The Alcan Case Study

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Alcan Case Analysis Executive Summary One of the most critical success factors for Alcan, the global leader in discrete and process metal production, selling and service-related businesses, is their supply chain. Sourcing the right materials, from approved suppliers, at the most economical price and having them delivered at the right time is a continual challenge for Alcan and members of the industry it participates in. Bauxite is one of the most critical raw materials there are to the production process for Alcan, and as a result they are engaging in mergers, acquisition and a variety of sourcing arrangements to ensure they can continually gain access to this strategically important material. As of the period of the case study, Alcan had generated $23.6B in revenues across 61 different nations, employing 68,000 associates. Alcan had, in the time period of the case study, created an effective IT governance plan that suited their distributed operations well. IT systems had been however become more fragmented and over time led to a more siloed organizational and information flow structure, leading to greater inefficiencies throughout the entire company. No real governance was in place to monitor and evaluate additional systems being integrated into each specific system leading to over 1,000 duplicate systems being created during the timeframe of the case study. Worse, nearly 40% of these systems were for pricing analysis, leading to 400 separate systems for price analysis

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