Assignment No.1 Case Study: IT implementation at Conway Inc.

Q1. Explain types of business pressures experienced by Conway and what are the responses the organization found to be apt and successful. (Each 100 words) (Each 1 Mark)

As competitive pressures increase and supply chains become increasingly global and complex, efficient and proactive supply chain management has evolved from solely an operations concern to a critical business success factor. Companies now need real-time visibility into the flow of goods from their suppliers, and even their supplier suppliers, to help them optimize inventory management, reduce lead times and limit transportation costs. In addition, they need practical solutions that can be creatively tailored to their unique needs and relationships, based on long-term experience across supply chain disciplines not a one-size-fitsall software package that cannot be practically integrated into their operations. Con-way Worldwide Logistics is uniquely positioned to meet the supply chain needs of todays global enterprises, leveraging both a legacy of supply chain experience, and a deep bench of technology innovators. Q2. Elaborate on the following points: (each 100 words) (each 1 Mark) a. Type of IT support provided to various levels of organization and people.

Con-way Worldwide Logistics' information technology provides the technologies that underlie all of our operating companys services. Stable, proven applications support movement and tracking of goods, logistics management, premium transportation services, and total supply chain management operations. Con-way Worldwide Logistics is a leader in the creation and application of practical, advanced technology and design techniques that add value to customers supply chains. Conways information technology unit provides a central focus for the companys technology development. The group is responsible for product strategy and expertise for contract and enterprise logistics applications, including visibility, data management, enterprise application integration, order and transportation management, warehouse management, and RFID technology. In developing industry integration standards, Con-way Worldwide Logistics has participated in RosettaNET, OAG, CIDX and TransXML.

b. Can collaboration activities be done with present IT system? Con-ways world-class infrastructure is designed to keep operations up and running to support your business in an uncertain world. Extensive collaboration with partners from air, ocean, rail and surface modes to customers and their suppliers is critical to your success. We enable seamless integration across all parties, which keep your business moving and provide visibility throughout your supply chain. Our advanced applications power the supply chains of the worlds best-known brands. Whether your supply chain is simple and regional or highly complex and global, these technology solutions will be configured to maximize the effectiveness of your supply chain.

c. Your opinion on how relevant social computing could be to Conway When customer visit our site, we may collect certain non-personally identifiable information, such as the type of browser you use (e.g., Safari, Internet Explorer, Firefox), the type of operating system you use (e.g., Windows 2000, Mac OS), and the domain name of your internet service provider (e.g., America Online, EarthLink). We may also use your IP address to help diagnose problems with our server, to administer our web site, and to gather data about repeat users, and broad demographic information. When users sign up for updates or request information about our services, we collect certain contact information, such as user email address. In addition, when users choose to purchase our services, we collect shipping, billing and payment information. Some of the extra services we offer, such as the Web-based tools we offer to our business customers (e.g., tracking, rate quotes, e-bill of lading, and other e-business interface services), require users to complete a registration form. We occasionally use online surveys. Our online survey asks visitors for contact information (such as their email addresses). The visitors contact information may be used for contact when necessary. We also periodically send informational and promotional updates to our registered users regarding Con-way services, and by using this site you consent to receive such email. We may use the services of agents or contractors to assist us in providing our services to you. Such third parties who have access to personally identifiable information are required to protect such information in a manner that is consistent with this privacy policy by, for example, not using the information for any purpose other than to carry out the services they are performing for us.

Q3. Summarize the case under following headings: (1000 words - excluding list of references - 4 Marks) 1. Introduction and case background Con-way Inc. (NYSE:CNW) is a $5.3 billion freight transportation and logistics services company headquartered in Ann Arbor, Mich. Con-way is an industry leader in the transportation and logistics industry and delivers industry-leading services through its primary operating companies of Con-way Freight, Con-way Truckload, and Menlo Worldwide Logistics. These operating units provide high-performance, day-definite less-than-truckload (LTL), full truckload and intermodal freight transportation; logistics, warehousing and supply chain management services; and trailer manufacturing. Con-way Inc. and its subsidiaries operate from more than 500 operating locations across North America and in 20 countries across five continents. Focus is: Organization encountered problems and these problems were solved using IT implementation. 2. Problems encountered Over the years, Con-way had moved from using basic technology to handle its complex logistics problems to the deployment of leading-edge information technologies, including asset management software, a service-oriented architecture (SOA), business intelligence tools and virtualization technology. These improve internal processes, offer innovative new services to its customers, and reduce costs of hardware and service administration. For example, in 2006, con-way was experiencing inefficiencies in its dock operations and needed to reduce its planning time and forklift traffic and increase the pounds of freight handled per labor-hour. To accomplish these tasks, con-way developed a web-based, interaction Step saver has been implemented at 26 facilities and has achieved a 5.2 percent improvement in pounds handled per labor-hour, a 35 percent reduction in planning time, and a 21 percent decrease in forklift travel. 3. Possible solutions considered In 2007, the company began testing Wi-Fi systems and RFID technology to track shipments across its North American network of services centres. One of Con-ways biggest challenges, however, was not related to tracking shipments, but instead centered around recording and transmitting driver payroll data at Con-way Freight. Con-way Freight is the premier provider of regional, inter-regional, and nationwide LTL service to customers across an integrated North American network of LTL operating locations. These operating units provide high-performance, LTL, full truckload, and intermodal freight transportation; logistics, warehousing, and supply chain management services and trailer manufacturing. From its facility located in San Francisco Bay area, Con-way sends out 46 shorthaul pickup and delivery drivers and 16 line-haul truckers, who cover longer-distance overnight and two-day trips, every day. In any 24-hour period, more than 700 shipments are received and

dispatched at the Hayward operation that acts as a staging point for local Bay Area shipments and as a freight assembly center for overnight loads. Hayward is just one of 440 Con-way service centers scattered across North America with a total of 15,000 drivers. Despite deployment of innovative technology to handle shipping activities, payroll sheets-known as Form 265s- were still being handwritten by its 15,000 drivers. The forms were then collected at individual service centers across the country and sent by courier to Con-ways Portland operations center for manual entry by data clerks. It is ironic that Con-way, a major freightshipping company, was relying on an outside provider to transport its Form 265s each week and paying nearly $500 thousand annually for this service. The problem was that forms were being lost, misplaced, or delivered late, and employee satisfactions and morale was suffering. It was evident that this would not be an easy fix-the Form 265s was complex and difficult to read. Conway truckers are paid based on time spent on loading and unloading and mileage to and from the destination. They are also paid on filling out paperwork, so a number of different items need to be captured on the payroll sheets. Then the forms have to be put together and shipped to the Portland operations center for entry. Forms 265s were due every Tuesday consistent with the weekly schedule for paying the truck drivers. Forms were entered all the day and the volume often caused the data entry clerks to have to stay late into the night to complete the task. The drivers handwriting didnt help either, making the information difficult to read. This added to the clerks frustration and negatively affected morale. 4. Solution arrived at and implementation The task of fixing the broken payroll system was handed to IT manager John Reich. After he studied the complex Form 265s and reviewed various software and hardware solutions, he knew that an off-the-shelf software/scanner combination wouldnt serve the purpose. While some of Con-ways managers felt that the optical character recognition (OCR) scanning systems were up to the task, CIO Jacquelyn Barretta was concerned that the technology was not mature enough to handle the volume and complexity Form 265s. Con-way CFO, Kevin schick, also had reservations: If it was a 50% solution and we were still having people paw through these forms and determination the drivers work, it wasnt going to do us any good. To address their concerns, Reich arranged for three vendors to develop a simple application to demonstrate that their products could accommodate the complexities of the form 265s. Of these only one succeeded Reich recalls, one of the vendors did it, another tried and gave up, and the third decided not to participate. The main sticking point was not the content of the forms, but the drivers illegible handwriting. The vendor who was able to meet Con-ways requirements was Pegasus Imaging. It demonstrated its Smart Scan Xpress character-recognition software that runs on Panasonic KVS3065CL and KV-s2026C scanners. At the beginning of implementation, the system achieved an 80% success rate, but this soon increased to 99.9% after business rules were incorporated to visually highlight fields where missing or incorrect data were likely to occur. The total system cost just a little more than Con-way spent in one year for courier service.

5. Results of implementation Since September 2007 the Form 265s have been assembled and scanned at 38 different locations across North America and forwarded to the Portland service center. Focusing on the highlighted fields, the forms can be validated quickly and easily. As a result of he adoption and implementation of the new system, Con-way truckers are paid on time, and morale among the data entry clerks has improved significantly. As a result of the f0oresight of Stotlar, Schick and Barretta, Con-way rose to top rank in the 2007 InformationWeek 500-an annual ranking of the most innovative companies employing information technology in their business-and on June 2,2008, CIO magazine announced Con-way, Inc. as the recipient of the 2008 CIO 100 award for its use of innovative technologies to generate business value. As Abbie Lunderg, editor-in-chief of CIO, remarked, Unlike other top lists, its not just about whos biggest-its about whos doing the most interesting and relevant things. Clearly Con-way is doing just that and they arent finished yet. Barretta and reich are currently exploring the possibility of using OCR technology to process bills of lading and delivering reports.

6. Complete set of references www.con-way.com/en/ CIO magazine (2008) www.informationweek.com www.scribd.com www.logisticsmgmt.com