The critical issue in logistics management confronting WCC North America is that the existing inventory management was not capable enough to manage demands and requirements from customer. For instance, as the case study reads “customers specifically desire instantaneous access to real-time order information status. This information accessibility is necessary throughout supply chain-from the customer’s initial inquiry to production status shipment loading and arrival at the final destination” (Case study page 1). However, the lack of adequate information systems to support this form of logistics requirement and organizational design is leading to issues. Secondly, even though there is more integration in supply chain management, the aforesaid issues are not addressed, because each of the division still continue to maintain separation when it comes to responsibility for customer order and status tracking. This leads to much complexity in customer service and service needs of customers are met in a much more decentralized way. Decentralized divisional structure enables WCC to provide high quality service to the customer. This is in fact a competitive strength for the company. Customer responsiveness is hence a productivity improving element for WCC. However, this form of divisional structuring works against integration of inventory management in supply chain. At some level information sharing to help customer track their products or other inventory across departments would become hindered.
Integration must be brought into the divisional levels. An investment into information system both at the divisional level and at a centralized level would be a solution here.An integrated information and knowledge management system that would serve in a centralized way to supply chain and other operations of the company is needed. This would effectively combine sales and marketing with operations is the proper solution. This solution will have a set of risks and benefits.Firstly, in the case of WCC North America corporate management, such an implementation would be beneficial as it would allow them to plan for the future in a sustainable manner. Most of the current operations around the world are seen to be focused on inventory management models that are reaping benefits because they have made use of integrated information systems, a similar form of benefit structure would be possible for WCC. However, WCC corporate level will be focused on cost. Integrating and centralizing an information system so as to include for different divisional support would require much cost. In addition, they have to train different personnel on using these systems which adds up to training costs as well.