On the other hand, South Korea’s POSCO is a new company in this field. As a newcomer, it is the largest steel producer in 2000 in the world and is regarded as one of the biggest competitive for USS as they are using new technologies and equipments. Moreover, the location of POSCO is much more strategic if compared to USS which enables it to win a bit over USS in the competitive. However, USS cannot do anything about its lack of a seaside location because of the high cost of moving its facilities.

2.         There are many kinds of information system used by USS. Notification system is mainly functioned to reduce the production cost and helps to return the profitability. Dialup system enables each processor to communicate its processing to USS. i2 Technologies’ Factory Planner forecasting software allows programmers connected to their order system. Mechanical Item Generation System (MIGS) reduces inventory by improving the forecasting of demand for finished goods at the customer’s location. The MIGS system then upgraded to MOGS (Mechanical Order Generation System).

            USS derives a new supply chain management whereby it created Straightline Source in 2001, a new division that sells steel service directly to smaller customers. It is just likes an independent company that can compete for the steel service center customers. A service center is playing the roles to serve smaller companies who bought USS products and customers are able to place their orders to USS through Straightline. Besides that, customers can know when their order would be delivered s soon as they were placed, a source of competitive advantages over service centres. Later, Straightline implemented a software called SmartTrim. This software combines similar orders and routes through its processors in chains that is used to minimize waste and scrap.

3.         The main management factor which leads to USS’s inability to compete with other steel manufacturers was the inadequacies of tracking system. It created inventory problems and barriers in detecting and predicting problems which will occur in the future. Consequently, the company is forced to hold too much inventories in hand, which in turn raised USS’s costs even higher.

            Inefficiency in sending advanced shipping notices (ASNs) to customers was an organizational factors which led to USS faces disadvantages when competing with other competitors. Customers always complained that advanced shipping notices (ASNs) often reach them after the steel where by employees had to record the delivery information manually which ended up increasing errors. Meanwhile, late shipments also made customers not satisfied with it.

            The technology factor that was responsible for USS’s inability to compete with other steel manufacturers in the world was its inefficient process when taking orders. Whereby orders were taken manually, ends up with many errors and orders collected were most of the time inaccurate. This was because USS was unable to track orders during processing orders due to the complexities in tracking orders. USS was unable to follow each order as it was processed and delivered. Each processor had its own tracking and order systems with its own inventory codes. Besides that, the system used in tracking orders was expensive and inefficient and left customers without enough information for their own production plannings.

4.         In order to respond to the global and the American companies competitions, USS had created Straightline Source. It was a new division that sells steel products directly to smaller customers. It makes the process of ordering easier and faster and more flexible. Besides that, USS also created a subsidiary called USS Engineers and Consultants (UEC Technology) in 1969. It helps to generate additional revenue from the technology and service USS developed in-house. UEC and i2 Technology helps other steel companies to manage their suppliers and as a tool, it helps companies to set up extra information about ordering process for customers. Moreover, USS sells technology that is one generation behind what USS actually uses and this venture has been highly profitable.

5.         Information systems helped in solving USS’s problems faced. Orders by customers were taken electronically and no longer manually. Customers now can specify requirements for their orders. This system had to handle information on production limitations such as metallurgical rules and production capabilities. Besides that, it could also calculate the cost and delivery date to customers accurately. Customers yet could know when to place their orders. USS also connected Decision Express software from LiveCapital to speed up credit authorization and by the same time to reduce uncollectible debts while approving most orders.

            USS also developed event-driven system which will automatically trigger to next steps when the current step finished after recording each steps in processing an order. With this system, USS is able to handle processor messages in 12 minutes rather than 90. Another system used by USS is Order fulfillment and data management software. It could capture complex business rules and procedures for handling intricate mix of product specifications and prices for customers.

            Later on, USS replaced the order fulfillment system with i2 Technologies Factory Planner forecasting software, where the programmers were connected to their order system. An automatic order generation system for repeat customers called MIGS. It could reduce the inventory by improving the forecasting of demand for the finished goods at customers location. Yet, this system was upgraded and called MOGS.

            In 2001, Straightline Source was created to serve smaller companies who bought USS’s products. Smaller customers could place their orders directly to USS through Straightline Source. Straightline added some features which differentiate itself with other service centres where by order aggregation and online credit checking services were available.

            UEC, which is USS’s subsidiary created in 1969 has the principal that is to generate additional revenues from technology and service USS developed in-house. UEC was also an order fulfillment system for businesses in metal, glass, pulp and paper industries where it was also functioned as a tool to help customers set up extranet to place orders, check status, exchange electronic contract documents and also providing shipping information.

6.         The decision to sell USS software to other companies is only hindering themselves. USS will not get any benefit for long-term operations. If USS sold their software to other companies, they cannot use the system anymore to generate further profit in their operation. Besides that, it also brings more risk to USS. Other companies will be having the software and can use it to compete with USS. Moreover, USS has to start all over again to create new software in order to be kept in track to compete with other companies. It will cause a lot of costs and sources. On the other hand, some customers will lose confidence towards USS. They will feel curious about USS‘s ability to be regarded as the 10^th largest integrated steel manufacturer in the world and the largest in United States when it sell its own software to other company. People will think that USS is facing economic problem or any critical situations. It will lose some of their customers.