Tegan CCC and Hrad Technika - Case Study Example

Download file to see previous pages The company desired to replicate the scalable system using newer technologies that could manage the explosion in volume. In fact, outsourcing the A/P project was the right move for Tegan even while considering the other possible alternatives. Though the sales in its core business were declining at a point, their association with Fan Li – a Chinese toy manufacturer, in 2007 had dramatically increased the number of transactions as order sized plummeted. The Addition of Fan Li’s accessory line meant an outburst in orders providing a boost to sales that could augment the profitability. At this stage, the accounts payable process at Tegan had a significant role in providing bottom-line results for the company, because the firm received standard discounts (typically 1% to 2%) on most of its payables for early payments. The firm also had to make sure that the payments were not too early. Therefore, it was a challenging task for the firm to manage the A/P as any mistakes in handling the razor-thin profit margin floating around 1% would dramatically reduce the profitability. The Tegan’s accounts payable system was thus a complex machine, and it became much worse because of the stress from the new Fan Li business association. The system faced frequent re-boots, blocking of records, and bizarre runtime related errors which created a lot of annoyance for the daily routine of the A/P staff, creating a frightening issue for Tegan’s leadership team. So, the foremost consideration was to fix the A/P system fast, as even the finance and IT departments were worried that the system would not make it through Christmas 2008, conventionally, the peak time for Tegan. ...Download file to see next pagesRead More