Improving Global Supply Chains by Information Systems

Improving Global Supply Chains by Information Systems Investigation on the improvement of Global Supply Chains by using Information Systems. ABSTRACT The process of globalisation continues to increase the competitive pressures on all firms. Those who wish to lead the market have to continue to raise the bar in terms of operating in the most efficient possible manner. One key area for companies today is how they manage particular or own SC activities via the increasing utilisation of Information Systems (IS). The scope of think over on to research a role of Information System within global supply chain management (SCM) and understand advantages and profits it fetches. Results showed that in order make SCM to be effective, suppliers and customers must work in close collaboration together to truly integrate their business processes. From the results of the analysis undertaken, it has been concluded that using IS throughout the Supply Chain increases efficiency by reducing inventories, which in turn reduces costs to the entire Supply Chain, but also adds significant value from the end customers perspective. Furthermore, the use of IS throughout a Supply Chain enables better speed of response to unpredictable demand APPENDIX A: PRIMARY DATA COLLECTION METHODS 57 List of Abbreviations SC = Supply Chain S-A = Sigma-Aldrich SCM = Supply Chain Management MNC = Multinational Company SME = Small to Medium Enterprise IS = Information System E-commerce = Electronic Commerce B2B = Business to Business B2C = Business to Customer EDI = Electronic Data Interchange ERP = Enterprise Resource Planning MRP = Material Requirement Planning MRPII = Manufacturing Resource Planning POS = Point of Sale MPS = Master Production Schedule CRP = Capacity Requirement Planning RFID = Radio Frequency Identification APS = Advanced Planning Scheduling APO = Advanced Planner and Optimiser SCC = Supply Chain Cockpit ATP = Available-to-promise CPFR = Collaborative planning, forecasting Replenishment Chapter 1: Introduction Over the past ten years, retailers and suppliers invested huge capital in reducing the occurrences, where customers cannot find right products in stores. This has created a serious problem in retail and other industries (Collins, 005). Gerry Jastremski (Gillette Co) reported that this serious problem is causing a $69 billion loss for top retail companies. Recent studies revealed more than 70 percent companies face the same problem that their customers cannot find the products they want to buy in stores due to out of-stock mostly because of inappropriate supply and forecasting of products (Gruen, Corsten et al 2002). When more focused on markets during special offers and sales campaigns, the probability of finding desired product is always one in five times ratio when customers visit the store. As a result, customers change their mind and delay their purchase or look for alternative brands products. Thus retailers will not achieve their targeted ROI (return of investment) and custome r loyalty goes down. Though organizations and big companies wish to solve the above problem but disruptions are unavoidable. The most efficient way to manage and maintain the stock in stores is through Supply Chain Management (SCM). Supply chain with globalisation created fresh/modern era in the market environment in recent days. Businesses in todays market are increasingly considering global atmosphere. Organizations need to be completely aware of external factors like economic trends, competitive and technological innovations at home and abroad markets, which affect their ability to grow and sustain. Globalisation means, a product can be developed in China, manufactured in UK and sold in USA. This process of globalisation shows the need and urgency for organizations to change the way in which their logistical and operational activities are managed, explainingthe the concept of Supply Chain Management (SCM). Simple Supply chains were designed in the past using paper, pen and calculators. As business process and supply chain networks grew more complex in nature (Christopher, 2005) it became more difficult and impossible to manage SC activities without appropriate technological support. Its quite impossible to receive an effectuate and efficient SCM without IS/IT tools (Gunasekaran, Ngai. 2005). 1.1 Background/Supply Chain System In 21st century for achieving the global organizational competitiveness, Supply Chain Management System has evolved. Organizations are trying to find ways of increasing their competitiveness, responsiveness and flexibility by changing their operational strategies, technologies and methods which include the implementation of SCM (Gunasekaran, Ngai, 2003). SCM is an approach for companies to integrate their activities in the changing market requirements which improve companys agility level and dynamic nature. Through the view of Simchi Levi (2000) â€Å"SCM is bunch of addresses to effectuate gather suppliers, store warehouses, manufacturers so that trade is created and dilivered at the right quantities, to the right locations and at the right time in order to minimize system wide cost while satisfying service level requirements (cited in Gunasekaran, Ngai, 2005). Supply chains created a viable way for satisfying customers needs around the world. What is a Supply Chain? SC is a strategy introduced in organizations to enhance the ways of distributing the products from the firms to end consumers. It is all about purchasing raw materials, developing them into products and distributing those finished goods to customers with the help of intermediate sources. Janyashanker, Stephen (1996) defined supply chain as ‘a network of autonomous or semi autonomous business entities collectively responsible for procurement, manufacturing and distribution activities associated with one or more fami lies of products. Due to greater demand of products and high global competition of firms resulted in implementing Supply Chain. In another words supply chain is the movement of substances or products as they drive through their origin point to the end customer. SC includes manufacturing, purchasing , warehousing, customer service, transportation, supply planning, demand planning and supply chain management. It is the involvement of the people, information, activities involved in moving products from its supplier to customer. Affective management of the supply chain can be a real challenge though definition sounds very simple. Example of a Supply Chain: A very well SC flow of goods is shown above. In some cases, the product is shipped from the Manufacturer to the distribution centre as soon as it is manufactured. In other cases, such as spoke model and Hub the product is held at the manufacturer once produced and on only on the requirement it is sent to the distribution centre. In reality, every step in Supply Chain activity has complex calculations during the globalisation process; however this increases business efficiency and brings benefits to the organization on greater scales. So the Supply Chain activities must be well planned, organized meticulously as efficiency plays major role and advantageous in competitive markets (Bartlett et al. 2007). Activities in Supply Chain entail purchasing raw materials, converting into bulk or finished products and sending those products to various warehouses / distribution centres. They are then directly or indirectly delivered to 1st tier customers who add further more value to the end customers. The activities like planning and delivery should be managed and coordinated well in terms of both time and place. IS or software tools which have been developed all these years to manage these activities have evolved and became increasingly specialized. Hence organizations need to understand and carefully select the IS too ls that are best suited to their needs. SC ACTIVITIES Integrated Behaviour Mutually Sharing Information Mutually Sharing Risk And Rewards Cooperation The Same Goal and The Same Focus on Serving Customers Integration of Processes Partners to Build and Maintain Long-Term Relationship 1.2 Identified Problem SCM allows the organizations to manage numerous relations in SC for ongoing business process, for which IS plays a major role. Sanders (2005) says that ‘IS/IT which permits for the transmission and processing of information useful for synchronous decision making between organisations can be viewed as backbone of SC business structure. As a result organizations started using IS especially SCM systems in order to have closer contacts with suppliers and vendors and to reduce problems in SC activities. Though technology is growing and investigating new methods to solve SC problems, Maguire (2000) states: The IS community faces a paradox: despite impressive advances in technology, problems are more abundant than solutions; organizations experience rising cost instead of cost reduction. IS misuse and rejection are more frequent than acceptance and use. Major factor that leads IS to a failure is alignment between IS and the organization that is applied in. However there is a paucity of research in IS when efficiency is considered. Even though there is a SCM system for reducing problems in SC, but still it is not efficient. And due to lack of collaboration between different departments in the organizations, information is not shared exactly for targeted tasks. Though sophisticated technologies have been introduced to reduce problems, due to employees misuse and resistance, efficiency is being reduced. In this project we will discuss how technology (SAP) is being used in an organization and what problems have been identified. More over in this report enhancement has been investigated on SC. The reason for choosing SCM with SAP is due to the complexity of system that operates as a chain between suppliers and vendors. And also nature of the case is too complex as the organization has businesses with numerous suppliers and vendors internationally. One more reason for selecting this case and topic is the researches founded an opportunity to investigate how the SC activities are managed in the organization and proble ms existing in the usage of the SAP. The reason SAP is selected: It is a powerful tool for integration purposes and also researchers personal interest in acquiring more knowledge about SAP technology. 1.3 Aims and Objectives This examination sets out to carry the investigation and the factual goal of the dissertation is- To understand the ways in which the information technology or Information systems (IT/IS) are able to find the management of global Supply Chains (SC). In order to achieve these aims the following objectives have been set: To broaden knowledge by researching in two main areas i.e., Supply Chain Management (SCM) and Information Systems or Technologies that are specifically designed to be used in SC. To do research and understand how Supply Chains have been created with globalisation. To conduct a thorough research on the literature of SCM Identifying advantages and challenges faced while implementing the IS/IT tools in SCM by doing the comprehensive review on the literature gathered on SCM. Identifying the factors that are driving and affecting the technologies / information systems used in SCM. A real case study will be carried out using a research methodology. Information will be collected through semi-structured interviews from employees of the case study organisation: Sigma Aldrich. An evaluation of the outcome, based on literature and data collected during interviews is used to find the gaps between literatures (theoretical) and practise (practically) in real world. Recommendations (if any) about SC in company. 1.4 Research Approach The Interpretive Method is applied to understand the complex nature of IT in Supply Chain system. This will identify the sociological features like behaviour of employees, benefits of technologies employed and issues arising in business with the use of IS/IT in SCM. The interpretive method involve gathering literature on SCM, IS/IT tools used, and semi structured interviews. The research aim will be fulfilled by studying the current literature, analysing what are the factors which indicate SCM and identifying existing gaps with reference to the literature studied. Further, the research continues on existing technologies used in supporting the SCM system in the present business market. Benefits associated with implementation of IT in SCM, adoption factors and any kind of implementation issues will be determined. For gathering the literature review core textbooks, journals, online papers, conference proceedings and information from internet have been used. After the literature study, we find out the gaps which exist in the literature read and provided. After identifying the gaps, an empirical study will be applied to give an alternative to the gaps which already been discovered in literature gathered. A qualitative research methodology has been applied. Both primary and secondary research methods are adopted. Primary method of research deals with conducting semi structured interviews and collecting data, where as secondary method of research is in the form of literature review. 1.5 Dissertation Outline This dissertation include of seven chapters, spanning the development of research from aims and objectives to the conclusions. Dissertation has been structured in the following way: Chapter one deals with the introduction of the topic with adequate theoretical background on Supply Chain and provides overall aims and objectives of the topic. Furthermore it provides types of research methodologies employed in this dissertation to achieve the aims and objectives. Chapter two provides literature review with the topics covering Globalisation, Supply Chain system, IS/IT tools used in SCM and it goes on with functionalities and issues arising in SCM system and also the use of IT in SCM. Chapter three deals with the research methodologies adopted and their advantages and limitations In chapter four, case study about a Life Science and Bio-chemical manufacturing company and its heavy utilisation of IT in SCM have been discussed. Technical characteristics of Supply Chain in that company have also been discussed. In chapter five, case study interview findings are analysed. Future recommendations are discussed in chapter six. In chapter seven conclusions of the whole research are provided. 1.6 Summary This chapter gives an introduction of the research area, highlights aims, objectives and outlines of examination. Next chapter is going to present crucial points through literature. Chapter 2: Literature Review/Background study 2.1 Introduction In this chapter adequate background is developed to demonstrate that this study will adjust the current knowledge in SC. Part one provides information about globalisation and how it has been achieved in recent years, Which is followed by implications in global SC. Part two emphasis on definitions, concepts of SC and IS in SC, which is followed by defining various technologies in SC. part three explains integration and IS applications in SC. Part four identifies issues and challenges in SC todays market and next part talks about identifying a technology which address those challenges. Part six summarizes the chapter. 2.2 Overview/Globalisation Over the last two centuries globalisation process underwent remarkable changes and established closer contacts between human societies over the globe. In modern days, rapid and significant Changes in terms of technologies, communications, and transportation led to new impetus for global processes and more interdependent world than before. Business started moving rapidly than ever to new perspectives in many perceptions like coordinating closely, cooperating more in networks, competing with other networks (Schary, Skjott-Larsen, 2001). According to Mehmet (1996, P31) chartered companies in the past and multinational companies in the present are the driving factors behind the remarkable process of globalisation, Further saying, the main goal and motivation of these companies is for global profits and honestly, the inner logic of globalisation is ‘capitalisation on a world scale. Globalisation created new markets, wealth, and the march led to have major impact on manufacturing com panies. National and international economies merged under trade, technology and capitalization. Multinational companies started manufacturing goods and sell to customers in different countries, this process initiated the movement of products, raw materials, money and technology swiftly circulate all around the world freely. Schary, Skjott-Larsen (2003, p. 450) states that ‘Globalisation involves markets, production and global infrastructure. Companies started racing toward global competitive efficiency which caused organizations to produce and sell their products all over the world. This process made supply chain, its management and activities became more complex in nature. Hill (2007, P.5) states that ‘globalisation refers to the shift towards a more integrated and interdependent world economy. Globalisation has several facets, including and globalisation of markets and globalisation of production. 2.1.1 Implications of Globalisation The motivations were completely different from those of todays, which drove firms into foreign markets. For example tire industries extended their growth to abroad for rubber plantations whilst oil companies grew to Middle East countries to open new oil fields. According to Bartlett et al. (2008, P. 8) ‘though they moved initially often opportunistic many organisations eventually realized that extra sales enabled them to exploit sales economies of scope scale, thereby providing a source of competitive advantage over their domestic rivals. It can be easily seen that over a period of time, those firms realized that benefits could be gained not only by suppliers sourcing but also by selling in those new markets. Companies like Reebok manufacture their goods in lesser developed nations like Vietnam where manufacturing cost are comparatively low. By using modern transportation facilities like airways and containerization, these products can be easily moved to destinations quickly, reliable and efficiently at low cost. 2.2 Supply Chains In todays globalise market; SC has become a centre of focus to all business organizations especially larger firms with multiple branches globally. Supply Chain Management (SCM) has become basic competitive requirement in order to satisfy and compete for the attentions of modern customers who is more empowered and have greater demand on total value package (Harrison, 2001). Significant supply chain decisions and supply chain performance is the key for success of any firm. Any supply chain combination of all parties which have involvement either indirectly or directly, in satisfying a consumers request. In another words supply chain is the movement of substances or products as they drive through their origin point to the end customer. SC includes manufacturing, purchasing, warehousing, customer service, transportation, supply planning, demand planning and supply chain management. It is the involvement of the people, information, activities involved in moving products from its supplier to customer. Affective management of the supply chain can be a real challenge though definition sounds very simple. Supply chain flow encompasses whole bunch of activities including organization and flow of materials, other resources to produce finished product to final customer Mannheim (1994), Treacy Wiersma (1993) cited in (Schary Skjott 2001). A sequel of process that add value to firm is product development, customer relationship and SCM (Schary Skjott , 2001). No process is considered as individually important, all three work together to make supply chains successful and profitable. It is a difficult task to manage SC and failures in SC can be devastating to firms, example Nike and Cisco found in 2001 loosing $100 million and $2.2 billion respectively due to improper management and problems in their SC. But on the other end organizations like Wall-Mart demonstrated huge success on daily basis on its SCM which provided a great deal of successful competitive advantage (Taylor, 2004). A Supply chain is a network of distributors, retailers, transporters, storage facilities and mostly active member in this process is suppliers that take part in production, selling of the product to the customer and delivery. A supply chain is specially those who co-ordinate activities to set themselves apart from the competition by the multiple companies. It has three main key parts: Supply: targets on the raw materials supplied to manufacturing, including when how and from what location. Manufacturing: mainly active in converting raw materials into finished goods. Distribution: targeting on ensuring these products reach the customers through an organized network of distributors, warehouses and retailers. While implemented to customer products and manufacturing a supply chain can determine to show how different processes supply to one another. SC can be also considered as network of suppliers, manufacturing, assembling and distributing facilities responsible for materials procuring, and converting into final products and distributed to end customers (Barbuceaunu, Teigen 1998, Fox, Barbuceaunu et al 2001, Agnetisa, Hallb et al 2005, Stadtler, 2005). SC consists of numerous networked organizations aiming to produce goods and services to customers. A Supply chain is a network of distributors, retailers, transporters, storage facilities and mostly active member in this process is suppliers that take part in production, selling of the product to the customer and delivery. A supply chain is specially those who co-ordinate activities to set themselves apart from the competition by the multiple companies. It has three main key parts: Supply: targets on the raw materials supplied to manufacturing, including when how and from what location. Manufacturing: mainly active in converting raw materials into finished goods. Distribution: targeting on ensuring these products reach the customers through an organized network of distributors, warehouses and retailers. While implemented to customer products and manufacturing a supply chain can determine to show how different processes supply to one another. In this sense the definition of S C can apply to finance Internet technology and many other industries. A SC strategy restricts how SC supposed to behave in order to compete in their business relatively. And this strategy describes the cost relating to the operation and the benefits. SC strategy mainly targets the actual operation of the company and SC which will be used to meet a specific goal. Another term SCM (supply chain management), which is focusing on oversight of materials, information and finances as they are distributed from supplier to consumer. The SC also contains all the required stops between the supplier and the consumer. Above figure clearly indicates SC always needs the collaboration between various organizations. Functions ranging from ordering materials to delivery of finished products to customers need to operate in integrated manner (Angerhofer Angelides, 2005). Supply Chain Management (SCM) was introduced for ‘Gathering organizational units along a SC coordinating information, material and financial flows in order to provide customer demands with the aim of improving competitiveness of the SC as a whole (Verwijmeren, 2004). SCM plays a major role for a good planning, organizing and coordinating of SC activities. SCM (supply chain management) can be divided into three important flows: The product flow contains moving materials or goods from supplier to consumer, as well as fulfilling the customer requests. The information flow contains delivery status and order information. The Financial flow contains credit terms, payment schedules and additional arrangements. 2.3 Information systems in SC Due to increasing customer demand value and global competition supply chain concept has become a bigger concern thus to run a smooth operation the important information must be accessible in real time across the supply chain and this cannot be achieved without an integrated software system for SCM( supply chain management) . To improve customers satisfaction SCM members have to share information and collaborate with each other. In real time to trade with suppliers and customers over the internet, web technologies have played a major role to become effective. For this, company have to integrate their applications and IS with their customers and suppliers. The implementation of this will result in as an increase in companys profits and competitiveness. IS in SC making business to grow rapidly and is bringing both opportunities and challenges at the same time and pace. SC design and management has been intensified with IS tools which span organizations to integrate, manage and automate SC functions. Various IS tools like Electronic Data Interchange (EDI), World Wide Web (WWW), E-commerce, Radio Frequency Identification (RFID), Enterprise Resource Planning (ERP), Systems Application products in Data (SAP). These tools help to overcome the complexities of systems which initiates vendor-customer-supplier relationships. Aim of SC activities with the use of IS is: reducing paper work, controlling cost, lowering inventories and shorten product cycles Chou et al., (2004). Below table shows different stages how IS has been used from recent years. Stages Year Milestone Firms IS Developments Introduction 1960-1970s MRP Firms are closely linked with MRP Only Internal integration was practised for customer services. Growing 1970-1980s EDI In-time delivery was practised for efficient communication between Suppliers. Pre-Mature 1990-2000s E-Commerce Organizations and vendors in SC B2B B2C started using internet for effectiveway to communicate. Mature 2000- present C-commerce Business organizations started ERP Collaborating for improving the Efficiency of SC System. Table 2.1 Stages of IS Evolution in SC. Chou et al., (2004) The above mentioned IS have advantages and disadvantages as well. EDI and E-commerce can be used for external operations in SCM. 2.3.1 Electronic Data Interchange (EDI) EDI is defined as being ‘specifically the electronic exchange of structured business documents between different computer applications across enterprise boundaries (The Edi zone, 2008). Ruppel defined EDI as electronic data communication of invoices, purchase orders and other applications which use standard EDI format between supplier and customer. For purchasing orders and sending requisitions EDI has been used by trading partners for information exchange. EDI has been adopted for many reasons- faster and easier communication of data in trading, improved accuracy in information, reduced clerical errors, and reduced inventory cost, labour, and automation of tasks. These all together improves firm relationship with customers and suppliers (Ruppel, 2004 Leonard, et al., 2006). Disadvantages associated with EDI is its adoption and implementation cost (Williams et al., 2002, Chou et al., 2004) and it does not operate in real time. EDIs standard format of structure makes it more d ifficult to follow (Chou et al., 2004). The swap of business data from one company or organisations system application to the computer application of a trading partner. Why EDI? For accuracy, push up the no of accuracy by eliminating r-keying of data. The standard quality of data is found by agreeing product cost. By reducing supply chain cost co related with manual processing EDI helps to build up the partnership between supplier or customer. Those suppliers who are enabled with EDI are very simpler and having very low cost to deal with. Because of EDI electronic documents can be transferred from system to another computer system means one trading company to another trading company. EDI conveys a row of messages between two organisation or companies or parties in which one can be a recipient or originator. The sequel of the data shows the documents might be passed from originator to recipient via telecomm or delivered physically on electronic storage media. To carry out smoothly supply chain operation EDI plays a very important role. EDI is able to explain a very strict standardized format of electronic document. Companies that send and receive papers between both of them are known as â€Å"trading partners† in EEDI methodology. 2.3.2 Internet, World Wide Web When compared to EDI which requires technological expenditure, internet and World Wide Web have been widely accepted as the scope of connectivity between individuals and businesses is broadened (Chou et al., 2004 William et al., 2002). ‘This is the vision of the digital future: If there is an increased demand for woollen pullovers in Benton shops, a farmer in New Zealand receives an order via the web to shear his sheep (Rohrict, Teufel et al 2002). Internet became a ubiquitous and cheaper means to communicate between firms and partners and which initiated global SCs. Cost involved in exchanging information has been greatly reduced with the usage of internet in e-SCM. It has been observed that web based networks provides professional services which are quick, accurate and synchronized in global SC (Folinas et al., 2004). A new trend evolved in supporting SC applications is use of ‘third party softwares. Firms recognized the value of developing partnerships with vendors and consultants. That softwares must be compatible, capable of integrating with SC allowing partners to include any other modules which helps to include programming interfaces to current systems for future use (Green, 2001). Now-a-days SC business processes are scattered over multiple members, so SC system should be actively flexible to handle and respond effectively to the dynamic changes in the global market (Chandrashekar, 1999). 2.3.3 Evolution of ERP From business perspective ERP has broaden from co- ordination of manufacturing processes to the integration of enterprise wide backend processes. Recent studies show that organizations all around the world are investing billions of money on ERP (Enterprise Resource Planning), when consulting expenditure is calculated then the figure may be doubled (Themistocleous, Irani et al., 2001). Before integrating business process of a firm with customers and suppliers, initially their internal processes have to be operated more efficiently. For this purpose, software/technology ‘ERP is used commonly. According to Hamilton (2003, p. 12) â€Å"An ERP system provides transaction processing and a common database to model operations within a manufacturing firm, and supports several levels of decision making†. MRP (Material Requirement Planning) is earliest form of ERP, which was used in ordering materials and components (Wallace kremzar, 2001). Master production schedule (MPS) is considered as heart of MRP. MPS calculates production requirements according to meet distr Improving Global Supply Chains by Information Systems Improving Global Supply Chains by Information Systems Investigation on the improvement of Global Supply Chains by using Information Systems. ABSTRACT The process of globalisation continues to increase the competitive pressures on all firms. Those who wish to lead the market have to continue to raise the bar in terms of operating in the most efficient possible manner. One key area for companies today is how they manage particular or own SC activities via the increasing utilisation of Information Systems (IS). The scope of think over on to research a role of Information System within global supply chain management (SCM) and understand advantages and profits it fetches. Results showed that in order make SCM to be effective, suppliers and customers must work in close collaboration together to truly integrate their business processes. From the results of the analysis undertaken, it has been concluded that using IS throughout the Supply Chain increases efficiency by reducing inventories, which in turn reduces costs to the entire Supply Chain, but also adds significant value from the end customers perspective. Furthermore, the use of IS throughout a Supply Chain enables better speed of response to unpredictable demand APPENDIX A: PRIMARY DATA COLLECTION METHODS 57 List of Abbreviations SC = Supply Chain S-A = Sigma-Aldrich SCM = Supply Chain Management MNC = Multinational Company SME = Small to Medium Enterprise IS = Information System E-commerce = Electronic Commerce B2B = Business to Business B2C = Business to Customer EDI = Electronic Data Interchange ERP = Enterprise Resource Planning MRP = Material Requirement Planning MRPII = Manufacturing Resource Planning POS = Point of Sale MPS = Master Production Schedule CRP = Capacity Requirement Planning RFID = Radio Frequency Identification APS = Advanced Planning Scheduling APO = Advanced Planner and Optimiser SCC = Supply Chain Cockpit ATP = Available-to-promise CPFR = Collaborative planning, forecasting Replenishment Chapter 1: Introduction Over the past ten years, retailers and suppliers invested huge capital in reducing the occurrences, where customers cannot find right products in stores. This has created a serious problem in retail and other industries (Collins, 005). Gerry Jastremski (Gillette Co) reported that this serious problem is causing a $69 billion loss for top retail companies. Recent studies revealed more than 70 percent companies face the same problem that their customers cannot find the products they want to buy in stores due to out of-stock mostly because of inappropriate supply and forecasting of products (Gruen, Corsten et al 2002). When more focused on markets during special offers and sales campaigns, the probability of finding desired product is always one in five times ratio when customers visit the store. As a result, customers change their mind and delay their purchase or look for alternative brands products. Thus retailers will not achieve their targeted ROI (return of investment) and custome r loyalty goes down. Though organizations and big companies wish to solve the above problem but disruptions are unavoidable. The most efficient way to manage and maintain the stock in stores is through Supply Chain Management (SCM). Supply chain with globalisation created fresh/modern era in the market environment in recent days. Businesses in todays market are increasingly considering global atmosphere. Organizations need to be completely aware of external factors like economic trends, competitive and technological innovations at home and abroad markets, which affect their ability to grow and sustain. Globalisation means, a product can be developed in China, manufactured in UK and sold in USA. This process of globalisation shows the need and urgency for organizations to change the way in which their logistical and operational activities are managed, explainingthe the concept of Supply Chain Management (SCM). Simple Supply chains were designed in the past using paper, pen and calculators. As business process and supply chain networks grew more complex in nature (Christopher, 2005) it became more difficult and impossible to manage SC activities without appropriate technological support. Its quite impossible to receive an effectuate and efficient SCM without IS/IT tools (Gunasekaran, Ngai. 2005). 1.1 Background/Supply Chain System In 21st century for achieving the global organizational competitiveness, Supply Chain Management System has evolved. Organizations are trying to find ways of increasing their competitiveness, responsiveness and flexibility by changing their operational strategies, technologies and methods which include the implementation of SCM (Gunasekaran, Ngai, 2003). SCM is an approach for companies to integrate their activities in the changing market requirements which improve companys agility level and dynamic nature. Through the view of Simchi Levi (2000) â€Å"SCM is bunch of addresses to effectuate gather suppliers, store warehouses, manufacturers so that trade is created and dilivered at the right quantities, to the right locations and at the right time in order to minimize system wide cost while satisfying service level requirements (cited in Gunasekaran, Ngai, 2005). Supply chains created a viable way for satisfying customers needs around the world. What is a Supply Chain? SC is a strategy introduced in organizations to enhance the ways of distributing the products from the firms to end consumers. It is all about purchasing raw materials, developing them into products and distributing those finished goods to customers with the help of intermediate sources. Janyashanker, Stephen (1996) defined supply chain as ‘a network of autonomous or semi autonomous business entities collectively responsible for procurement, manufacturing and distribution activities associated with one or more fami lies of products. Due to greater demand of products and high global competition of firms resulted in implementing Supply Chain. In another words supply chain is the movement of substances or products as they drive through their origin point to the end customer. SC includes manufacturing, purchasing , warehousing, customer service, transportation, supply planning, demand planning and supply chain management. It is the involvement of the people, information, activities involved in moving products from its supplier to customer. Affective management of the supply chain can be a real challenge though definition sounds very simple. Example of a Supply Chain: A very well SC flow of goods is shown above. In some cases, the product is shipped from the Manufacturer to the distribution centre as soon as it is manufactured. In other cases, such as spoke model and Hub the product is held at the manufacturer once produced and on only on the requirement it is sent to the distribution centre. In reality, every step in Supply Chain activity has complex calculations during the globalisation process; however this increases business efficiency and brings benefits to the organization on greater scales. So the Supply Chain activities must be well planned, organized meticulously as efficiency plays major role and advantageous in competitive markets (Bartlett et al. 2007). Activities in Supply Chain entail purchasing raw materials, converting into bulk or finished products and sending those products to various warehouses / distribution centres. They are then directly or indirectly delivered to 1st tier customers who add further more value to the end customers. The activities like planning and delivery should be managed and coordinated well in terms of both time and place. IS or software tools which have been developed all these years to manage these activities have evolved and became increasingly specialized. Hence organizations need to understand and carefully select the IS too ls that are best suited to their needs. SC ACTIVITIES Integrated Behaviour Mutually Sharing Information Mutually Sharing Risk And Rewards Cooperation The Same Goal and The Same Focus on Serving Customers Integration of Processes Partners to Build and Maintain Long-Term Relationship 1.2 Identified Problem SCM allows the organizations to manage numerous relations in SC for ongoing business process, for which IS plays a major role. Sanders (2005) says that ‘IS/IT which permits for the transmission and processing of information useful for synchronous decision making between organisations can be viewed as backbone of SC business structure. As a result organizations started using IS especially SCM systems in order to have closer contacts with suppliers and vendors and to reduce problems in SC activities. Though technology is growing and investigating new methods to solve SC problems, Maguire (2000) states: The IS community faces a paradox: despite impressive advances in technology, problems are more abundant than solutions; organizations experience rising cost instead of cost reduction. IS misuse and rejection are more frequent than acceptance and use. Major factor that leads IS to a failure is alignment between IS and the organization that is applied in. However there is a paucity of research in IS when efficiency is considered. Even though there is a SCM system for reducing problems in SC, but still it is not efficient. And due to lack of collaboration between different departments in the organizations, information is not shared exactly for targeted tasks. Though sophisticated technologies have been introduced to reduce problems, due to employees misuse and resistance, efficiency is being reduced. In this project we will discuss how technology (SAP) is being used in an organization and what problems have been identified. More over in this report enhancement has been investigated on SC. The reason for choosing SCM with SAP is due to the complexity of system that operates as a chain between suppliers and vendors. And also nature of the case is too complex as the organization has businesses with numerous suppliers and vendors internationally. One more reason for selecting this case and topic is the researches founded an opportunity to investigate how the SC activities are managed in the organization and proble ms existing in the usage of the SAP. The reason SAP is selected: It is a powerful tool for integration purposes and also researchers personal interest in acquiring more knowledge about SAP technology. 1.3 Aims and Objectives This examination sets out to carry the investigation and the factual goal of the dissertation is- To understand the ways in which the information technology or Information systems (IT/IS) are able to find the management of global Supply Chains (SC). In order to achieve these aims the following objectives have been set: To broaden knowledge by researching in two main areas i.e., Supply Chain Management (SCM) and Information Systems or Technologies that are specifically designed to be used in SC. To do research and understand how Supply Chains have been created with globalisation. To conduct a thorough research on the literature of SCM Identifying advantages and challenges faced while implementing the IS/IT tools in SCM by doing the comprehensive review on the literature gathered on SCM. Identifying the factors that are driving and affecting the technologies / information systems used in SCM. A real case study will be carried out using a research methodology. Information will be collected through semi-structured interviews from employees of the case study organisation: Sigma Aldrich. An evaluation of the outcome, based on literature and data collected during interviews is used to find the gaps between literatures (theoretical) and practise (practically) in real world. Recommendations (if any) about SC in company. 1.4 Research Approach The Interpretive Method is applied to understand the complex nature of IT in Supply Chain system. This will identify the sociological features like behaviour of employees, benefits of technologies employed and issues arising in business with the use of IS/IT in SCM. The interpretive method involve gathering literature on SCM, IS/IT tools used, and semi structured interviews. The research aim will be fulfilled by studying the current literature, analysing what are the factors which indicate SCM and identifying existing gaps with reference to the literature studied. Further, the research continues on existing technologies used in supporting the SCM system in the present business market. Benefits associated with implementation of IT in SCM, adoption factors and any kind of implementation issues will be determined. For gathering the literature review core textbooks, journals, online papers, conference proceedings and information from internet have been used. After the literature study, we find out the gaps which exist in the literature read and provided. After identifying the gaps, an empirical study will be applied to give an alternative to the gaps which already been discovered in literature gathered. A qualitative research methodology has been applied. Both primary and secondary research methods are adopted. Primary method of research deals with conducting semi structured interviews and collecting data, where as secondary method of research is in the form of literature review. 1.5 Dissertation Outline This dissertation include of seven chapters, spanning the development of research from aims and objectives to the conclusions. Dissertation has been structured in the following way: Chapter one deals with the introduction of the topic with adequate theoretical background on Supply Chain and provides overall aims and objectives of the topic. Furthermore it provides types of research methodologies employed in this dissertation to achieve the aims and objectives. Chapter two provides literature review with the topics covering Globalisation, Supply Chain system, IS/IT tools used in SCM and it goes on with functionalities and issues arising in SCM system and also the use of IT in SCM. Chapter three deals with the research methodologies adopted and their advantages and limitations In chapter four, case study about a Life Science and Bio-chemical manufacturing company and its heavy utilisation of IT in SCM have been discussed. Technical characteristics of Supply Chain in that company have also been discussed. In chapter five, case study interview findings are analysed. Future recommendations are discussed in chapter six. In chapter seven conclusions of the whole research are provided. 1.6 Summary This chapter gives an introduction of the research area, highlights aims, objectives and outlines of examination. Next chapter is going to present crucial points through literature. Chapter 2: Literature Review/Background study 2.1 Introduction In this chapter adequate background is developed to demonstrate that this study will adjust the current knowledge in SC. Part one provides information about globalisation and how it has been achieved in recent years, Which is followed by implications in global SC. Part two emphasis on definitions, concepts of SC and IS in SC, which is followed by defining various technologies in SC. part three explains integration and IS applications in SC. Part four identifies issues and challenges in SC todays market and next part talks about identifying a technology which address those challenges. Part six summarizes the chapter. 2.2 Overview/Globalisation Over the last two centuries globalisation process underwent remarkable changes and established closer contacts between human societies over the globe. In modern days, rapid and significant Changes in terms of technologies, communications, and transportation led to new impetus for global processes and more interdependent world than before. Business started moving rapidly than ever to new perspectives in many perceptions like coordinating closely, cooperating more in networks, competing with other networks (Schary, Skjott-Larsen, 2001). According to Mehmet (1996, P31) chartered companies in the past and multinational companies in the present are the driving factors behind the remarkable process of globalisation, Further saying, the main goal and motivation of these companies is for global profits and honestly, the inner logic of globalisation is ‘capitalisation on a world scale. Globalisation created new markets, wealth, and the march led to have major impact on manufacturing com panies. National and international economies merged under trade, technology and capitalization. Multinational companies started manufacturing goods and sell to customers in different countries, this process initiated the movement of products, raw materials, money and technology swiftly circulate all around the world freely. Schary, Skjott-Larsen (2003, p. 450) states that ‘Globalisation involves markets, production and global infrastructure. Companies started racing toward global competitive efficiency which caused organizations to produce and sell their products all over the world. This process made supply chain, its management and activities became more complex in nature. Hill (2007, P.5) states that ‘globalisation refers to the shift towards a more integrated and interdependent world economy. Globalisation has several facets, including and globalisation of markets and globalisation of production. 2.1.1 Implications of Globalisation The motivations were completely different from those of todays, which drove firms into foreign markets. For example tire industries extended their growth to abroad for rubber plantations whilst oil companies grew to Middle East countries to open new oil fields. According to Bartlett et al. (2008, P. 8) ‘though they moved initially often opportunistic many organisations eventually realized that extra sales enabled them to exploit sales economies of scope scale, thereby providing a source of competitive advantage over their domestic rivals. It can be easily seen that over a period of time, those firms realized that benefits could be gained not only by suppliers sourcing but also by selling in those new markets. Companies like Reebok manufacture their goods in lesser developed nations like Vietnam where manufacturing cost are comparatively low. By using modern transportation facilities like airways and containerization, these products can be easily moved to destinations quickly, reliable and efficiently at low cost. 2.2 Supply Chains In todays globalise market; SC has become a centre of focus to all business organizations especially larger firms with multiple branches globally. Supply Chain Management (SCM) has become basic competitive requirement in order to satisfy and compete for the attentions of modern customers who is more empowered and have greater demand on total value package (Harrison, 2001). Significant supply chain decisions and supply chain performance is the key for success of any firm. Any supply chain combination of all parties which have involvement either indirectly or directly, in satisfying a consumers request. In another words supply chain is the movement of substances or products as they drive through their origin point to the end customer. SC includes manufacturing, purchasing, warehousing, customer service, transportation, supply planning, demand planning and supply chain management. It is the involvement of the people, information, activities involved in moving products from its supplier to customer. Affective management of the supply chain can be a real challenge though definition sounds very simple. Supply chain flow encompasses whole bunch of activities including organization and flow of materials, other resources to produce finished product to final customer Mannheim (1994), Treacy Wiersma (1993) cited in (Schary Skjott 2001). A sequel of process that add value to firm is product development, customer relationship and SCM (Schary Skjott , 2001). No process is considered as individually important, all three work together to make supply chains successful and profitable. It is a difficult task to manage SC and failures in SC can be devastating to firms, example Nike and Cisco found in 2001 loosing $100 million and $2.2 billion respectively due to improper management and problems in their SC. But on the other end organizations like Wall-Mart demonstrated huge success on daily basis on its SCM which provided a great deal of successful competitive advantage (Taylor, 2004). A Supply chain is a network of distributors, retailers, transporters, storage facilities and mostly active member in this process is suppliers that take part in production, selling of the product to the customer and delivery. A supply chain is specially those who co-ordinate activities to set themselves apart from the competition by the multiple companies. It has three main key parts: Supply: targets on the raw materials supplied to manufacturing, including when how and from what location. Manufacturing: mainly active in converting raw materials into finished goods. Distribution: targeting on ensuring these products reach the customers through an organized network of distributors, warehouses and retailers. While implemented to customer products and manufacturing a supply chain can determine to show how different processes supply to one another. SC can be also considered as network of suppliers, manufacturing, assembling and distributing facilities responsible for materials procuring, and converting into final products and distributed to end customers (Barbuceaunu, Teigen 1998, Fox, Barbuceaunu et al 2001, Agnetisa, Hallb et al 2005, Stadtler, 2005). SC consists of numerous networked organizations aiming to produce goods and services to customers. A Supply chain is a network of distributors, retailers, transporters, storage facilities and mostly active member in this process is suppliers that take part in production, selling of the product to the customer and delivery. A supply chain is specially those who co-ordinate activities to set themselves apart from the competition by the multiple companies. It has three main key parts: Supply: targets on the raw materials supplied to manufacturing, including when how and from what location. Manufacturing: mainly active in converting raw materials into finished goods. Distribution: targeting on ensuring these products reach the customers through an organized network of distributors, warehouses and retailers. While implemented to customer products and manufacturing a supply chain can determine to show how different processes supply to one another. In this sense the definition of S C can apply to finance Internet technology and many other industries. A SC strategy restricts how SC supposed to behave in order to compete in their business relatively. And this strategy describes the cost relating to the operation and the benefits. SC strategy mainly targets the actual operation of the company and SC which will be used to meet a specific goal. Another term SCM (supply chain management), which is focusing on oversight of materials, information and finances as they are distributed from supplier to consumer. The SC also contains all the required stops between the supplier and the consumer. Above figure clearly indicates SC always needs the collaboration between various organizations. Functions ranging from ordering materials to delivery of finished products to customers need to operate in integrated manner (Angerhofer Angelides, 2005). Supply Chain Management (SCM) was introduced for ‘Gathering organizational units along a SC coordinating information, material and financial flows in order to provide customer demands with the aim of improving competitiveness of the SC as a whole (Verwijmeren, 2004). SCM plays a major role for a good planning, organizing and coordinating of SC activities. SCM (supply chain management) can be divided into three important flows: The product flow contains moving materials or goods from supplier to consumer, as well as fulfilling the customer requests. The information flow contains delivery status and order information. The Financial flow contains credit terms, payment schedules and additional arrangements. 2.3 Information systems in SC Due to increasing customer demand value and global competition supply chain concept has become a bigger concern thus to run a smooth operation the important information must be accessible in real time across the supply chain and this cannot be achieved without an integrated software system for SCM( supply chain management) . To improve customers satisfaction SCM members have to share information and collaborate with each other. In real time to trade with suppliers and customers over the internet, web technologies have played a major role to become effective. For this, company have to integrate their applications and IS with their customers and suppliers. The implementation of this will result in as an increase in companys profits and competitiveness. IS in SC making business to grow rapidly and is bringing both opportunities and challenges at the same time and pace. SC design and management has been intensified with IS tools which span organizations to integrate, manage and automate SC functions. Various IS tools like Electronic Data Interchange (EDI), World Wide Web (WWW), E-commerce, Radio Frequency Identification (RFID), Enterprise Resource Planning (ERP), Systems Application products in Data (SAP). These tools help to overcome the complexities of systems which initiates vendor-customer-supplier relationships. Aim of SC activities with the use of IS is: reducing paper work, controlling cost, lowering inventories and shorten product cycles Chou et al., (2004). Below table shows different stages how IS has been used from recent years. Stages Year Milestone Firms IS Developments Introduction 1960-1970s MRP Firms are closely linked with MRP Only Internal integration was practised for customer services. Growing 1970-1980s EDI In-time delivery was practised for efficient communication between Suppliers. Pre-Mature 1990-2000s E-Commerce Organizations and vendors in SC B2B B2C started using internet for effectiveway to communicate. Mature 2000- present C-commerce Business organizations started ERP Collaborating for improving the Efficiency of SC System. Table 2.1 Stages of IS Evolution in SC. Chou et al., (2004) The above mentioned IS have advantages and disadvantages as well. EDI and E-commerce can be used for external operations in SCM. 2.3.1 Electronic Data Interchange (EDI) EDI is defined as being ‘specifically the electronic exchange of structured business documents between different computer applications across enterprise boundaries (The Edi zone, 2008). Ruppel defined EDI as electronic data communication of invoices, purchase orders and other applications which use standard EDI format between supplier and customer. For purchasing orders and sending requisitions EDI has been used by trading partners for information exchange. EDI has been adopted for many reasons- faster and easier communication of data in trading, improved accuracy in information, reduced clerical errors, and reduced inventory cost, labour, and automation of tasks. These all together improves firm relationship with customers and suppliers (Ruppel, 2004 Leonard, et al., 2006). Disadvantages associated with EDI is its adoption and implementation cost (Williams et al., 2002, Chou et al., 2004) and it does not operate in real time. EDIs standard format of structure makes it more d ifficult to follow (Chou et al., 2004). The swap of business data from one company or organisations system application to the computer application of a trading partner. Why EDI? For accuracy, push up the no of accuracy by eliminating r-keying of data. The standard quality of data is found by agreeing product cost. By reducing supply chain cost co related with manual processing EDI helps to build up the partnership between supplier or customer. Those suppliers who are enabled with EDI are very simpler and having very low cost to deal with. Because of EDI electronic documents can be transferred from system to another computer system means one trading company to another trading company. EDI conveys a row of messages between two organisation or companies or parties in which one can be a recipient or originator. The sequel of the data shows the documents might be passed from originator to recipient via telecomm or delivered physically on electronic storage media. To carry out smoothly supply chain operation EDI plays a very important role. EDI is able to explain a very strict standardized format of electronic document. Companies that send and receive papers between both of them are known as â€Å"trading partners† in EEDI methodology. 2.3.2 Internet, World Wide Web When compared to EDI which requires technological expenditure, internet and World Wide Web have been widely accepted as the scope of connectivity between individuals and businesses is broadened (Chou et al., 2004 William et al., 2002). ‘This is the vision of the digital future: If there is an increased demand for woollen pullovers in Benton shops, a farmer in New Zealand receives an order via the web to shear his sheep (Rohrict, Teufel et al 2002). Internet became a ubiquitous and cheaper means to communicate between firms and partners and which initiated global SCs. Cost involved in exchanging information has been greatly reduced with the usage of internet in e-SCM. It has been observed that web based networks provides professional services which are quick, accurate and synchronized in global SC (Folinas et al., 2004). A new trend evolved in supporting SC applications is use of ‘third party softwares. Firms recognized the value of developing partnerships with vendors and consultants. That softwares must be compatible, capable of integrating with SC allowing partners to include any other modules which helps to include programming interfaces to current systems for future use (Green, 2001). Now-a-days SC business processes are scattered over multiple members, so SC system should be actively flexible to handle and respond effectively to the dynamic changes in the global market (Chandrashekar, 1999). 2.3.3 Evolution of ERP From business perspective ERP has broaden from co- ordination of manufacturing processes to the integration of enterprise wide backend processes. Recent studies show that organizations all around the world are investing billions of money on ERP (Enterprise Resource Planning), when consulting expenditure is calculated then the figure may be doubled (Themistocleous, Irani et al., 2001). Before integrating business process of a firm with customers and suppliers, initially their internal processes have to be operated more efficiently. For this purpose, software/technology ‘ERP is used commonly. According to Hamilton (2003, p. 12) â€Å"An ERP system provides transaction processing and a common database to model operations within a manufacturing firm, and supports several levels of decision making†. MRP (Material Requirement Planning) is earliest form of ERP, which was used in ordering materials and components (Wallace kremzar, 2001). Master production schedule (MPS) is considered as heart of MRP. MPS calculates production requirements according to meet distr

Entrepreneurship Essay

Founder Of The Company The company was called KYK Automotive Inc. , and was started by Peter Yadav, the sole owner of the business. The business was started up as a partnership back in March of 1993, with the three partners being Peter Yadav, Ramesh Kapil, and Sam Kapil. They thought of the name KYK with the initials of all three last names. All three were previously working as car mechanics, with the two brothers, Ramesh and Sam working at one place, and Peter was working at a Petro Canada station, all in downtown Toronto. The three have known each other since they were all enrolled in the army together back in their homeland of India, and remained close friends ever since. Upon coming to Canada, they each found separate jobs as car mechanics, and helped out one another in finding better positions or better paying jobs. Once they were all settled down, they would always get together on the weekends and discuss about further opportunities that they could go into. Their initial thoughts were to open up a mechanic shop, with them three being the mechanics. It was through these small talks that the idea of opening up an Auto Parts retail store came about The Idea The three friends would always meet up on the weekends to relax and discuss about further opportunities for the future that would lead them to better profits and greater success. They thought hard about opening up a mechanic shop and having them three being the only mechanics their, which almost passed through. They had found a spot and were getting their capital together when one day, Peter suggested that he would be interested in something else. He wanted to go a step ahead and he had always noticed that the people who delivered the parts were always so busy, and had pretty much a work overload, where they were denying new clients because they just couldn’t handle all the workload. The mechanic shop would have been the easier route for the three, but they loved challenges and wanted to try something new as well, something a little less physically demanding, and something that would require them to use their brains a little more. When Peter suggested the idea, the other two were a bit hesitant because it was something they weren’t familiar with, and the idea of putting all their money into something that wasn’t 100% clear to them sounded a bit risky. Peter suggested though that they did know all the basics of the business since they were mechanics themselves, and that all they really needed to do was to learn about the software to look up different parts that mechanic shops needed, and that they would slowly start up and learn the rest of the business as they move along. He persuaded them on the fact that the business had a lot of demand and very few suppliers and since they already have three experienced people in the trade, they could start up the business right away. An advantage that these three had was the ability to troubleshoot as well for their customers, for instance, if the mechanic had trouble identifying what could be wrong with a customer’s car or what the part is called that he/she required, these three with their background and knowledge of the industry, could assist them in finding the exact part. The auto parts stores at that present time were unable to do this which was thought to be an excellent addition to their possible new venture, and would make their company stand out. With all these factors into play, they started to dig deeper into it and came up with an excellent choice and business decision when they decided the location. The Location During the time that they were all deciding on a location, and since they were all newlyweds and had family coming from their homelands, they needed to move out of the city and to a location in the suburbs, which was something they had decided before thinking of the new business. After months of searching for the best location that would bring in the most business, they found a location in the Mississauga/Brampton area, where there was a shortage of parts stores but an overload of mechanic shops. This would be their best opportunity to get in on the profits of the auto parts industry. The major breakthrough for them in particular was that in that time, there were many immigrants coming from their homeland of India, and a majority of them had settled down in the Mississauga/Brampton area, and a majority of them were mechanics and had opened up businesses in that area. This was a large part in the deciding factor of locations because what they had realized was that these mechanics were ordering from shops that barely understood what they were talking about, and half their parts would be delivered wrong with no fault of their own or the parts store, it just a communication problem. With Peter and the two brothers opening their shop near here, they could easily take all of this business away from other parts stores for the simple fact that they all speak the same language, are from the same place back home, and their would be no communication problems for either of them. This would save time for the mechanics because the amount of incorrect parts they receive would decrease and in turn, would increase profits for the new business. The location ended up being 1767 Drew Road, which is in an industrial area in Mississauga, and was close to many mechanic shops within a 5km radius. Day-To-Day Operations They had opened the store on March 1, 1993, with just the three of the partners working there. They had Peter as a counterperson, who would be answering calls and providing prices to customers, billing the customers and locating the parts. They had Ramesh delivering the parts to all the customers and marketing their business as he was on the road, kind of like a salesman. Then they had Sam helping out at the store, with all the walk in customers they had, along with order picking the parts for the different garages as Peter needed some help as well. The business started off with a boom right from the get go, and within a couple of months, they had realized that they would require more employees to be able to keep up with all the demand, and to keep their customers happy. They had learned that the number one factor in deciding auto parts suppliers to deal with for mechanic shops was speed and accuracy of parts, and that the price of the parts was after that. By knowing this, they had brought in two new delivery drivers so that they could get the parts out quicker to their customers, and that if they had new customers, they would be able to handle the additional workload. They now had all three of the partners handling the business at the store, and if need be, Ramesh would do some deliveries during the peak hours. Peter was doing most of the work inside the shop however, for example, he would be the one to answer most of the calls, he would be ordering most of the parts from various locations, and he would be stocking and picking parts as well. This didn’t sit too well with the other two partners and this is where the partnership would breakdown. The End of The Partnership As Peter started handling most of the business and the other two were being treated as employees rather than partners, they felt the urge to let their feelings be known since they all had an equal say in the company. After a few discussions, the two brothers decided that they did not want to be part of this business anymore, and wanted out. They did not leave on a sour note however, and waited until Peter could find employees to replace them, and after a couple of months, the other two partners had left the partnership and moved onto another venture. Peter now had sole ownership of the business from December, 1994. He had with him 2 delivery drivers, and one person assisting him inside the shop, answering calls and helping pick orders and stock shelves. Business was still going great for him, but he had to narrow his customers down to locations within a 5km radius because he didn’t want to expand anymore, and his main clients were within that area so his business wouldn’t suffer regardless. Business After The Partnership Peter continued to run the business successfully, and kept all of his customers happy. He made one significant change to the business which was to stop all sales to the general public. He realized that he was losing some trust in his mechanic shops because they were losing out on some profits. The way the business worked was for example, Peter would supply shop X with a part at a cost of $15. The shop would then charge the customer $30 for that part, and an additional rate for installation. Now when Peter would sell directly to the public for $15, the shops were losing out on the additional profit and when they realized Peter was selling it to them and taking away from their business, they felt betrayed and did not want to deal with Peter anymore. After a few complaints, Peter realized that the best business decision would be to keep the mechanic shops happy because they were his main repeat customers, not the occasional walk-in customers. This also gave him some more free time to handle other business operations so it worked out even better for him. After a couple of years, he decided he wanted to add something to the business. He realized that he had been receiving many calls about tires, especially throughout the winter months. He met up with a local tire shop that had bought few parts from him and struck a deal for some winter tires. He would certain things like this for seasonal parts and make up a small flyer to show his customers what he was adding to his inventory at different times and they would sell off very quickly. The End of The Business The business had been running extremely well up until 2006, where the profit levels were decreasing, not by a huge amount but a noticeable amount, due to all the competition now in the area. When the business started, there was only one other parts store in the 5km radius, and in 2006, there were 6, which easily explains why profit levels were decreasing. All the shops had their own suppliers, and there were price wars going on with all the auto parts stores. Peter stood firm on his stance that he would not participate in these price wars, and the price he had was the price you would get the part for. The business kept going with a decent profit up until 2008, and then he decided that it was not worth staying in business as the amount of stores opening up was still increasing, and the price for parts was decreasing. In November 2008, he decided to close the shop. New Opportunities  Peter had thought about retiring and took some time off from work, but after only a couple of months off, he had started on getting back into the parts business. He found an existing business for sale back in downtown, Toronto. The building is attached to a car body shop, which is coincidentally owned by Sam Kapil, his former partner from KYK. He has been going in to the parts store, which is called Khapco, and seeing how the business is doing and if he would be interested in it, and so far he hasn’t decided on anything, but he tells me he’s not done working yet.

Rhetorical Analysis Of One More Night - 1628 Words

Loke 1 Tiphany Loke Krisi Brown ENGWR 302 19 October 2015 A Rhetorical Analysis on Phil Collins’ Song, â€Å"One More Night† The issue on whether or not this song creates an effective argument has been critiqued and debated ever since it has been fully released to the public. How one perceives this song varies from person to person because of when, where, and how we are raised and taught about love. Some people view this song as one of most powerful love song ballads of the 80s. On the other hand, some people view this song as a song of disturbance, desperation, and a strong obsession with the woman that he does not exactly explain about. With that being said, Phil Collins opens his song in reference to the title of the song, â€Å"One More Night,† to capture the audience’s attention with that line. Starting with a pleading statement catches the audience’s attention by making them think about what it means to have more time to spend and cherish with that person, whether it is a lover or someone one really cares about. He basically fell head over heels for this woman the night he met her. The time he spent with her was undeniably good and wants to do this again. However, he does not know if the woman he met was with someone else. He has been sitting at the table for a while contemplating about whether he should or should not call this woman he is so in love with. His hesitancy is shown through looking at the phone that has been in front of him. The reason for his hesitation is becauseShow MoreRelatedRhetorical Analysis Of Rhetorical Analysis1675 Words   |  7 PagesRhetorical analysis is the way we could communicate effectively by understanding the content, in which to lead us to achieve our goals. 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A Short Note On Disaster And The Aftermath Of Water...

M2 DBQ2 Question 2: Choose an event from the past that caused a significant amount of water pollution (tsunami, oil spill, etc.). Write a thorough description of the event/disaster and the aftermath to water resources. What can/did us as humans learn from this? What can you as an individual do to help limit water pollution? Cite your sources...including the textbook ***Event/Disaster Hurricane Katrina hit the City of New Orleans which is 15 thousand square miles underwater, killed 1, 245 people with the hurricane and subsequent floods, with an estimated of One hundred and eight billion dollar deficit. Hurricane Katrina was the deadliest hurricane in the United States since 1928. The floodwaters erupted at the Industrial street canal, 17 street canals (the waters of Lake Pontchartrain tore the wall 450ft long) and the London street canal. (Telegraph 2015) ****AFTERMATH Water Pollution Several chemical plants, petroleum refining facilities, and contaminated sites, including Superfund sites, were covered by floodwaters. Hundreds of commercial establishments, such as service stations, pest control businesses, and dry cleaners, released potentially hazardous chemicals into the floodwaters. In the confusion immediately after the flooding, the amount of contamination was not known. Oil slicks near some service stations and flooded automobiles and wastes floating or suspended in floodwaters provided clear evidence of some environmental releases. Adding to theShow MoreRelatedHurricane Season : New York City1234 Words   |  5 Pagesslowed Bowery’s recovery rate from natural disasters. Financial devastation and maintenance issues, combined with the damage of heavy storms, left the area vulnerable and unprepared to handle future events. 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