Case: Supply Chain Management and Application Software Packages
Info from case total revenue for last reporting = 110 million
cio reviewed 3 following implementation strategies:
-classic disintermediation - removal of intermediaries in a supply chain. connects supplier directly with customers
-remediation-working more closely with ecisting middlemen partners. strategy could be affected by high contracting risks.
-network-building alliances and partnerships with both existing and new suppliers and distributors involving a complex set of relationships. Networks tended to reduce search costs for obtaining information, products and services.
-selected remidiation - because it best fits the firms goal of simplifying data sharing throughout the supply chain -also had longterm and positive relationship with its primary distributors, which would ameliorate the high contracting risk.
"The firm purchased stock woods from a number of producers and processed them to meet specific customer specifications. Approx. 60 percent of woodsynergy sales were in high-end furniture"
Problems
1 - Choice of implementation plan is wrong – LONG TERM
-CIO chose remediation because
"it best fit the firm's goal of simplifying data sharing throughout the supply chain; furthermore, the CIO noted that woodsynergy had a long-term and positive relationship with its primary distributors which would ameliorate the high contracting risk issue"
-the best way of simplifying data sharing is eliminating any unnecessary party that the information needs to travel to.
-remove the distributors and engage the customers directly
-who are we to decide how your existing distributors will feel after you amend any contracts to include any new information system to the SCM that ultimately creates more overhead for them?
-the business model of woodsynergy suggests that
"the firm was committed to delivering information to the right people at the right time so that strategic and operational decisions were made properly and quickly"
cio reviewed 3 following implementation strategies:
-classic disintermediation - removal of intermediaries in a supply chain. connects supplier directly with customers
-remediation-working more closely with ecisting middlemen partners. strategy could be affected by high contracting risks.
-network-building alliances and partnerships with both existing and new suppliers and distributors involving a complex set of relationships. Networks tended to reduce search costs for obtaining information, products and services.
-selected remidiation - because it best fits the firms goal of simplifying data sharing throughout the supply chain -also had longterm and positive relationship with its primary distributors, which would ameliorate the high contracting risk.
"The firm purchased stock woods from a number of producers and processed them to meet specific customer specifications. Approx. 60 percent of woodsynergy sales were in high-end furniture"
Problems
1 - Choice of implementation plan is wrong – LONG TERM
-CIO chose remediation because
"it best fit the firm's goal of simplifying data sharing throughout the supply chain; furthermore, the CIO noted that woodsynergy had a long-term and positive relationship with its primary distributors which would ameliorate the high contracting risk issue"
-the best way of simplifying data sharing is eliminating any unnecessary party that the information needs to travel to.
-remove the distributors and engage the customers directly
-who are we to decide how your existing distributors will feel after you amend any contracts to include any new information system to the SCM that ultimately creates more overhead for them?
-the business model of woodsynergy suggests that
"the firm was committed to delivering information to the right people at the right time so that strategic and operational decisions were made properly and quickly"