be taken to overcome demand forecasting problems
DEMAND FORECASTING OF NIKE
• i2 software implementation to match supply with demand.
• Cost of this project was US $40 million.• i2 was implemented to reduce the amount of
raw materials.• Due to heavy customization, the software
became slow and proper demand could not be generated.
MEASURES TO OVERCOME DEMAND FORECASTING
• Well equipped and competent system.
• Continuous interaction with customers.
• Proper analysis of data.
• Supplier and retailer feedback.
Nike`s i2 debacle softwareImplemented in 1991. But many problems
arose:-
1. i2 was inexperienced2. Nike demanded high degree of customization
3.nike put up too strict deadlines.
ERP from SAP
• Integrated AFS from SAP, i2 planning software and Siebel CRM software.
• This was based on orders and invoices rather than forecast.
• Training and testing was done from the very beginning.
• Resulted in :-Decrease in lead time Better integration of departments.
Implementation is a complex process
Setting realistic goals
Steady Approach
Lessons Learned
Lessons LearnedFlaws in forecasting models
Adequate training
Testing
Suitable Business Models