Case Study: Nike’s Supply Chain: Failure and Eventual Success
2. What factors led to the i2 Technologies implementation being a highly complex project? Were the increased complexities really necessary?
I think to improve somewhat fragmented and failing demand forecasting and order activities in Nike. The project attempted to predict sales of a huge number of products using a large variety of inputs, some of which were not needed. Also, Nike has decided to acquire and implement i2 technologies demand forecasting system in order to overcome a number of supply chain management problems and large amounts of data were being fed into the i2 technologies’ system form legacy systems within Nike. Another factor for use may be to drive Nike manufacturing.
- What was wrong with Nike relying heavily on automatic statistical forecasts generated by the i2 Technologies’ software?
I think at very first, Nike has been facing upside down issues while implementing the technologies system and the major problem was with maintaining balance between manufacturing and production which are the majors problems for Nike. But after using the SAP ERP system and SIEBEL CRM, it has been up with their supply chain management factors like shortening of lead time and enhancement of capabilities in planning and tracking inventory as well. Well I think Nike has been very well in managing its project in a well satisfied way.