CHINHOYI UNIVERSITY OF TECHNOLOGY

SCHOOL OF ENTREPRENEUSRSHIP AND BUSINESS

SCIENCES
GRADUATE BUSINESS SCHOOL

MASTER OF SCIENCE IN SUPPLY CHAIN MANAGEMENT

NAME JUSTICE PILOT C17131549B

SITHULISIWE MTHIMKHULU C21147931R
ALBERT T. ZUZE C21148068V
PHILLIP MUKONO C21147938H
CALVIN MUTAZO C21148076E
NATASHA CHAKAMANGA C21148287P
DOMINIC MANUEL C21148187S
FARAI M. CHIPETESE C21148195J
NYASHA BHOBO C18131113N
ADMIRE TSATSI C21147965S

LECTURER MS SAIDI

COURSE SUPPLY CHAIN INFORMATION & DECISION

SUPPOTY SYSTEMS

COURSE CODE MSCSCM 626

LEVEL 1.1

ASSIGNMENT 1

QUESTION 1: “MIS in Supply Chain at OKZim”

Management Information System is the management of flow-processing procedures based on
computer data, and integrated with other procedures in order to provide information in a timely
and effective manner to support decision-making and other management functions. The
requirement of contemporary business data and information is growing exponentially in the 21
century. Management Information System is pivotal to enabling organizations in making
information all-encompassing decision-making. Fast information, accurate and qualitative and
managed by adequate staff but for the most cases not appropriate efficiency is the result of a
lack of good management information systems. Information technology coupled with the
development of telecommunications technology has streamlined every area of life and human
activity. Shaqiri (2014) opines that good management of information systems help achieve
quality decision making at all levels of management from the top level to the lowest.
Information technology in organizing the best and optimal database offers great opportunities
for a quick and qualitative manipulation to raise the quality of preparation

Supply chain effectiveness is an important requirement for organisational success. With an

increasingly turbulent and unpredictable business environment, there is a greater need for
effectiveness in organizations like OK Zimbabwe to ensure survival and longer-term
sustainability. OK Zimbabwe like many organizations in the retail sector continuously look for
ways and methods to ensure competitive advantage and value for money. This has led to the
adoption of the Supply Chain (SC) concept which is gaining momentum. Integrated Financial
Management Information System and Supply Chain Effectiveness. Management Information
Systems has enabled a paradigm shift in business procurement in organizations from the
tactical, reactive purchasing to strategic, proactive and relational Supply Chain Management
(SCM). It is clear that it is not organizations competing but supply chains competing. There is
a need for integration of management of activities between functions in organizations; suppliers
of organizations and customers of organizations

OKzim system

The systems that OKzim uses a system called Macfour System that allows Okzim and its
stakeholders to have visibility of what is happening with their stocks. The system integrates all
the information from stores, goods are captured when vendors deliver them. When goods are
captured in the stores they are then transferred to the shops using the selling prices. Customers
come and purchase goods as the tailor scans the bar code at the tills the system updates the
stocks in the system and deducts the stocks. This information is also visible to OKzim`s key
stakeholders in particular key vendors like Delta. Delta notices that stocks have gone down and
that triggers a request for a delivery. As such there is real-time access of information which
enhances that Supply Chain management systems thus ensuring on time deliveries which are
key in the Fast Moving Consumer Goods industry Okzim operates in. If a customer walks in
and finds that Okzim does not have stocks of their required goods they simple walk to the next
available retail store. The system allows finance to track real-time sales so as to manage cash
flows and working capital. As for Sales and Marketing can also collect real-time information
on fast moving consumer goods. The macfour system also allows Okzim to manage online
orders from both local and international customers. One can shop in the comfort of their home.
South African based diaspora customers can shop online using favourable USD prices and
deposit the funds in South Africa after which they instruct their parents to go to an Okzim
branch of their choice with their national ID and collect their groceries.

Strategic Enablers of the Macfour System

The main strategic management enabler the Macfour system has to OKzim is it increases that
performance and helps achieve competitive advantage in the retail sector. Because of visibility
that Okzim key stakeholders like Delta has shorten procurement cycles. This also reduces costs
associated with holding stocks of none fast moving goods because of real-time product
tracking. This enables Okzim to pursue low cost operation which impacts directly onto its
bottom-line thus increasing Profitability.

The Macfour enables streamlining of business processes. The suppliers manage Okzim stocks
thus enabling cultivation of a symbiotic relationship. Mutually beneficial relationships assist is
key to any business. These relationships can lead to joint streamlining of supply chain activities
like delayering of suppliers. In the case of Innscor brands Okzim can contract to one of its
single Business Units to manage the whole supply chain from Innscor SUBs including its cold
chain supply chain. Innscor Distribution for example can handle the transportation of goods to
Okzim from the following Innscor SUBs Bakers Inn, national Foods, Irvines and Colcom.

For Procurement the information on past spend by vendor is used to conduct a spend analysis.
Using the Kraljix Matrix the Procurement or Supply Chain Department can then categorise is
goods. For strategic items they can then enter into Long term contract that guarantee supplies
especially in these turbulent times where there are supply chain challenges being caused by the
Global Covid Pandemic. For bottlenecks it enables them to come up with strategies to develop
suppliers.

Information gathered can also help Marketing on slow movers and which goods they can come
up with promotions so as to encourage uptake of the products thus reducing slow moving goods
expiring on the shelves. Information gathered in the Macfour systems enable them to forecast
future sales which is key to any budgeting exercise. The information helps in strategic
marketing, understanding the consumer patterns and behaviours, thus enabling market analysis,
market segmentation and come up with programs that either maintain market share in times of
recession or increase market share.

With finance department the MIS they are using at Okzim enables them to track real-time sales
and cash inflows. This is key to managing cash flows and aids to working capital management.
These are key finance functions, and the systems through this information enable finance
department to come up with strategies in terms of ensuring the value of money is not eroded
by inflation. Due to the VUCAD environment nature of the Zimbabwe economy real-time
information is key to finance decisions. They can then decide to embark on hedging so as to
protect the value of the money they are collecting each day. In high inflationary environment
hedging with stock can be an option that finance department can take.

Challenges in faced in Implementing the MIS in Supply Chain

The set up cost is prohibitive such that only major companies can afford to invest in such
systems. There is need for hardware support and well as software support. In addition to that
there are maintenance costs and well as licenses that are paid continually. This cost prohibits
small players from investing in such systems and then puts them at a disadvantage unlike the
likes of Delta who are able to then created symbiotic relationships with Okzim. There are costs
associated with training and retraining of personnel in cases where the trained staff resigns.

Compatibility challenges. Not all systems are compatible as such this pauses challenges in
implementing real-time tracking of information. Sometimes information has to be taken from
another system processed and into another system for processing. This makes the systems
susceptible to human error.
Network availability can be a challenge. This is very prevalent in the banking sector. Many
times consumers go to the shops or banks to buy or withdraw money and they told that the
system is down. sometimes when there are system upgrades the new systems takes time to kick
in and during that time consumers suffer. Network availability is a challenge especially in the
third world. Network is ubiquitous but this is not true with the third world countries. CABS
and NMB had system upgrades at one time and people only realised months later when huge
amounts were deducted from their accounts that the transactions they had made had not been
deducted from their accounts due to system upgrade challenges and unavailability of networks.

Technological advancement. There is need to keep up with trends and advances in technology
as such there is need to keep abreast with changes in the global technology market. This is a
challenge to the third world countries and organizations that operate in these countries. As a
result, we become a high cost country because companies are always trailing in technology.
This makes it difficult for organizations to compete at global scale.

Information security. Confidentiality can be a challenge in because these systems are

susceptible to hacking. There is need to invest in firewalls.

The information we get is dependent on the quality of information that was input into the
system. MIS operates on the Garbage in garbage out principle. There is need for data cleaning
and ensuring high quality data is put into the system first.

Conclusion

Clearly, a management information system must be implemented in order to provide accurate

information to those charged with making decisions. The facts would help and improve the
entire decision-making process, allowing for more accurate and timely strategic decisions. The
Management Information System improves the accessibility and sharing of accurate and high-
quality information to end users. To be effective, the Management Information System must
have a well-thought-out, well-planned, and well-implemented database to connect the modified
decisions. The management information system of the organization must be consistent with the
firm's administrative and tactical goals. The company's top management should work to
improve the Information System and contribute effectively to its design. It should also play an
important role in encouraging other employees to embrace the system and share information in
order to maximize their knowledge and experience. Finally, organizations that used
Management Information System to improve decision-making should establish an effective
data sharing medium between management and data experts. Organizations must be aware that
understanding the system's major principles and functions is a prerequisite for effective idea
exchange. As a result, the design, implementation, and operation of a Management Information
System would be the result of coherent decisions rather than haphazard design that failed to
take into account the true organizational requirements. In summary, the management
information system would effectively assist the organization in gaining access to, sharing, and
utilizing accurate information.

References

1. Edmondson, A. (2002). The Local and Variegated Nature of Learning in Organizations:

A Group-Level Perspective. Organization Science, 13(2), 128-147.

2. Gallagher C.A.;(2017) Journal on Perceptions of the Value of a Management

Information System ,1-35

3.
4. Gupta, C., Sharma, S., and Tripathi, S. (2010) Importance of Management Information
System inElectronic-Information Era. -114.pdf Accessed 16th June 2014.
5. Handzic M. (2001). Does More Information Lead to Better Informing, The Bank of
New South Wales, Australia. Accessed 16th June 2014.

6. Marthandan, G. and Tang, C.M. (2010), ‘Information systems evaluation: an ongoing

measure’, International Journal of Business Information Systems Vol. 6, No. 3, pp. 336-
353

7. O'Neill, B. and Adya, M. (2007). Knowledge Sharing and the Psychological Contract:
Managing Knowledge Workers Across Different Stages of Employment, Journal of
Managerial Psychology, 22(1), 411-436.
8. Rastogi, P.N. (2000), Knowledge Management and Intellectual Capital: The New
Virtuous Reality of Competitiveness. Human Systems Management, Vol. 19 No. 1, pp.
19-49.
9. Sage, A. P., & Rouse, W. B. (1999). Information Systems Frontiers in Knowledge
Management.Information Systems Frontiers, 1(3), 205-219.
10. Shaqiri A.B, (2014) Management Information System and Decision-Making, pp1-25