Proposal To Implement Supply Chain Management Program

1518 words - 6 pages

Project Proposal Sheet
1.0 Idea
HANA KIMI CO. would like to adopt an online Supply Chain Management System (SCM) whereby the customers may buy company's products online via company's website and able to track the status of the order including the availability of the stocks by integrating the Online Sales System with the company's Inventory, Manufacturing and Production System.

2.0 Type of Project
√ Revenue Generating
√ Cost Savings

3.0 Type of System
Horizontal:
The implementation of the online SCM will involve the operational level only
Vertical:
The following functions will be integrated:
* Manufacturing and Production System
* Sales and Marketing System
* Inventory System
4.0 Business Imperative
To perfectly match the supply side activities of procurement, production planning, distribution planning, production allocation, warehouse planning, inventory planning and so forth with the demand side activities of incoming orders and forecasts so that all demands are met with the least cost and most convenience, and as the initial step for the implementation of Enterprise Resource System (ERP).

5.0 Benefits
The online SCM system and ERP support various business strategies for competitive advantage over other companies, among others: Support business strategy, and provide E-Business benefits.

5.1 Support Business Strategy

At the business level, this system helps the company to:

• Reduce operating costs
The system attempts to integrate business processes across departments onto a single enterprise-wide information system. The major benefits are improved coordination across functional departments and increased efficiencies of doing business. The immediate benefit from implementing ERP systems we can expect is reduced operating costs, such as lower inventory control cost, lower production costs, lower marketing costs and lower help desk support costs.

• Differentiate products and services
The company may stand different from other companies which do not offer the same products and services.

• Serve new markets
By going online, the company would attract new market segments who are the frequent users of the internet or those who prefer online shopping.

• Lock in customers and suppliers
By using efficient customer response and supply chain application.

At the firm level, the system can be used to:
• Achieve new efficiencies.
• Enhance services by tying together the operations of separate business units.
• Promote sharing of knowledge across business units.

At the industry level, this system will:
• Promote competitive advantage by facilitating cooperation with other firms.
• Creating avenue for sharing information, exchanging transactions or coordinating activities.

6.0 Justifications
Sustainable Competitive Advantage through e-Commerce can be supported by the Porter's Five Forces Analysis and Value Chain Analysis.

6.1 Porter's Five Forces Analysis
As described by Porter's...

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