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REF001
Version 1.0
Clockwork Removals: 724 Tudor Estate, Abbey Road, London NW10 7UN Tel: 020 8762 0777 Email: info.london@clockworkremovals.co.uk
Error: Reference source not foundTender Title With REF001 - Name of Tender Issuer
Error: Reference source not foundTender Title With REF001 - Name of Tender Issuer
Table of Contents
1. Executive Summary 3
Objective 3
Goals 3
Solution 3
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2. Accreditations 5
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5. Methodology 5
Stage One 6
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6. Case Studies 8
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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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in henismod minciduisi.
Goals
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Solution
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ip eu feu faciniam, commy nos dignis nullums andiam zzrilla feum niam nostisi.
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dolenit ut amet duisi.
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2. Introduction
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’ SCM
system.
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
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).
At the moment, communication between us and our customers/suppliers are not recorded/documented. As
the communication is informal, it is hard for us to dertermine our clients ordering patterns, delivery dates
and terms etc.
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E-Business
To obtain and maintain formal
What is E-Business
E-business is about using Internet-based technology to,
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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Definition
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mmolummy nonsequam.
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.
• Competitive Advantage
Abstract
As the business environment rapidly changes, closer connected activities have been involved in the
buyer–supplier 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 SCM is part of the SAP 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:
Supports best practices and provides preconfigured software for enabling collaborative business,
accelerating implementation, and reducing costs
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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 don’t have that many contracts or the contracts go down from
expectation than we can carry on with current system and we don’t 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
be expressed and negotiated before the new system is even activated and we can avoid a lot of
convenience.
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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 employer’s 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 for
suppliers and us. We would know that our information is not leaked and the suppliers are loyal to us.
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 don’t 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
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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 and
everything is technology in every sense.
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