Haworth Overhaul Supply Chain Management

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IT POLICIES AND ISSUES : CASE STUDY Focus on Technology – Haworth Overhaul Supply Chain Management

INFO 7110

GROUP 2: Br. Lokman Effendi Ramli, Br. Masripan Salleh, Dr. Abdullah Al-Hajjaji, Sis. Siti Zarinah Salmo 1.0 Introduction:

Haworth Incorporated was the world’s second largest designer and manufacturer of office furniture and workplaces. It operates in more than 120 countries, with 9,000 employees, 40 manufacturing locations, 60 showrooms and more than 600 dealers around the world. Haworth’s business is particularly doing well in the late 90’s. However, this company was “hit-hard” when dot-coms coming in and selling used Haworth products at cheaper price. 2.0  What Problems Haworth Face?

Decline in revenue (drop in sales and high operational cost). It was contributed partly by dot-com companies that disposed their second-hand furniture to the open market.  Having supply chain management problems such as: o An old-style mainframe could only handle inventory data for single building and could not differentiate between facilities. o Different distribution centers using their own system. The system could not interface and integrate to each other’s. o The system could not cross-dock material directly to outbound shipment efficiently, raising labor and freight cost. The real challenge facing Haworth is to increase (i) sales and market share, (ii) customers satisfaction and loyalty by enhancing and integrating IT systems within organization that could lead to reduce the operational cost and increase profitability of the company. 3.0 How did they affect the way the company ran its business?

The company was affected as follows:  Decline in revenue could result in lower profit to the company. As consequence, its stock price would drop (reduce the value of the company). In the long run, the company would lose its competitive advantage and would not be able to survive. Due to the problems in the supply change management, the company experienced...
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