Comfy Casuals Corporation - Should They Upgrade?

Abstract

Based upon a real organization (slightly disguised to hide the source), this teaching case helps students see how a well-managed business deals with accounts payable supplier queries. It can be used to teach basic or advanced technology issues by looking at the underlying internet portal technologies, while also requiring the analysis of an information systems upgrade decision. Comfy Casuals Corporation (CCC) is an innovative retailer that serves the comfort clothing needs of moderate to high income individuals. With about 250 retail outlets across Canada and over 3,000 employees, it works with close to 2,500 suppliers to keep its stores stocked. Behind the scenes the accounts payable department is responsible for paying suppliers, and answering their questions about payment and supporting documentation. This is the story of how they deal with supplier queries and use iSupplier, an internet portal. It is wise that information systems enhancement decisions are made by user management, with the assistance of technical personnel. CCC's internal audit staff, with its experience in accounting and assessment, has been called in to help analyze the decision. In this teaching case we look at the details of supplier relationship management and ask whether the company should upgrade the iSupplier system. Students with limited business experience get a detailed look at accounts payable query management. They also learn about the tangible and intangible factors that would be examined when deciding whether the software should be enhanced and complete a cost-benefit analysis. The results of a well done calculation will show them that a basic system can improve efficiency.