Woodsynergy Inc Case Study
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This case indicates that WoodSynergy Inc. is a midsize corporation in the fine woods supplier business, and the enterprise had lately launched Information technology based supply chain management schemes and was concerned in evaluating the development. They realized that efficiency can be improved by integrating information technology into their systems. They were capable of figuring out the importance of having information which is aligned with their business data. Enhanced data sharing would allow the company to meet order demand and deliver on time with the highest quality. The Chief information officer of the company explained to the Chief executive officer that instantaneous gains can be grasped by integrating IT into the Supply Chain System of the enterprise. He also reported three types of meditation implementation strategies that he found helpful: disintermediation, network, and remediation which he found to be the best strategy since it simplifies data through SCM and meets the firm’s goal. The project team dedicated some time to research the brands of technologies offered in the market and to comprehend how organizations used web-based gateways. The organizations under study were the ones that had the facility to transfer chain performance into productivity and realized that SCM leadership required an ability to react to demand changes with inventive goods and services. The team apprehended that the optimal model for managing supply chain performance was the Supply Chain Operations Reference model (SCOR). It included descriptions five management processes: plan, source, make, deliver and return and characterized the practices and metrics that resembled the “best-in-class” performance. The model was used to identify vital opportunities since it documented connections between supply chain process elements, metrics, and best practices.
The team built a gateway prototype without addressing problems of integrity and timeliness of the data due to constraints but they decided to improve it in the future. The gateway design included two key drivers: data standardization and real-time interface. After three months of the implementation of Phase I 90% of the ROMs were satisfied and 85% practiced efficiency profits. The gateway boosted the efficiency of the ROMS, improved the communication process, and enhanced access to company information. Phase I took about five months and held a cost of almost 400,000. Phase I’s results were more efficient ROMs due to decreased time and resources needed to acquire information, and 1.5$ million cost saving through more use of IT resources and use of employee.
Phase II’s objective was to improve integrity and timelessness of the reporting system and conclude distributors and suppliers integration in the company’s supply chain. The CIO estimated the time for Phase II would be about ten months were several tasks would be accomplished each in a certain number of months such as developing phase II requirements, continuing the upgrading of IT supply chain component, provide training to distributors and supplier and three other steps. The labor cost and additional costs were indicated to be $150000 per month and $500000 respectively. The CIO stated that enhancing supplier-distributor integration would increase revenue by having access to the latest process innovations. He concluded his presentation by declaring that the organizational “utilization and cost-effectiveness” were vital provokers of a successful supply chain, and added that he would be working of more IT strategic and SCM initiatives in Phase II. The CEO obliged the CEO to conduct a summary
that included the results of Phase I and challenges of Phase II. He requested more information about the SCOR model, explanation for the selection of the remediation strategy, to prepare the goals and metrics of Phase II, and finally identify IT strategic further than Phase II attempt. .The SCOR model, developed by the Supply Chain council, is an analytical device for SCM. It identifies diverse procedures that lead to client contentment. It is used to depict development opportunities and is based on process modeling, performance measures, and best practice sharing. It helps the companies measure the flow of information and physical goods and consists of three levels, the scope and content of the supply chain ( level 1), the supply chain strategy is configured ( level 2) and aligning available and forecasted resources to meet expected demand (level 3).
II) Question 2:
The main strategies that WoodSynergy uses to enhance the Supply Chain performance and that are discussed in the case are classic disintermediation, remediation and net-work based mediation. In the first case the firm attempts to remove all of the intermediaries of the supply chain in which case the suppliers are in direct contact with its customers providing real-time interface. Besides providing consumers with a more direct convenience when it comes to making the goods more accessible, it can potentially translate into prices that are lower since supply chains are rationalized and the cost that is expected from these distributors is reduced. Furthermore, a firm is going to proceed to disintermediation when the cost to have a business relation with its intermediaries is higher than the importance that it is worth.
Given the era of information technology, a firm that encounters high information intensity can now go without intermediaries since a website that is sophisticated enough can offer that task. This strategy is also attractive to any firm that is looking for low contracting risks. It is reasonable that this strategy was not chosen to be implemented due to the fact that it is not a service that is delivered electronically, which is the typical case in which this strategy is selected, and therefore needs of intermediaries to provide its goods to its customers.
Secondly, the firm discussed remediation, in which the firm operates more directly with on hand intermediary partners. Even though this strategy usually translates into high contracting risks, the firm selected it due to the firm’s view of sharing data all through the supply chain. Also, because the firm had an encouraging long lasting connection with its most significant distributors, which would improve the high contracting risks pertinent to this particular strategy. In remediation, the customizability factor also applies but in a different way since this only happens if the intermediary can add to the customizing process instead of getting in the way.
Lastly, the third strategy that WoodSynergy conferred about was the network-based mediation in which strategic alliances and partnerships are built with existing and potential industry players. The reason these industry players, that can sometimes