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ABSTRACT
Nike a leading manufacturer of shoes and other sports equipment in the world faced lots of problems in adopting new software to streamline its supply chain and manufacturing processes in order to reduce gap between its products demand and supply.
Nike obtains its finished products from manufacturing facilities located whole across the world. Nike followed a complicated supply chain system. It obtained orders from retailers six months before their dates of delivery. These orders were to be forwarded to the various factories located across the world. Finished goods obtained where then shipped to the respective retailers.
In order to improve its logistics and working schedule Nike thought of implementation of supply chain and ERP software. Their implementations lead to sequence of failures. Nike undertook various steps to improve thereupon. With strong determination Nike was able to emerge successful with SAP implementation as a part of Nike Supply Chain Project.
Issues
(1) To study the problems faced in inventory and supply chain management along with ERP software implementation; (2) to find out reasons for execution failures; (3) to understand reliability of 'Single Instance Strategy' of Nike; (4) to understand how companies improve upon mistakes made by them in implementation of their projects; (5) to recognize importance of existence a good supply chain system; (6) To appreciate that a new system can work successfully only when it is well integrated with existing systems.
INTRODUCTION
Nike co founders first time met in 1957, when Knight, a middle-distance athlete, was an undergraduate student at the University of Oregon (known for having the best track program in US) and Bill Bowerman, the athletics coach.
In the early 1960s, while doing his MBA from Stanford University Knight submitted his marketing research dissertation on the US shoe manufacturing industry. His contention was that low cost, high quality running shoes could be imported from labor-rich Asian countries like Japan and sold in the US to end Germany's domination in the industry. In 1962 Knight on a world tour met the management of the Onitsuka Company of Japan, which manufactured quality athletic shoes 'Tiger'. He imported these shoes to the US for sale as 'Blue Ribbon Shoes' (BRS).
In 1964, Knight and Bowerman, with each of them contributing $500, formed a partnership,...