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MIS 235- Northwinds Project Detailed Summary

MIS 235- Northwinds Project Detailed Summary - Group#2-N...

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Group #2-N MIS 235 Final Project 12/8/2009 Northwinds Project Detailed Statement One of the recommendations that our group decided not to include in our project was the recommendation of an incentive program for the top 5 companies that we supplied to the most. Originally, we thought this would have been a good recommendation for Northwinds because it would ensure customer loyalty and hopefully these companies would buy more of Northwinds products, which would increase revenues. The negative side to this would be if the incentive program did not work out in a positive way. If anything went wrong, such as losing any of the top 5 customers or losing money on giving them incentives, Norhtwinds would find themselves in a deep hole. Ultimately, we decided to not use the incentive program because it was too risky and the marginal benefit was less than the marginal cost. Another recommendation that our group decided not to use was creating a website. At first we thought that a website would be just what Northwinds needed to promote their products on a global scale to improve efficiency, but we came up with a better idea, RFID tags. We decided not to create a website because it would be difficult to manage, it wouldn’t be as effective as RFID tags, and it would cost too much to promote to our customers. Since we already have good relationships with our customers, we thought that adding another step into the supply chain process would make our day-to- day business operations too complicated. Northwinds’ values customers the most and if
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