Case study: emerson transaction hub: a bright idea that’s paying off

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COIT20228 Assignment Two Term 3, 2014 M Walpole October T3 2014 Page 1 of 4 Case Study (35%) General Information In this assignment you will respond to a series of questions that relate to contemporary aspects of ICT that affect organisations. The assignment allows you to extend your knowledge and critical thinking about ICT beyond what is strictly in the textbook or course lectures. You need to reference external material other than the textbook in order to complete this assignment successfully. Use Harvard format for all citations and the bibliography. Case Study Case Study: Emerson Transaction Hub: A Bright Idea That’s Paying Off A couple of years ago, some executives at Emerson asked themselves a question: Why pay to send inventory from one supplier on one ship and goods from a second supplier on another ship, when both deliveries are coming from the same place and could be loaded into a single container? It was an aha! moment that ended up saving millions for the St. Louis manufacturer that regularly ships supplies from Asia to North America and Europe. In late 2005, the company started a pilot program in which a logistics provider that specializes in transportation management for freight carriers worked with two Emerson divisions to consolidate multiple orders into the same shipping container. Not only did the pilot save money, the business units were able to tighten their global supply chains by better tracking shipments and managing inventory. Naturally, Emerson wanted to expand the program, but here’s where things got complicated: Emerson has 70 separate business units that purchase goods from 35,000 suppliers. Each unit communicates with its own suppliers via a combination of e-mail, spreadsheets, faxes, and phone calls. Asking a logistics provider to step into the middle of this tangled transaction web simply wasn’t feasible. “It’s a brittle system, ”says Steve Hassell, VP and CIO at Emerson. “If a provider or a business unit makes changes, you have to go…







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