Question
Sigma Manufacturing (Sigma) is a company that produces oil field equipment. Sigma has experienced net losses for the last six quarters, and they are concerned
Sigma Manufacturing (Sigma) is a company that produces oil field equipment. Sigma has experienced net losses for the last six quarters, and they are concerned about being able to remain in business. Sigma has four plants and four warehouses in West Texas (El Paso, Lubbock, Amarillo, and Midland). Sigma receives supplies from multiple suppliers, however, they prefer to deal with three preferred suppliers. Sigma distributes their equipment to oil and gas fields, primarily in Texas, Oklahoma, Louisiana, and Kansas. Sigmas management team believes that one area where they could look to improve profits is by revamping their supply chain and information systems. You, as an employee familiar with management information systems and business analytics, have been assigned by your boss to participate on a team to evaluate Sigmas supply chain and information systems.
Please answer the following questions that will prove to be valuable for the team and for suggestions to senior management regarding improving their supply chain and information systems.
Describe supply chain management systems and how they help improve business-to-business processes.
What advantages are there for Sigma to consider implementing an Enterprise Resource Planning (ERP) system that includes supply chain, finance, and human resources?
What type of advice would you give them regarding hardware, software, telecommunications, and data management, as it pertains to supply chain management? [Hint: Focus on some key takeaways from the lessons on hardware, software, telecommunications, and data management covered earlier in the course.]
Some of their senior leaders have heard about Porters Value Chain and want to learn more about it and see if it has applicability for Sigma. How would you explain Porters Value Chain and its benefits toward value creation? [Hint: Focus on the primary and support elements of Porters Value Chain and how they could implement this from an organizational perspective based on what was covered in Week 9.]
What are some strategic suggestions you would make? [Hint: Focus on Sigma considering applicable strategies to gain a competitive advantage based on what was covered in Week 7 (e.g., strategic alliances, locking in buyers and suppliers, reducing costs, etc.)]
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