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  Best Practices: Process Management
Design Horizontal Information Systems

Traditional Best Practice
Vertically focused functional systems
Business-unit-specific systems
Multiple unlinked databases
"Pontoon bridges" to move between systems
Can not answer:
What items are purchased from supplier x companywide?
What is supplier x's on time performance?
Etc.
Business unit transactional level systems
Networked "data warehouse" and decision-support tools accessible companywide
 

Rationale
  • Recognize information that enables cost reduction and service improvement
  • Recognize the need to share information across the acquisition process
Details
Companywide decision support network in place allows for effective and expedient application of purchasing best practices, and provides buyers with information useful in negotiations with suppliers

Best Practice | Case Study | Commentary



May 9, 2000
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