WOODSYNERGY INC: INTEGRATING IT INTO THE SUPPLY

CHAIN

Topic:

• WoodSynergy Inc. had grown to be a mid-sized supplier of fine woods. The company bought
stock woods from several manufacturers and processed them to satisfy certain customer
requirements. High-end cabinets and furniture accounted for almost 60% of Wood Synergy’s
sales. For the most recent reporting period, the company's total yearly sales were $110
million. WoodSynergy was interested in evaluating the state of recent supply chain
management initiatives that were based on information technology.

Problem Statement

• Wood Synergy is experiencing an integration problem and information need. It needs to

incorporate IT in their supply chain management to enable proper transportation of
information to the correct person at right time. All this process requires integration and
centralization of supply and demand. This would enable them to meet their goal of handling
demand with quality products which are delivered on time.

Alternatives/options:

1. Classic disintermediation

2. Remediation

3. Network

Analysis of the alternatives/options and impacts:

1. Classic intermediation: concentrates more on the removal of a middleman like distributors

or wholesalers.

● The corporation cannot afford to totally eliminate the middlemen, which is what classic
disintermediation would entail. The use of intermediaries is crucial because they manage all
aspects of delivery and can give customers their items in a proper and secure manner. They
complete their work swiftly and supply the requested items.

2. Remediation: Gives more importance to working more closely with middlemen.

 The company only needs to deal with existing dealers and suppliers. Suppliers and
distributors know the company's norms and how the company works, so they do not show
much resistance when embracing new methods and adapting to new integrated IT systems.
 3. Network: Building alliances and relationships with both existing and current suppliers and
distributors in order to reduce information search costs.

 The networks include both established and emerging vendors. As a result, the business will
need to manage both its current and future distributors and suppliers. This will make things
very difficult for the business because they won't be able to implement the integration of
data and information while dealing with the difficulties of managing both new and
established distributors and suppliers.

Conclusion:

 The company aims to keep data simple and shared throughout the supply chain. This can be
achieved with a remediation strategy. This strategy also helps the company build long-term
relationships with customers/dealers and suppliers. In particular, 60% of sales come from
elite furniture, so the company needs to maintain relationships with its major customers.
The implementation of this strategy demonstrates the company's commitment to
customers/dealers and suppliers. While this is costly to the business and involves financial
risks in adopting the interface, it will continue to benefit in the future through cost savings
and improved business performance.

 The CIO determined that remediation was the best implementation method since they have
solid relationships with their current key distributors and suppliers, which would protect
them from the contracting risk. Additionally, it is in line with the company's objective to
make data exchange across the supply chain simpler.