Purchasing management - Essay Example

tiatives, like the IT thrust by introducing supply chain management softwares to ensure regular deliveries, together with ERP implementations across the globe to support and augment these supply chain policies. There have been some delays and problems on the way but that has not changed the company’s resolves and it firmly believes that having right software in place will eventually strengthen its supply chain and give it a Purchase advantage. For the past 30 years the marketing strategy was dependant on the make to sell model.

Products were made in anticipation of sales and cross fingers became a habit as change in tastes was the only constant and could not be planned for. It also left inventories that became a burden. Every manufacturer likes to evolve into make to order market. That is a segment that spells stability and a certain level of recognition in the market. It becomes more pronounced when the market is global, across geographies and cultures. Nike too had this vision. They wanted to cross frontiers with a common approach.

It was a huge call and needed people to understand the conglomerate of which they were a part. It required a merger of thought, not just action, and the very vision became their clarion call, Just do it. Nike operates internationally and its Purchases have to be localized for certain items. This leaves a wide gap in demand/supply positions and can lead to delays and hold ups. It needed a strategy to overcome this situation globally. Before a company decides to go “global,” it must first show “an ability to appreciate the degree of globalization that exists in a given industry, or sector, and to provide the required strategic response.

”Jeannet, Jean-Pierre,2 Centralization is the basic format of Nike’s plan. Not only product designing, but Purchasing, contracting out of manufacturing at different factories and delivery schedules are all carried out at the Head Office. In response to highly chaotic running shoes