ACER – A New Step in Supply Chain Management

Essay by murzkachUniversity, Master'sB+, November 2008

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ACER - A NEW STEP IN SUPPLY CHAIN MANAGEMENT

INFORMATION SYSTEMS

BUSINESS PLAN

ITB Consulting Group

Amrinder Kooner

Imara Hamid

Mudit Singh Rawat

Murtaza Kanchwala

Rina Gupta

Subhojit Chatterjee

OMIS5110 - Winter 2008

Section G

Group Assignment

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Executive Summary

Acer Incorporated is a Taiwanese multinational electronics manufacturer that is involved in selling computer hardware and software, and providing IT business services for companies around the world. Acer currently uses an Enterprise Resource Planning (ERP) system called Triton, which is a self-developed ERP system. One of the factors that set Acer apart from its competitors is that the company is its own Original Equipment Manufacturer in addition to selling its own brand of computer. In order to determine what challenges Acer currently faces, three analysis methods were used; Porter's five forces analysis, the Political, Economical, Social and Technological (P.E.S.T.) analysis and the Strengths, Weaknesses, Opportunities and Threats (S.W.O.T.) analysis.

These analysis methods lead to three main issues.

The first issue is that Acer is in need of an IT supported process to deal with its electronic procurement inefficiencies. Secondly, Acer has not dealt with reallocation of its ERP system very well. Lastly, the general business units (Acer Inc., BenQ & Wistron) showed a lack of product diversification were consequently engaged in depleting each other's market share by promoting similar products and targeting same customer base.

To address the E-procurement issues, vendor consolidation should be implemented in order for Acer to focus on fewer vendors who are capable of supplying all required goods and services. Also, Acer should consider upgrading their existing ERP system software to assist in better prediction of their sales, procurement and customer relationship functions. To address the issues faced with the relocation of the ERP system, Acer should outsource their IT components to allow themselves to...