DCI currently uses a warehouse management system (WMS) and a transportationmanagement system (TMS) in its distribution center in Mississauga. With distributionout of only one location, the WMS and TMS proved effective. With volumes potentiallyincreasing by 200% in the next 3 years, the company has considered investing intechnology and looking at developing a collaborative relationship with three carefullyselected road transportation providers in Canada that may be used for option # 2 andfinal delivery for both options 1 and 2 (Rail will be used for Option # 1 from Vancouverto Mississauga).

The company is considering three providers to minimize the risk of service failures andwill have contingency plans in place outside of the three chosen providers. You havebeen tasked with researching the benefits of Enterprise Resource Planning systems(ERPs) and researching the benefits of the increased volumes for transportationproviders to help with the rate negotiations.

Specifically, you have been asked to:

1. Describe the specific benefits of an ERPs and how an ERPs will increase supplychain efficiencies for the increased volume of product.
2. What economies of scale might be achieved by the transportation providers that will be chosen by DCI for the additional volumes? Be sure to discuss the economies of scale achieved for both options. Also, could there be any related diseconomies of scale?