MIS ASSGNMENT #1

BAY INTERNATIONAL
Electronic - Supply Chain Management (E-SCM)

Q 1 : D i s c u s s t h e a d v a n t a g e s o f t h e E - S C M s o l u t i o n deployed by Bay
Networks for its distributers?

Benefits can be summarized as follows by three different perspectives

From Customer Perspective

 Customer get their order faster

From Distributor
 Distributor will get timely information regarding production capacity and inventory
data
 When taking order from customer distributor can check the stock level of inventory,
which will help distributor to maintain long relationship with customer, by only
taking such order which he able to fulfill and excuse from some time for remaining
items.
 Enable distributor to track shipments status with federal express Corp
 Other benefits include lower cost of ordering and processing of order because E
SCM less papers work and electronic authorization.

From Manufacturer Perspective

 Timely information of daily sales product wise by distributor, help manufacturer to
implement just in time inventory , in turn reduce inventory holding cost without any
loss of orders
 Manufacturer can pending manage pending orders to avoid loss of order and
customer, during peak seasons

Q2: What are the problems associated with the proper i m p l e m e n t a t i o n o f E - S C M ?

Before Implementation
 The implementation of E SCM is fundamental change, which effect how organizations
throughout supply chain do their work, which should be compatible with overall
ESCM. This may cause to active and passive resistance of effected stakeholders due
to change in culture of working.

During Implementation
 Bay Inc. and other competitors and distributor currently use different EDIs & no all
business partners equipped with SAP which lead to create compatibilities issues.

After Implementation
 Once proposed ESCM go live, Bay and other competitors and distributor will share
same common network, which may arise the risk that security may be compromised
and chances of security risk such as organization , confidential information may be
leaked due to hacking or unauthorized access to organization databases. Further
viruses and trap doors may affect the effective of ESCM

1 MIS assignement BAY INTERNATION

FROM THE DESK OF SUNIL KUMAR
Q 3 : F i n d s o l u t i o n t o o v e r c o m e these problems?

The above stated problems can be tackle as follows:

 First all potential benefits of E SCM, should be sell to all stakeholders and trying gain confidence
of them so avoid any active or passive resistance, which may include:
 Enlist all potential benefits and connect with problems in current decentralized system (such
dissatisfaction of customers due to slowly delivery of orders and successive time in paper
works, authorizations etc.)
 Enlist all resource, hardware and software requirements
 Estimate the budget of the project and agreed clauses who the cost should be shared
 Estimate time duration and stage wise miles stone of such project should be as certain so that,
transformation can be performed systematically and without any ambiguity.
 Form a Steering committee comprises of Key personnel’s who look after this whole
transformation project and meet periodically to ensure progress of project, discuss
administrative and technical problems and take action timely. All discussion and decision
should be recorded and maintain for any future ready reference
 Proposed Actra Business systems, service can be taken or contact other vendors so that EDIs can
be easily converted economically, efficiently and effectively. At least three quotations from
different vendors obtained and make legally bounded contract mentioning action required from
them and penalties in case of delayed payment or nonperformance.
 Ensure the proper and effective security measure during and after implementation, may include
following:
 Formal written security policies agreed and signed by all major stakeholders.
 Non-disclosure and Confidential bond signed by all stakeholder, that due any technical fault,
malfunction or other systematic fault , confidential information of one party is leaked other will
not take any ethical benefit from it, otherwise if it proved then defaulting party will make
good loss of effected party. It will create confidence of stakeholder on E-SCM
 Proper implementation of Fire walls , anti-hacking and anti-viruses should be installed
 Unique account number and passwords should allocate to each suppliers and vendors to
access only their related databases on need to know bases only. Prepare formal agreed
policies may include:
- Syntax of password such at least one capital letter, one symbol etc.
- Periodically updating of passwords
- Only access from designated terminal only
- Access during only during official timings
- Two way verifications (such as pin on designated personnel mobile phone or official
email address)
 Further Maintaining of electronic ordering and activity logs and periodically disseminating
logs to respective relevant stakeholders to identify, rectify & avoid any unusual transaction.
Ideally weekly or monthly.
 Implementation of common help desk to solve issues on daily bases.

2 MIS assignement BAY INTERNATION

FROM THE DESK OF SUNIL KUMAR