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MANAGING SUPPLY CHAIN

PROGRAM: MBA (P)


SECTION: H

PROJECT ASSIGNMENT 3
Submitted to:
Mr. Haris Aslam
Submitted by:
Raied butt

14022034050

Muhammad Burhan Ali 14022034071


Khurram Shafique 14022034032

DATE: 31-12-14

Table of Contents

1.

Company Introduction.......................................................................................... 3

2.

National & International Clients List.....................................................................6

3.

InfoTech Details.................................................................................................... 7
3.1

InfoTech Staffing Domestic..........................................................................8

3.2

InfoTech Staffing International.....................................................................8

3.3

Financial Capacity of the Company................................................................8

4.

SIPOC Diagram..................................................................................................... 9

5.

Flow Chart Diagram........................................................................................... 10

6.

Environmental Uncertainty.................................................................................11
6.1

Supply uncertainty....................................................................................... 11

6.2

Demand uncertainty.................................................................................... 11

6.3

Technology uncertainty................................................................................12

7.

Top Management Commitment & Strategic Planning.........................................12


7.1

Competitive priorities..................................................................................12

7.2

Top management support............................................................................ 12

8.

Customer Focus.................................................................................................. 13

9.

Use of Information Technology...........................................................................13

10.

Supplier Relationship Management.................................................................14

10.1 Supply network structure............................................................................. 14


10.2 Supply base reduction.................................................................................14
10.3 Long term relationship.................................................................................14
10.4 Communication............................................................................................ 15
10.5 Supplier involvement................................................................................... 15
10.6 Logistics integration..................................................................................... 15
11.

Supply chain performance..............................................................................16

12.

Recommendations.......................................................................................... 17

1. Company Introduction
InfoTech is a premier IT Systems Integrator with capacity and experience
for providing strategic technology solutions that achieve real business
results for businesses. Founded in 1995, Info Tech is at the forefront of
revolutionizing the information technology arena by providing the best
products and services to a wide range of industries and enterprises. The
companys strategy which is elucidated by a determined and compelling
focus on convergence and innovation, strives to establish InfoTech as a
synthesized speculator and benchmark for new IT services globally.
InfoTech is a truly global company, executing business in several countries
through thre of its own subsidiaries InfoTech Africa Limited, InfoTech
Middle East FZ-LLC, UAE and InfoTech Global PTE LTD, Singapore
and developing technology that affirmatively impacts businesses all over
the globe.
The world of information technology is changing rapidly.
Rapid
information dissemination and other forces create an ever-changing
environment. This environment makes it difficult for the traditional
organizations and companies, even armed with the best in commercial
technology, to deliver consistent, accurate and up to the mark solutions.
Our leading-edge solutions allow us to develop incomparable products
and services and provide high-end consulting, design, optimization and
provisioning of IT infrastructure to various enterprises around the globe.
Our philosophy allows us to build meticulous and contemporary predictive
business models and an analysis of the behavior of financial markets.
True to its motto, InfoTech aims at consistently ensuring that the solutions
are brilliantly built to enable customers sustainability. Industry specific
work procedures and methodologies, technologies, domain expertise,
tools and training are the companys forefront. We aspire to draw on this
substantial substructure to create visible business impact for clients
around the globe, resulting in long-term relationships. We understand our
client's business realities and have the know-how and solutions needed to
advance their business goals. Consistent year-on-year growth of over
35%, during last decade, shows confidence of our customers that our

engagement with them is based on long term Technology Partnership,


and not just on transactional business.

A key InfoTech strength is its ability to successfully manage Enterprise


level Information Technology projects. We have years of experience of
working with multiple subcontractors and specialize in large complex
Systems Integration activities. In addition to the above, below is a brief
summary of InfoTech strengths and track record as a Systems Integrator:

One of the main Systems Integrator for IT Enterprises across all


industries (Gov, Telco, Banks, Healthcare, Energy, etc.).

InfoTech Proven Competency in managing large-scale, geographically


dispersed Projects of mission-critical Systems (24 X 7 onsite support)

200+ Professional Employees.

End-To-End Solution Provider for all IT Requirements

Capital and Securities Market Solutions

Enterprise Resource Planning

Business & Industry Solutions

SW Solutions across all Platforms

H/W Infrastructure (Servers, Storage, Printers, Desktop, Retail,


etc.)

Network Infrastructure specially for utilities

Operations & Maintenance

Education, etc.

InfoTech Professional Services business unit offers high-quality


advisory, consultancy, and system implementation services across
the complete spectrum of MIS activities. It consists of an integrated
set of services covering Professional Consultancy, e-Business

Solutions, Systems Integration, Project Management, Strategic


Outsourcing, Business Intelligence Services, Enterprise Resource
Planning, Customer Relationship Management, and Education &
Training. These services are individually tailored to meet specific
customer needs and the unit thrives on providing value added
customer service and business benefits through its well-developed
intellectual capital.

InfoTech is committed to keeping the customers interest first by being


vendor agnostic and cultivating partnerships with leading global
technology manufacturers. We are partner of choice for global IT giants
including but not limited to the following:

CISCO

Oracle

Microsoft

IBM

McAfee

Barracuda

Computer Associates (CA)

Fortinet

Emerson

APC

2. National & International Clients List

3. InfoTech Details
Name of Firm:
Ye a r o f I n c o r p o r a t i o n :
Nature
of
Firm:

I nfoTe ch Pri v ate Li mi te d


1 99 5
Pri v ate Li mi te d C om pany
12 -N Gul be rg-I I,
L ahore - 54 66 0
Te l : + 92 -4 2 1 11 -4 27 -42 7,
Fax : +9 2 -42 -58 7 2 26 5
URL : w w w. i nfote ch grou p. com
Af ric a
Info Te ch Af ri ca L t d .
O pei be a Ho use, 3 7 L i be rati on Roa d
Accra, G han a.
Te l : +2 33 21 77 49 94
Fax: +2 33 2 1 7 75 57 5

H e a d O ffi c e :

Dub ai
Info Te ch M idd le Eas t FZ- LL C, UAE
Offi ce 3 17 , DI C B uil di n g 9 , Du bai
I nte rne t Ci ty, Du bai , UAE
Te l : +9 71 4 -36 4 4 62 4

Subsidiaries :

Sing ap o re
IN FOTECH GLOB AL PTE LTD
3
S he nton
Way,
#2 4 -05
House , Si ng apo re 06 88 05
Te l : +6 5 6 27 6 2 30 1
Is l amab ad
4 th Fl oor, Wa hee d Pl a za,
We st,
Bl ue Are a, I sl ama bad
Te l : + 92 -5 1 2 60 46 37 -9

Branches:

She nt on

Pl ot N o. 52

Ka rac hi
Offi ce N o. 1 01 , I brahi m Al i B hai Tow e r,
Bl ock 7/ 8 , S hahr ah- e-Fai sal , Karachi .
Te l : + 92 -2 1 1 11 -4 27 -42 7
Main
Areas
Expertise:

C e r t i fi c a t i o n s

of

Pa r t n e r s h i p :

Te ch nol ogy C onsul ti n g


Te ch nol ogy I nfrastruc tu re
O utsou rci n g Sol u ti ons
Trai ni n g Sol u ti ons
I SO 9 00 1: 20 0 0
I SO/ I EC 2 70 01 : 20 05
I SO 9 00 0: 20 0 8
CI SC O Syste ms
MIC RO SO FT
O RAC L E
IB M

VMWARE
C omp ute r Associ ate s

3.1 InfoTech Staffing Domestic

Lahore

Karachi

1- Management Staff
2-Technical Staff
3-Sales Staff
4-Administration

24
70
12
13

4
30
24
9

Islamaba
d
2
12
4
4

TOTAL

119

67

22

TOTAL
30
108
40
26
208

3.2 InfoTech Staffing International

1- Management Staff
2-Technical Staff
3-Sales Staff
4-Administration

Middle
east
1
2
1
1

Singapor
e
1
1
1
1

TOTAL

Africa

TOTAL

3
3
3
3
12

1
1
3

3.3 Financial Capacity of the Company


Financial
Information

Historical information for the previous three


years
Year 1 (PKR)
Year 2 (PKR)
Year 3 (PKR)
Information from Balance Sheet:
1.
Total 1,764,472,846
1,445,849,732
1,177,249,902
Revenue
(TR)
2.
Profit 1,458,806
55,530,395
83,024,713
Before
Taxes
(PBT)
Net Worth (1)- 248,324,071
254,543,509
216,161,095

(3)

4. SIPOC Diagram
Supplier(s)

Inputs/R
equirem
ents

Process
Steps

Output(s)/Req
uirements

Customer(s)

CISCO
ORACLE
IBM
MICROSOFT
BARRACUDA
COMPUTER
ASSOCIATES
FORTINET
EMERSON
APC

Once the
project is
qualified
means to
identify
the
requireme
nt of the
customer
then it will
go for the
input of
the
relevant
business
unit. And if
the
business
unit
agrees to
go for the
project
then it will
go for
further
processes
otherwise
the project
will quit.

After the
submission of
the project to
the customer,
they
compared the
technical
proposal with
the
competitors
and evaluate
it. And if the
companies
scored the
passing marks
then financial
proposal is
compared.
Then the
project is
awarded to
the lowest
price vendor.
So the winner
will take all
the
responsibilities
of the project
which is
mentioned in
their
proposals. If
the company
will not deliver
as per

After the decision


of the Business
Unit, then the
requirements go
to the technical
team, which will
work on the
requirements of
the customer and
making a best
possible and cost
effective solution.
After this get done
it will go for the
approval from
Finance
Department for
financials and
then go for the
operation
department in
which they will
discuss the
delivery time
period of the
hardware and
software.

After all the


processes get
done which is
mentioned
above, the
final proposal
is ready to be
submitted to
the customer
both
technically and
financially.

customer
requirement
then the
customer is
able to
penalize the
company
through
financials.

5. Flow Chart Diagram

6. Environmental Uncertainty
6.1 Supply uncertainty
Suppliers are not consistent in meeting their requirements.
There are two types of supplier that InfoTech have i.e.
Local Suppliers
International Suppliers
However, if InfoTech has their requirement and there is no availability of the
product in local market then they go for international supplier. As they are
the partners of international brands i.e. IBM, Huawei, Oracle, Microsoft etc.
from them they have no issues regarding meeting the requirements from
InfoTech. But on the other side as per customer requirement the local
vendors, they would not have what they want.
They do inspect incoming critical materials from their both local and
international suppliers. As InfoTech is ISO certified so they have very strict
inspecting system. Every product that is ordered to the vendor have part or
serial number for claiming future warranties.
For International suppliers the rejection rate of critical materials from
suppliers is one percent, this one percent is only happened when there is
something a technical mistake e.g. if they ordered product Qty. =1 instead
of 2. However, there is the same rejection rate from local suppliers. The
Rejection is low because InfoTech only order the product once they have
confirmed from the customer.
6.2 Demand uncertainty
The variation of demand as compared to their forecast is depend on the
customer requirement. Firstly demand comes from the customer then order
will be placed. InfoTech has not consumer market they only deal with
enterprise market, so when the order comes, then the order is placed
further to the vendor. E.g. if the company wants to upgrade their system
they will contact with different vendors to solve their issues or their needs
and the best solution will be awarded.
InfoTech only placed orders after deciding with the customer. They are
strictly relying on purchase orders, once the purchase order is received by
the company it means order is confirmed by the customer. And if the
customer wants to change their demand after releasing PO, it is difficult to
change but if the order is not placed to the suppliers then it will be
amended as per their requirement otherwise not.
InfoTech do keep inventories of critical materials to meet uncertain
demand. They only keep the inventories for their customers when they

have service level agreement with the customer for only a specific product
which is mentioned in the contract for maintenance. They have a system in
which they maintain a number of stocks for 24/7 support for their SLA`s
customers. If they don`t have any stock regarding any part of the product
they will arrange that part which is goes down within twelve hours.

6.3 Technology uncertainty


As technologies are advancing day by day, information technology industry
is very much influenced by changing in technologies. As the model of
technology is changing very fast, InfoTech is changing with the technology
to gain a competitive advantage. Their technical resources are also the part
of it because they are responsible for developing a solution for customers
to increase their efficiency with cost effective solution. As now customer is
trying to understand the concept of technology due to which they have
awareness about it, which creates a new businesses in the market and now
they think that technology brings efficiency in their company and it is also
helpful for reducing their costs to gain more profit. So that InfoTech
launched their own products to meet the customer requirements and to
create a competitive advantage in the market. Below are their products: Capizar Capital Market Technology
G-Reg eGovernment Solutions
T360 Tax & Revenue Suite

7. Top Management Commitment & Strategic Planning


7.1 Competitive priorities
InfoTech product strategy is more towards quality performance but not
price so much because customer is more satisfy by the performance of the
system, if the system is getting down due to any reason it will affect all
over the company processes so that they will go for quality performance
not for price as much. InfoTech is the solution provider so that they are
more focused on meeting variety of customer needs but if there is a big
deal and a lot of competitors then they will provide products at low price it

will only depends on the nature of the project and by the mutual decision of
the management to lower the prices or not.
7.2 Top management support
Top management of the company is very much aware of the placed orders.
It depends on the size of the orders To Whom It May Concern. If the value of
the order is big then the top management (CEO, Directors, VPs) plays an
important role in delivering the order to the customer as committed, after
evaluating the big project with team discussion then it will be decided by
the management whether to execute or not. Top management sees supply
chain as the backbone of the company because they execute the orders as
well as the business deals which helps the company to grow more.
InfoTech environment is slightly different as compared to the other
organizations. They called the top management meetings as Project
Meetings. If the project is finalized by the management then they will go
to discuss it with the operation department about delivering of the order to
the customer means delivery time for further commitments. Further
commitments includes deadline of the project, delivery of the product on
certain time period, quantity & quality of the product and after sale
services. After that, it is finalized by the team whether to execute the
project or not. Once it get done then it will go for the review to CEO. Top
management is very supportive in fulfilling the supply chain department`s
demand because this department is the back bone of the company. As they
are responsible for delivering the orders to the customer on given time
period if they do not do so then the company have to pay the penalty.

8. Customer Focus
InfoTech do make efforts to identify the needs and wants of the customer
because they are the solution provider and have consultants to provide
best solution. Once there is the opportunity like revamp of the enterprise
system, this opportunity will be evolved by the sales department after that
their solution architect or consultant will suggest the best solution for their
need to satisfy the customers. The Quality of the product meets the
customers expectations, but that is not always the case because
sometimes the expectation of the customer will not meet because either
the feedback from the customer`s end is little blurry or either the scope is
not clearly defined by the customer but sometimes customer lack of
knowledge jeopardize the project but we try to fix this issue by making sure
we collect the right data from customers end. The feedback from customers

end is not taken as much because we always deliver the product as per
customer requirement but from some important customer who we think can
help us grow and expand our business and help us get more customers, we
do get feedback from them for future businesses if the customer is satisfy
with them they will give more business to them. Again the quality of the
product is linked with the above mentioned answer as we are more of a
quality oriented and service based company so yes we try our level best to
make sure that the quality of the product is not compromised as if the
quality lacks customer expectation then there is a high probability that
customer will shift to any other company as there are numerous
competitors present in market waiting for opportunities.

9. Use of Information Technology


InfoTech have different types of communication system to communicate
with the key suppliers below are the modes of sharing information: Emails
Telephonic conversation
Video Conferencing (Skype etc.)
They are using electronic medium i.e. Enterprise Resource Planning System
(ERP) for generating invoices and purchase orders through which they have
records of their documents.
ERP software is used by them for tracking their orders and shipments e.g.
as order is place to IBM online after getting confirmation of the order. After
all the processes gets done from the InfoTech internally the order is placed
to the vendor online after that they can track their order easily and know
whether it is shipped or not or where the product is?.

10. Supplier Relationship Management


10.1 Supply network structure
As InfoTech has a centralized decision system so that the decision is made
through proper hierarchy. InfoTech are the partner of the suppliers with
different partnership levels. The relationships with key suppliers are
partnership based. The company communicates important information to
the key suppliers only when they needed.

10.2 Supply base reduction


InfoTech do believe in having large number of suppliers for parts for having
a healthy competition among the suppliers. They have SOPs for selection of
the suppliers. Below are the points that have been mentioned by the
Supply chain manager: Quality assurance
ISO certified suppliers
Lead time
Ease of Payment
Prices
For International suppliers like IBM, Oracle, Cisco, Microsoft etc., InfoTech
have distributor agreement with them. These international suppliers have
signed a multinational agreement in which they give the level of
partnership to the company (Tier-1, Tier -2 etc.). On the other side they
have no contract with local suppliers but have only decided terms and
conditions with them verbally. It all depends on the relationship with the
local suppliers.
10.3 Long term relationship
InfoTech do except the long term partnership with suppliers. As manager
said that IBM is one of the oldest and first partner of the company. They
build a very good relationship with the suppliers so that it helps them in
executing the projects. However, because of the bad political environment
in the Pakistan many International suppliers are not relying on us. They
asked for the payment first for further proceedings of the product. The
companies do not train their suppliers however they want their suppliers to
have following characteristics: ISO certified
Not being blacklisted
GST & NTN etc.
InfoTech do not share the rewards with their supplier but on the other hand
suppliers do that, if the company achieved the targets or any other
commitments, the supplier then will give rewards to the company in the
form of partnership level or more discounts in the closure of the project.
10.4 Communication
InfoTech do not share information of the company with the suppliers. They
do only share the information which is not against the company policies.
About profit margins or any information regarding finance is not share with

them. The suppliers and the company do not talk on a regular basis so if
any information comes up which the company thinks is sufficient enough to
share with the supplier, the company then tells to the supplier. In most of
the cases the information is kept quite confidential.
InfoTech do timely inform their suppliers about different changes in the
account to become more efficient and work effectively which helps them to
capture the market and satisfy the customer. They have a large number of
suppliers and they interact with them once in a six months. They only
shares the performance feedbacks with their suppliers if they deliver the
product which is not compatible as per customer requirement or which is
ordered them.
Cross functional teams
InfoTech have different business units, they have a constant co relation with
different teams and collaborate each other as per nature of the project.
They do not organize joint planning committees with their suppliers
because they only order the product that is finalized by the customer with
them but on other hand they have planning with their suppliers about the
sales & products which they offer.
10.5 Supplier involvement
As InfoTech have competitive technical resources in the market, so they do
not involve their suppliers in decisions because the prime job of the
technical is to build a solution in an efficient and cost effective manner. This
decision is made by the technical architecture department as they tells
about the structure of the project and how much products is used to
complete the project. So that we only order those products to the supplier.
It depends on the nature of the project whether it will be executed abroad
or local. If the project will be executed internationally then the International
representative of the supplier will guide because they knows the inside out
of the culture and the particular environment so that they can easily be
understandable by the international customer. The key suppliers are not
involved in the business strategy planning phase as the top management
thinks that they dont want to share their strategic planning with the
suppliers as they think that no matter how important or crucial the supplier
it is against the company policy to share such information which is
regarding growth of the business as the competition is quite fierce and the
company dont want to jeopardize the ongoing business.
10.6 Logistics integration

InfoTech Private Limited is integrated in both ways as manager quoted an


example the order comes up from customer and we receive the order, then
the company contacts its vendors/suppliers to make sure they get the right
product at right time. The supplier simply ships the desired product to
InfoTech and then the company delivers the product to the end customer.
This is basically an example of In-transit Merge Network. The logistics
activities are very much integrated with key suppliers as key suppliers
ships the order we gave to them to us and we then ship it further to end
consumers. Below is the diagram which helps understand the concept of
how the working is done in brief manner, we have above shown the
material flow diagram,

Basically what happens is that InfoTech will win the project of either cisco or
oracle or any other product and then the respective company will deliver the
product within the given time frame like 4/6 weeks and so, once the raw
material is received by the InfoTech they first will send the product to the
support and quality assurance team to make sure the product quality is fine
and any issues arent there, once they are done then the product will be
delivered to the customers and not only that complete configuration will be
provided by the computer experts to its customers and a pre contract will be
signed by the customers and the company that the company will provide
services for 3 years and if any problem occurs during that time period the
company is responsible for that.

11. Supply chain performance


The performance of InfoTech in terms of following performance measures
compared with the closest competitors.
Volume flexibility
The volume flexibility according to the manager is better. The thing is
company do not stock the product but they work when the order arrives so
the company dont do make to stock but they follow make to order process.

The company that is why doesnt bother about volume as they have to
work when they receive orders.
Delivery speed & reliability
It is good but it is subject to availability. It also depends on the
manufacturing of the supplier. Sometimes bigger project is easily delivered
to the end customer and sometimes one part takes more time to deliver.
The thing is that delivery time of products varies i.e. Delivery time of Cisco
is 4-6 weeks which needs to be improved in our opinion.
Product conformance
Product conformance is based on the customer requirement. As per their
requirement firstly the product is comply with their requirement before
placing an order to the supplier. The product conformance according to the
manager is better as the company make sure that whatever the product
they receive from suppliers end is good and for that purpose a support
team is there in the company which makes sure that the product is good
and satisfies the expectation.
Product costs
Product costs vary region wise because if the product is delivered to far
places it will cost more and vice versa. It also varies customer to customer
and projects. Product cost according to supply chain manager is good and
the cost is incurred on the product is reasonable and the company is
enjoying good profit margin.
Customer satisfaction
Customer satisfaction is very much important for them because InfoTech is
renowned as a solution provider in the IT industry. This is a very critical
performance measure point and according to the supply chain manager
customer satisfaction is better. Thing is that the supplier doesnt sell
directly to the customer, they provide the product to InfoTech and we then
ship to the end user so it is very important for us to make sure that the
customer is satisfied because if he wont then he might switch to other
competitor and the company certainly dont want to lose their customers at
any cost.

12. Recommendations
After completing this project here we would like to mention some
recommendations so that the company scrutinizes them and implement
them in order to make sure they become more competitive in the market and
be cost effective and more quality oriented towards its customers.
The one major recommendation we would like to write is that they
need to work on their Lead time. The lead the time required for a
product to arrive at InfoTech is around 4-6 weeks and in some products
the lead time is around 6-8 weeks which is not as efficient as these
days competitors are becoming more responsive and they are
facilitating their customers in a more efficient way. After talking
interview of supply chain manager we have also come to know that
some customers have shifted to other companies because Lead time is
a major issue here in InfoTech. So the company needs to reduce the
lead time so that they become more efficient and effective.
Also we have found out that the joint planning committees with the key
suppliers are done 1 in 6 months. The company needs to work on those
meetings more often and have to involve key suppliers when making
any strategic business decisions as the input from suppliers end can
help them grow and expand their business in a more rapid way. As
suppliers information can help them boost their expansion and growth.
Lastly they need to give training to their employees more often. As
some employees dont have the complete product knowledge and they
are not so familiar with IT changes that are done these days, in order
to survive in the market the employees need to be trained and this can
be done by conducting training sessions, seminars and others activities
that will help boost employees knowledge and will indirectly help
company in gaining more sales and competitive advantage.