Supply Chain Management Case Study 1
Louis Zecchino
Case Study 1
I don’t feel that the fixed price contract agreed upon by Florida Retailing Company was the best way to procure ACME’s computer system. The reason for this is because with the agreement, 50% was being paid up front, where that could still probably be acceptable in a revised agreement, however, the other 50 % was being pad upon delivery. ACME received full payment without any guarantee that the computer system would be what as expected out of the system. This then hurt the Florida Retail Company in the end because of the fact that the computer system was a giant mess for the company. The FRC went wrong in the purchasing of the computer system because of a number of reasons. Not only are they the first customers to use the newly integrated system, but to have the systems delivered only a couple of weeks before the opening of the newly highly anticipated superstore was a poorly planned procedure. About a month of work with the new system with proper testing would probably have been more appropriate to get the feel of the new system and to check if the system was going to be ready to go for the opening of the new store.
The statement of work was probably not as efficient as it should have been for the anticipation to open up a Superstore with the hope of much success. There was plenty of time for to realize any problems that were to come about because of the six months of time after the agreement for a new system. Periods throughout the six months should of been done to continually check up on the new system and provide knowledge on how ready it would be for Opening Day. If this was done, there wouldn’t of been a problem and restless nights two weeks before trying to fix this problem. Also, having only one person knowledgable for computer systems is going to cause problems as well. Putting a team together with susan probably would of been a smarter move to have a group of people working on this specific project of the store. The
Case Study 1
I don’t feel that the fixed price contract agreed upon by Florida Retailing Company was the best way to procure ACME’s computer system. The reason for this is because with the agreement, 50% was being paid up front, where that could still probably be acceptable in a revised agreement, however, the other 50 % was being pad upon delivery. ACME received full payment without any guarantee that the computer system would be what as expected out of the system. This then hurt the Florida Retail Company in the end because of the fact that the computer system was a giant mess for the company. The FRC went wrong in the purchasing of the computer system because of a number of reasons. Not only are they the first customers to use the newly integrated system, but to have the systems delivered only a couple of weeks before the opening of the newly highly anticipated superstore was a poorly planned procedure. About a month of work with the new system with proper testing would probably have been more appropriate to get the feel of the new system and to check if the system was going to be ready to go for the opening of the new store.
The statement of work was probably not as efficient as it should have been for the anticipation to open up a Superstore with the hope of much success. There was plenty of time for to realize any problems that were to come about because of the six months of time after the agreement for a new system. Periods throughout the six months should of been done to continually check up on the new system and provide knowledge on how ready it would be for Opening Day. If this was done, there wouldn’t of been a problem and restless nights two weeks before trying to fix this problem. Also, having only one person knowledgable for computer systems is going to cause problems as well. Putting a team together with susan probably would of been a smarter move to have a group of people working on this specific project of the store. The