Nike Q-1) What are the factors which made the difference between success and failure in the

SCM and ERP implementations at Nike? Answer:- the factors which made the difference between succedd and failure in the SCM and ERP implementation at Nike are as follows: 1. Testing 2. Training 3. Integration Nike did not exchange the important information which was crucial for forecasting while implementing i2s SCM and ERP software. Pilot testing was not given importance though it was required for SCM and ERP implementation which is a complicated process. To get use to with the software, training was given which leaded to more efficiency but was not at all considered. Testing gives solutions for the drawbacks which may come in future, therefore new software should always be tested before its implementation. Retailers, customers, manufacturers and distributors are the data provider which helps executives to do forecasting. When this information flows easily, it shows that it wil enhance the efficiency of forecasting. As given in the case, the software didnt support to the model of NIKE because any organisations model should be compatible with the software and it should be checked before implementing. Without proper compatibility, successful implementation cant take place. There should be ample of time for the successful implementation of supply chain software. There were lot of of constraints SAPs ERP which software. were Nike eliminated employees during got the more implementation

understanding of business and credibility because they underwent 180 hours mandatory training. Nikes great success was when they also implemented SAP AFS by using single instance strategy. Blind buys from the retailers was reduced from 30% to 3%. This leads to better financial

management, improved revenue forecasting and the ability to take advantage of fluctuating exchange rates. As we know, it achieved highest gross profit margin of 42.9%. therefore, for the successful implementation of SCM and ERP; testing, training and integration are the major factors.

Q-2) Is Nikes implementation of SCM and ERP going well since 2004? Answer. Till 2004, the company was successful in implementing its Nike Supply Chain project indicating that its centralized planning, production and delivery process were right for the single instance strategy. Nike announced that it had generated profit but $48 million below its earlier forecast. This failure in supply chain software installation by i2 technologies was the cause decreased revenue. But after the success of Nike in 2004, Nikes single instance strategy became the best and desired approach for various companies implementing ERP software. 95% of its business is based on SAP. As per IBM and Stanford University, 2006 there supply chain management focused on its process innovation to do their products different from other shoe producers, continuous improvement by maintaining its relationship with its suppliers to be able to do its production process better and execution discipline by doing things right, adhering to the corporate and governmental laws and policies. There are some benefits of Nikes supply chain. The quality product of NIKE is based on various things i.e. their relationship with its suppliers which help them to reduce administrative and payroll costs, flow of their products reduced time in initial design, forwarding the shoe parts from suppliers to companies assembly and finally in shipping the finished products for worldwide distribution. From 2004, nike was able to transform its supply chain into an adaptive supply chain network. It allowed an original equipment manufacturers to add new partners as soon as customers showed demand for new products and services.