GE MICROGENDigitizing

Supply Chain Six Step Process

Small DistributorsMultinational

Clerical Warehouse

Suppliers Distributors

IT Interface

Exte

rnal

Inte

rfac

eIn

tern

al

Step 1

Customer places an order online.• Order Request• Order Bid

Clerks receive order• Process Requests• Confirm/ negotiate bids

Step 2

Clerks initiate bidding process

IT Interface sends out requests for

bids

Suppliers can submit bids

Step 3

Step 4

Clerks make decision and update online database

Clerks call winning bidder

Other bidders notified through email

Step 5

Supplier ships material to warehouse

Step 6

Warehouse compiles supplies

for individual orders.

Any necessary manufacturing and

quality control checks are done

Orders are shipped to individual distributors

Important

because of

scheduling of

installs.

Wait time

should not

exceed two

weeks.

Important to verify orders with

distributors.

IT Interface

Software is

necessary to

automate

component

reordering

process.

This will

reduce extra shippi

ng costs and clerk costs.

Database

eSell/Tracking

SCM

Oracle Database

Central depository for information

Used to support SCM and eSell/

tracking services.

Also used as a data warehouse

for decision making.

Location

Clerks Assigned

Internal Management

3 Regional Warehouses

America

2 Order Clerks

2 Supplie

r Clerks

Europe

1 Order Clerk

1 Suppli

er Clerk

Asia

1 Order Clerk

1 Suppli

er Clerk

Internal Management

Clerical Manager•Troubleshoot process•Communicate with warehouse managers•Maintain ‘Crisis List’

Order Clerks•Receive orders•Multinational distributors’ bidding process•Work with supplier clerks to initiate bidding process•Find new distributors

Supplier Clerks•Work with suppliers •Finish bidding process•Ensure delivery to Warehouses•Find new suppliers

Internal Management

Internal Reporting: IT Interface

• Time spent per order/material• Number of suppliers• Verification of suppliers• Late Orders• Arrival of shipment to warehouse• Departure of shipment to distributor

Inventory Management

• Manual counts every two weeks• Accounts for missing inventory• Damages• Accounts for overhead materials

Financials

2008 2009 2010 2011 $100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

$550,000

$600,000

Net Income

Dolla

rs in M

illio

ns

2008 2009 2010 2011$0.0

$500.0

$1,000.0

$1,500.0

$2,000.0

$2,500.0

$3,000.0

$3,500.0

$4,000.0

Savings Dif-ference

Dolla

rs in M

illio

ns

Financials

2008 2009 2010 2011 $-

$500.0

$1,000.0

$1,500.0

$2,000.0

$2,500.0

$3,000.0 Total Expenses Training Costs

Hardware Costs

Application Maintenance

IT Development Cost

DBA Support

Fax Costs

Leased Space

Office Space

Warehouse Labor

Clerical Labor

Late Fees

Cost

in M

illio

ns

Implementation Strategy

Open warehouse

in Asia

Train Asian

workers

Open warehouse

in Europe

Train Europe

an worker

s

Phase out

clerks

Train most qualifi

ed clerks and

American

warehouse

manager

Set up IT

System

Presentation Credits

•Alia Willingham6-Step Process

•Andrew HoerstIT Interface

•Alia WillinghamManagement

•Jacob ShannonFinancials

•Jon Tudor Implementation