Decision-Making: Decision to Implement an E-supply Chain - Essay Example

?Decision-making: Decision to implement an e-supply chain Decision-making is the foundation of management for control of processes in organizations. Informed decisions however define effective management because of involved reliability and validity of the assumed positions. Processes such as collection of information relating to the subject matter for alternative options from which decisions can be made, and rationale into selecting the best alternative are characteristic of decision making and apply to decision-making on implementation of e-supply chain. This section reports on decision to implement an e-supply chain by Jaguar Land Rover through analysis of sources of information for making the decision, evaluation of the available information, and explains appropriate communication of the information to help managers in making the decision. Available sources of information Multiple sources of information exist for making decision on application of e-supply chain by Jaguar Land Rover. The company’s customers form the first source of information. As the end user of the products, the customers determine the quantity of products to be availed at different points of a supply chain at given times. The customers’ locations and preferences also influence decisions on supply chains for utility objectives. Competitors are another set of information source as they determine competitiveness of the industry. Based on customers’ preferred choice of supply chain and trend in demand, information on competitors’ supply chains is necessary in determining the most suitable option that can gain Jaguar Land Rover an advantage over the competitors. Competitors’ intentions for new approaches to supply chain are another source of information for planning purposes. Another source of information for the decision is professional bodies and experts who can offers vast information of financial and legal scope of available supply chain options. Financial information involves cost of installation and implementation of different supply chain alternatives and information on legal scopes include rights and liabilities that can emanate from implementation of available supply chain options and involved contracts. Other sources of information include “industry and trade associations,” “conferences and trips, superiors and board members” and other members of the organization (Auster and Choo 1994, p. 211). Analysis of available information through decision-making models One of the available information about the company is its ownership that exclusively belongs to TATA and which means that TATA’s interest must be incorporated in the decision making process. Jaguar Land Rover is also a major player in the competitive motor vehicle industry, a position that identifies competitors, their initiatives, and potential supply chain alternatives as significant information. The company’s target market that is the set of luxurious consumers who are majorly dignitaries and the royal class is also significant to the decision making process. Jaguar Land Rover has also witnessed expanding market in the international scope. Stakeholders’ interest in the company’s operations such as workers’ job safety and impact of the company’s operations on the economy are other fundamental information for the decision because the stakeholders have power, both directly and indirectly, to influence the management’s decision to implement or rescind offered recommendations on e-supply chain for the company (Mottram and Pierron n.d., n.p.). Analysis using the Simple Multi-Attribute Rating Technique (SMART technique) The Simple Multi-Attribute Rating Technique, also referred to as SMART techniques for decision-making, offers a basis for analyzing the company’s available information. The decision making model depends on variables’ values and chances of occurrences upon which weights are attached to variables and cumulative values for each alternative determined for decision. The first step in implementing the decision model is identification of the organization for which decision is made and this identifies Jaguar Land Rover. Determination of the subject issues to be resolved follows this. The issue for determination is whether the company should implement e-supply chain for its suppliers. E-supply chain defines electronically aided supply chain activities such as procurement and payments among other business activities. For suppliers, e-supply chain involves contacts with an organization’s suppliers for inquiries and order placements for supplies as well as transmission of related documents and payments over electronic systems and the different information sources are necessary in incorporating stakeholders’ interest. The supply chain approach has advantages such as instant communication, cost effectiveness, and accuracy of information for transactions. These advantages aid timely delivery of the exact description of supplies and aids organizations’ ability to develop efficient supply chains with their customers (Olson and Wu 2010, p. 95, 96). The traditional manual supply chain in which communication and documentations are done manually is the alternative to e-supply chain and convenience, speed and cost effectiveness are the dimensions for value determination. Speed is the most important base for the decision because of the need to avail supplies in time for timely production and product availability in the market. Convenience follows this then cost because the involved cost difference between the alternatives is not material, based on the company’s production capacity. The traditional approach lacks significant advantages but offers such limitations such as bulkiness of data that slows retrieval of information for communication and transactions. Manual system is also time consuming and relatively expensive as compared to the electronic approach. A decision is therefore made for implementation of e-supply chain and involved advantages justify this. Other relevant information to the decision such as legal and social environments as well as owners’ interest on decisions is uniform across the alternatives. While the traditional supply chain’s dimensions offer disadvantages and a cumulative detriment to procurement and delivery of supplies, e-supply chain only offer advantages for efficiencies and speed that aid delivery and empower the company focus on production models and meeting consumer’s needs and expectations (Olson and Wu 2010, p. 95, 96). Analysis using Heuristic method of elimination by aspects Heuristic approach to decision making relies on people’s background knowledge of the subject matter and the available options from which decisions can be made. The theory offers faster strategies for decision making and includes “reason-based choice,”“elimination by aspects,” “semi-lexicographic” approach, “lexicographic,” “take the last,” “minimalist,” and “recognition” among other strategies (Abrahamas 2008, p. 56). Elimination by aspects offers a sound basis for developing a decision on Jaguar Land Rover’s application of e-supply chain. The approach involves establishment of standards on alternatives’ dimensions and eliminating alternatives that fails to meet the standards. Evaluation is done on each dimension until a single alternative is left. Jaguar Land Rover has two primary types of supply chain strategies to apply: the traditional manual supply chain and e-supply chain. The speed within which communication and transfer of supplies can be made over a supply chain is the most important dimension for making the decision and therefore gains supremacy. An evaluation of e-supply chain and manual supply chain identifies speed advantage of the e-supply chain. The approach is instant as suppliers are able to receive procurement details immediately and billings are completed at the press of buttons. The elimination by aspects method therefore recommends implementation of e-supply chain for Jaguar Land Rover (Abrahamas 2008, p. 56; Kelman 2011, p. 39). Communication of the results to aid managers’ decisions The results would be communicated to the management through an oral presentation followed by presentation of the written analysis into the decision. Power point presentation, with summarized points on the two decision-making models, will aid the presentation in a meeting with the managers. The managers will also receive the written report for references and for further analysis of validity of the proposed decision. Conclusion Decision-making is fundamental to managements and modelled based decisions proves reliability of choices for implementation. Jaguar Land Rover has diversified sources of information for decision-making and these include the organization’s history and internal environment, its customers, suppliers, and professional bodies among others. Both Simple Multi-Attribute Rating Technique and Heuristic method of elimination by aspects models recommends implementation of e-supply chain. This section therefore concludes that e-supply chain is suitable and the management should consider its implementation. Works cited Abrahamas, D 2008, Brand risk: Adding risk literacy to brand management, Gower Publishing, Ltd, Hampshire. Auster, E and Choo, C 1994, “CEOs, information, and decision making: Scanning the environment for strategic advantage,” University of Toronto, Retrieved August 14, 2013, . Kelman, M 2011, The Heuristics debate, Oxford University Press, New York. Mottram, K and Pierron, X n.d., “Case study: JLR,” Retrieved August 14, 2013. Olson, D and Wu, D 2010, Enterprise risk management models, Springer, Lincoln. Read More