Quant Corporation is a major manufacturer of hard disk drives and other high technology storage components. Quant faced two key challenges in its manufacturing process. The first was streamlining the component supply process, to reduce on hand inventory. Its traditional ordering process was labour intensive, involved numerous phone calls and manual inventory checks, leading to high inventory levels. Quant needed a solution to automate the ordering process to increase accuracy, efficiency and reduce the needed inventory to 3 days supply. This would also provide the companys purchasing agents with more time for non-transactional tasks. Quants second challenge was to improve the quality of the components data in its Material Requirement Planning (MRP) system. The solution that Quant used to automate its component supply process was an inter-enterprise system that automatically e-mails reorders to suppliers, using an innovative event detection and notification solution. It scans Quants databases twice daily, assessing material requirements. Orders are automatically initiated and sent to suppliers as needed, allowing suppliers to make regular deliveries to match Quants production schedules.

To elevate data quality, Quant implemented a system called Categoric Alerts to proactively catch any data errors or omissions in its MRP database. The estimated value .of the improved ordering process usingthe new system is crores of rupees in inventory reductions each year. The buyers have reduced transaction costs and tasks. Both Quant and its buyers get lot more information with a lot less work. The analysts have been freed from the drudgery of scanning reports. Employee satisfaction has greatly increased. Data integrity of MRP rose from 10% to 100%. Response to customer demand is much quicker. The system paid for itself in the first year.

I. Identify the. internal and external parts of the supply chain enhanced by the system.

2. Explain how purchasing was improved. What functions does MRP perform ? How is this improved by automation ?
3. How are Quants customers better served now ?
4. How does Quant evaluate the automated system ? Is this adequate ? What additional steps can Quant take ?