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Published by:
Stanford Business School (2006)
Version:
27 September 2006
Length:
32 pages
Data source:
Field research
Abstract:
This case covers inter-firm, information technology (IT)- enabled supply chain collaboration and focuses on supplier-manufacturer collaboration. To assess collaboration from a holistic point of view, the case describes the distinct role played by the various parties involved in the collaborative effort: (1) the manufacturer and its supply base; (2) a consulting firm; (3) a supply chain process outsourcing company; and (4) a software provider. Centers on the two latter companies - World Wide Technology (WWT), a $2 billion supply chain process outsourcing company based in St Louis, and ClearOrbit, a rapidly growing software company based in Austin, Texas. Presents the story of a world-class automotive original equipment manufacturer (OEM) whose purchasing operations for maintenance, repair, and operations material had grown complex, costly, and error prone. In mid-2004, WWT, along with a consulting firm, proposed an outsourcing program to the OEM, the consulting firm would perform strategic sourcing and WWT would manage the entire fulfillment cycle. A critical feature of this program was that it would be collaborative. Early on in the program, however, it became apparent to WWT that delivering on the collaborative requirements of the program demanded the aid of specialized technological capabilities. WWT decided to partner with ClearOrbit, a company that had recently developed an Internet-based solution for companies to manage purchase orders (POs), deliveries, and invoices with a supply base regardless of size and technological resources available at each supplier. Describes the challenges of design, implementation, and growth of the program.
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