Case Study: Schmidtco

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Executive Summary:-
SchmidtCo. was in import of manufacturing goods. SchmidtCo.'s Operation Manager John, who was also son of the company's owner decided to change the existing IT system of the company by ERP system. Company selected DTech for designing and implementation of new system. Four months after implementation started David Goldberg (hired by John) repoted that DTech consultants weren't familiar with DTech ERP and SchmidtCo.'s IT manager was not efficient to implement the changes. SchmidtCo. was facing a time and cost overrun with investment of $600,000. For minimizing overrun Dtech should be retained with tighter project management.
Situation Analysis
SchimdtCo was in import business of manufacturing goods . It covered 10,000 different destinations, shipped 20,000 pieces to over a thousand destinations. It made a turnover of $40-million ,and its range varied from nuts and bolts to radiators. SchmidtCo. was master distributer for North America for European Industrial and automobile manufactures. It had 90 employees in its three warehouses with headquarter in Philadelphia . John Schmidt was Operations Manager …show more content…

After concluding that SchmidtCo had to implement a new system , John assembled a selection team of eight managers from different areas of the company. These managers team after seven months suggested SchmidtCo. should implement a ERP system with modules like:- Warehousing, Inventory, Accounting, Purchasing, Sales and Customer Relationship Management. With 10,000 SKU's and SKU's having fluctuating demands which made inventory management a complex task. ERP Should better control their inventory. Company choose DTech system for installing the ERP system due to DTech's superior functionality in warehouse management and inventory. DTech was market leader in Europe and recently entered US market. John thought this would provide high level of integration to automate manual function, thus reduce

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