The best choice for KL worldwide would be to standardize the system across the whole enterprise. Standardizing the system across the whole enterprise would ensure that the KL worldwide uses the same technology across the globe, from its server OS across to the point of sale system in each individual store.
This would upgrade the IT infrastructure across the whole company.It will also optimize its supply chain as the company’s production is vertically integrated and the clothes needed for most of KL’s product lines are manufactured at the Indian plant (Richard Ivey School of Business, 2009, Table 2), the information across the entire enterprise can flow freely as it becomes more visible. Using Supply chain management (SCM) involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability. (Baltzan & Philips, 2011, p.
203).This alternative has the highest initial costs due to the high investment in IT, but will lower costs in the long run as the firm becomes more efficient at forecasting its sales(demand planning systems), reducing inventory levels (supply chain planning systems), and reducing obsolete designs. Customers will also be satisfied as the firm will be able to produce more of its new designs faster as the information flows freely between the whole enterprise. And if there are any customer complaints, it can also be resolved quickly as management can pinpoint the exact point of error quickly.
The free flow of information across the whole enterprise also allows it to gain a competitive advantage. This alternative is also the best for solving the problems faced by KL worldwide. This solution ensures that the managements concerns regarding KL Worldwide Enterprises’ current state of manufacturing and distribution components in the supply chain are addressed. When all information system components across the enterprise are standardized, it will ensure that all the manufacturing and distributing facilities use the SAP system.
The SAP system will have to be customized for it to be used in the Indian manufacturing plant in order for it to be compliant with the Indian government regulations. This will also ensure that visibility among the supply chain is high and information could flow freely across the whole enterprise. This will also help lower inaccurate production numbers. The standardization process also requires investment in build-to-order and configure-to-order manufacturing capabilities.This will ensure that the manufacturing facility in Brazil can be configured to the design specifications of the U. S.
The problem of using information effectively to support the strategic and tactical planning of KL Worldwide is also addressed by standardizing the system. When the system is standardized it can use supply chain management systems and decision support systems to ensure the company can strategically plan for the future. It will also ensure that Oracle enterprise resource planning system is used to integrate all the departments and functions of KL into a single IT system that will allow accurate information is obtained between departments and are time specific.KL is also capable of better protecting its market share by with this alternative as it gains a competitive advantage through the standardization of its IT systems. KL will need to invest in an efficient network during its standardization process to ensure that information travels quickly across the enterprise.
KL will need to reconfigure its website during the standardization process to ensure that it takes advantage of its investment in configure-to-order manufacturing capabilities to allow customization of designs.This will ensure that customers can personalize their design and are more satisfied with KL’s products. The quick flow of information in the company would also ensure the time between designs to manufacture is lowered. Implementation The implementation process of standardizing the Information System across the enterprise would require a lot of capital. As such the first step for KL would be to have its CFO budget and raise enough capital for the project. KL should than set up an intranet network for the company.
The next step requires that KL continues its upgrade to the SAP system in India and the U. S. plants. KL enterprise should than begin phasing in the Oracle ERP system across the whole company. Once this is completed the decision support systems, the customer relationship management systems and the supply chain management systems should be phased in.
Once this is completed the company will be able to have access to a free flow of information between all departments of the company and can better leverage the information to gain a competitive advantage.
