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Nike Rebound

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CIO - Nike Rebounds

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Nike Rebounds
Christopher Koch 12 July, 2004 10:54:58
How (and Why) Nike Recovered from Its Supply Chain Diaster
Too many Air Garnetts. Too few Air Jordans. Nike lost money, time and a measure of pride when its demand-planning software led it astray. How did it recover? Patience, perseverance and, most important, an understanding of what it was trying to accomplish in the first place
READER ROI

The limitations of demand-planning software
How a robust business plan can insulate tech execs from blame
Single-instance strategies in a global environment

"I thought we weren't going to talk about i2," growls Roland Wolfram, Nike's vice president of global operations and technology, his eyes flashing at his PR manager with ill-concealed ire.
Wolfram, who was promoted in April to vice president and general manager of the Asia-Pacific division, is all Nike. His complexion is ruddy, his lips cracked from working out or working hard, or both. He's casually dressed, but with a typical Nike sharpness to his turtleneck and slacks, a sharpness reflected also in his urgent, aggressive defence of his company - a Nike pride that would seem arrogant were not the company so dominant in its industry.
Wolfram calls the i2 problem - a software glitch that cost Nike more than $US100 million in lost sales, depressed its stock price by 20 percent, triggered a flurry of class-action lawsuits, and caused its chairman, president and CEO, Phil
Knight, to lament famously: "This is what you get for $US400 million, huh?" - a "speed bump". Some speed bump. In the athletic footwear business, only Nike, with a 32 percent worldwide market share (almost double Adidas, its nearest rival) and a $US20 billion market cap that's more than the rest of the manufacturers and retailers in the industry combined, could afford to talk about…...

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