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Excerpt from Composition:
source chain problems facing the organization which the selected application addresses.
4(b) Describe how the picked application addresses these source chain difficulties
8Q2″IT should be thought about as a fundamental element of the supply chain re-engineering method. ” Talk about this statement using ideal references in the course component. Case studies or other source material.
(a) The main supply string challenges facing the company that the chosen software addresses.
The Levi Strauss e-business and provide chain integration
Levi Strauss is a company that was very good and competitive in the make of denim jeans. Like other companies, that faced a lot of competition and modifications in our market circumstances. This subsequently led to a decline in the sales and profitability. The company’s sales were at a peak benefit of $1. 7 billion in 1996 (Leon-Pena 85). This later on declined to about $4. 1 in 2002 because pointed out by Girard (Girard). The corporation realized that the trend was becoming everlasting since its sales were lowering in a trendy manner. Its market share decreased from 18. 7% to about 12% in 2002 (Girard). The decline in its market share was attributed to the rise in the amount of competition inside the denim jeans industry. The competition offered the consumers with more alternatives and alternatives and therefore unless of course the company could come up with a competitive advantage that may allow it to present their customers with a benefits at a lower cost, then it wasn’t able to survive.
Levi Strauss seen their problem and then decided to act. Your initial action included the respond to the market demands as well as the supply of pretty priced products at easy locations. Based on this thought, they presented the Personal jeans business line. This product demanded a change in their supply string (Distribution). The reason is , the corporation acknowledged that the merchandise was to be produced more accessible and more suited to the shops of frequented by target market. On such basis as this concept, Levis Strauss launched into a project with Wal-Mart. That they teamed up in a supply cycle partnership. Wal-Mart was to share their business line so as to provide buyers with a less complicated access to the Signature jeans line of products. Wal-Mart was likewise to provide the Levi Strauss customers while using much needed volume of products.
This type of decision manufactured a very big impact inside the supply chain of Levi Strauss. Prior to the decision to obtain their products distributed through Wal-Mart, Levi distributed its products through smaller department stores like J. C. Penney and in many cases Macy’s. The number of these department stores were smaller than the number of Wal-Mart stores that were believed to be 3400 by Girard (Girard). Levi Strauss’ achievement can be related to the improved supply string that involved a alliance with Wal-Mart. The process of increasing or rather changing the supply chain began with the adoption of the new and improved supply chain managing. This is due to the high demands when it comes to performance by simply Wal-Mart. All the suppliers of Wal-Mart were required to include a certain standard of performance along with control. Wal-Mart requires their suppliers to do business with their source chain management system with the require that they (suppliers) put identical requirements towards the process that Wal-Mart dons them (suppliers). Levi Straus was under no circumstances familiar with this approach and therefore they embarked on an important rethinking. This can be evident through the fact that at Levi’s the management was never able to track their products as they shifted in their source chain canal. They were hardly ever able to tell how a large number of pair of jeans was under manufacture in whichever plant as well as how many of these pairs of pants were in truck below transportation or perhaps were in distribution centers. This was pointed out to have shown a major control issue for their supply string. This is because a company cannot control their own division process in the event that they was missing the necessary details that is required to tell what’s going on. The lack of information as well as control led to a bad performance using a mere 65% of the unique Levi Straus products coming to their meant destination with the required time. This postpone affected user’s perception in a negative way (Girard). This delay was very detrimental to business because the poor supply chain causes late shipping (Swaminathan 9) and other complexities.
(b) Clarify how the picked application details these source chain difficulties
Some of the challenges associated with poor supply a chain management will be; customization difficulties, stock timeouts and distortion of information. Since Wal-Mart was adamant on an successful supply sequence management, Chief Information Police officer of Levi Strauss David Bergen created a method of addressing the problem by implementing data technology-based system of supply cycle. This was to become collaborative built-in e-commerce-based supply chain management that provides the executives with all the information that they needed so as to effectively have control of the distribution process. This THAT implementation included a demand replacement unit module / system as well as a demand and provide forecasting program. The technology allowed the management to gain access to at a glance the sale of the products as well as their very own movement in the distribution system. The system also provided information about the availability of the products available, the demand details in various stores as well as the interaction of the require and supply mechanics for the products (Gerard). The information obtained provided Levi Strauss with the information as well as control that were essential for them to successfully manage their very own supply cycle operations being a company. We were holding also in a position to suffice the demands of Wal-Mart. Some of the great things about the system happen to be that it brought about the stocking of specific products just like Defender jeans in a certain quarter with the year 2002 (Gerard). The Defender jeans were supposed to be bought from quantities totaling 2 , 000, 000 pairs. The device however says the sales figures will be higher. This kind of predictive info allowed Levi Strauss you a chance to rapidly reply to the increase in predicted require and supply in addition to the quick division of the goods. The positive final results of this were that the firm benefited in two areas. The first one being that they were capable to bank for the increase in demand and supply for his or her advantage because they increased all their sales. The supply chain elektronische geschäftsabwicklung system allowed Levi Strauss the chance to quickly recognize a possibility as well as quickly take advantage if you take maximum good thing about it. The second advantage is that Levi Strauss able to increase the supply function in order for buyers being dished up through the shelving at Wal-Mart to be served uninterrupted. This is paramount to meeting the demands of Wal-Mart. This case is actually a true example of how chain supply management can be optimized using e-commerce in a b2b scenario. Levi Strauss depended on their relationship with Wal-Mart with the mediation of e-business features in making strategy. They could supply Wal-Mart with the needed quantities with the required some there for the customers under no circumstances experience any shortages in Levi Strauss products. The truth that Wal-Mart commands a higher umber of shoppers makes them for apposition to lay needs on their partner suppliers on their terms of operations. Concerning the Levi Strauss case, the company was required to satisfy all the tight supplier needs laid straight down by Wal-Mart for them to realize success through their collaborative supply cycle partnership. The implication on this is that the achievement of Levi Straus was dependent on their ability to deal with and control their source chain like a failure of such might have resulted in a strained marriage with Wal-Mart which in turn may have lead to a discontinuation of their arrangement and so failure. Afterwards Bergen the CIO of Levi Strauss improved the provision chain by simply enhancing the function of the e-business platform to include development of scanning equipment to be used by companies in checking out the accuracy of the cartons which have been ready for shipment as well as the execution of the AS2 technology that could make it possible for the company to exchange Electronic Data Interchange (EDI) using its partner Wal-Mart (Leon-Pena 87). This enables the businesses to successfully participate in collaborative forecasting of demand and provide. This case therefore shows just how e-business can allow companies involving the technology in the source chain to effectively communicate as well as work together for their own successes.
The end result of the ecommerce implementation
The results of this is the fact Levi Strauss has been capable of effectively increase its supply chain and profitability using e-business approaches in their source chain to set up control and supply information that’s needed is by their companions and corporate collaborators to achieve their very own success through a streamlined supply chain.
Works Cited
Girard, Kim. Supply Chain Relationships: How Levi “s Acquired Its Denim jeans into WalMart.. CIO. com. 15 July 2003. 4 May 2008 < http://www.cio.com/article/31948/supply_chain_partnerships_how_levi_s_got_its_jeans_into_wal_mart="">inches
Leon-Pena
