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J Trading Case

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Submitted By ncdn123
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Case Analysis: QUIET LOGISTICS
1. Situation
J-trading (USA) Corporation started its business from Los Angeles, USA in 2000. It is a flagship company of JICO. It started exporting computer products to Australia, and marine goods to Japan. The company is a leading importer, exporter and distributor company.

2. Questions
• Problems
J-trading identified problems with PC helpdesk service quality and thinking of outsourcing its PC helpdesk. CMPI and Outsourcing Solutions are two vendors for the outsourcing. J-trading chose CMPI for outsourcing its Helpdesk and accordingly did the outsourcing. Now the big question is should the PC helpdesk be back in house again? Or, Renegotiate and amend the contract for better services?
• Decisions
CMPI was providing 20 companies PC helpdesk services in New York City. It provides low cost services and also customers provided a good image about the company. So J-trading chose CMPI as the right company for outsourcing its PC Helpdesk services. J-trading is the biggest customer of CMPI so far.
• Evaluations:
CMPI did not care about J-trading employees properly. They had ‘no care’ Attitude. It seems that CMPI did not have right problem skills. They fixed problems on short term basis without looking into the root cause of the problems. So problems were not solving actually. CMPI did not have understanding for Japanese protocol of behavior.
3. Hypothesis (What to do)
• Problems
J-TRADING’s revenues was severely affected by dot com crash aftermath of 9/11/2001. It has identified problems with its IT infrastructure also. J-trading almost never upgraded their IT infrastructure. So the IT infrastructures were several versions behind the available latest releases in the market and urgent need to upgrade their IT infrastructure.
• Decisions
J-trading’s existing outsourced application is the Corporate Intranet. As preferred necessity of the company Purchased Quick Intra from Web Communicator as part of introducing intranet. IT outsourcing might be the main solution rather than upgrading and company has started to design strategy for outsourcing IT. Decision regarding Move Data Center was by DR Solutions or Yoshiko hosting. DR Solutions had several unique features that made them to choose for moving the datacenter. J-trading signed a three years contract with DR Solutions.
• Evaluations
Two months of growing pain during datacenter movement, things began to stabilize thereafter. Before 9/11/2001 J-trading had high turnover. In 2000 the company reported $40million profit after tax as a record amount. After 9/11/2001 J-trading revenues were severely affected.
4. Proof and action (why)
About half of J-trading’s employees were Japanese. Clearly there are culture gap and company needs to adjust them through proper action.
In choosing the proper vendor, company should not be realistic to go for low cost service rather emphasize on quality of service also.
Incorporate a good SLA (Service Level Agreement) for sign up that ensure the best service. Apply the lessons learned from past.
Define the standards of service quality. Introduce performance incentives that may penalize or reward to increase the service quality.

5. Alternatives (how to do)
As J-trading has strategy to cut its business and administrative cost by at least by 10%. J-trading can consider cloud-based solutions also. Cloud-based solutions can reduce IT support and infrastructure cost, maintain latest update for software and other maintenance, improve connectivity and communication, increase reach and effectiveness.

References

1. http://www.jtrading.net/company.php 2. Article J-TRADING: full circle outsourcing.pdf by Valerie Jaiswal and Natalia Levina

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