Kl Case Analysis

Topics: Supply chain management, Enterprise resource planning, Standardization Pages: 2 (767 words) Published: April 3, 2011
The best choice for KL worldwide would be to standardize the system across the whole enterprise. Standardizing the system across the whole enterprise would ensure that the KL worldwide uses the same technology across the globe, from its server OS across to the point of sale system in each individual store. This would upgrade the IT infrastructure across the whole company. It will also optimize its supply chain as the company’s production is vertically integrated and the clothes needed for most of KL’s product lines are manufactured at the Indian plant (Richard Ivey School of Business, 2009, Table 2), the information across the entire enterprise can flow freely as it becomes more visible. Using Supply chain management (SCM) involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability. (Baltzan & Philips, 2011, p.203). This alternative has the highest initial costs due to the high investment in IT, but will lower costs in the long run as the firm becomes more efficient at forecasting its sales(demand planning systems), reducing inventory levels (supply chain planning systems), and reducing obsolete designs. Customers will also be satisfied as the firm will be able to produce more of its new designs faster as the information flows freely between the whole enterprise. And if there are any customer complaints, it can also be resolved quickly as management can pinpoint the exact point of error quickly. The free flow of information across the whole enterprise also allows it to gain a competitive advantage. This alternative is also the best for solving the problems faced by KL worldwide. This solution ensures that the managements concerns regarding KL Worldwide Enterprises’ current state of manufacturing and distribution components in the supply chain are addressed. When all information system components across the enterprise are standardized, it will ensure that all...
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