Essay about Nike Erp

Words: 2335
Pages: 10
Open Document
Case Study: Nike ERP Implementation

Nike shoe division grew and spread rapidly around the globe from its inception in 1972 through 1998. Yet in 1999, Nike realized that in order to keep up with the growing demands of their products, and specifically their Air Jordan line of basketball shoes, they would have to make changes in the way they forecasted and projected demands and distributed their products. Eventually it was decided that these changes would take place in the form of the implementation of a new supply chain and Enterprise Resource Planning (ERP) software system. This paper will examine the supply chain problems Nike was trying to fix with the new system, the problems that arose from the implementation of the new system, …show more content…
Nike manufactures athletic shoes for multiple sports including, soccer, running, basketball, and tennis, as well as athletic apparel
Frances J. Rey
Bus205

and fitness equipment, which are sold in over 160 countries around the globe and employs over 30,000 workers. Nike has over 600 factory contracts which employ over 800,000 workers that manufacture Nike products. It is headquartered in Beaverton, OR. In 1975, Nike implemented what was called the “futures” program to manage its supply chain. This program would guarantee delivery on orders placed six months in advance while also guaranteeing a fixed price at a time when inflation was high. This gave them an edge on their competitors and worked well through 1997 when Nike stock prices went up as high at $76 per share. As Nike’s market grew in the United States and spread around the world, Nike looked to outsourcing its manufacturing to the People’s Republic of China, Indonesia, Vietnam, Thailand, Italy, The Philippines, Taiwan, South Korea, Argentina, Brazil and Mexico to increase profits, and using contract labor as opposed to owning the manufacturing plants and employing the workers, again to keep costs down. As market share and demand grew, Nike found that its futures system was not able to keep up with the retail orders. By 1998, Nike found itself in a nine month manufacturing cycle. This meant retailers had to place their orders nine months before the expected delivery of products. This was a
Show More

Related Documents: Essay about Nike Erp

Supply chain mamagement Essay

the success of a business. The huge amount of ascendancy achieved by businesses e.g. H & M, Zara, Gap and Next in the dress designing trades operating from the 1990s till present cause designers like Esprit, s’ Oliver, Mexx, Tommy Hilfiger, Levi, Nike and other businesses like Karstadt, Kaufhof, Lafayette, Printemps and El Corte Ingles to step up their supply chains. This implies that the aggressiveness in the market, features providing commodities according to the cultural demands of the clientele…

Words 2234 - Pages 9

Notes On Managerial Accounting

Chapter 1-1 CHAPTER 1 MANAGERIAL ACCOUNTING Managerial Accounting, Fifth Edition Chapter 1-2 Study Study Objectives Objectives 1. Explain the distinguishing features of managerial accounting. 2. Identify the 3 broad functions of management. 3. Define the 3 classes of manufacturing costs. 4. Distinguish between product and period costs. 5. Explain the differences between a merchandising and a manufacturing income statement. Chapter 1-3 Study Study Objectives Objectives 6. Indicate…

Words 2485 - Pages 10

Strategyand E Commerce And Consumer Goods Essay

E-commerce and consumer goods A strategy for omnichannel success Scan this QR code with your smartphone to take a free 10-minute survey to gauge how well your company is using and learning from digital data. This Digital Customer Centricity Profiler will help you see how your capabilities for customer centricity compare to leaders in your market and industry. You can also take the survey at www.beadigitalleader.com. Contacts About the authors Amsterdam Mexico City São Paulo Behdad Shahsavari…

Words 4638 - Pages 19

Solomon Rprc7 Tif15 Essay

Marketing: Real People, Real Choices, 7e (Solomon / Marshall / Stuart) Chapter 15 Deliver Value through Supply Chain Management, Channels of Distribution, and Logistics 1) A firm that brings in outside companies to accomplish supply chain activities is using ________. A) insourcing B) outsourcing C) crowdsourcing D) intensive distribution E) exclusive distribution Answer: B Diff: 2 Page Ref: 448 Skill: Concept Objective: 15­1 Understand the value chain and the supply chain…

Words 9321 - Pages 38