Raytheon Company has created new software that improves the logistics system of the company by providing constant tracking data of all products in the inventory, which has saved the company nearly $9M. MTrak is a web-based system that includes the Microsoft .Net technology, which is used to capture bar-code scans and combines it with information from the mainframe computer to provide tracking of all inventories anywhere within the company.A lot of stuff got lost, company had to have multiple people sitting by the phones to take the calls asking where the parts were. The creation of MTrak brings Raytheon online with its competitors in the industry. While the system does not create a competitive advantage to Raytheon, it does negate the disadvantage of a bad supply control system. The creation of MTrak contributes to the entire value chain by tracking the products from the beginning of the chain at Inbound Logistics, through Operations, Outbound Logistics, Marketing and Sales, through to the end of the chain at Service.
The Technology and Competitive Forces
The major problem at Raytheon was lost inventory. The suppliers were not to blame because they were able to account for every piece of property they supplied through their fully automated supply chains. From the beginning, the goal was to create a system that would track all materials used by Raytheon such as resistors, capacitors and customized computer chips from the time of order through receiving, testing, placement in inventory and final use in a military field radio, handheld motion sensor or some other Raytheon product . Whenever Raytheon received calls for a missing delivery personnel would physically search the area to see if the product was still there. In some cases, if the item couldn’t be found the employees would reorder the item so production schedules could be met.. The MTrak is a web-based system that includes such...