Integrated Distributors Incorporated (IDI), a publically traded company, has its home office located in Billings, Montana. IDI has more than 4000 employees in the following locations:
▪ Billings, Montana, 600 employees
▪ Sao Paulo, Brazil, 580 employees
▪ Warsaw, Poland, 975 employees
▪ Sydney, Australia, 340 employees
▪ Tanzania, Africa, 675 employees
▪ Japan, China, and Hong Kong, 700 employees
IDI has accounts with major market retailers, Federal governments, and large State governments. IDI operates a fleet of trucks in each country and has network interface agreements with subcontractors for freight forwarding, storage, and delivery.
IDI is responsible for the movement of goods, from multiple manufacturers and distributors to its clients, in a timely and efficient manner using cost-effective methods. Alternatively, IDI may transfer this responsibility to one of its JVs or SAs, if it is more cost-effective and the income differential is within acceptable limits.
IDI is also under pressure for several of its competitors in the logistics industry. The competitive market is driving IDI to improve its routes, delivery methods, fleet vehicles, and other facets of its business to increase profits (a strategic goal) and to reduce costs. The company realizes that the information technology infrastructure has been neglected for some time and that many operating locations are running on outdated hardware and software. On several occasions last year, IDI suffered no less than four network compromises through one of its JV Internet sites that led to the disclosure of sensitive and strategic information on contracts and mergers.
The chief information officer (CIO) made a strategic presentation to the board of directors and executive management to first assess the aging infrastructure and then, develop a multi-year phased approach to have all sites (except for JV and SA) on the same hardware and software platforms. Now that the funding has...