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8/7/2019 SCM Work Area1

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REF001

Version 1.0

Prepared for: Tender Issuer Title

Prepared by: Name Surname1 April 2011

Clockwork Removals: 724 Tudor Estate, Abbey Road, London NW10 7UN Tel: 020 8762 0777 Email: [email protected]
mailto:[email protected]:[email protected]


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Error: Reference source not foundTender Title With REF001 - Name of Tender Issuer

Clockwork Removals 1

Table of Contents

REF001

Version 1.0

Table of Contents..................................................................................... 1

1.Executive Summary.............................................................................. 3

Objective

Goals

Solution

2.Introduction........................................................................................... 5

Terms of Contract

Condition(s)

3.System Analysis....................................................................................6

Current Information Technology and System Assets

Limitations of the Current System

E-Business

4.Supply Chain Management ................................................................. 8

Definition

5.Recommended Databases..................................................................10

SAP Supply Chain Management

Oracle Supply Chain Management


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Tender Title With REF001 - Name of Tender Issuer

Janets Pots Supply Chain Management

1.


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1. Executive Summary

Objective

We have recently been awarded a one-year contract by Fairfax Supermarkets, which can only be

extended if we implement a formal supply chain management system. The objective of this document is to

put forward the conseque,

ly been awarded a one-year contract by Fairfax Supermarkets to supply 250 jars of jam a week to 200 of

its nationwide supermarkets. This contract will only be renewed if we introduce some formal protocAgnim

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dolortin ullan heniam, consequam dolore dolobor percilissed do dunt lobore vendre ercilit alit iustrud dolor

in henismod minciduisi.

Goals

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Solution

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Urem qui tat. Ud minisci psusting eliquam amconul putpat, vendio essi bla facil dolortie diam, quissequam

ip eu feu faciniam, commy nos dignis nullums andiam zzrilla feum niam nostisi.

Ignissi blandre commodigna amet el exer iustio odo consecte min ut vel ipsum ea feummy nim ex ex euis

dolenit ut amet duisi.


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2. Introduction

We have recently been awarded a one-year contract by Fairfax Supermarkets.

Terms of Contract

Fairfax require us to produce and deliver 250 jars a week to 200 of its putlets nationwide. This means a

five-fold increase in production levels and at the same time meeting the supermarkets demand in terms of

quality, timeliness of delivery, cost of goods, special promotions and point of sale material which we

believe we are easily capable of handling.

Condition(s)

The contract has been awarded for a one-year period which will only be extended if we implement a

formal supply chain management system that can link via the extranet to Fairfax Supermarkets SCMsystem.

The purpose of this document is to explain the Supply Chain Management system in detail, the impacts it

will have on us as a company, how we do business with our clients and suppliers and how we can mitigate

some of the negative impacts the implementation of the new system will have on us.


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3. System Analysis

Current Information Technology and System Assets

At present, we have the following system in place,

5 x free standing workstations all connected to the world wide web

All contain the Microsoft Office 2007 software

Limitations of the Current System

Local Area Network (LAN)/Intranet

At the present time, none of our computers are linked together by an internal network (LAN/Intranet).

Intranet is similar in many ways to the internet but restricted to users within a single company. Just as

people use the internet to publish and share information, companies use internal networks to share

information between their employees.

As we are a company that is growing and the demand of our products is constantly on the rise, all users

must be able to share files and have access to relevant information across the company.

Intranets that extend outside the company are known as extranets this will be discussed later on

in this report).

Formal Contracts, Informal Communication

As per the memorandum, we are linked to local customers and suppliers via formal contracts but informal

communication.

At the moment, communication between us and our customers/suppliers are not recorded/documented. Asthe communication is informal, it is hard for us to dertermine our clients ordering patterns, delivery dates


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and terms etc.

Microsoft Office 2007

E-Business

To obtain and maintain formal

What is E-Business

E-business is about using Internet-based technology to,

Provide superior customer service,

Streamline business processes,

Increase sales, and

Reduce costs.

E-business uses tools such as email, online banking solutions, websites, supply chain management(SCM)

software and web-based customer relationship management (CRM) solutions. (Government of Canada -

Services for Entrepreneurs 2010) http://www.canadabusiness.ca/eng/145/148/4325/


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4. Supply Chain Management

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feummy nim ex ex euis dolenit ut amet duisi. .QUOTE GOES HERE

At the heart of procurement

Definition

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mmolummy nonsequam.

To develop an effective supplier base, companies need the following,

A systematic approach for evaluating and formulating a sourcing strategy,

A fast and responsive supplier qualification system,

A system for collecting, analysing and monitoring information about supplier performance,

A system for creating and managing supplier relationships that allows information sharing,

collaboration on plans and visibility,

Effective use of the internet and other communication mechanisms to interact and manage the

supplier base in real time.

To deal effectively with their customers, companies must be able to do the following,

Interact with customers at each stage of the sales cycle from initial contact to after-sales

support and service,

Capture and analyse information about customers from internal and external sources and use

the information when dealing with the customers to enhance customer satisfaction and loyalty.


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Collaborate with customers real time to better understand and respond rapidly to their changing

needs.

Share information and collaborate on plans with visibility among customers and suppliers.

Trust and Interdependence on Partner

Supply Chain leader controls the supply chain

Third level title like this

Competitive Advantage

Abstract

As the business environment rapidly changes, closer connected activities have been involved in the

buyersupplier relationship. Among the four aspects of supply chain integration (cash flow, material flow,

product flow and information flow), the integration of information flow is the most critical element in

enabling coordinating activities and supply chain alliances. Yet, there are unanswered questions regarding

the extent to which information exchanged is effective in the supply chain alliance. In this study, we

adopted the contingency theory as the theoretical foundation, and interviewed eight selected firms to

investigate the impact of supply chain partners among organizations on information sharing quality, and

the impact of inter-organizational information sharing quality on the supply chain integrated-performance.

The results show that (1) supply chain partners within and between groups have a positive impact on inter-

organizational information sharing quality, (2) inter-organizational information sharing quality has a positive

impact on the supply chain integrated performance, and (3) information sharing quality should be multi-

dimensional. We believe that the successful implementation of SCM systems among firms will produce

significant synergy and be associated with the competitive advantages. Implications for theory and practice

are discussed.


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5. Recommended Databases

As per the comments of the Fairfax CEO mentioned in the memorandum, for us to be able to hold on to

this contract any more than the one-year period, we will have to implement a formal information system

that can link via their extranet to their SCM system. Following in-depth research, the most recognised and

respectable supply chain management systems avaiable are the following,

SAP Supply Chain Management

Planning, Execution and Collaboration across the supply chainnetwork

SAP SCM is part of theSAP Business Suite, which gives organizations the unique ability to perform their

essential business processes with modular software that is designed to work with other SAP and non-SAP

software.

SAP SCM can help transform a linear, sequential supply chain into a responsive supply network in which

communities of customer-centric, demand-driven companies share knowledge, intelligently adapt to

changing market conditions, and proactively respond to shorter, less predictable life cycles. SAP SCM

provides broad functionality for enabling responsive supply networks and integrates seamlessly with both

SAP and non-SAP software. The application:

Delivers planning and execution functions that are integrated by design

Supports best practices and provides preconfigured software for enabling collaborative business,

accelerating implementation, and reducing costs

Is recognized by key industry analysts as the market-leading SCM application
http://www.sap.com/solutions/business-suite/index.epxhttp://www.sap.com/solutions/business-suite/index.epxhttp://www.sap.com/solutions/business-suite/index.epxhttp://www.sap.com/solutions/business-suite/index.epx


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Oracle Supply Chain Management

Best-In-Class, Complete, Open, Integrated solution that

powers information-driven supply chains

Oracle supply chain management (SCM) is a best-in-class, complete, open, integrated solution that

powers information-driven supply chains. With Oracle SCM, companies can predict market requirements,

innovate in response to volatile market conditions, and align operations across global networks. Oracle

SCM provides industry-specific solutions based on best-in-class applications that span product

development, demand management, sales and operations planning, transportation management, and

supply management.

I understand that the investement needed to implement any of the above systems will be a fairly

substantial one, but the way we are growing as a company, winning large contracts, this investment may

be substantial right now but only a drop in the ocean in say, five years time. Also, as we will be re-

submitting our prices to Fairfax when renewing this contract, in order to remain competitve we should be

able to apportion the costs of the implementation of this system over the period of the contract. The current

system with Microsoft Office will just not cut it.


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Mitigation

There are always negative impacts whenever a new system is implemented into a business and those

impacts play the main role in the success or failure of a business.

There is always a solution to a problem and here we have some possible solutions towards the negative

impacts discussed earlier

Cost is always the main concern when we are implementing a new system into our business. We have to

invest a large amount of money into the business to get a new system. We can mitigate this cost by having

a few plans. These plans can be

Implementing a cheaper system whichever available in the market for the time being as for the first year

because we are not very sure about the future contractors and contracts. After the first year, if we get more

contracts than expected than we can always switch towards the more expensive options like SAP and

ORACLE. It will save money and if we dont have that many contracts or the contracts go down from

expectation than we can carry on with current system and we dont need to buy and implement the

expensive system.

We can implement an expensive system but then we should expand its cost over a long period of time,

that period can be 3, 5, 7 or 10 years. We can recover this cost over the desired period of time

accordingly. And it can be done by re-submitting a price grid to Fairfax on renewal of the current contract

so we can recover the cost of the investment in the mean time. But again, the future is not certain and we

are not sure about our future contracts and contractors and if we buy an expensive system and we are not

able to recover its cost in future than this would be a huge loss.

We should inform our suppliers about our new demands at least 3 to 6 months prior to the activation of the

new system. This is good for both suppliers and us as we can express our concerns towards new things

and same would be with suppliers as they can talk to us about their concerns and thus the problems can


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be expressed and negotiated before the new system is even activated and we can avoid a lot of

convenience.

Notifying the employees about the change is always a good idea. We can tell our current employees about

the forthcoming changes into the current system and the changes into the IT systems. This will allow the

employees to think and talk about their concerns about the new system with each other and with the senior

staff. And as a result they would be less threatened about the new system. Employees will make

themselves ready for the new things and they would be excited rather than be threatened.

A possible way to cut the idle time is to hire some temporary skilled workers. They will work and cover the

idle time caused due to the training of current staff. As the present staff is learning new things the

temporary staff will work through the procedure for the time being.

Employing some skilled workers for long term is an option but definitely a costly one as it will cost a lot to

the business. We have to look through our profit margins and sales ratio before considering this option as

the wages bill will increase. Skilled workers will work thoroughly in a new system but that can be resulted

into some current employees losing their jobs and this will cause some uncertainty into other employees.

Motivation is always one of the best options to get your desired outcome. So, by motivating the

employees, we can get our desired outcomes and the employees will be happy with us too.

The staff should be given with flexible and reasonable time for training. Hustle makes things worse not

better. A flexible approach is good as people take their own time to learn things and they would learn it at

their own pace. It is always difficult to adopt new things but everyone will get used to it as the time will go

by.

Announcement of a formal reward system can be a good idea. A small reward given to a hard working

employee does not affect an employers financial position but give business a boost. Rewards on given

targets motivate employees and then the employer also knows about the hard working employees. An

intelligent employer knows how to get maximum output from their employees.

We should organize some seminars and meetings with our suppliers and our customers to educate them

about our new system and these will help our own employees too as they will also take part in these

seminars.

We should agree and sign Memorandum of Understanding and Confidentiality Agreements with our

current and future suppliers. This would put a confidence in the business and it would be a fair trade forsuppliers and us. We would know that our information is not leaked and the suppliers are loyal to us.


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The last possible solution is Outsourcing. This is the most costly option and should be our last choice. We

can carry on like we are at the moment and hire a whole company who did everything considering supply

chain management for us. Then we dont have to change anything regarding the current system and we

will do what we are doing at the moment except there are some new people who will look through all the

things and will put everything into the system. But outsourcing is one of the most expensive things and we

already have shown concerns about the costs and moreover it proves the weakness of the business as it

proves that the people who are working for the business are not capable of adopting and implementing

changes and new things which is a shame for any business in this world as this is an IT age andeverything is technology in every sense.

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