The Long Cable Company

By: Jason Chukwu and Richard Chow

The Long Cable Company

• Small own family business• Manufactures and sells small

small• cable and electronic equipment.• Have Staff strength of 10 people.

Trading Partners

• Canadian Tire• And others • Investigating having Home depot

as one them

Current Transactions

Have 54 transactions• 18 Request for quotes• 18 Response to Request for quotes • 9 Purchase orders• 9 Invoices

Problem

• Canadian Tire wants Long Cable Company to implement an EDI. Request For Quotes(RFQ’s) are becoming electronic.

• receive about 18 “Request For Quotes” per month from Canadian Tire, which result in an average of 9 purchase orders per month

• Home Depot currently uses EDI and Long Cable Company is considering entering a business project with them.

Strengths

• Availability of computer system currently in place. Two 389-based IBM-compatible PC microcomputers.

• Small company means that there are easier communication channels

The new system

Service bureau

Trading Partners

The Cable company

Trading Partners

Trading Partners

How the system works

• Integration of the company infrastructure. Eg. accounting, quoting, and order entry.

• Assign 2 staff members to handle EDI system

• Subscribe to a service bureau • Service bureau will handle EDI transactions

due to the the limited amount of transactions.

• Pay per use. Pay per transaction.

Key Benefits

• Low costs and low risk since the amount of transactions depend on the amount of exchanges.

Future Considerations

• Should look to expand EDI capability actions required for business

• Consider possibility of VPN