Supply chain management

Assume that different divisions of the Yummy Foods Company buy NRG-A and NRG-B bars from each of Fitter’s sales divisions. To complicate matters, some divisions of Yummy buy store-brand bars from Fitter. (Yummy owns convenience store outlets.) Fitter management has asked for an analysis of the Yummy Foods account. They want to determine if there are opportunities to expand the company’s relationship with Yummy; however, they want to assess the profitability of the relationship before proceeding. The management team wants to see what products each division sells to Yummy, how much is sold, and on what terms. Assume that in Fitter’s current system, all the required data are available only at the sales division level.

  • Continuing the Yummy Foods example, now assume that Fitter has an SAP ERP system installed. Each sales division records sales in the same way. Sales records exist in real time and are kept in the company’s common database. What steps will be needed to pull this company-wide analysis together? Do you expect that the divisions will meet the new system with enthusiasm or reluctance?   
  • Assume you are a new summer intern at Fitter Snacker, working directly under the CIO. Your first job is to write a memo describing the poor information flow between three functional areas in the company: Marketing and Sales, Accounting and Finance, and Supply Chain Management. Focus on the lack of information flow to and from Marketing and Sales, in particular.

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