WWT ClearOrbit Case
MIS 3537
Internet Enabled Supply Chains
Due Date: February 13, 2016
Refer to the case “World Wide Technology and Clearorbit: Enabling Supply Chain Collaboration” on the HBSP website.
Answer the following questions briefly:
- Define these acronyms used in this case: MRO; OEM; EDI, ERP
- What were the main challenges facing the OEM’s MRO purchasing operations?
- Why did WWT choose ClearOrbit’s POC software?
- What benefits did the OEM and WWT realize?
- What steps did OEM / WWT take to convince suppliers to use the new system?
- What other supply chain collaboration initiatives can OEM / WWT pursue?
1. Define these acronyms used in this case: MRO; OEM; EDI, ERP
MRO – Maintenance, repair, and operations materials.
OEM – Original Equipment Manufacturer. The automotive firm that WWT was working with.
EDI – Electronic Data Interchange. The electronic interface that the OEM used to connect with suppliers. ClearOrbit created it to manage
the large amount of data exchange that the OEM and WWT were handling.
ERP – Enterprise Resource Planning. A system of applications used to manage business operations.
2. What were the main challenges facing the OEM’s MRO purchasing operations?
a. How to perform operations well – quality, on-time, quantity,
b. Cost – Fierce Us auto competition, cost pressure JIT push from Toyota, etc…
c. Communications – miscommunication
i. Variety of Methods communication occurred (paper, electronic…)
ii. Tool store Mars – on phone with vendors – working on issues, errors
d. Costs: Transportation, inventory costs
e. Heterogeneity across supply base
i. Materials: services, many-many SKUs, many different types of components
ii. 1800 suppliers – large vs. small
iii. Routine Purchase Orders vs. spot buys
3. Why did WWT choose ClearOrbit’s POC software?
a. Features available out of box
b. Control over features – less time, less $$
c. Friendly interface (internet, easy to use)
d. Flexible for WWT’s needs
4. What benefits did the OEM and WWT realize?
a. OEM’s
i. Lower total costs $ savings
ii. Less people to track/manage errors
iii. Real time PO registration
iv. Checked order/shipping matches before physical products starting moving
b. WWT
i. Common method of doing the purchasing process
ii. Using less people
iii. Fewer nonconformances
– Material On time
– Single version of truth- information in POC
– Processes to correct/manage wrong data & errors
5. What steps did OEM / WWT take to convince suppliers to use the new system?
a. Large Suppliers: WWT provided a single portal that was easy to use as a tool for uploading information with EDI
i. Informed suppliers that POC would be able to transmit and complete new orders
6. What other supply chain collaboration initiatives can OEM / WWT pursue?
a. Forecast with next-step works when employees are working with same vendors
b. Enhance the data accuracy in the vendor relationship management
c. Greater accuracy of suppliers’ invoices, data compliance and on time delivery