WHATS THE PESTLE ANALYSIS FOR THIS CASE?

POLITICAL?

ENVIRONMENTAL?

SOCIAL?

TECHNOLOGICAL?

ENVIRONMENTAL?

LEGAL?

Integrated Procurement A new computer system had been implemented in Purchasing and Supply a month ago. Still in the early stages of implementation, Kumar was faced with several challenges that the new system brought to the department. The integrated procurement system was a nance-based system that was not customizable for procurement. A disadvantage was that the tool limited online ordering to ten (10) major customers only; the rest were relegated to a manual system to order their supplies. The previous system allowed all customers online ordering capabilities. The new system provided limited order management information to the customers placing orders which decreased information needed for their budget accounts. Kumar found the employees disliked the order entry requirements of the new system, one of the biggest complaints was that the new system required information to be entered on seven (7) screens while the former system only needed manual input on one (1) screen. Many of the Purchasing and Supply team had been in the department for over ten (10) years and were comfortable with the old system. In their opinion, the new system appeared to increase the staff workload which lowered the level of service they could provide to the customers. Since there were no customization options, several ordering processes needed revision. For example, for those departments who no longer had online ordering capabilities had to fax or email requisitions to the Purchasing and Supply department which required manual follow-up. Order status checks required telephone or email contact with the ordering customer. Kumar was not sure how to adequately staff the department so that the increased workload could be handled. Despite the issues, Kumar knew that the long-term advantages of the new system were potentially great. The new system integrated previously stand-alone systems into one, areas such as Purchasing, Accounts, Warehousing, and Payroll would all have access to information which reduced duplication. Integrating these systems allowed for superior management control supplier payments and customer orders could be tracked better, reports on staff productivity were available for the rst time, and back-orders could be lled automatically through the warehouse. Further, the integrated procurement system supported supplier performance management. These tools could ultimately help Kumar improve the efficiency of the entire buying process at the City. Impact of Change Many of Purchasing and Supply's customers had not been happy with the new system; they felt they had had lost control over some critical parts of the ordering process. During the training on the new system, Kumar's team voiced concerns about the lower productivity levels and the increase in work. It didn't make sense that an internetbased tool would require so much additional work. Concerns continued after the launch date, Kumar had intended to abandon the older program but was now unsure. The Wiper Blade Stock-out Problem Kumar reviewed the wiper blade stock out problem that Young had brought him. An order entered by Fleet was created by one of the customers who had online access. The requested blade had failed to be accepted through the new system. As a result, the warehouse had not received a request and it was not re-ordered. Young explained that the snow plow that required the blade could not be used as it did not pass Health and Safety's vehicle safety check. This was costing the department and the residents of the City as snow removal was delayed. Snow removal was important for road safety and to ensure emergency vehicles could reach residents or hospitals in a timely manner. Kumar wondered what could have caused the order not to be processed? Was there human error in data entry? Errors in learning the new system? Or were there technical glitches involved? Kumar had to solve the immediate problem for the Fleet department and was concerned about similar problems with other orders. What could be done to prevent this from happening again? Could any safety measures be implemented