Back in the 1990s, Nike implemented SAP as it's core business system to manage accounting, supply chain, HR, and planning functions. This type of software is known as an "enterprise resource planning" or ERP system. Almost every business process and function runs through SAP. Over the years, Nike customized various SAP modules and gained a huge competitive advantage from how they work within the supply chain. However, this old SAP from the 90s has limitations and needs to be replaced.
The SEC program in Nike is the global project to replace the old SAP system with the newest SAP version on a single consolidated platform. This project is long and expensive because the customization that Nike has implemented over the years needs to be replicated and tested in the new platform. In some cases, new business processes need to be designed and deployed, which is not always easy. Additionally, the system has to be carefully rolled out in parallel with the existing older system without causing major issues. The new SEC version of SAP is live in China and part of North America. There are future phases to roll additional functions out in North America and then Europe, etc. There are many advantages to the new SAP system, one of which will be end-to-end visibility of all global inventory in a single platform. The SEC effort is a massive multi-year modernization project that is critical to the company's future. Yes, it is an expensive program. However, for perspective, the overall cost is lower than what Nike spends yearly on sports marketing.