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Supply Chain Problems face

by Nike

Nike didnt apply that same patience to the implementation of
the first part of its supply chain strategy.
The i2 software needed to be so heavily customized to operate
with Nikes legacy systems that it took as much as a minute
for a single entry to be recorded by the software.
And, overwhelmed by the tens of millions of product numbers
Nike used, the system frequently crashed.
The system ignored some orders and duplicated others.
The demand planner also deleted ordering data six to eight
weeks after it was entered, making it impossible for planners
to recall what they had asked each factory to produce.

SCM problems Contd*

Rushy implementation:
The main reason for the failure i2 supply chain was the quick
implementation. There was no proper training offered before
running the strategy
Nike is the world's largest sportswear brand and its
supply chain spans 50 countries, 800 contract
factories and hundreds of textile manufacturers that
supply them. Nike go through the iterative process of
assessing individual factories and suppliers, which
obviously takes many years and lots of investment
and time.

Supply Chain improvement

initiatives by Nike
Integration with Supply Chain Management:
Rewiring Nikes approach to supply chain sustainability has
involved changes both at the company level and with its
suppliers. Within the company, Nike changed its
organizational structure to better integrate sustainability
within traditional corporate functions. The company uses a
matrix organizational structure in which managers report to
multiple departments. Based on business unit goals,
employees develop strategies and plans detailing their
multidisciplinary responsibilities. Internal scorecards are used
to report progress towards the goals.

SC improvements Contd*
Incentives with Supply Chain Management:
Nikes innovative MI is a leading example of how a company
can move away from a more traditional compliance approach
and a push model to manage sustainability issues, to a pull
model, which incentivizes suppliers for performance. By
offering suppliers incentives, imposing sanctions and measuring
performance on a suppliers balanced scorecard, suppliers
better understand the importance of sustainability.

SC improvements Contd*
Innovation with Supply Chain Management:
Innovation is helping Nike to achieve its ultimate destination:
A truly sustainable supply chain. In order to achieve Nikes
long-term vision for sustainability, it recognizes that
collaboration with other firms and stakeholders is vital.
Solitary private efforts are often insufficient for impactful
systematic change. This realization reflects the companys
focus on using innovation to proactively design out
problems in the supply chain in both products and processes.

SC improvements Contd*
Partnership with Bluesign:
According to the agreement, Bluesign Technologies will
provide Nikes supply chain with access to two of its
tools: Bluesign Bluefinder and the Bluesign Blueguide.
The tools will be rolled out across Nikes global supply
chain, which spans nearly 50 countries and more than 800
contracted factories.

With Bluefinder, a supplier can access pre-screened and more
sustainable textile preparations including dye systems, detergents and
other process chemicals used in the manufacturing process. The tool
helps suppliers manage restricted substances and increase water and
energy efficiency. The Blueguide gives Nike access to more than 30,000
materials produced using chemicals from the Bluefinder at facilities that

SC improvements Contd*
Training and Effective Implementation:
Nike learned from its mistakes. There would be no rushing the
SAP installation This may be because of Nikes newfound
respect for training, another weakness of the i2
implementation. Nikes U.S. customer service representatives
received 140 to 180 hours of training from highly trained
fellow Nike "super users," . Employees are locked out of the
system until they complete the full training course

Nikes Manufacturing Index

Impact of Improvement Initiatives

by Nike

Achieved Supply Chain stability

Better evaluation

Forecast more accurate

Proper use of technology implemented

Time saving

Ease of access and flexibility in the supply chain system.