Chapter 8 - Minicase 2

Green Mountain Coffee Roasters Integrates Electronic Commerce and Supply Chain Management

In preparation for answering the questions, review the Green Mountain Coffee Roasters web site.

1. Enter www.gmcr.com and identify the major customer-related activities. How are such activities supported by Information Technology?

   Customer-related activities include providing instant access to all stakeholders (clients, sales people, employees) of the same up-to-date information about prices, products on hand, delivery dates.

2. Coffee club members make up about 90 percent of all the company's direct mail business. Why? (Check the web site).

   Members love the good information flow, especially the catalogues with product information, and the order information on the Web; all offered with ease of use and fast service.

3. How can the ERP system improve the GMCR inventory system?

   ERP integrates all the activities of the business, from the order processing through to the delivery. Staff know when the coffee will be ready for shipping, decreasing safety stock requirements.

4. It is said “Internet sales data must be taken into account by Enterprise Planning, forecast demand, and profitability studies.” Explain why.

   These sales are as much a part of the activity of the business as are all other sales. All data needs to be in analyzed to have an accurate picture of the activity of the enterprise.

5. It is stated that “because the customer’s account and pricing information is linked to the order, accurate invoicing will flow out automatically from the Internet transaction.” Explain, and relate to the concept of supply chain.

   A superior ERP links all data to the business process. Supply chain process deals with ordering, inventory, and, finally, selling the product. It is all linked in a superior ERP system.