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Nike Erp

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Submitted By fstrauss04
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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, and how Nike resolved these problems.
Nike was founded in 1957 on the vision of two men, Bill Bowerman and Phil Knight; a vision to redefine the industry of athletic footwear. Bill Bowerman was a track and field coach at the University of Oregon in search of a competitive edge for his athletes, a competitive edge which could be achieved by spearheading changes to the running shoes of the time. At the time, Adidas and Puma were the dominant brands of running shoes. Phil Knight, a Portland runner with a degree in finance from Stanford University, proposed to compete with the German (Adidas and Puma) brands of running shoes by manufacturing them in Japan, which at the time was experiencing a post WWII boon in its economy, and their stage of manufacturing development was at a point where the focus was on copying established American and European products at a lower cost, relying on cheap labor and foreign economic stimulus in the
Frances J. Rey
Bus205
form of loans and capital investments to power their economy. Before starting Nike, Phil Knight was a distributor for Tiger running shoes. He knew of Bill Bowerman’s reputation as…...

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