A Report On Summit Electronic Supply

820 Words Nov 13th, 2014 4 Pages
1. Summit Electronic Supply was in need of new systems that could mend some of their unique business process problems. Summit’s line of business involves being the distributor of electronics equipment to electrical contractors, giving the company a high volume of transactions and inventory turnover (Laudon, 2013). The most important processes for Summit included stock keeping units and order transactions. As a distributer, Summit’s main concern was to fulfill its orders on time. To do so, Summit needed to have meticulous records of the location and availability of its products. Summit sold a high volume of cable and wires that were hard to keep track of. Since these materials were sold in lengths, (e.g. 500 feet of cable), it was vital to keep track of exactly how much inventory was left. Another important process of Summit were its sales chargebacks. Sales chargebacks are when a “supplier sells a higher wholesaler price to the distributor than the price the distributor had set with the retail customer” (Laudon, 2013). Keeping track of chargebacks was vital to the company as it ensured that no extra revenue was lost. Another important business process for Summit was its warehouse accommodations. Summit would set up temporary warehouses to supply large customers with long-term job sites (Laudon, 2013).

2. Summit’s outdated legacy system made it very difficult for the company to continue its performance. First, the company’s old system made it nearly…
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