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SerCom
Solutions
2 . Opportunity /Problem Definition and Objectives
SerCom viewed the Internet as an essential element in
their strategic business plan. As a result, their proposed
ebusiness project focused on the integration of their
supply chain and ecommerce enablement. The key issues
highlighted were as follows:
- Information
flow - their clients had limited access to the progress
of products or customer orders in the supply chain. SerCom's
customers relied on periodical manually generated reports
being faxed or emailed. Crucially, information flow would
be more important in the future considering the complexity
of fulfilment programs.
- Fulfilment
- while orders were growing in volume and complexity the
current systems could not cope with this diversity. Bulk
orders were on the decrease whilst sales moved to a more
demand driven model. No facility existed to effectively
monitor or manage an order status in the supply chain.
- Web
based ordering - all orders were placed via EDI (Electronic
Data Interchange - see sidebar) or via fax or phone. SerCom
needed to provide state-of-the-art ordering services for
their customers and facilitate the emerging ESD.
-
Integration with both customers and suppliers needed to
be tighter to improve efficiencies and communications.
The
existing system in SerCom consisted of:
- A
traditional MRP system to manage order processing, procurement
and logistics. This system lacked a web front end and the
ability to handle diverse orders (SerCom had attempted to
web enable this system to facilitate small order shipping
but this proved unworkable due to integration issues and
poor performance). This system also managed warehousing
viewing stock levels and locations. This system was outdated,
missing functionality, and more importantly had no way of
cross-docking (checking) supplies with orders.
The
project of upgrading these systems would potentially reap huge
strategic benefits for SerCom. The more value-add activities
SerCom can provide its customers, the deeper their partnership
with the customer becomes. It was important for SerCom to continue
to be a strategic partner of their customers and not just a
supplier of commodities competing only on price. The company's
key objectives were stated as follows:
- To
create an integrated, virtual supply chain for SerCom suppliers,
clients and clients' customers.
-
To help their clients and suppliers to become e-commerce
enabled.
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