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Electronic data interchange (EDI) at Leroy Merlin: a standardized success?

Author: Jelassi, Tawfik INSEAD Area: Technology and Operations ManagementPublisher: Fontainebleau : INSEAD, 1993.Language: EnglishDescription: 16 p.Type of document: INSEAD CaseAbstract: Leroy-Merlin is the second-largest distributor of Do-It-Yourself products in France and is part of the international Auchan group. The company procures it goods from about 1,000 regular suppliers and sells them to end-consumers through the 59 company-owned outlet stores. In 1988, initially aiming at improving the operational efficiency of processing its purchase orders, Leroy-Merlin began installing an EDI application based on the standardized EDI-service "Allegro". The case discusses the implications, benefits and drawbacks of adopting such a standard from a medium-sized company's perspective. It also highlights future development opportunities for the current system with respect to the number of integrated partners as well as its functional and geographical scopePedagogical Objectives: - Demonstrate electronic linkages between a firm and its business partners - Discuss management issues related to electronic data interchange - Compare EDI implementation strategies and possible choices for an EDI standard
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- Demonstrate electronic linkages between a firm and its business partners - Discuss management issues related to electronic data interchange - Compare EDI implementation strategies and possible choices for an EDI standard

Leroy-Merlin is the second-largest distributor of Do-It-Yourself products in France and is part of the international Auchan group. The company procures it goods from about 1,000 regular suppliers and sells them to end-consumers through the 59 company-owned outlet stores. In 1988, initially aiming at improving the operational efficiency of processing its purchase orders, Leroy-Merlin began installing an EDI application based on the standardized EDI-service "Allegro". The case discusses the implications, benefits and drawbacks of adopting such a standard from a medium-sized company's perspective. It also highlights future development opportunities for the current system with respect to the number of integrated partners as well as its functional and geographical scope

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