Lynn technology products is a manufacturer of electronic components
for the computer and mobile industry. It is a relatively new company
that grew out of a legacy Corporation that made manual typewriters and
other mechanical devices that used to be used by office personnel and
others. Lynn technology operated on a mainframe system inherited from
the previous company and used many other local hardware systems to
perform many of its other business functions. For the past few years,
the company operated profitably and efficiently and had no desire to
change systems. However, due to the pandemic and other economic
slowdowns, and increased competition from foreign competitors, the
company was forced to improve the efficiency of its business operations.
Ron
Paddington, the new purchasing manager, was responsible for ordering
raw materials and making sure they were delivered on time to meet
production requirements. He used custom software in order to forecast
future needs based on past demand patterns. Although this worked most of
the time, Ron often found himself scrambling to meet large customer
orders at the last minute and was forced to expedite many orders to meet
production needs at much higher costs. He felt that the cause was poor
communication between sales and purchasing. The production and sales
forecasts were coming in regularly, and the forecasts proved to be
inaccurate by the time Ron was placing orders.Additionally, he was
not getting good communications and cooperation from suppliers, which
would have helped him determine lead times and product pricing. Ron
proposed a new software system that would better integrate supplier
information. However, senior management turned down the proposal due to a
feeling that the return on investment was not there.
Lynn
technology products faced cash flow issues as well. It took up to three
weeks for the accounting department to process invoices and often email
corrections with sales management. Because both departments used
different systems to manage customer accounts, some of the data was
redundant and inaccurate. Many times, customer accounts were updated in
the sales department, but not in accounting. These and other issues went
unnoticed when times were good. However, the recent economic slowdown
revealed potential problems with the current business operation as Lynn
technology began to run short on cash.
Recently, one of Lynn
technology’s biggest customers started requiring all of its suppliers to
integrate their software systems to improve information sharing and
further improve order visibility. The large customer had recently
implemented a new ERP system from a major provider and encouraged all of
its significant suppliers to do the same. Suppliers could implement
middleware-type software to integrate operations. Suppliers were given
one year to make changes if they wanted to continue doing business with
this large customer.
The CIO of Lynn technology was well aware of
the issues facing the company. He knew that it was essential to take
action that would improve communication and information sharing. He also
knew that the mainframe system in place was outdated and inefficient.
He was also aware of the constraints that purchasing was facing and how
much it cost the company. Thanks to the new request from the large
customer for further integration, it is evident that any ERP system
seems like the only viable solution. However, the economic weakness in a
limited amount of available financial resources made such a large
capital outlay a risky investment for the company.
Assignment Requirements Preview the case facts and background. Do not duplicate what is in the case itself.
The
report addresses Questions 1-5 in a clear, concise and cohesive manner.
This report should be business like, organized and methodical. Please
note: each question should become a section title on a slide.
Preview the case facts and background. Do not duplicate what is in the
case itself. The report addresses Questions 1-4 in a clear, concise and
cohesive manner. This report should be business like, organized and
methodical. Please note: each question should become a section title. Describe
the trade-offs of implementing an ERP system in the company versus
simply buying best-of-breed software and middleware to enable
integration. For the trade-offs identified, propose potential solutions,
and analyze each of them. Any given alternative solution may address
multiple issues.
If the company goes the ERP route, describe
some of the implementation impacts for both customers and suppliers. Be
specific and describe why you think these impacts will occur.
If
the company chose to stay with the current system, describe some of the
potential consequences of the future. Be specific and describe why you
believe these will be potential consequences.
Based on the
company’s business nature, the industry, and the current environment,
what would you recommend Lynn does? Support the recommendation with
facts and sound reasoning.
. Parameters of this assignment:
Write as if you are employed by the subject company and writing
an internal report. No need to cite internal sources (e.g. the Case
Study).
Write in the present tense. You are solving this case as a current-day project.
Assignment submissions are only accepted using Canvas.
Instructions for Case Study Analysis Read the case in its entirety and create a 10 slide or less PowerPoint presentation (10 minutes) which includes:*Summary of the case*Responses to all of the questions included at the end of the case*a statement of what supply chain concept/concepts are illustrated in the case
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