MANAGERIAL APPLICATIONS OF IMFORMATION TECHNOLOGY
FINAL REPORT ON
HEALTH LITE YOUGURT COMPANY
2. I DENTIFYING THE PROBLEM
a) Lack Of Technology
b)Lack Of Communication and,
c) Lack of Management Structure.
3. Proposed Solution for the Identified Problems
a) Hardware Solution and,
b) Software Solution.
4. Redesigning the Information Technology plan to make the system more effective.
Healthlite Yogurt Company is a fast growing producer of yogurt based-products, such as, low-fat yogurt and other related products. The company has its corporate headquarters in Danbury, Connecticut with processing plants across the United States in New Jersey, Massachusetts, Tennessee, Illinois, Colorado, Washington, and California. It operates in 20 sales regions, each with its own regional sales manager and roughly 30 sales representatives.
Healthlite Yogurt Company has experienced recent growth. However, they are currently threatened by a rise in local competitors who are able to offer lower prices and faster delivery to distributors through the use of local production centers. Healthlite Yogurt’s 3 main challenges are:
* Lack of Technology restricts Healthlite from competing with faster growing competitors * Lack of Communications delays and complicates ordering process * Inability to Assess Performance of Sales Force and Products Healthlite at the moment operates on a central mainframe. Information is being entered through designated terminals, which delay the process. All the departments in the company use the same mainframe. However, in order for these representatives and the sales offices to receive reports on customer account inquiries, rejection notices, or printouts for orders, they must wait for them to be printed and mailed to them from the regional offices. In addition, regional sales managers are forced to use mail to inform salespersons of current announcements, pricing discounts, and promotional campaigns. Salespersons also mail to send written copies of their monthly reports of sales calls to the regional headquarters. All of the information received by mail must then be inputted into the system.
The biggest and most chaotic problem at healthlite is the order processing system. In order for salespersons to place an order for their clients, they must write 1 hard-ticket and 2 or more forms per order which are sent to the corporate headquarters by fax or mail where they are sorted, and entered into the database. Around 500,000 order tickets are put into the system per week and daily orders are sent every evening to processing sites where shipping managers transport the goods to the client distributors. From start to finish the process can take upwards of 14 days. The long delivery time is a weakness of Healthlite which local competition is currently exploiting.
a) Lack of technology.
Healthlite Yogurt company main problem was inefficient order processing, they use to take 5-14 days to process one single order. Healthlite Yogurt Company is not able to deliver effective service.
b) Lack of Communication.
There is no proper communication between the sales representatives and higher management which caused several problems for the company to go down. There was no proper marketing strategy approach they followed to promote their new products.
c) Lack of Management Structure.
This company lack high skilled people in the actual sales operating activity, which led this company 1.5 million dollars discrepancy in their sales and order processing division. They had a faulty executive support system which does not have any connection between other divisions in the organization.
2) Proposed Solution:
The proposed solution for this project was improvement in their hardware and software plan. In this plan what we did was we thoroughly...
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