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Case C1 - Cyber Logic Systems

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Oanh Tôn Nữ Thục
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50 views5 pages

Case C1 - Cyber Logic Systems

Uploaded by

Oanh Tôn Nữ Thục
Copyright
© © All Rights Reserved
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Unit 1: Supply chain model

Case study: Cyber Logic Systems1


Cyber Logic Systems is a successful regional company in the United States that specializes in
cyber security. Because of the dramatic increase in the hacking of business and government
databases, Cyber Logic Systems believes this is the moment to expand its operations. Elmer
Armstrong, chief executive officer, met with the board of directors and explained his vision for the
company. Mr. Armstrong planned to aggressively expand into Europe and South America. The
board of directors gave Elmer the go ahead. Elmer called a meeting of his senior staff and explained
his vision to them. He asked what major issues they saw that required immediate resolution before
Cyber Logic Systems could proceed with such an aggressive expansion. Rhonda Mendoza,
director of operations, said that their current supply chain structure would not be able to support
such an expansion. She further stated that the supply chain structure would collapse under the
strain, thus endangering their regional business, as well as the expansion. Elmer tasked Rhonda
with developing a plan on how to get the supply chain structure robust enough to move forward
with the expansion. Rhonda began analyzing their supply chain management needs by reviewing
the four foundation elements—supply, operations, logistics, and integration. As she performed her
analysis, Rhonda realized that not all their current suppliers had the capabilities to support Cyber
Logic Systems’ operations in Europe and South America. Ms. Mendoza decided to perform a
detailed supplier evaluation on each supplier. Through this evaluation she determined that some
suppliers could easily support European operations, while others were better suited for the South
American operations. Furthermore, some suppliers, who were a tremendous asset to Cyber Logic
Systems, would only be capable of supporting their current regional business. Each market area,
United States, Europe, and South America, had regulations with differing standards for cyber
security. The technical specifications for the systems Cyber Logic Systems would install varied
significantly between the three marketplaces. Rhonda decided this could be a considerable problem.
Her solution was simple yet elegant, supplier certification. Supplier certification would ensure that

1
Written by Rick Bonsall, D. Mgt., McKendree University, Lebanon, IL. The people and institution are fictional and
any resemblance to any person or institution is coincidental. This case was prepared solely to provide material for
class discussion. The author does not intend to illustrate either effective or ineffective handling of a managerial
situation.
the suppliers supporting the specific operational markets would be qualified to meet the particular
regulatory requirements.

Although the systems Cyber Logic Systems installed were primarily software, often new hardware
was required to support the software. Ms. Mendoza understood that their current distribution
network was insufficient. They needed to redesign and build a more self-sustaining distribution
network in order to ensure timely product delivery. They truly needed to move from the mindset
of a regional distribution system to a global supply chain. This requirement would mean sourcing
from suppliers who were close to the customers. When a customer has a cyber security issue, time
is the enemy. The new systems must be in place as quickly as possible to avoid further damage to
the customer’s databases and to enable them to continue operating.

Rhonda believed she had identified the key elements that must be improved before they could
move forward with the expansion. The last hurdle was how to guarantee that the three foundation
elements, supply, operations, and logistics, worked as one smooth global supply chain and not as
disjointed parts. This was the biggest challenge of all. If Cyber Logic Systems didn’t solve this
issue, the chance of failure was high.

Ms. Mendoza reflected on her studies in operations and supply chain management. The answer to
the issue was process integration. She knew that they had a challenge ahead. They must convince
each supply chain partner that this supply chain management structure must be part of everyone’s
strategic planning process. Only then could they ensure that the individual pieces, purchasing,
inventory, operations, logistics, quality, etc. would work together as a single well-oiled machine.
Ms. Mendoza was ready to outline her plan to Mr. Armstrong and the other members of his senior
staff.

Discussion Questions

1. When analyzing the supply chain management foundation element “supply,” what are some of
the specific issues Cyber Logic Systems must address? not all their current suppliers had the capabilities to support
Cyber Logic Systems’ operations in Europe and South America

2. When analyzing the supply chain management foundation element “operations,” what are some
of the specific issues Cyber Logic Systems must address?
Each market area, United States, Europe, and South America, had regulations with differing standards for cyber
security. The technical specifications for the systems Cyber Logic Systems would install varied significantly between the three
marketplaces
3. When analyzing the supply chain management foundation element “logistics,” what are some
of the specific issues Cyber Logic Systems must address?
their current distribution network was insufficient. They needed to redesign and build a more self-sustaining distribution
network in order to ensure timely product delivery
4. When working on process integration, what type of issues must a company overcome for true
integration to be achieved?
They must convince each supply chain partner that this supply chain management structure must be part of everyone’s
strategic planning process
Suggested answers

1. When analyzing the supply chain management foundation element "supply," some of the
specific issues Cyber Logic Systems must address are:

- Determining which suppliers have the capabilities to support their operations in Europe and
South America, as the current suppliers may not be able to handle the expanded geographical reach.

- Identifying suppliers who can meet the different regulatory requirements and technical
specifications in the various market areas (United States, Europe, and South America).

- Ensuring that the selected suppliers are qualified and certified to meet the specific needs of
each market.

2. When analyzing the supply chain management foundation element "operations," some of the
specific issues Cyber Logic Systems must address are:

- Redesigning and building a more self-sustaining distribution network that can ensure timely
product delivery to customers globally, moving from a regional to a global supply chain mindset.

- Sourcing suppliers who are closer to the customers in order to reduce delivery times and
respond quickly to customer needs, as time is critical when addressing cyber security issues.

3. When analyzing the supply chain management foundation element "logistics," some of the
specific issues Cyber Logic Systems must address are:

- Ensuring the distribution network can efficiently handle the increased volume and geographical
reach of the expanded operations in Europe and South America.

- Coordinating the logistics and transportation of products and services to the new markets,
ensuring timely and reliable delivery.

- Establishing processes and infrastructure to support the global logistics requirements.


4. When working on process integration, the main issues a company must overcome for true
integration to be achieved are:

- Convincing each supply chain partner that the supply chain management structure must be part
of their strategic planning process, ensuring that all individual processes (purchasing, inventory,
operations, logistics, quality, etc.) work together as a single, well-integrated system.

- Aligning the goals, objectives, and performance metrics of all supply chain partners to promote
collaboration and a shared sense of purpose.

- Implementing effective communication channels, data sharing, and information exchange


among all supply chain partners to facilitate seamless integration.

- Addressing any organizational or cultural barriers that may hinder the integration of processes
and decision-making across the supply chain.

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