Woodsynergy Inc. Integrating IT into the Supply chain Case Study Solution
enough training:Everyone in the system would need to know how the system works. If there would be any hindrances in the usage, people would avoid the use of the new technology and set back to their previous method. There will always be some people who would need more time to adapt than the others. Therefore extra time need to provided to them, along with training sessions. This may lead to more time consumption, but would have a good overall result. Rushing may lead to severe blunders, making them unmotivated to continue.
Choosing wrong implementation time: A well thoughtful time of period must be chosen for implementation so easy adaption can happen. Implementing at a busy time or in peak periods would not give out the desired output.
Implementing all at once: This may although seem tempting to implement the entire system at once to get the best output quickly, it may also result in a complete crash. Implementation of the system must be done in much smaller steps then the one described in the case study. This would prevent employee overwhelming and better adaption.
Awareness of key metrics:In order to train people for the system usage, it is important to be aware of the key features. This would make the training more focused and result oriented.
Lower usual business: Systems implementing would require a lot of time, this may tend to reduce the normal business operations resulting in lower profits.
Lack of support after implementation: A constant support needs to be provided even when the system has been implemented. This is because the system may contain some issue, or any mishap could happen resulting in slowing of operations.
Why Remediation?
Being the high quality product provider in economically distressed industry, Wood Synergy can obtain advantage by availing all the opportunities it can, to save money. They require a framework for optimal decision making. CIO mentioned three methods of implementation.From which mediation appeared to be the best choice.
Remediation was chosen as the best strategy of implementation by the CIO since they were aware of the fact that they have good relationships with their existing primary distributors and suppliers which would save them from the contracting risk. Moreover,it also fits well with the firm’s goal of simplifying the sharing of data throughout the supply chain.
Mediation would also impact on improving collaborations with the suppliers and distributors. Good dialoguing and cooperation with them would improve performance and strengthen relations. This would in result contribute to decreasing costs and increasing productivity.
The quality of product would also be better since proper dialoguing would result in better understanding of each other’s need. It would also promote development of sustainable products and safeguard the product quality.
It would also ensure to stay in compliance with customer requirements and expectation. The products produced would be in condition that were required by the customers. This would only be possible if their needs were properly explained.
IT would also help in maintaining a good PR amongst other distributers and suppliers. This may result in more approaching’s of distributers, hence increasing our network. Retaining the current distributers would be attractive to other potential distributers. This will create new market opportunities.
Alternatives:
- Phase II can be launched in only some parts of the company where the requirement is the most. This would provide longer time to the employees to adjust with the new change and the new system can be tested with the available load.
- Only some parts of Phase II two are implemented in the company just to keep the system safe and secure. Implementing whole system together may result in a system crash
- Identify gaps and loopholes in Phase II and correct them before launching the system
- Have the Manual work done along with that of the system, just in case the system crashes, the operations will still running
- Elements that were not considered while making the prototype are not considered in phase II since it did give good results.
- The new system is left to be used to the executive level people only, since the lower workers might be reluctant in accepting the system.
Recommendation:
There are three strategies that can be used to implement IT in SCM; Classic disintermediation, remediation and networking. Classic disintermediation would mean that we will eliminate the middlemen completely and the company cannot afford to do that. The intermediaries are essential as they handle all the delivery processes and can provide the goods properly and safely to the customers. They are efficient in their work, and deliver the goods on time.
Secondly, the networks are amongst the old and new suppliers. This means the company will have to manage the previous suppliers/distributors and the new suppliers/distributors. This will become very complicated for the company as they will not be able to implement the integration of data and information in while handling all the complications of managing new and old suppliers/distributors.
The best way is Remediation which means the company has to deal with the existing distributors and suppliers only. The suppliers and distributors are aware with the norms of the company and they know how the company operates, they will not show a lot of resistance in accepting the new ways and adopting to the new IT integrated systems. It will be easy and feasible for the company to take feed backs. Furthermore, the company has launched it Phase 1 and has been successful at reducing costs but they took a risk on the reliability and appropriateness. This venture could have failed and the company could have faced a loss of $400,000. It would be more preferable if the company would test and trial the interface before launching it to be used.
Implementation:
The company has an objective of keeping the data simple and sharing it across the supply chain, this can be fulfilled by the remediation strategy. This strategy will also help the company to have long-term relationships with the customers/distributors and the suppliers. The company needs to maintain its relationships with the primary customers especially because 60% of the revenue is generated from the elite furniture. Implementation of this strategy shows the commitment of the company towards its customers/distributors and its suppliers. This will cost the company and they will also risk their finances to launch the interface but this will also benefit them in future by cost saving and better performance of the company. The customers and suppliers might be more satisfied with the company and this will result in a longer relationship amongst the companies.............
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