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Nike Rebounds: How (and Why) Nike Recovered from Its Supply

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by

Lydia Chin

on 22 October 2013

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Transcript of Nike Rebounds: How (and Why) Nike Recovered from Its Supply

Nike Rebounds: How (and Why) Nike Recovered from Its Supply Chain Disaster
What was the problem?
i2 demand planning engine
software glitch
closely tied to a core business process- factory orders.
sends a ripple through product delivery -crashing on the balance sheet.
overwhelmed by tens of millions of products
duplicated & deleted orders
slow, didn’t integrate well, had some bugs
Nike’s planners were inadequately trained in how to use the system before it went live
What were the implications?
100 million lost in sales
stock prices decreased by 20%
cause lawsuit fights
hard to recall factory orders
Six factors for successful ERP
Focus on Business Processes and requirements
organisation objectives

Focus on Achieving a measureable ROI

Use a strong project management approach
Continued:

realistic expectations
focus on busienss process
interaction of five factors
Recommendation
document your requirements
robust solution design
Strong Internal Project Management
test
Train then Re-train
Full transcript