A Case Study of the EWAN technology Supply Chain Management

In today's competitive environment, it is important for any business to focus on the customer and to provide unique value in order to achieve a sustainable competitive advantage. Without virtual integration, competitive advantage is lost. Successful implementation of virtual integration initiatives allows supplier companies, which are performing only certain processes, to work together as one entity. There fore, operations become more efficient by reducing inventory, assuring quality, and reducing delivery time. More importantly, the organisation maintains the ability to thrive in a competitive market place by achieving increased customer satisfaction through unique and strategic core competencies. Virtual integration will redefine corporations and, eventually, entire industries as supply chains evolve into a new business model of cooperation and sharing. EWAN technology has made recent attempts to transform its dated vertical integration service model into a maneuverable, efficient supply chain. Emphasizing methods Just – In -Time (JIT) inventory. Total quality Management (TQM) and Synchronous Material Flow (SMF), EWAN technology has derived a multi – tiered system of supply. The tier system consists of numerous generic suppliers. 2. BACKGROUND: EWAN Technology Solutions Inc. is the leading information and communication Technology Company in Eritrea. EWAN Technology is a privately held Eritrean company dedicated to providing full-scale in Technology solutions to medium and large sized corporations, and private sector. In its six years history, it has grown to become the largest private sector company of its kind. EWAN Technology provides a full range of service including Internet services, technical and corporate solutions and they specialize in providing local, Metropolitan and Wide Area Networking Services with full-scale end -to -end technology solutions at virtually any level of complexity. The capabilities of EWAN Technology Solutions are: * Network Design and Installation, * Software Development Service, * Internet Service, * Telecommunications, * Satellite Multi-access TV, * Computers and Accessories Retail, * Computer Maintenance Service, * Access Control. EWAN Technology is the largest Internet service provider and support more than 1,500 clients. EWAN also provides high speed Internet Service, Web Hosting Service, Web Page Design and Maintenance, and many other special related services. EWAN Technology Solutions team has expertise and dedication to provide customized end-to-end solutions for even the most complex needs. 3. EWAN TECHNOLOGY SOLUTIONS SUPPLY CHAIN MNAGEMENT 3.1 Introduction Supply Chain Management (SCM) is a network of multiple business and relationship. SCM offers the opportunity to capture the synergy of intra and the inter company integration and management and the integration of key business processes from end users through original suppliers that provides products, services and information that add value for customers and other stakeholders. Supply chain management in many ways formerly was known as logistics management, but the name change has been worthwhile in that there have been so many additional aspects of logistics management incorporated in recent years. Whereas logistics was the poor relation of the organisation – necessary but highly unglamorous – supply chain management today is the one area in which much operational efficiency can be gained. Thereby reducing organisations' costs and enhancing customer service. The Internet is playing an increasingly important role in the evolution of supply chain management. Supply Chain Management (SCM) is a major topic of conversation in many organizations today. A rapidly changing global competitive market coupled with the heightened expectations of increasingly sophisticated customers have forced firms to critically evaluate the performance of their supply chain and it ensures delivery of the right product, to the right location, at the right time, in the most profitable manner possible. Supply Chain Management can help to achieve faster time – to – market for products and services, global growth and migration to Web – enabled systems. Some of the benefits are: * Enhancing organizational value by reducing costs and increasing profitability, improved operational efficiency, and global inventory management. * Reducing overall supply chain risk by optimizing information flows and taking full advantage of investment. * Delivering products to market faster by gaining better control of the entire product life cycle. A supply chain is a network of facilities and distribution options that performs the functions of procurement of material, transformation of these materials into intermediate and finished products, and the distribution of this finished products to customers. Supply chain exist in both service and manufacturing organizations, also the complexity of the chain may vary greatly from industry to industry and from firm to firm. Traditionally, marketing, distribution, planning, manufacturing, in the purchasing organizations along the supply chain operated independently. These organizations have their own objectives and these are often conflicting. Marketing objective of high customer service and maximum sales dollars conflict with manufacturing and distribution goals. 3.2 EWAN technology solutions Supply Chain Decisions EWAN technology solutions classify the decisions for supply chain management in to two broad categories. These are strategic and operational. Strategic decisions are made typically over a longer time horizon. These are closely linked to the corporate strategy, and guide supply chain policies from a design perspective. While operational decisions are short term, and focus on activities over a day-to-day basis. Its four major decision areas in supply chain management are: A. Location Decisions – The geographic placement of production/service facilities, stocking points, and sourcing points. B. Production Decisions – The strategic decisions include what products to produce and which plants to produce them in, allocation of suppliers to plants, plants to decisions, and decisions to customer markets. Operational decisions focus on detailed production scheduling. C. Inventory Decisions – This refer to means by which inventories are managed. Inventories exist at every stage of the supply chain as either raw materials, semi finished or finished goods. These include deployment strategies (push versus pull), control policies the determination of the optimal levels of order quantities and re-order points, and setting safety stock levels, at each stocking location. D. Transportation (Distribution) – These are closely linked to the inventory decisions. For example air shipments may be fast, reliable and warrant lesser safety stocks, they are expensive. Meanwhile shipping by sea or rail may be much cheaper, but they necessitate holding relatively large amounts of inventory to buffer against the inherent uncertainty associated with them. 3.3 EWAN technology Supply Chain Network Structure One key element of managing the supply chain is to have an explicit knowledge and understanding of how the supply chain is configured. It is found that the three primary structural aspects of a company's network structure are: The members of the supply chain The members of a supply chain include all companies/organizations with whom the focal company interacts directly or indirectly through its suppliers or customers, from point of origin to point of consumption. EWAN technology defines primary members of a supply chain to be: All those autonomous companies or strategic business units who actually perform operational and/or managerial activities in the business processes designed to produce a specific output for a particular customer or market. The structural dimensions of the supply network Three dimensions of the network are essential when describing, analyzing and managing the supply chain. These dimensions are the horizontal structure, the vertical structure and the horizontal position of the focal company within the end points of the supply chain. The horizontal structure refers to the number of tiers across the supply chain. The vertical structure refers to the number of suppliers/customers represented within each tier. A company can be positioned at or near the initial source of supply, be at or near to the ultimate customer, or somewhere between these end points of the supply chain. The different types of process links across the supply chain Integrating and managing all business processes throughout the entire supply chain is likely not appropriate. Thus some links are more critical than others. EWAN' S Technology Solutions Inc. Supply – Chain Source: The International Center for Competitive Excellence, University of North Florida. Supply Chain Strategy EWAN technology solution's has over six years of experience in IT solutions and information technology with a special focus on using IT as a catalyst for new business models and process optimization. EWAN technology solutions have skilled personnel in information technology and they have been in business for more than six years in various activities such as network operation, software development, Internet connectivity, marketing, sales, and training. Supply chain management strategy is important to the overall success of the development of EWAN Technology Solutions Inc., as there is currently low awareness of the information technology in the region. In its supply chain management, the marketing strategy of EWAN technology is to provide information communication technology solution locally and regionally in the introduction of computer technology solutions and mobile telephones. In addition the firm has short-term plan of introduction training and development for information technology solution (IT). Besides the mission of the organization is to make the firm sustainable and to provide a reliable and standardized quality service, which is verified by ISO (International Standard Organization), which enable them to complete the international market. 4. EFFECTIVE AND EFFICIENT OPERATIONS OF EWAN TECHNOLOGY SOLUTIONS EWAN technology serves as a regional and national outsourcing partner to leading companies in the technology solutions. They execute critical elements of the supply chain including materials management, customized complex kitting, and distribution and fulfillment services. EWAN technology creates value by helping customers increase their supply chain efficiencies and deliver products more cost effectively on the country. Within their business objectives, EWAN technology helps a variety of companies improve the overall performance of their network design and installation programs. They identify opportunities to reduce total costs, accelerate information to market and increase sales by better managing the steps involved in the production and fulfillment processes for items ranging from information kits and enrollment packages to promotional items for a nation wide sales force or channel partners. Reach out across the country EWAN technology solutions centers are strategically located in the most active and profitable markets throughout the country. Supporting this national and regional presence is an electronic network infrastructure that enables their products to reach customers as quickly as possible. They manage all aspects of services and distribution resulting in consistent processes and procedures. Regional Supply Chain Management EWAN technology serves as a regional supply chain management partner to many of the regions leading technology companies. They manage physical product flow and provide technology-enabled business and information management. Physical services include such activities as product assembly, packaging, order fulfillment, warehousing and distribution, while information systems provide an infrastructure and common process for managing and tracking component sources, product quality, inventories, and distribution status and product life cycles. Service Offerings EWAN technology services can help organization meet ever-increasing customer demand from order to delivery. Their product fulfillment services include: > Product-order management > Remittance processing, data entry and billing > Database and analytics > Customer care support > Reporting Internet and e-commerce support EWAN helps customer to meet their ultimate goal to deliver the right product into customers' hands on-time, every time while providing the high degree of service that consumers have come to expect. Orientation towards marketing EWAN technology is trying to carry out the organizations all effort at satisfying its customers. Instead of just trying to get customers to buy what the firm has produced, a marketing-oriented firm in its supply chain management tries to offer customers what they need. Three basic ideas are included in the process of the supply chain concept: 1. Customer satisfaction, 2. A total company effort, and 3. Profit – not just sales- as an objective EWAN Technology is a market-oriented organization, and we analyze the supply chain management through the following points: 1. Attitude toward customers – the company plan determines by the customers needs like providing network design and installation, Software development services, telecommunication service, and satellite multi access TV service. 2. Product service offering – EWAN Technology gives service based on orders requested by its customers. 3. Interest in innovation – the organization focuses on locating of new opportunities, such as, installation of telephone lines, introduction of modern mobile telephones, and up-to-date software development services. 4. Importance of profit – the critical objective of the organization is to maximize profit. In comparison to other information and communication providers, EWAN technology charges the highest price. Despite of the high price they charge, they have enough customers because of their reliable and quality services. 5. Relationship with customers – EWAN technology aims at customer satisfaction by giving 18 hours of services, after sales service, they give advice and consultancy to customers to procure computers and its accessories according to their needs aiming to avoid unnecessary costs. Competitive Advantage: – Competitive advantage means that a firm has a better supply chain mix that the target market sees as better than its competitors. A competitive advantage may result from efforts in different areas of the firm – cost cutting in production, innovative research and development (R&D), more effective purchasing of need components, or financing for a new distribution facility. Similarly, a strong sales force, a well known brand name, or good dealer may give it a competitive advantage in pursuing an opportunity what ever resource, and advantage succeeds if it allows the firm to provide superior value and satisfy customers better than some competitors. The firm provides complete Information Technology solution, which the other competitors do not have. The overall management of the firm is well equipped in Information Technology (IT) knowledge and most of its employees are skilled. 5. AREA OF QUALITY CONCERN EWAN Technology Solutions has six years of experience in the business. In this case the firms success factors are many, such as: * Adaptation of product design, * Continuous market research undertakings, * Expanding services to satisfy the potential customers, The areas of quality concern of EWAN technology solutions depend on the following major factors. * Providing complete information and communication technology Solution (ICT) to customers * Focused, serious – minded, experienced and devoted personnel to product growth, and * Institutionalized team building management with high caliber engineers, †¦etc, 5.1 Performance Indicators of Quality Concern The concept of operations at high-technology companies is changing. No longer does it apply simply to the manufacturing of products. Rather, it applies to the concept of managing a supply chain spanning from suppliers' suppliers to customers' customers. In fact, effectively configuring supply chain can be a source of sustainable competitive advantage. EWAN technology benchmarking studies show that superior performance is attainable when a company can integrate the Plan, Source, Make, Deliver, and Return processes of its supply chain operations. EWAN technology supply chain performance indicator is a comprehensive service designed to assess performance by benchmarking customers against companies within the same industry. In addition to measuring their performance, they will also receive guidance on how to interpret customers benchmark results, identify improvement opportunities, and take the next steps toward achieving excellence. EWAN technology is in business to bridge the gap between strategic business issues and tactical technology solutions. Their Supply Chain Management services provide everything needed to extract maximum value from their supply chain: These are also the issues that EWAN technology works with everyday. * Supply Chain Consulting and Transformation * Supply Chain Optimization (Product Fulfillment and Distribution) * Procurement Outsourcing * Procurement Services * Data Registry and Synchronization Services Using powerful Web-centric solutions, EWAN technology Supply Chain Management creates, optimizes, and powers trading nets for clients. Along with their ability to leverage, EWAN technology broad range of strengths and capabilities, their solutions are based around key concepts and technologies such as e-business portals, key performance indicators, business intelligence, integration, advanced planning and scheduling, enterprise resource planning (ERP), e-engineering, and electronic business networks. 6. CONCLUSION Information has become the primary commodity of the global market. Some of the causes of poverty can be related to environmental and resource factors. Information development has been a critical element to the perpetuation of poverty in third world countries. The idea that a society's ability to develop is determined by its ability to access information. In modern society, information technologies are no longer a luxury, but a human need, and by inference is a basic human right. Countries with low levels of information will have low levels of development, low level of stability, and high levels of dependency. In the case of Eritrea, there is a growing government recognition of the importance of information and communication to the over all development of the nation. Indeed, the lack of access to relevant information is acknowledging as a major factor affecting the success and quality of research and development activities. In Eritrea, EWAN technology is a market leader in computer technology solutions in their supply-chain management. EWAN technology provides a comprehensive combination of computer technology solutions and digital imaging solutions to leading publishers and direct marketers, including advanced digital content management and e-business services. EWAN technology supply-chain management businesses provide a wide range of outsourcing capabilities to the country's customers. Services range from component procurement, product assembly and packaging to inventory control to regional and national distribution. 7. RECOMMENDATION Although there are key differences between companies EWAN technology solutions Inc. direct business approach can be applied to every facet of the organization's operation. Special care should be taken to address the unique dependency of EWAN's custom â€Å"tier one† suppliers. A variation of virtual integration could be applied to EWAN's dependent supplier base, while the management of lower tier suppliers of generic components would be, more effectively, suited by the standard procedures used. In regard to supply channel communication and procurement EWAN can make substantial gains by standardizing all B2B transactions. By offering an incentive program through out the tier network. EWAN can encourage all partners to make the necessary technological capital improvements in order to utilize an organisation wide extra net that will aid in fault – free procurement, real time inventory and speedy on time delivery. Bottlenecking channels would be averted, as synchronous information will flow up and down the supply chain via one, standard medium. Cost savings derived from this direct working relationship should be apple enough to subsidize the development of the extranet project as well as to reward the suppliers who successfully upgrade and integrate into the system. EWAN's of Total Quality Management (TQM) could be easily met by implementing a variation of the already existing virtual integration business model. Fostering cooperation through incentives is key since complains of supply chain partners is necessary to gain first mover advantage.