BPR AT NIKE

Submitted by:-

Krishan pal
B.E (chem) int MBA,5th year

CM15216
 ABOUT THE COMPANY
Nike, Inc.  is an American multinational corporation that is engaged in the design,
development, manufacturing, and worldwide marketing and sales of footwear, apparel,
equipment, accessories, and services. The company is headquartered near Beaverton, Oregon
, in the Portland metropolitan area. It is the world's largest supplier of athletic shoes and 
apparel and a major manufacturer of sports equipment, with revenue in excess of
US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more
than 44,000 people worldwide. In 2014 the brand alone was valued at $19 billion, making it
the most valuable brand among sports businesses. As of 2017, the Nike brand is valued at
$29.6 billion. Nike ranked No. 89 in the 2018 Fortune 500 list of the largest United States
corporations by total revenue.
 BUSINESS PROCESS

• Business process means all processes that occur within the organization. Business

process is the core of its business. All flow of business lead the growth of the

organization. Every organization must have their own business process. It is created

along the way and become culture of the organization itself.

 BUSINESS PROCESS REENGINEERING
• The broad organizational focus and deliberate nature of BPR suggest a planned change in
which a successful BPR project requires preparation and deliberate action, support from
management, technical competence, and mitigation of resistance to the change. Rarely,
however, is there unlimited control over organizational and technological consequences.

• Reengineering brings the different views of quality, information technology,

organizational change, innovation and work redesign together. As such it represents an
input–output activity view of the business as opposed to a functional, responsibility
centerd structural view. Such a horizontal view of the business represents a paradigm
shift from the traditional hierarchy-based vertical view.
 BPR AT NIKE COMPANY
Nike is a sportswear leading company which was using 27 applications world wide for its
supply chain management. Nike was going to implement ER with the objectives:

• Implement new enterprise system build by them

• Increase design manufacturing

• Increase company margin

• Cut the shipping time

• Reduce stock in inventory

Of course it met the challenges such as SAP ERP system cannot be customized, so some
problems have occurred. The supply chain management didn’t work well and the demand
forecasting didn’t work well.
 IMPACT ON COMPANY
It caused a big impact to the company, which were:
• Inaccurate order shipping
• Unbalanced production and demanding
• Too much stock inventory
• Decreased revenue
• Demand cannot be completed
Business Process will be restructured if the organization decided to do BPR. Usually this
BPR is being conducted because the organization is going to use better system, like they
are going to use enterprise system. For the example from the case study is Nike was
implementing the SAP ERP for its company.
  SOLUTIONS PROVIDED FOR NIKE

 Doing an BPR is not an easy thing. Here are the solutions provided for Nike company:
• SCM: Make to sell -> Make to order
• Take it more slow in implementing ERP
• Better use roll out approach than big bang
• Create business process template that approved globally.
So the conclusion is, BPR will lead the organization in better way, more effective and
efficient if they are doing it right.
 REFERENCES
• Grover, V., Jeong, S., Kettinger, W. and Teng, J. (1995). The Implementation of Business
Process Reengineering. Journal of Management Information Systems, 12(1), pp.109-144.
• Grover, V. and Malhotra, M. (1997). Business process reengineering: A tutorial on the
concept, evolution, method, technology and application. Journal of Operations
Management, 15(3), pp.193-213.
• Cook, M. (2018). Case Study: Nike’s Adventure with Supply Chain Planning Software |
Software Money Pit. [online] Softwaremoneypit.com. Available at:
http://softwaremoneypit.com/case-study-nikes-adventure-with-demand-planning-
software/ [Accessed 18 Jan. 2018].
• Ittoday.info. (2018). Cite a Website – Cite This For Me. [online] Available at:
http://www.ittoday.info/AIMS/Information_Management/1-04-50.pdf [Accessed 18 Jan.
2018].