Inventory Problems at Nike
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Case Details: |
Price: |
| Case Code |
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OPER030 |
For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 +Shipping & Handling Charges extraThemesInventory
Management |
| Case Length |
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10 Pages |
| Period |
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1991 - 2003 |
| Organization |
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Nike |
| Pub Date |
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2004 |
| Teaching Note |
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Available |
| Countries
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USA |
| Industry |
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Sports &
Apparel |
Abstract:
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This case deals with the problems experienced by Nike, the leading manufacturer
of shoes and other sports equipment in the world, in implementing a new software
application to streamline its supply chain and manufacturing processes. Nike
sourced its products from manufacturing facilities located in the developing
Asian countries like Taiwan and Korea.
Consequently, the company had a complicated supply chain system where orders
were placed by retailers six months ahead of delivery dates. These orders had to
be forwarded to the factories in Asia and the final product had to be shipped
back to the retailers.
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Issues:
» To appreciate the importance of an effective supply chain system, specially
for a manufacturing company operating in a highly competitive and trend- driven
industry
» To understand the importance of integrating new systems with legacy systems
and processes in the organization for their effective functioning
Contents:
Keywords:
Problems, Nike, manufacturer, shoes, sports equipment, world,
software application, streamline, supply chain, manufacturing processes, Nike,
products, manufacturing facilities, developing, Asian countries, Taiwan, Korea,
retailers, six months
Nike's Profits Fall
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