Operations Management
Having effective IT systems to underpin warehouse management is important for Acme entering the Mexican market. IT systems provide the support needed to maintain inventory levels, to track sales, and to ensure that the stores are able to compete effectively, all of which are critical to organizational success (Melville, Kraemer & Gurbaxani, 2004). The IT system that runs the Mexican operation will be a mirror of the American system. This will help the company to maintain the same systems throughout, as it expands into both Mexico and Canada. The IT manager will work in English in order to maintain this systemic simplicity.
The IT system will help with ordering, as there will need to be longer lead times for the warehouse function in the Mexico operation, as it takes longer to get goods across the border and down to Mexico City, where the warehouse will be headquartered. The company will have even longer lead times if it sets up a second warehouse somewhere on the Yucatan Peninsula. Initial expansion to Guadalajara would be served from Mexico City until enough stores have been built. The IT system will track inventory in the warehouse as it enters and exits.
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