CASE STUDY QUESTIONS
The solution helps reduce buffer stock by improving transparency throughout the supply chain-sharing cross-border trade information will all partners, including freight forwarders, insurance agencies, banks, and regula-
tory entities. SAP GTS has helped Fonterra avoid sup-
ply chain bottlenecks, costly production downtime,
- Describe the various capabilities of SAP GTS. How does using this software help Fonterra manage its export trade? Vhat quantifiable benefits does this system provide?
- How would you characterize Fonterra’s global business strategy and structure (review Table 15-3). What kind of a global business is it? Has Fonterra’s structure and strategy shaped its uses of SAP GTS? Would a transnational company choose a different solution?
- What influence does the global business environ- ment have on firms like Fonterra, and how does that influence their choice of systems?
and errors that can result in expensive penalties- and even revoked import/export privileges,
Sources: David Barboza, “Supply Chain for iP]lone Highlights Costs in China,” New York Times, July 5, lOlO; Lauren Bonneau, “Mastering Global Trade at Fonterra,” Custom Proflles, SAP.com, July
1, 2010; Kevin Keller, “iPhonc Carries Bill of Materials of $187.5J ,” iSuppli.com/·Jeardowns, June 28, 20l0.
Explore Fonterra’s Web site (Fonterra.corn) and then answer the following questions:
- Go the Web site SAP.com and search on “G’TS.” Click on the article entitled “SAP GRC Global Trade Services: Streamline and Secure Your Global 8uppl;y Chain. H What benefits does SAP promise to deliver for global.trading companies? Create a summary table for your class.
- Visit SAP’s largest competitor; Oracle. com, and identify similar applications provided by Oracle. What do you think are the most important management and business considerations in deciding between Oracle and SAP solutions for global projects? Discover one global Arm that uses Oracle’s global trade offerings, and compare that firm to Fonterra.