Recommendation and Implementation
If the proposed Manugistics ERP System is implemented, it will identify the needs of suppliers, dealers and all the stakeholders who will eventually benefit the company Nissan Canada Inc. and will help them achieve the desired return of 27%. Manugistics ERP System will help all the stakeholders to develop a link amongst them. It will also help NCI to overcome serious demand forecast issues. The idea of the ERP system will improve the process of training and system deployment at Nissan Canada Inc. The recommended ERP system will help to configure and tune in the desired results for the company and all its stakeholders. The only thing that the company can do is to conduct a meeting with all suppliers and dealers and make them attain confidence over the new ERP system that the company will implement, which will remove their reservations and concerns regarding the overall process of the new ERP system and its credibility for each stakeholder. Once it is installed at the company, NCI can begin the operations and move itself from ‘make-to-stock' into a ‘make-to-order' environment in Japan and North America.
Contingency Plan
Assemble to order (ATO)
If the current system fails for Nissan Canada Inc. then the alternate option for the company is to go for Assemble to order (ATO) strategy. As for now, the company is looking to move from make-to-stock to make-to-order process. Under ATO, it is business productions strategy in which the products are ordered by the customer, which are then produced quickly and are customized to some extent. ATO strategy requires that all the basic parts are already manufactured but they are not assembled as a final unit. In this system, parts are assembled to make it a single unit when an order is received. Assemble to order strategy is a combination that benefits both strategies, which makes the product to be delivered to the customer while making the product customizable to a certain extent.
Advantages of Assemble to order (ATO)
The most obvious advantage for Assemble to order (ATO) is that it helps keep lesser inventory at the warehouse for the manufacturer or the company. With the order developed to a certain extent helps the manufacturer to deliver final good to the customer with customized features based on the customer expectations. Along with this, it improves the delivery time and reduces it to the lowest level. With Assemble to order (ATO) strategy, NCI can reduce delivery time and can make sure that goods are received by the customer within the least possible time. ATO will help the company with no extra inventory and will also help it to focus on other activities.
Disadvantages of Assemble to order (ATO)
The disadvantage associated with Assemble to order (ATO) strategy is that employers do not actually have a ready supplier of inventory with them to sell the order that is built. Under ATO instead of having inventory at the stores, orders are taken over the phone and then it is notified to the warehouse or manufacturing plant to make sure orders are completed on time. This potentially makes the employer loose profits from sales and thus decreases the overall profit margins also....................................
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