Chapter 1 Apply Your Knowledge
1. Should Low-Voltage develop a system to connect with TX Industries’ purchasing system? Why and why not? Yes, I would develop a system to connect with TX Industries’ purchasing system. Usually it is the larger companies that push the technology implementations of smaller companies. In order to streamline the order process for TX Industries we need to get on board in implementing an accounting system that is able to connect with TX Industries’ purchasing system. If we do not develop a system we run the risk of losing TX Industries to a competitor who will be able to mesh up their system with TX Industries system.
2. What terms or concepts describe the proposed computer-to-computer relationship between Low-Voltage and TX Industries?
The concepts described in the proposed relationship system are an EDI system that would be compatible between LVC and TXI. This would be a computerized ordering, invoicing and shipping system. This allows both the vendor (Low-Voltage Components) and the customer (TX Industries) to know exactly how many units are being delivered as well as handling of the billing and invoicing
3. Is Low-Voltage’s proposed new system a transaction processing system? Why or Why not? This is not a transaction processing system; it merely ties in with an existing system to pass relevant purchase data on to the customer so they can calculate when shipments arrive and when to pay the invoices.
4. Before Low-Voltage makes a final decision, should the company consider an ERP system? Why or why not? Low-Voltage should definitely consider and ERP system. This will have all of the groundwork needed in order to implement a full EDI integration with the various clients and vendors which we use.