List 3 examples of Supply Chain collaboration from the case and explain the common thread that is usually found among cases of effective collaboration.
Supply Chain collaboration is an important aspect of B2B collaboration and there are several cases in this study which are outlined. The first one is the partnership between WWT and ClearOrbit where several parts of the transaction ended up in a successful collaboration which benefited both parties.
The second is the one between WWT and OEM where the latter’s expertise in the automotive industry and the former’s in IT brought about another successful supply chain collaboration.
Effective collaboration in these three cases results in improved supply chains, increased revenues and a better understanding of the client’s needs and requirements. In the first case, WWT had to understand exactly what ClearOrbit required in the sense of improved revenues and faster supply chain collaboration but at the end of the day the situation has to be analyzed correctly and properly for a final result to be successful.
Basically, the moot point here is that a sound understanding of the client’s work practices have to be understood immediately so that the implememtation of the supply chain will be beneficial to business. This is the crux of the whole argument and all should be based on this. If this understanding is not put in place imemdiately, the whole supply chain issue fails and is detrimental to the whole business setup.
What finally made WWT (World Wide Technology) decide it needed a software solution to manage PO's and Invoices.
WWT finally realized that with old outdated methods, it could not continue to grow its business accordingly and properly if it did not implement a proper software solution. After lengthy meetings and discussions with ClearOrbit, it was finally realized that nothing could move ahead and the business could not grow substantially if the software solution was not properly implemented.
ClearOrbit provided a workable and highly intriguing solution to all this in the sense that it analyzed the data and results being obtained. The cost reductions achieved when moving from a manual system to an electronic system resulted in substantial labor costs savings which varied from 50-60 per cent, surely a huge incentive for the company to take up the electronic solution. The losses the company was making through the manual system also spurred WWT to change from a manually based system to an electronic one which definitely resulted in a far more efficient system.
The extensive demonstrations and meetings which were undergone by the company also helped sway the pendulum in favour of the whole system. The end result was a clear and cost effective system which resulted in a highly efficient and workable programme in which suppliers benefited greatly from the improved service and the company increased its profits substantially apart from saving on labour costs.
List the 3 alternative solutions that WWT had identified. What were the pros and cons of each solution.
The key alternative solutions identified by WWT were an internal development team, Oracle, through its tool iSupplier and finally ClearOrbit.
While WWT’s internal development team would have brought more control over the product which would finally be used, there were shortcomings in the sense that the product was not tried and tested and there was considerable risk that this would not work properly. The company’s directors were also concerned that a long time would be taken to develop such a product and that the testing phase was limited.
The Oracle tool was another viable solution as WWT had already partnered with the company in the past on another projects. There were stages when the company was testing the iSupplier platform and was actually close to closing the contract for this tool but the substantial shortcomings in the platform ended in a negative result. This was obviously a severe drawback to the eventual implementation of the software system.
Finally, WWT identified Clear Orbit who came up with a comprehensive, tried and tested system which could have workable functions and which was in fact eventually implemented. The company’s background and its previous collaboration with Cisco Systems won it several points with WWT’s directors who ultimately opted for this option. The con could be seen in the fact that perhaps, ClearOrbit had never collaborated with WWT before but ultimately their product was found to be the most viable.
Do you believe that WWT made the correct decision in partnering with ClearOrbit.
After careful and serious analyzing of the whole case, it does appear initially that WWT did make the right decision in securing ClearOrbit’s services for the software system implementation. Apart from ClearOrbit’s excellent background in the implementation of supplier chain management solutions, the fact that regulasr meetings and discussions were held with both parties enabled the system to be implemented properly and with the least hitches possible.
The fact that the system was correctly implemented on all counts and that the results were there for all to see also continues to contribute to the popularity of the final decision which was eventually taken. Nothwitstanding the fact that both companies were relatively new to all this, the implementation of the whole system was trouble free and apart from minor hitches, everything went quite well.
Additionally ClearOrbit’s suite of products which was painstakingly developed over the years provided WWT with wide ranging and varied solutions to all of its final solutions. The whole system actually ended up performing hugely in excess of what was expected with highly increased efficiency at the end of the day as well as highly improved labour cost savings. Suppliers and the supply chain were greatly improved and the whole system worked close to perfectly.
In the end the whole project was hugely beneficial to both companies who managed to set up a collaboration which has now been effectively in place since 2004 and which has seen effective efficiency increase hugely. It ends up as being an excellent decision by WWT to choose ClearOrbit as the supply chain software partner.
Conclusion:
Effective supply chain collaboration is crucial to the success of any company and the partnership between ClearOrbit and WWT is a clear example of this. It is important that the software provider undersatnds the business prospects and model of the company in question thoroughly for a proper and highly effective software solution.
This is demonstrated in the huge growth of turnover which almost increased a thousandfold over ten years after a proper implementation of software solutions. This incredible increase in business prospects indicates the outstanding success of a proper collaboration between software vendor and company which ultimately results in satisfied suppliers and customers. This win-win situation is undoubtedly hugely beneficial to studies of similar collaborations and eventually should provide similarly successful contributions to the whole B2B sector.
