ONLINE FILE W6.1 LAND O’LAKES COLLABORATES WITH COMPETITORS TO IMPROVE ...wps.prenhall.com/wps/media/objects/6631/6790374/turban_online_ch0… · LAND O’LAKES COLLABORATES WITH

Chapter Six: E-Supply Chains, Collaborative Commerce, and Corporate Portals 1

ONLINE FILE W6.1

LAND O’LAKES COLLABORATES WITH COMPETITORSTO IMPROVE ITS LOGISTICSThe ProblemLand O’Lakes, Inc. (landolakesinc.com) is a $6 billionnational food and agricultural cooperative owned by andserving thousands of producer-members, many of which arecommunity cooperatives. It is the nation’s second-largestdairy cooperative and has the largest market share of but-ter and deli cheese.

Land O’Lakes ran into trouble in 2002 in every majorarea of operations. Sales fell $712 million from the previ-ous year, to $5.8 billion, partly due to smaller markets forbranded dairy products as a result of the slow economy.Land O’Lakes also was burdened with debt from its 2001acquisition of Purina Mills.

Another factor was Wal-Mart, which was movingfurther into the grocery business. Wal-Mart’s renowneddistribution system includes super-efficient regionaldistribution centers across the country, where trucks thatbring goods in and take them out can “cross-dock” withouthaving to keep large amounts of inventory in a holdingarea. Land O’Lakes (and its competitors) had to be able toaccommodate Wal-Mart’s demanding schedules by havingtrucks show up at precisely the required time.

Land O’Lakes also has to compete for space in super-markets’ refrigerated sections with huge competitors suchas General Mills and Kraft Foods. These giants use theirsize, clout, and relationships with supermarket retailers,paying slotting allowances (up-front payments that a foodmanufacturer must pay to a supermarket for access to itsshelves) and engaging in other practices that make thefight for shelf space extremely competitive. Therefore,Land O’Lakes must deliver more frequently in order to keepenough stock at the stores.

The SolutionDelivery trucks were empty about 25 percent of the time.Just 2 years ago, Land O’Lakes truckers—some 50 differentcarriers—spent much of their time shuttling empty trucksdown slow-moving highways, wasting several million dollarsannually.

Land O’Lakes had to find ways to become more effi-cient in order to reduce costs. To address inefficiencies,

Land O’Lakes started using Web-based collaborativelogistics. The company turned to Nistevo (nistevo.com),a hosted software service that enables manufacturers,retailers, and carriers to plan and execute their inboundand outbound logistics. (Sterling Commerce acquiredNistevo in 2006.)

Nistevo’s collaborative logistics system continuouslyupdates and consolidates information about routes, loads,and schedules from members’ in-house logistics schedulingsystems. Only Nistevo sees the whole picture. For example,if General Mills and Land O’Lakes are sharing a route, LandO’Lakes routes are not shown to General Mills, and viceversa. Nistevo scans the millions of possible route configu-rations and route–load combinations to look for emptytrucks and less-than-truckload product amounts. When itfinds these situations, Nistevo can merge loads from dif-ferent companies, even competitors, bound for the samedestination or destinations along the way.

The ResultsTo join Nistevo’s network, Land O’Lakes paid an initialsubscription fee of $250,000, and the co-op incurredanother $250,000 in related start-up costs, such as train-ing its 10-person logistics staff to use the collaborativesystem. However, the company says that savings from itslogistics strategy covered those fees within the first6 months of use. In fact, the new logistics strategy iscutting freight costs by 15 percent annually, for an annualsavings of over $2 million.

Now, thanks to the Web, the company can identifyempty trucks and the best carriers and find the fastestroutes, piggybacking Land O’Lakes onto dozens of GeneralMills’ and Georgia-Pacific Corp.’s routes to gain savings.

Questions1. Enter sterlingcommerce.com/nistevo.htm and learn

more about the Transportation Management System.

2. What role does EC technology play in the use ofNistevo’s on-demand system?

One of the technologies that could revolutionize supply chains is radio frequency identification (RFID).

The Basics of RFIDRadio frequency identification (RFID) technology uses radio waves to identify items (seeen.wikipedia.org/wiki/RFID). An RFID system consists of (1) an RFID tag that includes an antennaand a chip with information about the item and (2) an RFID reader that contains a radio trans-mitter and receiver. An RFID tag remains inactive until radio frequency energy from the radiotransmitter (on the tag) hits its antenna, giving the chip enough power to emit a 96-bit string ofinformation, which is read by the radio receiver. This is three times the amount of information abar code can hold, and the tag can be read through cardboard, wood, and plastic at a range of upto 30 feet. The reader then passes the information, wirelessly or through a docking station, to acomputer for processing (see Exhibit W6.2.1). For a comprehensive overview see Heinrich (2005).

2 Part 3: Business-to-Business E-Commerce

REFERENCES FOR ONLINE FILE W6.1Buss, D. “Land O’Lakes Shares the Load.” CIO Insight,

May 9, 2003.Karolefski, J. “Driving Up Costs,” Food Logistics, Feb-

ruary 1, 2005. archives.foodlogistics.com/publica-tion/article.jsp?publd-1&id=101# (accessed January2008).

Nistevo.com. “Land O’Lakes Reduces Supply ChainCosts Through Online Execution of Logistics

Operations.” nistevo.com/v1/pdfs/LOL_Case_Study.pdf (no longer available online).

SupplyChainBrain.com. “Land O’Lakes Uses Nistevoto Bring Transportation Management In-House.”August 2003. supplychainbrain.com/archives/08.03.partner_landolakes.htm?adcode=5 (accessedJanuary 2008).

Online File W6.2 Radio Frequency Identification (RFID)

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radio frequencyidentification (RFID)A technology that useselectronic tags (chips)instead of bar codes toidentify items. RFIDreaders use radio wavesto interact with the tags.

Network Connection

RFID Reader

Wireless Interaction

Enterprise IT System

New 1

Razor Blade Package with

RFID Tag

EXHIBIT W6.2.1 How RFID Works

Source: Heinrich, C. RFID and Beyond, Indianapolis: Wiley Publishing, 2005, Exhibit 3.5, p. 65. Reprinted by permission of John Wiley & Sons, Inc.


Online File W6.2 (continued)

RFID ApplicationsThe number of applications for RFID is increasing. A 2006 study (Ferguson 2006) revealed that RFID is most often used forthe tracking of items in factories and stores. This was demonstrated in the Wal-Mart case (see Chapter 6). Fifty-five percentof all companies use RFID for this purpose or plan to in the near future. In addition, almost 50 percent of companies useRFID in real-time locating systems.

RFID has been around for almost 60 years, but only now has it begun to receive widespread attention. Until recently,RFID was expensive, with tags costing 50 cents or more. However, as the cost of the tags continues to decline, the use ofthe technology is expected to expand. RFID technology is already being used for a variety of purposes:

◗ Track individual items. The Vatican Library is tagging over 2 million items in its collection. Retail giant Marks &Spencer is using antitheft tags on clothes and is tagging employee ID cards to control entrance into secure areas. TheJacksonville, Florida, airport has a pilot test for RFID tracking of luggage. The U.S. army is tracking inventory, includ-ing weapons, with RFID tags. The Star City Casino in Sydney, Australia, is using RFID to keep track of 80,000 costumesand uniforms.

◗ Protect secure areas. FedEx uses RFID-tagged wristbands to give drivers access to their vehicles, reducing theft andspeeding delivery time. The New York Police Department uses RFID tags embedded in ID tags to track visitors(Ferguson 2006).

◗ Record transactions. Exxon Mobil Corp.’s Speedpass cards and key rings allow customers to speed through checkoutlines. At the Baja Beach Club in Barcelona, Spain, an RFID chip embedded just under a guest’s skin is used to pay forpurchases, including drinks at the pool.

◗ Loyalty cards. Circuit City is embedding RFID tags into its loyalty cards. When customers enter a Circuit City location,their card is scanned by a reader. A coupon dispenser at the door then dispenses specific coupons based on their pastbuying habits. Going further, when the customer’s card is read, the store automatically knows that he or she was on theCircuit City Web site recently evaluating plasma TVs. So, when the customer’s card is read in the plasma TV section,Circuit City could offer the customer a $500 coupon right on the spot. For further details, see Schuman (2005) andUlanoff (2005).

◗ The Federal Government/U.S. Department of Defense (DoD). Inventory tracking is a logistical challenge throughoutthe armed services and federal agencies. At the same time, there is an urgent need to ensure the safety of militarypersonnel and improve security worldwide. The end result is that RFID-based applications in the federal government anddefense sectors are growing exponentially. RFID technology offers a viable solution with reliable, secure identificationand tracing that integrates into existing enterprise mobility systems. For example, the U.S. Marines Corps. uses RFID toimprove flows in its supply chains (Ferguson 2004).

◗ Tracking moving vehicles. The E-Z Pass prepay toll system uses RFID, as does Singapore’s Electronic Road Pricingsystem, which charges different prices to drive on different roads at different times.

◗ Tracking people. In some Japanese schools, tags in backpacks or clothes track students’ entry and departure fromschool buildings. In Denmark, the LEGOLAND amusement park offers parents a child-tracking system that combines RFIDand Wi-Fi. Beginning in 2006, all new U.S. passports will contain an RFID tag that can be scanned upon entry anddeparture from the United States (see photo).

◗ RFID in health care. IBM developed a system to prevent counterfeiting of drugs. The tags are attached to the drug con-tainers. MedTrack offers inventory tracking for hospitals. Next GENeSYS specializes in e-pharmacy and RFID. An RFID chipwith patient information (called SurgiChip) that will go with a patient into surgery (to help prevent errors) has beenapproved by the FDA. RFIDs also are used for patient identification in hospitals.

◗ Bookseller boosts sales. A Dutch book seller (Boekhandels Group) tags all books in its stores. Time spent takinginventory has been reduced from 4 minutes per box to just seconds. Misplaced books are found quickly. The systemalso links to in-store kiosks. Sales have increased by 12 percent.

◗ Improving supply chains. This is probably one of the most promising uses of RFID, illustrated in Chapter 6 andFitzgerald (2005).

(continued)


The greatest interest in this technology is to track individual items to improve inventory and supply chain manage-ment. An indication of the high interest in this was the purchase of 500 million RFID tags in early 2003 by Gillette (RFIDJournal 2002). Gillette is using the tags in a number of trial programs, including the largest RFID trial in the world at Wal-Mart. Retail giants such as Albertson’s, Target, and Best Buy also are supporting adoption of the technology by theirsuppliers (Feder 2004).


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◗ Financial applications. RFID-embedded cell phones will soon replace your credit cards, cash, train passes, keysto your car and home, business cards, and more (see Kharif 2006). DoCoMo of Japan introduced such a cell phonein 2004 (see Mann 2004).


One initiative underway that could lead to widespread support for the introduction of RFID is the Electronic ProductCode (EPC). The EPC identifies the manufacturer, producer, version, and serial number of each item. The concept is similarto the Universal Product Code (UPC) that currently appears on almost every consumer product. The UPC is a 12-digitnumber that is represented by bars and spaces of varying widths, readable by a bar code scanner. The use of an EPC-enabled RFID tag instead of a UPC bar code offers several advantages. First, an RFID tag does not require line-of-sightcontact to be read. Second, RFID tags are not printed on paper, so they are less likely to be ripped, soiled, or lost. Third,the RFID tag identifies the item, not just the manufacturer and product. EPC will provide the ability to track individualitems as they move from factories to store shelves, considerably improving supply chain collaboration; eliminating humanerror from data collection; reducing inventories, loss, and waste; and improving safety and security.

Several factors will determine the speed with which RFID will take off. The first of these is how many companies willmandate that business partners use RFID. So far, only major retailers, such as Wal-Mart, and the U.S. Department ofDefense require its use. The second factor is concerns about privacy issues raised by the use of the tags (see Wired 2004).Finally, the cost of the tags and the needed information systems to support RFID use is still high and is likely to remain so(Spivey-Overby 2004). However, Ryan (2004) suggests that in order to be winners, manufacturers must embrace the tech-nology. For an overview of RFID implementation issues and attempted solutions, see Kharif (2004).

What Is RFID?Radio frequency identification (RFID) tags can be attached to or embedded in objects, animals, or humans and useradio waves to communicate with a reader for the purpose of uniquely identifying the object or transmitting dataand/or storing information about the object. How RFID tags can smooth supply chains is shown in Exhibit W6.2.2.

There are two main types of RFID tags, usually referred to as passive and active tags, each with quite different charac-teristics and capabilities. Each is better suited to somewhat different types of applications (see Exhibit W6.2.3).

One of the critical differences relates to the source of power for the tag. Passive tags do not contain their own internalpower supply, but rather reflect energy from a reader or temporarily store minute amounts of energy from a reader that isused to send back its response. Therefore, passive tags require relatively strong signals to be sent from the reader, but thesignal returned to the reader is generally relatively weak. Out of range of the reader, they can neither send nor receive infor-mation. Passive tags are inexpensive, relatively small, and must be in close proximity to their readers (3 meters or less).By contrast, active tags contain an internal power supply, generally a small battery, which continuously powers the tag.Therefore, the active tag requires only low-powered signals from a reader, because it can respond using its own internalpower supply. Because of constant supply of power, active tags can continuously monitor and record information and recorddates and times associated with particular events, irrespective of their proximity to a reader. Active tags are generally larger


(continued)

Manufacturer’s logistics software locates supplier’s trucks, reads RFID tags of contents, routes trucks to production

Shipments to manufacturers

Finished goods trucks

SHOPWELL

Supply chain management system recognizes need for inventory

Supply chain management software also places orders for raw materials to begin production of additional products

Inventory management system sends request for more

Grocery

Retailer using RFID

Warehouse sends what inventory it can

Retailer’s warehouse

RFID at warehouse directs trucks to docks

INVENTORY NEEDED

Manufacturer Suppliers

EXHIBIT W6.2.2 How RFID Tags Smooth Supply Chains


than passive tags and are more expensive; however, they can be much farther from their readers and still communicateeffectively (100 meters or more).

The power supply difference has other critical impacts on the functionality of RFID tags. Passive tags are not wellsuited to transmitting multiple-tag data rapidly (such as when a loaded truck or forklift passes by a reader, with tagsattached to pallets, cartons, and individual items in that load). Each tag must communicate with the reader, and withoutany internal power supply, this takes some time. Thus, loads containing passive tags must be driven very slowly and closeby a reader. In addition, they are prone to interference between tags as the number of tags increases.

Active tags are much better suited for multiple-tag data collection, because the readers are able to collect datafrom many more tags quickly at a much farther distance. Active tags can pass by readers at speeds of 100 mph and stillbe accurately read.

Passive tags have very limited storage capability, approximately 128 bytes, but do not have any search capability,Active tags, by contrast, are able to store about 1 MB of data and do have search capabilities. Thus, in most organiza-tions, supply chain operations require a mix of active and passive tags, depending on the nature of the activities andprocesses involved.

Passive tags are generally better suited to highly structured, repetitive processes, such as conveyor belts movingboxes, luggage, or individual items. Active tags are better when there is less structured movement, where there are secu-rity and monitoring requirements, when there is a substantial area to be monitored, and where multiple tags need to beread simultaneously and rapidly (Tech-Faq.com 2006; Autoid.org 2006).

RFID chips vary quite substantially in terms of size and cost, and both of these factors are connected to the powerand functionality associated with a particular chip. Images of different sizes and types of tags are available at SpyChips(see spychips.com/devices/tag_images.html). Although some RFID tags are reportedly very small (about the size of agrain of rice), most are much larger, ranging from 3 to 6 inches in length. The RFID tag includes an antenna and a chipthat contains an electronic product code (EPC). The EPC stores much more information than a regular bar code (e.g., whenand where the item was made, where the components are from, and when the item might expire).

The prospect of affordable tags has retailers interested in the potential benefits. If every item in a shop were tagged,retailers could both improve customer service and combat top-line losses, which are typically 2 to 15 percent of sales. RFIDtechnology could be used to locate mislaid products, deter theft, and even offer customers personalized sales pitches throughdisplays mounted in dressing rooms. Ultimately, tags and readers could replace bar codes and checkout labor altogether.

RFID technologies are still somewhat limited in their real-life uptake, but many firms are trialing them for a range ofpurposes, and there is every indication that areas of application will increase over the next few years. Many large compa-nies, including Wal-Mart, have already implemented RFID technologies in some of their operations, and many more arecurrently in various stages of pilot programs, such as Patties Pies, Australia Post, and Australian Air Express in Australia.


(continued)

EXHIBIT W6.2.3 Comparison of Active and Passive RFID TagsPassive RFID Tags Active RFID Tags

Internal power supply None—rely on energy from reader Yes—small internal batteryRequired signal strength Relatively strong Relatively weak

from readerAbility to send and receive Can only send or receive in range Can continuously monitor and record

data of reader dataProximity to reader Relatively close—up to 3 meters Relatively distant—100 meters or moreCost Generally cheaper Generally more expensiveSize Generally smaller Generally largerSuitable applications Single or relatively few tag reads; Multiple tag reads required, up to

highly structured repetitive processes 100 mph past reader

Sources: Compiled from Tech-Faq.com (2006) and Wikipedia (2007).


RFID promises substantial benefits. RFID tags on pallets, cartons, and individual items offer better tracking ofgoods along the supply chain and should help reduce or eliminate unwanted stock-outs. They should also ensureaccuracy of goods supplied against purchase orders and invoices, thus reducing need for reconciling payments againstshipments, and the like. They also should help reduce spoilage of goods with specific use-by dates. And finally, theyshould help ensure that goods are shipped to the correct destinations, both when and where they are needed (A. T.Kearney 2004). However, these are just a few of the benefits that have been reported from RFID initiatives.Innovative uses of RFID tags have achieved these, and some other, promising benefits. Many of these benefits willhave application to a much larger range of industries and goods.


REFERENCES FOR ONLINE FILE W6.2Kearney, A. T. “RFID/EPC: Managing the Transition.”

2004. atkearney.com/shared_res/pdf/RFID-EPC_S.pdf (accessed January 2008).

Autoid.org. “ Part1: Active and Passive RFID: TwoDistinct, But Complementary Technologies forReal-Time Supply Chain Visibility.” 2002. autoid.org/2002_Documents/sc31_wg4/docs_501–520/520_18000–7_WhitePaper.pdf (accessed January2008).

Duvall, M. “Radio Interference (RFID at Wal-Mart).”Baseline, October 2007.

Engadget.com.“ US Issues First RFID Passports.”March 13,2006. engadget.com/2006/03/13/us-issues-first-rfid-passports (accessed December 2006).

Feder, B. J. “Wireless Sensor Networks Spread to NewTerritory.” New York Times, July 26, 2004. nytimes.com/2004/07/26/business/26sensor.html?ex=1248667200&en=d206d4279ebb633b&ei=5088&partner=rssnyt (accessed January 2008).

Ferguson, R. B. “Marines Deploy RFID.” eWeek,November 15, 2004. eweek.com/article2/0,1759,1723353,00.asp (accessed June 2006).

Ferguson, S. “HP Announces RFID Technology.”eWeek, October 23, 2006.

Fitzgerald, M. “True Believers (The Story of Kimberly-Clark Corp.).” CIO Insight, December 2005.

Fleishman, G. “Lufthansa Says Achtzig, Bitte!” Wi-FiNet News, May 28, 2003. wifinetnews.com/archives/001686.html (accessed January 2008).

Heinrich, C. RFID and Beyond. Indianapolis, IN:Wiley, 2005.

Kharif, O. “Like It or Not, RFID Is Coming.”BusinessWeek Online, March 18, 2004.

Mann, C. C. “A Remote Control for Your Life.”Technology Review, July–August 2004.

RFID Journal. “Gillette to Buy 500 Million EPC Tags.”November 15, 2002. rfidjournal.com/article/articleview/115/1/1 (accessed January 2008).

Ryan, T. “RFID in the Consumer Industries.” ResearchReport, Aberdeen Group, March 2004.

Schuman, E. “Circuit City’s New Approach to CustomerService,” eWeek, January 17, 2005.

Spivey-Overby, C. “RFID at What Cost? What Wal-Mart Compliance Really Means.” ForrTel (Webcastplus telephone), Forrester Research, May 25, 2004.

Tech-Faq.com. “ What is RFID?” tech-faq.com/rfid.shtml (accessed January 2008).

Ulanoff, L. “Bargain Hunting Online.” PC Magazine,November 17, 2004.

Wired. “American Passports to Get Chipped.” October 21,2004. wired.com/politics/security/news/2004/10/65412 (accessed January 2008).

Radio frequency identification(RFID) 2

KEY TERM


ONLINE FILE W6.3

WEBCOR BUILDERS GOES ONLINE WITH ITS PARTNERSWebcor Builders (webcor.com) builds apartment buildings,hotels, and office parks and earns revenues in excess of $1 billion a year. For years, the company suffered frompoor communication with its partners (architects,designers, building owners, subcontractors) and struggledwith too much paperwork. Reams of paper documents weresent back and forth via “snail mail.” In a very competitiveindustry, inefficiencies can be costly. Therefore, Webcordecided to introduce c-commerce into its operations.Webcor’s goal was to turn its CAD drawings, memos, andother information into shared digital information.

To enable online collaboration, Webcor uses an ASPthat hosts Webcor’s projects using ProjectNet software ona secured extranet. The software is complex; it was diffi-cult to get everyone to accept ProjectNet, and some usertraining was necessary. However, Webcor found itself in astrong enough market position to be able to say that inthe near future, it would not partner with anyone whowould not use ProjectNet.

With everyone on the ProjectNet system, Webcor’sbusiness partners can post, send, or edit complex CAD

drawings, digital photos, memos, status reports, andproject histories. ProjectNet provides a central meetingplace where users can both download and transmit infor-mation to all parties. Everyone involved in a project ismore accountable because there is a digital trail, and part-ners now get instant access to new drawings.

One of the major benefits of ProjectNet is thatemployees now spend more time managing their work andless time on administrative paperwork. Several clericalworkers were laid off, and the saved cost of their salariesis covering the software rental fees.

Questions1. Draw the supply chain of Webcor before ProjectNet.

2. What B2B model is this (e.g., sell-side, buy-side, etc.)?

3. What are the benefits of this c-commerce project toWebcor?

4. What are the benefits of this c-commerce project toWebcor’s clients?

REFERENCES FOR ONLINE FILE W6.3DiCarlo, L. “Case Study: Webcor Builders.” PC

Computing, December 1999, pp. 108–120.Webcor Builders. webcor.com (accessed January 2008).


ONLINE FILE W6.4

ZARA: FAST FASHION SUPPLY CHAIN INNOVATORThe fashion industry is notoriously challenging: Fashionsand people’s tastes are fickle, fast to change, anddecidedly difficult to predict accurately. Achieving sus-tainability in this competitive industry is hard, marketleadership almost impossible. Did a canny CEO and tal-ented executive team with a deep understanding oftheir industry and market develop what at first sightcan appear to be counterintuitive supply chain practicesand win? Or does Zara display practices from which we allcan learn?

Zara traces its origins to La Coruna, Spain, in themid-1970s; since then it has grown into the flagshipbrand of its parent company, Inditex. Until 1987, Zara’soperations were confined to Spain. In 1988, it openedin neighboring Portugal and then went international,opening in New York and Paris. By the end of the twen-tieth century, Zara was operating across Europe andScandinavia, the United States, Japan, and SouthAmerica. It has now expanded into a number of SoutheastAsian countries, Russia, the Middle East, China, andNorthern Africa. At the beginning of 2007, Zara operatedfrom 991 stores in 65 countries, 24 of which are locatedin the United States. In this highly competitive market,Zara is now the third-largest apparel retailer in the worldin terms of revenues and has approached 20 percentannual growth rates in sales and net income since theearly 2000s.

To understand some of Zara’s success, it is importantto remember a key mantra for Zara: Success relied on hav-ing “five fingers touching the factory and five touching thecustomer” (Ortega, cited by Ferdows et al. 2004, p. 106).In other words, the decisions taken by Zara’s executives aredriven by a belief in being responsive to consumer demandand changing preferences and in meeting those needs bymaintaining control of nearly all aspects of the supplychain. Zara has become famous for being able to go fromthe design phase to delivering the finished good to itswarehouses in a 2- to 3-week time frame, compared withits competitors, who might take 9 to 12 months. Zara’sstores around the world receive these new designs 1 to2 days after they reach the distribution center. Zara rollsout some 12,000 new items per year, compared to itscompetitors who average 2,000 to 4,000. Zara’s customersvisit their stores about 17 times per year compared, withabout 4 visits per year to its competitors. It discounts only18 percent of its clothes, compared to the industryaverage of about 35 to 40 percent. Zara spends a miserly0.3 percent of sales on advertising, compared to an

industry average of 3.5 percent. And, of interest here, itspends 5 to 10 times less on IT than its major rivals do.

It is generally acknowledged that Zara has a super-responsive supply chain. Rather than relying on sophis-ticated demand forecasting, Zara’s strength lies in itsability to respond rapidly to changing trends (seeExhibit W6.4.1 illustrating Zara’s core business activi-ties). Zara has identified a few critical processes (order-ing, design and manufacturing, fulfillment) and gearsthose processes to meeting three discrete customergroups (men, women, children). Customer needs, prefer-ences, and behaviors are the starting point of the Zarasupply chain. Customer demand patterns and qualitativefeedback from its stores drive much of the design andmanufacturing activity. So, too, does market researchinto key fashion trends.

At a time when many other competitors are outsourc-ing much of the manufacturing, Zara outsources compara-tively little other than the actual machining of garments.And unlike competitors who rely on low-cost producers inChina and India, Zara elects to have garments sewn locallyin Spain and northern Portugal. Zara also controls its dis-tribution network, at times engaging in relatively high-cost practices that actually drive efficiencies elsewhere.Zara makes deliveries to its retail outlets twice weekly andin relatively small quantities, thus encouraging customersto buy now or miss out later. It also means that Zara car-ries much less in inventory. All clothes are tagged andpriced in Spain, and many clothes are delivered on hangersand can be placed directly in the store without ironing.However, this practice costs more because it increases thevolume of goods to be transported. Trucks and planes areused for delivery—a higher-cost option than trains andships—allowing for rapid fulfillment.

Zara’s supply chain is geared more toward maximizingrevenues than toward reducing costs, and the organizationappears to have uncanny insights into some of the morehidden costs associated with some very low-cost supplychain practices and activities.

Although Zara may spend less on IT than others inthe fashion industry, it would be a mistake to think thatIT is not regarded as critical to business success. Rather,Zara appears to adopt a philosophy that says (1) invest inmission-critical IT as a priority; (2) do not try to automateall functions, but allow IT to support information andknowledge sharing, collaboration, and inform the decisionmaking; (3) simpler IT solutions that meet business needsare generally preferable to the more complex ones; and

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ONLINE FILE W6.4 (continued)

(4) ensure all investments in IT (many are in-housecustom-built systems) are a very close match to requiredbusiness functionality. Zara has made little investment inthe Internet for B2C EC for two good reasons: (1) its dis-tribution centers are not configured to support the pickingand shipping of direct-to-consumer orders and (2) itsresearch suggests that most mail-order businesses neededto deal with substantial returns, further complicating themanagement of their merchandise. The key to Zara’s suc-cess is appropriate, business-driven IT investments, gearedat supporting and automating parts of the critical corebusiness processes.

Zara would appear to be a testimony to the successfuldesign and implementation of a market-responsive supplychain strategy.

Questions1. Why is the fashion industry so competitive?

2. Why do you think excellence in supply chain man-agement is an important ingredient in success in thefashion industry?

3. What are the underlying reasons for Zara’s success?

4. What is the meaning of the expression “five fingerstouching the factory and five fingers touching thecustomer”? Would this be an appropriate mantra fora supermarket chain to adopt?

5. Discuss some of the risks you feel are evident inZara’s approach to supply chain management.

Cutting

Sewing

Design

Zara

Customer demands,behaviors, feedback

Market research,key trends

Distribution

In-Store Sales

In-Store Sales

In-Store Sales

In-Store Sales

EXHIBIT W6.4.1 Zara’s Core Business Activities


REFERENCES FOR ONLINE FILE W6.4Ferdows, K., M. A. Lewis, and J. A. D. Machuca.

“Rapid-Fire Fulfillment,” Harvard Business Review,November 2004.

Ferdows, K., M. A. Lewis, and J. A. D. Machuca.“Zara’s Secret for Fast Fashion.” Harvard BusinessSchool Working Knowledge for Business Leaders,February 21, 2005, hbswk.hbs.edu/archive/4652.html (accessed January 2008).

inditex.com (accessed January 2008).Indu, P., and V. Gupta. “Zara’s Supply Chain Management

Practices.” ICFAI Center for Management Research,Hyderabad, India, OPER/055, 2006.

zara.com (accessed January 2008).

ONLINE FILE W6.5

CADENCE DESIGN SYSTEMS: DEPLOYING A CORPORATE PORTAL ON ITS INTRANETCadence Design Systems, Inc., is a leading supplier of elec-tronic design automation (EDA) software tools and profes-sional services for managing and accelerating the design ofsemiconductors, computer systems, networking andtelecommunications equipment, consumer electronics, andother electronics-related products. The San Jose–basedcompany employs more than 5,000 people worldwide tosupport the development requirements of the world’s lead-ing electronics manufacturers.

In the late 1990s, Cadence recognized that the busi-ness model for EDA products was beginning to evolve froma tools-oriented model to one where software and consult-ing services held the potential for the greatest revenuegrowth. To address this changing model, Cadence identi-fied two areas of customer interaction: sales and logistics.The new sales strategy required the sales force to have anin-depth understanding of Cadence’s product line of almost1,000 products and services. With two separate organiza-tions (sales and logistics) interacting with customers,coordination and communication were needed to ensure aneffective and consistent relationship built on a real under-standing of the customers’ issues.

For almost a year, Cadence worked with a consultingfirm to create an intranet-based corporate portal to sup-port its sales organization. The system, called OnTrack,uses a homepage with links to other pages, informationsources, and custom applications to map each phase of thesales process with supporting materials and referenceinformation.

With OnTrack, the sales representative now has a sin-gle unified tool that provides all the information and data

needed for the sales process, from finding new clients toclosing a deal to managing the account. In addition,global account teams have their own homepages wherethey can collaborate and share information. However,OnTrack is much more than a static road map. For example,information on a customer or competitor is now availableinstantly through access to an outside provider of customnews. The sales rep also can use a search engine to locateeverything from financial information to recent newsarticles and press releases about clients or competitors.In addition, the system is used to disseminate Cadencenews and other information.

All creators of information in the company, fromsales reps to marketing and management personnel, areresponsible for maintaining the information contained inOnTrack. With a wide range of people entering data, asimple-to-use information submission process was needed.To avoid the need to understand HTML, electronic formswere created to allow submission or modification of anypart of the information in the OnTrack system. Anyonewith appropriate access can now add a new message to thedaily alerts, modify a step in the sales process, or update acustomer presentation by using these custom tools.

Feedback is a key part of OnTrack. Reports highlightfrequently accessed pages and documents, and reviews offrequent searches identify new information to include inthe system to make critical information even easier toaccess.

Managers who made the decision to implement theOnTrack system learned several lessons. First, although theuse of a browser and the navigation of a Web page required

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ONLINE FILE W6.5 (continued)

only minimal employee training, the application of theOnTrack system to the daily activities of the sales reps wasnot as easy. A second lesson was the holistic approachCadence took in unifying the technology with the process.Rather than mandate a new process or install a newsoftware system, Cadence did both. The combination ofan easy-to-use technology, a refined process, and theappropriate support systems created a single coherentsystem that could support the new sales paradigm.

OnTrack was implemented at a relatively low cost.Cadence leveraged its existing infrastructure and wisely hiredoutside experts to create the application rather thandevoting internal resources to it. This choice allowed thecompany to focus its efforts on defining the process andtools needed to support the sales force rather than designingsoftware.

Finally, the greatest impact of OnTrack has been theresult of the shortened training time for new sales reps.

A new salesperson stated that he had learned in 2 daysfrom OnTrack what it took months to learn at a previouscompany. With 40 new reps hired in the first year, and40 planned for each of the next 2 years, reducing thetraining time for new sales personnel has created addi-tional profits for Cadence. Cadence calculates thatOnTrack has achieved a high return on investment, wellover 100 percent!

Questions1. How does the corporate portal assist sales

representatives?

2. What were the major lessons learned by Cadence?Identify EC models and transactions used inthis case.

3. How can the portal system accelerate training?

REFERENCES FOR ONLINE FILE W6.5cadence.com (press releases January 21, 2002, June 27,

2002, and July 22, 2002).EMC. “Customer Success Story: Cadence Design

Systems.” 2002. software.emc.com/about_us/cus-tomer/profiles/cadence.htm (accessed January 2008).


REFERENCES FOR ONLINE FILE W6.6Barles, D. “PeopleSoft Works Out with Cybex.”

Line56.com, August 28, 2002. line56.com/articles/default.asp?ArticleID=3971 (no longer availableonline).

Cybex International. cybexintl.com (accessed 2002–2008).

Gustke, C. “No More Heavy Lifting at Cybex.” Forbes(supplement), October 7, 2002.

ONLINE FILE W6.6

INTEGRATING EC AND ERP AT CYBEXIn the late 1990s, Cybex International (cybexintl.com), aglobal maker of fitness machines, was having trouble meet-ing the soaring demand for its popular products. To meetdemand, the company had to work with rush orders from itsalmost 1,000 suppliers, at an extremely high cost. This wasa result of poor demand forecasting for the machine’s com-ponents that was caused by using three different legacysystems that Cybex had inherited from merger partners.

After examining existing vendors’ supply chain software,Cybex decided to install an ERP system for its supply chainplanning and manufacturing applications. Together with thesoftware installation, the company analyzed its businessprocesses and made the necessary improvements. It alsoreduced the number of parts suppliers from 1,000 to 550.

Here is how the system works: Customer orders areaccepted at the corporate Web site and are instantlyforwarded to the appropriate manufacturing plant (thecompany has two specialized plants). The ERP uses itsplanning module to calculate which parts are needed foreach model. Then, the ERP’s product configurator con-structs a component list and a bill-of-materials neededfor each specific order. This takes seconds and expeditesshipment.

The ERP system helps with other processes as well.For example, Cybex can e-mail a vendor detailed purchaseorders with engineering changes clearly outlined. Thesechanges are visible to everyone, so if one engineer leavesthe company, his or her knowledge is in the system and iseasy to find. Furthermore, dealers now know that they willget deliveries in less than 2 weeks instead of the previous4 weeks, and they can now track the status of each order.The system also helps Cybex to better manage its 550 sup-pliers. For example, the planning engine looks at price vari-ations across product lines, detecting opportunities to

negotiate price reductions by showing suppliers that theircompetitors offer the same products at lower prices.

The new system gives Cybex’s suppliers projected long-term and short-term production schedules. This helps suppli-ers with their own planning, and it helps Cybex ensure thatall parts and materials are available when needed. Moretimely delivery of parts and materials also reduces the inven-tory level at Cybex. Furthermore, suppliers that cannot meetthe required dates are replaced after quarterly reviews.

Some of the most impressive results included cuttingCybex’s bill-of-material counts from 15,200 to 200; reduc-ing the number of vendors from 1,000 to 550; decreasingpaperwork by two-thirds; and reducing build-to-order timefrom 4 to 2 weeks. Despite intense industry price cuts overthe last few years, Cybex has remained very profitable,mainly due to its e-supply chain. Introducing the inte-grated ERP system cost money, of course. In addition tothe software, the technology staff has been increased from3 to 12. However, the company feels that the investmenthas been more than justified, especially because it pro-vided for much greater harmony between Cybex and itscustomers and suppliers.

Questions1. Discuss the relationships between the EC applica-

tions and the ERP system. (Try to identify as manyrelationships as possible.)

2. What is the role of the planning module?

3. Summarize all of the activities needed for successfulimplementation of the ERP system at Cybex.

4. List some of the benefits of the ERP system toCybex.


Workflow is the movement of documents and tasks (and hence information) as they flowthrough the sequence of steps that make up an organization’s work processes and procedures.Workflow embraces how tasks are to be structured and performed, who should perform them,how they should be logically ordered and sequenced, how tasks are to be tracked and moni-tored, and most important, what information is required and generated from all these tasksand how and where it needs to be recorded (en.wikipedia.org/wiki/Workflow).

Workflow systems essentially help organizations analyze, model, automate, and electroni-cally enact aspects of workflow and task performance among workers both within and acrossmultiple organizations in a supply chain. These types of systems may include features thatenable task scheduling and prioritization, job routing, tracking and control, document imaging,document management, management reporting, and the like.

Workflow management involves the management of workflows so that documents, infor-mation, or tasks are passed from one participant to another in a way that is governed by theorganization’s rules or procedures to achieve required deadlines. Workflow management alsoinvolves tracking of these tasks and documents, prioritizing tasks, and ensuring the allocationof adequate resources for the performance of these tasks. Workflow management involves all ofthe steps in a business process from start to finish, including all exception conditions. The keyto workflow management is the tracking of process-related information and the status of eachactivity of the business process (see van der Aalst and van Hee 2004).

Types of Workflow ApplicationsWorkflow applications fall into three major categories: collaborative, production, and administra-tive workflow.

◗ Collaborative workflow. Collaborative workflow refers to those software products thataddress project-oriented and collaborative types of processes. They are administered cen-trally yet are capable of being accessed and used by workers from different departments andin collaborative partner organizations and even from different physical locations. The goal ofcollaborative workflow tools is to empower knowledge workers. The focus of an enterprisesolution for collaborative workflow is on allowing workers to communicate, negotiate, and collaborate within a unifiedenvironment. Collaborative workflow applications are generally a little less structured than some other applicationtypes. Some leading vendors of collaborative workflow applications are Lotus, JetForm, FileNet (an IBM company),Microsoft, and Action Technologies.

◗ Production workflow. Production workflow tools address mission-critical, transaction oriented, high-volume processes.They are generally highly structured applications and clerical in nature. They usually are deployed in a single department orto a certain set of users within a department. These applications often include document imaging and storage and retrievalcapabilities. They also may include the use of intelligent forms, database access, and ad hoc capabilities. The goal is toimprove productivity and the quality of business processes. The leading vendors of workflow applications are FileNet, TIBCO,IBM, and Global 360. An example of production workflow that is mixed with collaborative workflow is presented in CaseW6.7.1. For other applications, see SoftNet (2007), Torode (2004), and Staff (2004).

◗ Administrative workflow. Administrative workflow deals with administrative tasks such as routing and approval functions forsuch things as travel requests, purchase orders, and leave requests. Some of these applications extend enterprise wide, such asrecruitment, procurement, and expense reporting. Administrative workflow systems are usually based around electronic formsand documents and serve to automate parts of these previously paper-intensive processes. The major vendors are Lotus, TIBCO,and InTempo.In conclusion, the benefits of workflow management systems include the following:

◗ Cycle time reduction achieved through improved control of business processes, with far less management intervention andfewer chances for delays or misplaced work than in other systems. Reductions in cycle times can also be achieved throughminimizing reworks, using business rules to catch problem at their source, and so on.

Online File W6.7 Workflow Technologies and Applications

(continued)

workflowThe movement ofinformation as it flowsthrough the sequenceof steps that make upan organization’s workprocedures.

workflow systemsBusiness processautomation tools thatplace system controlsin the hands of userdepartments to auto-mate informationprocessing tasks.

workflow managementThe automation ofworkflows, so that doc-uments, information,and tasks are passedfrom one participant tothe next in the steps ofan organization’s busi-ness process.


◗ Productivity gains by helping individuals prioritize their activities, providing them with the necessary information to com-plete tasks, and balancing workloads across the entire workgroup.

◗ Improved process control, enabling the organization to improve quality and consistency.◗ Improved quality of services through quicker response times with the best person available.◗ Lower staff training costs because the work can be guided through complex procedures.◗ Lower management costs, enabling managers to concentrate on nurturing employees and handling special cases rather

than on routine reporting and distribution issues.◗ Improved user satisfaction. Users typically have greater confidence that they are doing the best they can, and they enjoy

greater satisfaction when completing their work with fewer conflicting requirements.◗ More effective collaboration and knowledge sharing, especially the sharing of best practices.

A major area for EC workflow applications is the aggregation of sellers or buyers, which was described in Chapters 5and 6. When large suppliers or buyers are involved, a workflow system is needed for both the collaborative efforts and forsupply chain and production improvements.

For information on workflow management, see Fischer (2002). Additional information can be found at wfmc.org,aiim.org, BPM Focus (waria.com), and omg.org.

Because workflow management systems support more than one individual, they are considered by some to be a subsetof groupware.


CASE W6.7.1 EC Application

POSTE ITALIANE GAINS EFFICIENCY AND COMPLIANCETHROUGH IMPLEMENTING WORKFLOW SYSTEMSPoste Italiane (Italian Post) is a large, distributedorganization with 146 branch offices, 14,000 postal offices,and about 158,000 employees, largely in Italy but alsothroughout Europe. In addition to the traditional postalservices, it offers communications services, logistics, andfinancial services, including consumer banking services.

Banking is subject to substantial regulation, andItalian Post lacked the necessary infrastructure to ensurethat important documents associated with banking rulesand regulations, policies, reporting requirements, and thelike were appropriately created, distributed, stored, andretrieved by authorized personnel. Most of these docu-ments were created centrally and needed approval fromdifferent divisions before distribution across the networkof postal offices, all within a strict time frame. Theoriginal distribution method had been to manually faxdocuments to each of the post offices, an extremely

inefficient, time-consuming, and labor-intensive activity.Furthermore, it was not possible to guarantee that thedocuments had been received, verify the delivery date,confirm that the documents had been read and enacted asrequired, or ensure that the documents were stored withappropriate levels of privacy and security.

A solution was found in a document management andworkflow management system that is able to automate andsimplify the creation, review, and distribution of thesesensitive corporate documents. The system is also able totrack a document’s history; restrict access to particulardocuments; assign expiration dates, where appropriate;and archive documents.

Using components of Microsoft Office 2007 andMicrosoft Windows Workflow Foundation, Italian Post employ-ees now have access to a centralized portal where they cannavigate through and review a large number of documents.

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CASE W6.7.1 (continued)

In addition, collaborative functions enable staff atthe widely distributed offices to share, approve, and storethese documents, using a procedure embedded in the soft-ware that ensures compliance with banking regulationsand business rules. By restricting access to certain sensi-tive documents, document security is assured.

Italian Post benefits through a reduction in time spenton administrative tasks due to the automation of the work-flows associated with the management of sensitive policydocuments. In addition, collaboration and the managementof corporate knowledge is improved through this system;documents are more accurate; and the process of creating,disseminating, storing, and securing these documents canbe completed in a more timely manner.

Source: Compiled from Microsoft.com (2006).

Questions1. Briefly describe the major problems faced by Italian

Post.

2. What was nature of the solution provided bydocument management and workflow managementsystems?

3. Draw the Italian Post process of document creation,dissemination, and storage outlined at the start ofthis case. Draw the same process following theintroduction of the new technologies. Where areefficiencies being achieved?

4. Explain how the system has improved workflow.

5. In what ways do the new systems improve collabora-tion among the distributed postal offices?

KEY TERMS Workflow 14 Workflow management 14 Workflow systems 14

REFERENCES FOR ONLINE FILE W6.7Fischer, L. Workflow Handbook 2002. Lighthouse Point,

FL: Future Strategies, Inc., 2002.Microsoft.com. “Italian Postal Provider Modernizes

Document Workflow and Improves Efficiency andCompliance Using the 2007 Microsoft OfficeSystem.” 2006.

SoftNet. “Lotus Domino Workflow.” publib.boulder.ibm.com/iseries/v5r2/ic2924/index.htm?info/rzahs/rzahswrkflw.htm (accessed January 2008).

Staff. “Canadian Firm to Debut New WorkflowManagement System.” Operations Management(2004).

Torode, C. “Kronos Plans Web-based WorkflowManagement.” Mass High Tech 22, no. 35 (2004).

van der Aalst, W., and van Hee, K. WorkflowManagement: Models, Methods and Systems. Boston:MIT Press, 2004.


A group decision support system (GDSS) is an interactive computer-based system that facili-tates the solution of semistructured and unstructured problems by a group of decision makers.The goal of GDSSs is to improve the productivity of decision-making meetings, either by speedingup the decision-making process or by improving the quality of the resulting decisions, or both.

The major characteristics of a GDSS are as follows:

◗ Its goal is to support the group decision-making process by using IT tools to automate supportsubprocesses.

◗ It is a specially designed information system, not merely a configuration of already-existing sys-tem components. It can be designed to address one type of problem or a variety of group-levelorganizational decisions.

◗ It encourages idea generation, conflict resolution, and freedom of expression. It contains built-in mechanisms thatdiscourage development of negative group behaviors, such as destructive conflict miscommunication and “groupthink.”

First-generation GDSSs were designed to support face-to-face meetings in what is called a decision room. Today, sup-port is provided over the Web to virtual groups (group members may be in different locations). The group can meet at thesame time or at different times by using e-mail, sending documents, and reading transaction logs face-to-face. GDSS isespecially useful when controversial decisions have to be made (such as resource allocation or determining which individu-als to lay off). GDSS applications require a facilitator when done in one room or a coordinator or leader when done withvirtual meetings. An interesting modern GDSS is in the Decision Theater at Arizona State University (decisiontheater.org).

GDSSs can improve the decision-making process in various ways. For one, GDSSs generally provide structure to theplanning process, which keeps the group on track, although some permit the group to use unstructured techniquesand methods for idea generation. In addition, GDSSs offer rapid and easy access to external information needed fordecision making. GDSSs also support parallel processing of information and idea generation by participants and allowasynchronous computer discussion. They make possible larger meetings that would otherwise be unmanageable; alarger group means that more complete information, knowledge, and skills will be represented in the same meeting.Finally, voting can be anonymous, with instant results, and all information that passes through the system can berecorded for future analysis (producing organizational memory).

The major benefit of GDSSs, however, is in conducting virtual meetings. Meetings can be called very quickly, and thecompany can save on travel expenses. The major benefit over most Web conferencing tools, which are essentially unidirectionalin their one-to-many pattern of communication, is that GDSSs were designed on a many-to-many basis, with a one-to-manyfacilitator role incorporated into most designs. Thus, in a GDSS people do not sit passively listening while information isdistributed. The aim is for people to actively engage by adding their ideas, commenting on other’s ideas, and actively engagingin the process (Austin et al. 2006).

More general GDSS products, such as Microsoft NetMeeting, WebEx, and Lotus Notes/Domino, provide for some ofthe functionalities just discussed. A more specialized GDSS product is GroupSystems, which is a complete suite of elec-tronic meeting software (both for one-room and virtual meetings). (Visit groupsystems.com and view the demo there.)Another specialized product is eRoom (now owned by EMC Documentum at documentum.com). This is a comprehensiveWeb-based suite of tools that can support a variety of collaboration scenarios (see Exhibit W6.8.1). A third product isTeam Expert Choice, which is an add-on product for Expert Choice (expertchoice.com). It has limited decision-supportcapabilities, mainly supporting one-room meetings. Facilitate (facilitate.com) and Meetingworks (entsol.com) are bothWeb-based GDSSs designed to improve meeting productivity and support collaboration. WebIQ (webiq.net) offers similarfunctionality but includes a Web-based JAD tool. Grouputer (grouputer.com) offers the traditional GDSS functionality ofsupporting meetings and collaborative decision making but also offers tools specifically geared to support businessprocess improvement initiatives, including Six Sigma. A number of these products can be used on an ASP basis inaddition to being purchased and installed on a company’s network.

Online File W6.8 Group Decision Support Systems

(continued)

group decision supportsystem (GDSS)An interactivecomputer-based systemthat facilitates thesolution of semistruc-tured and unstructuredproblems by a group ofdecision makers.



EXHIBIT W6.8.1 Characteristics of eRooms (now a Documentum company)

Feature DescriptionCalendar • Easy-to-use, effective mechanism for picking people to invite to a meeting.Database • Convenient way to store data without having to create SQL server tables and generate a

front-end user interface for those tables.• Includes several predefined databases.

Discussion • Very functional.• Different from traditional news-reader products (e.g., Microsoft Outlook, Forté Agent).• Not as easy to read as Lotus Notes/Domino’s discussion database template.

Folder • With plug-in, you can drag files from your desktop or Microsoft Explorer directly into the folder.• Integration with routine Windows desktop interaction.

Inbox • Can be linked to a POP3 account on your enterprise server or external server.• Need not belong to an individual; a project can have its own inbox.• Easy for archiving projects.

Link • User can group all information about a project, including relevant URL links, within theproject’s eRoom.

• Helps consolidate project knowledge for staff.Poll • Like voting machines.

• Helps gather and count the group’s opinions.• Can be stand-alone or contained within other items, such as notes or discussion.

How It Works• Facilitator creates eRoom Facility and assigns all security permissions for the individual

items. (Security is effective, yet unobtrusive.)• Individuals can read an item, participate within an item, or create their own items to

share with the group.• Bring staff into eRoom by sending invitation, using enterprise’s Lightweight Directory

Access Protocol (LDAP) server to identify people to be invited, using Intercom (chatfunction) or e-mail.

• Configure the server to monitor changes within eRoom items and to send a summary e-mail (includes subject and URL link to the right item) when it detects changes.

Other Advantages• OK and Cancel buttons are at the top of the screen; they are easy to find without scrolling.• Icons for links can be customized; easily identify the subject.• Error messages.

Extensibility• Still some limits.• Ways to increase functionality.• Provides connector for Microsoft Exchange; can archive project information to Exchange

folders for easier access.• Separate connector for Lotus Notes/Domino and Documentation EDMS.• Includes a Microsoft Component Object Model (COM) interface for its server components.


KEY TERM Group decision support system (GDSS) 17

REFERENCE FOR ONLINE FILE W6.8Austin, T., N. Drakos, and J. Mann. “Web Conferencing

Amplifies Dysfunctional Meeting Practices.” GartnerResearch, ID Number: G00138101, March 13, 2006.

Online File W6.9 Sampler of Collaborative Applications

◗ Powerway (powerway.com) makes quality-management software that monitors the development of new automotive partsthrough their completion at the factory. Powerway systems are used by GM and other auto manufacturers.

◗ To help contractors work with partners on new designs in the aerospace industry, Exostar Corp. (exostar.com) offersForumPass. It greatly improves communication.

◗ Manhattan Associates (manh.com) offers warehouse management tools. For example, PKMS software manages shipping,tracks orders, and counts inventory.

◗ Eqos Ltd. (eqos.com) provides tools for Collaborative Planning and Event Management. Its collaborator software enablessuppliers to integrate their customers’ supply and demand and product data with their own systems. It facilitates SRM.

◗ Agile (agile.com) offers an intercompany collaboration software product to its customers with a guaranteed ROI—if thesoftware does not save the customer enough money, the customer does not pay.

◗ WebOffice from WebEx (weboffice.com) provides an easy way for online multimedia conferencing with multiple people.Whether connected via the Internet or a corporate intranet, dial-up modem, or broadband, employees and customers canhave meetings anytime, anywhere. If the person you are looking for is not online, you can leave a multimedia message.

◗ Netscape Collabra Server, a component of SuiteSpot from Netscape (wp.netscape.com/collabra/v3.5/index.html), providescollaboration services through discussion groups, shared multimedia documents, and a Web browser interface.Anytime/anyplace virtual meetings can be structured within Collabra. It includes open e-mail, groupware, editing, calen-daring, document access, and Web browsing.

◗ NexPrise’s (nexprise.com) c-commerce solution allows users to create environments where people from multiple companiesand across geographic boundaries can create secure virtual workspaces in which they can collaborate on a number of keyprocesses.

◗ Dassault Systems (3ds.com) provides a PLM solution. A pioneer in the software market since 1981, Dassault develops andmarkets PLM application software and services that support industrial processes and provide a 3D vision of the entire lifecycle of products, from conception to retirement. The company’s offerings include integrated mainstream product designtools and 3D components.