Harley Davidson Inc

harley-davidson, inc.

identifying ebusiness risks and related assurance services

for the ebusiness Marketplace

Mark S. Beasley · Frank A. Buckless · Steven M. Glover · Douglas F. Prawitt

[1] To introduce students to some of the business

risks associated with eBusiness models used in

today’s supply-chain management systems.

[2] To help students think through some of the

internal controls needed to address risks associated with eBusiness supply-chain systems.

[3] To introduce students to the assurance services

CPAs can provide to clients involved in eBusiness partnerships (e.g., the WebTrust and

SysTrust services), and encourage them to think

about which service might be most appropriate

for a particular client’s needs.

inStr uctional objectiveS

KEY FACTS

ƒ Harley-Davidson made its first motorcycle available to the public in 1903, working out of a 10-

by-15 foot wood shed with the company’s name painted on the side.

ƒ Harley’s total assets and net sales are now each over $5 billion, with annual production of

330,000 motorcycles.

ƒ In January, 2002 FORBES named Harley-Davidson as its 2001 company of the year, and in

February, 2002, FORTUNE selected Harley as one of the nation’s “Most Admired Companies.”

ƒ In the mid-1990’s, Harley decided it needed a better way of dealing with its supply chain,

involving material and information flows about new product development, systems management,

operations and assembly, production scheduling, order processing, inventory management,

transportation, warehousing and customer service.

ƒ Prior to overhauling its supply chain, Harley had nine separate purchasing systems and over 4,000

separate suppliers. The Internet-enabled supply chain overhaul enabled Harley to consolidate

its purchasing systems and cut its supplier base by 80%, from 4,000 to 800. It also enabled Harley

to reduce costs by millions of dollars, reduce development time by 30%, and cut defect rates on

supplier-provided...