To The Board of Directors Quantum Corporation, CA, USA
From Mike Wais Director, eSupplyChain Group Quantum Corporation, CA, USA
SUB: Redesigning of Supply Chain initiatives taken by eSupplyChain Group to include eHITEX
Quantum Corporation had formed the eSupplyChain Group in April 2000 with the aim of restructuring it's, then inefficient, supply chain and take the advantage of new emerging e-technologies to improve efficiencies across the chain. The company has recently entered into a new strategic alliance with eleven other top computers makers and suppliers. This alliance, known as eHITEX would build a new B2B online exchange protocol for supply chain management and…show more content… It provides a common field for everyone to compete and most of the conventional competitive advantages are neutralized. This has a double effect of exposing your weakness as well as making your strengths available to others.
No accurate data available to test the viability of any similar web protocol or access its impact precisely. The group will not have data that allows them to study the impact of such an exchange on the overall supply chain, nor will it be able to predict with accuracy the long term effects on the distinct competitive advantage Quantum enjoys. This lack of available data makes it necessary to have a lot of reliance on human judgment and qualitative analysis.
To what extent can Quantum afford to tailor its Supply Chain to suit eHITEX? The group, as noted earlier has limited resources to test the long term sustainability of eHITEX. Modifying and aligning the entire supply chain to facilitate easy integration eHITEX may be a risky move. Failure of eHITEX would necessitate a complete revamp of the supply chain again and will result in huge negative financial and operational repercussions. The group needs to decide the level of integration considering this uncertainty.
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