Value Drivers

Strategic Goals

• Execute with perfection
• Develop relationship/intimacy with its consumers
• Build a consumer-driven supply network
• Product innovation and leadership
• Change core processes to enable retail growth
• Set up infrastructure for US$23+ billion business
• Elevate Nike to a world-class operational organization

Key Challenges

• Competition is tougher and more diverse
  (consolidation, private labels, and others).
• Consumers demand more and more fashionable products that last for shorter times. Therefore, Nike needs to shrink time to market and to find ways to receive the signals from the market more quickly regarding new fashions that consumers are buying.
• Continuing escalation of sports marketing costs
• Decreasing effectiveness of key traditional advertising vehicles
• Overall, Nike needs to increase visibility into their suppliers’ supply chain and manufacturing processes.

Value Realization

Results

• From 2000 to 2007, SAP has helped Nike to build a global foundation to position the company for growth.
• The SAP solutions contributed significantly in enabling Nike to adopt global processes. Consequently, Nike has seen material improvements in its performance: cash flow, inventory turns, profitability, and so on.
• Many of Nike’s products, such as athletic footwear, contain a lot of complexity – a multitude of sizes, widths, colors, and extras. SAP’s solutions help to manage this complexity.
• The lead time for products has gone from nine months to six, in some cases to three months.
• Inventory levels have been reduced.
• Nike’s factory order interval time has been cut from one month to a week in some cases.

SAP Solutions

SAP ERP 6.0
SAP Apparel and Footwear 6.3
SAP Demand Planning
SAP Supply Network Collaboration
SAP NetWeaver Business Intelligence
SAP Custom Development services