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Case: Fitter Snacker (FS) Company Manufactures and sells two types of nutritious snack bars: • NRG-A: “advanced energy” • NRG-B: “body building proteins” FS’s Marketing and Sales (M/S) information systems • Not well integrated with company’s other information systems • Company-wide use of transaction data is inefficient Has organized its sales force into two divisions: • Wholesale Division • Direct Sales Division • The two sales divisions differ in terms of quantities of orders and pricing terms Branding: • Sells snack bars under the Fitter Snacker brand name • Packages the bars in store-brand wrappers for some chain stores Many of Fitter Snacker’s sales orders have problems, such as: – Incorrect pricing – Excessive calls to the customer for information – Delays in processing orders – Missed delivery dates Reasons for problems: – FS has separate information systems throughout the company for three functional areas: > Sales order system > Warehouse system > Accounting system – High number of transactions that are handled manually – Information stored in the three systems is not available in real time Fitter’s current sales order accounting processes involves recording sales in each division and then periodically sending certain sales data to Accounting for invoicing and financial reporting. Complete sales order data are retained in each sales division for business analysis purposes. Different divisions of one of their client, the Yummy Foods Company, buy NRG-A and NRG-B bars from each of Fitter’s sales divisions. To complicate matters, some divisions of Yummy buy store-brand bars from Fitter. (Yummy owns convenience store outlets.) Fitter management has asked for an analysis of the Yummy Foods account. They want to determine if there are opportunities to expand the company’s relationship with Yummy; however, they want to assess the profitability of the relationship before proceeding. The management team wants to see what products each division sells to Yummy, how much is sold, and on what terms. Assume that in Fitter’s current system, all the required data are available only at the sales division level. Assume that you are currently assisting the CIO of Fitter Snacker, and he has requested you to analyse Fitter Snacker situation and advise him accordingly on the following:  The information flow between the 3 functional areas (Marketing and Sales, Accounting and Finance, and Supply Chain Management) in the company, and if there’s any issue with this.  What steps will be needed to pull this company wide analysis together? (Review how each division sells its products.)  Do you think a sales division manager will be enthusiastic about sharing all data with his or her counterpart in the other division? Do you think there might be some reluctance? Why?  How would the installation of an SAP ERP system (where sales records exist in real time and are kept in the company’s common database) helps to pull this company-wide analysis together? Do you expect that the divisions will meet the new system with enthusiasm or reluctance? Your delivery should be in the form of a memo of approximately 1000 words. Structure (Total 35 points): 1. The information flow between the 3 functional areas @8 2. What steps will be needed to pull this company wide analysis together? @7 3. Problems in sharing data. @7 4. How ERP systems aid in generating company-wide analysis? @8 5. Overall presentation & quality of writing @5
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