E Business Essay

941 words - 4 pages

HYPOTHESIS Hylsamex's implementation of e-business strategies will result in improved customer service, increased revenue, and a reduction in costs.BACKGROUND Hylsamex?s five divisions are Flat Products, Bar and Rod, HyL, Galvacer, and Acerex.Hylsamex was the first Latin American company to apply the entire SAP Advanced Planner & Optimizer (APO) module, after implementing the SAP Supply Chain Management module, in their Bar and Rod division. SAP is the ?world's largest inter-enterprise software company? providing e-business solutions to all types of industries. SAP proved to be a success in the Bar and Rod division. It?s implementation lead to the following outcomes: The supply planning process was reduced from 3 days to 2 hours.On-time and in-full customer deliveries were raised from 70% to 90%.The total budget for implementing this system was US$850,000. However, after six months, Hylsamex reduced inventory by the exact amount, yielding an instant return on investment.In 1998, Hylsa?s Bar and Rod division installed SAP core business-process functionality. In May 2000, it added SAP Advanced Planner and Optimizer (SAP APO), a set of tools for supply chain planning and management. SAP APO modules include Demand Planning (DP), Supply Network Planning (SNP), and Production Planning/Detailed Scheduling (PP/DS). The implementation of the Available to Promise (ATP) module was completed in September 2000. Hylsamex installed LiveCache for rapid optimization of the supply chain, and graphical depictions of data and relationships, enabling a clear and understandable overview for decision-makers. The SAP Business Information Warehouse (SAP BW) was installed as an analysis platform. Given the success with the implementation of e-business strategies in their Bar and Rod division, Hylsamex?s other divisions can also benefit from the success of such a strategy.COMPETITORS Hylsamex?s main competitors are AHMSA and IMSA in Mexico and, in the US, their competitor is the United States Steel Corporation.Hylsamex?s top competitor in steel production is AHMSA. AHMSA implements vertical integration. They apply mining practices to supply the amounts of coal and ore required for their steel production. Therefore, in the event of price fluctuations in coal and ore, AHMSA will not be detrimentally affected.Grupo Imsa and their subsidiaries make processed steel, car batteries, aluminum, and construction products for North and South American markets.The United States Steel Corporation is the number one steel producer in the US. They are currently in a transition phase due to their split from the USX Corporation, their former parent company and also, due to the loss of the deep financial back-up they had previously received from the USX Corporation.FOUR OTHER DIVISIONS Hylsamex's other divisions are Flat Products, Galvacer, Acerex, and HyL Technology. The Flat Products division produces both hot and cold rolled steel. Galvacer handles processed steel division, and it is...

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