QUIZ 1

Outsourcing it’s IT, Kone is focusing on its core competencies

QUESTION 1

What are the major drivers of the outsourcing at Kone?

The major drivers of Kone outsourcing are:

1. Internal IT processes were insufficient to support the globalization expansion.

2. IT costs were growing rapidly, but the company’s contribution to reduce the administrative cost of global sales is minimal.

3. None of the regional IT infrastructures was integrated, nor were they connected and compatible.

4. Kone was managing different IT platforms around the world with a variety of home-grown and nonstandard applications.

QUESTION 2

Why did Kone elect to work with several vendors?

The reasons why Kone elect to work with several vendors:

1. By using two separate vendors promised the best of breed approach.

2. Help in managing Kone different data centers.

3. Can help Kone in ensuring high availability environment.

4. Help Kone in managing real-time data on product sales, profitability and backlogs.

QUESTION 3

What are some of the risks of this outsourcing?

Risks of IT outsourcing:

1. Failure to identify core and non core may lead to outsourcing the core activities.

2. Difficulties in managing outsource relationship if lack of skills and competence.

3. It will increase the cost of relationship management.

QUESTION 4

How can Kone control its vendors?

Kone used the online meeting approach. By applying this method Kone can manage its outsourcing partners. On the other side, the collaboration and team working spirit can be seen where SAP and HP can meet regularly.

WORK DELEGATION FOR ASSIGNMENT 2

TITLE:LOGISTICS INDUSTRY

SUHANA
1)Problem faced by the organisations within the subsector
2)Opportunities the organisation can take

IZIATI
3)Historical background of the sub-sector
4)Current scenario of those subsector
7)Current ICT /IS adoption within the sub-sector

AISYAH
5)Major players/organisation in the subsector
6)Market size,demands of the sub-sector


Good Luck Work Hard......

LOGISTICS INDUSTRY

Managing Organizational Information System

Assignment 2

Logistics Industry

Title: UPS Worldwide Logistics

Abstract: With it’s origins in express and physical logistics services, UPS Worldwide Logistics is now expected to be a global leader in the development and implementation of fourth-party logistics service provider (4 PL) business models .As a 4PL, UPS uses ICT in the client supply chain to add greater value and to help create e-supply chains. This model applies information integration in logistics and transport operations.

How logistics industry (UPS) had gone transformation from old to new economy

Third party logistics (3PL ) versus Fourth party logistics (4PL)

Third party logistics

1. Offered logistics services to manufacturers.
2. Manufacturer concentrates on supply chain strategy and coordination with customers.
3. Selection partially based upon recommendations and situations from clients.

Fourth party logistics

1. Becomes a supply chain manager for customers.
2. Coordinates with manufacturer and logistics operator while managing logistics operations.
3. Takes over the logistics problems and starts managing the physical supply of logistics on behalf of the client.

Various pressures that affected the other players in logistics industry like UPS

The transformation of UPS Worldwide Logistics from a TPL to a 4PL provider offers a number of lessons for other players looking to create e-supply chains:

• the key factor is the change from an inward-looking mentality based on asset ownership and asset utilization to an information-based focus on supply chain effectiveness;
• if approaches to the flow of information in the supply chain remain operational and fragmented, strategic and supply chain-wide benefits will not be achieved; as the e-supply chain develops, a broad skills base is critical

How UPS response to these changes

How is this transformation in the supply chain managed?

UPS Worldwide Logistics does not participate in many ``traditional'' tender processes anymore. It generally consults clients in supply chain design and reengineering projects. The company enters into a co-design process, which moves the relationship away from a sales and buying effort. The company has been able to use information communication technology tools and infrastructure to help leverage supply chain competencies in the logistics service sector. 4PL approach can support the expansion and customization of logistics service offerings, which makes a good case for e-integration.

Epilogue:UPS Logistics-practical approaches to the e-supply chain

Creating and managing the e-supply chain at UPS Worldwide Logistics