Objective(s)
This assessment item relates to the unit learning outcomes as in the unit descriptor. This
assessment is designed to analyze business/ enterprise activities and to identify problems,
weaknesses, strengths and threats and entities interacting with the enterprise. This assessment
improve presentation skills and give students experience to apply knowledge to identify, make
recommendations and devise solutions for an ERP implementation topic and writing a report
relevant to the Unit of Study subject matter.
INSTRUCTIONS
Assignment 1 – Case Study and Presentation – 10% Due Session 5
Case Study: Nike ERP Implementation
• BACKGROUND:
Nike was founded in 1964 by Bill Bowerman and Phil Knight in Beaverton, Oregon. It began
as Blue-Ribbon Sports (BRS). In 1972, BRS introduced a new brand of athletic footwear
called Nike, named for the Greek winged goddess of victory. The company employs 26,000
staff around the world with revenues in fiscal year 2005 of $13.7 billion.
It has facilities in Oregon, Tennessee, North Carolina, and the Netherlands with more than
200 factory stores, a dozen Nike women stores, and more than 100 sales and
administrative offices. Its subsidiaries include Cole Haan Holdings, Inc., Bauer Nike
Hockey, Hurley
International LLC, Nike IHM, Inc., Converse Inc., and Execter Brands Group LLC. As of May
31, 2004, manufacturing plants included Nike brand, with 137 factories in the Americas
(including the United States), 104 in EMEA, 252 in North Asia, and 238 in South Asia,
providing more than 650,000 jobs to local communities.
• OBJECTIVE
Nike grew from a sneaker manufacturer in the early 1970s to a global company selling a
large number of products throughout the world. Nike’s sneaker supply chain was
historically highly centralized. The product designs, factory contracts, and delivery are
managed through the headquarters in Beaverton, Oregon. By 1998, there were 27
different and highly customized order management systems that did not talk well to the
home office in Beaverton, Oregon. At that time Nike decided to purchase and implement
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MITS6004 Assignment 1
a single- instance ERP system along with supply chain and customer relationship
management systems to control the nine-month manufacturing cycle better, with the
goal being to cut it down to six months.
• PLAN
The company developed a business plan to implement the systems over a six-year period,
with multiple ERP rollouts over that time. The plan called for the implementation of the
demand planning system first while working through the ERP system and supply chain
implementation.