Supply Chain Management Information System: Barrys Beans - Case Study Example

Title: Supply Chain Management Information System: Case Study Barry’s Beans Name: Course: Date: Contents Title: Supply Chain Management Information System: Case Study Barry’s Beans 1 Glossary 3 List of figures 4 Executive Summary 1 1.0. Introduction and Background 2 1.1. Supply Chain Management, Customer Service, andDemand 3 1.2. Supply Chain Management and Supplier Relation 4 2.0. Features of a Supply Chain Management System 5 2.1. Supply Chain Planning 5 2.2. Demand Planning 5 2.3. Supplier Management 6 2.4.Procurement 6 2.5. Warehouse Management 6 2.6. Transport management 6 2.7. Order fulfilment 7 3.0. Supply chain system specifications. 7 3.1. Product flow 7 3.2. Information flow 8 4.0. Challenges encountered in supply chain management system 9 References 10 Glossary SCM- Supply chain management ERP- Enterprise resource planning PPC-Production planning and control CRM- Customer relationship management SRM- Supplierrelationship management List of figures Figure1.0……………………………………………………………………………………8 Executive Summary Supply Chain management system software acts as an oversight of information, finances, and materials as they rotate in a process from the lenders or suppliers, to the manufactures, to the distributers and finally to the consumer. The main assumption in the supply chain management system is to ensure reduction of inventory by ensuring that end products are available when needed.The supply chain management system interfaces the company’s enterprise resource planning (ERP) systems with the production planning and control (PPC) systems (Leeman, 2010). Barry’s Beans is in the process of expanding its business in selling and distributing coffee blends and opening more coffee house retail stores. Therefore, the organization needs a software system to ensure control of all its stakeholders and to monitor overall operations of the organization. Supply Chain Management System will provide the management of Barry’s Beans with the following benefits: improved customer orientation and satisfaction, improved delivery dependability, reduction of stocks, cost reduction within the distribution network, production, and procurement processes, reduced processing time. Supply chain management system can be recommended for the Barry’s Bean because it will enable the organization to standardize its operations in the business environment and at the same time it will allow expansion and maintenance of the organization’s competitive advantage in the market. The following report will look at the major problems that Barry’s Bean seeks to solve, discuss the benefits and issues of using supply chain management system, and the compatibility of the supply chain management system in solving the company’s problems. 1.0. Introduction and Background Barry’s Beans Company is experiences competition from other coffee blending industries in the market. Further the consumers growing perception of the coffee set lifestyle is also a major concern for the company. The management has also note that the organizations margins are getting tighter. The management has come up with the solution that in order to improve their operations to increase their margins they need to add value to their processes in order to provide better services and increase their range of blended coffee. The management has decided to add value by providing more information and offering special offers to consumers in a timely manner. The company has decided to offer loyalty cards and other special membership facilities in order to attract and retain customers. The organization therefore wants computer software that will help to prevent consumer loss, maintain the existing customer base, support in dealing with high end customers and help to attract new consumers. Supply chain management system is an all-round application system as it monitors the company processes in relation to the company suppliers, customers, logistic service providers, suppliers and distributors. Successful management of an organization requires full co-ordination of all functionalities of a business. Supply chain management system emerged in the in the 1980s and gained popularity in the 1990s(Lambert, 2008).Up to date, supply chain management system is a buzzword among managers in the industry today. Modernization has seen the supply chain management system being integrated into information technology to produce computer software application such as e-supply chain in order to increase value addition in the system. Value addition in an organization is achieved when all stakeholders of an organization are well catered for and managed. Supply chain management system software helps to manage the upstream and downstream value addition of information among the suppliers, distributors, the company and the final consumers.Supply chain management system is the review of the total company activities and how efficiently the systems work together to create consumer satisfaction at the end of the delivery process. The supply chain system seeks to review all the organization systems such as resources and finances and helps to eliminate unnecessary costs or expenses, handling and movements. The system also monitors performance of the distributors and ensure equitable reward distribution within the supply chain. Barry’s Bean management team requires a supply management system that will ensure customer satisfaction and management, reduce costs, and ensure only quality suppliersare maintained.The report will cover supply chain in relation to consumer service management process, demand management process, and supplier relationship management. 1.1. Supply Chain Management, Customer Service, andDemand Supply chain management relates directly to the customer service. Supply chain management works hand in hand with customer relationship management (CRM).If an organization has good customer service it can help the company to gain a competitive advantage over its competitors. Ta good supply management will help the organization to boost customer service by ensuring that delivery of products to consumers is fast and with great accuracy. The company will also be able to track transportations and ensure that goods reach their destined consumers on time and safely. A good supply chain management will be able to maintain minimal inventory levels that are will help the organisation t have what consumers want all the time(Leeman, 2010). If the organization is able to deliver goods or products on time and always have what the consumers need, the organization will build a good customer relationship service that will ensure that consumers keep on coming back and will act as good reference to attract new customers by referring their friends to the organizations product. Demand management involves focusing efforts to manage and estimate consumer’s demand with the intention of using that estimate to shape operations. Demand estimation helps the organization to shape its operations by analysing demand data whether the organization will be able to meet the customer’s demand. Most of the manufacturing organizations use supply chain management to collaborate ondemand activities such as flow of services, capital, information and products.Ijioui (2008) states that an effectiveand efficient supply chain and demand management can help to improve customer service by enabling the organization to: Gather and analyse data, knowledge and information about consumers, unmet needs and problems Identify how to share information about customers and consumers to other members of the supply chain, available technology, challenges, and opportunities. Develop services and products that solve unmet consumer needs and solve consumer problems Execute and develop the best distribution, transportation and logistics methods to deliver services and products to the customers in the desired manner. 1.2. Supply Chain Management and Supplier Relation Supply chain management enables an organization to strategize on how to ensure that the organization has information, financial resources and materials needed to produce quality services and goods timely (Ijioui, 2008).This is achieved at by effective coordination of flow from the suppliers.Supplier relationship management (SRM) involves managing, supporting, and creating relations between the suppliers and the organization. The main goal of supplier relationship management is to ensure improvement of the whole supply chain from the supplier to the final customer. According to Jung et al (2007) effective supplier relationship management in the supply chain can be achieved by: Creating partnership with reliable suppliers in order to improve efficiency in the supply chain. Management of suppliers’ performance Putting up information technologies such as eProcurement, eSourcing and eCatalogs, processes, procedures and policies that support and monitor procurement processes. Using the supplier competencies and knowledge to reduce procurement costs. 2.0. Features of a Supply Chain Management System Supply chain management system requires forecasted information and tools in order to function properly within an organization.These tools include use of software that enable the organization to control processes, manage supplier relationships, manage consumer relationships, and execute value added activities in the supply chain.Supply chain management software uses consumption analysis collected by use of demand analysis to evaluate consumer history. Dam jespersen and Skjott-larsen (2005)highlights the following common features of supply chain management software include: 2.1. Supply Chain Planning The software uses planning systems to forecast the flow and speed of production in relation to consumer demand. The software adjusts the speed of production to align with the forecasted consumer demand.The demand simulated estimates are achieved by using trend data from the existing customer base and the promotion plans such as special offers to determine how changes in the market will affect the company’s inventory levels in the future (Jung et al, 2007).Examples of supply chain planning software include SCP 4.0,Clever and VISION SCM. 2.2. Demand Planning The demand planning software helps to improve the demand forecasts by providing data to organization in real time and eliminating biasness. The software filters the demand data information using different simulations such as types of consumers, time, and nature of the market or what if to forecast future data (Dam Jespersen & Skjott-Larsen, 2005). Microsoft Dynamics and Geneva BMS are examples of demand planning vendors. 2.3. Supplier Management This software helps to monitor suppliers’ performance. The software produces information on suppliers risk using key indicators such as audit trails and compliance. Key Performance Indicators (KPI) such as supply history from other organizations helps to determine the suppliers’ reliability. Vendors include Fishbowl inventory and R.Portal. 2.4.Procurement This software helps to maintain creditors and purchase orders. Purchases are keyed in electronically for approval while payments are also keyed in and used for future references. The software also helps to establish less costly suppliers by comparing different procurement decisions made before. Vendors include Microsoft Dynamics and R.Portal. 2.5. Warehouse Management The system monitors the movement of raw materials in the production house. Receiving and shipping activities ate controlled using notifications; while put away or picking activities are tracked using tools such as auto identity data capture (AIDC). This eliminates theft and wastage of raw materials. Vendors include Microsoft Dynamics and R.Portal. 2.6. Transport management This software enables management and controlling of materials from and to the warehouse. Deliveries to consumers are monitored using electronic signatures of consumers. Dispatch and routing software is also used to manage all transport activities from and to the warehouse. Vendors include Microsoft Dynamics and R.Portal. 2.7. Order fulfilment This software that ensures and order is designed as per customer requirement. This helps to reduce lead time on production orders. The software also keeps tract of unpaid order through revenue collection recognition process as well as the unfinished orders. Vendors include Microsoft Dynamics and R.Portal. 3.0. Supply chain system specifications. Supply chain management requires personnel involved in the production to get information and raw materials necessary to complete their work while personnel involved in customer management need to ensure that they deal with consumers’ needs and wants as they fall due(Leeman, 2010). For example, in a small hospital, the personnel in supply chain management need to make sure those technicians and veterinarians have the necessary equipment and medical supplies to cater for the customers while personnel dealing with customers ensure that customers have the right medications to treat their animals. Therefore, good supply chain management system requires accurate and correct product flow and information flow. 3.1. Product flow The supply chain management system requires movement of resources such as information and raw materials from the suppliers to the production house to occur smoothly. The personnel involved in taking orders from customers should ensure that the product reaches the customer on time and the customer needs are supported. The software used help to track and plan the management of materials and end product and therefore they require constant monitoring. For example, in printing business, the supply chain management personnel distribute and buy paper products and ink to run the production (Klose, 2002). The personnel involved with customer care management take and gives orders through the supply chain management software to the production personnel. The production vendor gets the alert that the customer needs the paper. This creates a cycle that requires product flow, which is a necessary specification of the supply chain management (Zhang, 2007). 3.2. Information flow Supply chain management use data gotten from the application software to ensure that the right materials to create services and products are provided. Accurate interpretation and analysis allows the management to reduce costs, improve production schedules, plan for future work, and eliminate bottlenecks. On the other hand, information about availability of products for the consumers is necessaryin order to support the customers (Luo, 2012).Customer service personnel such as sales representatives need to know the types of products available in order to take orders and deliver on time as well as attract new business. For example, in catering business, the cooks in the kitchen ensure that they have everything in order required for an event. In case of any technical hitch, the cooks have to inform personnel dealing with the customer of the technical hitch so that they can inform the customer early. Figure 1.0.showing information flow in a supply chain management system (Luo,2012). 4.0. Challenges encountered in supply chain management system The main challenges encountered on supply chain management system include building close trust relationships with suppliers. Some suppliers can be unreliable as they contract subcontractors to supply a product which they may be unable to supply. It is also hard to estimate prices of supplies in the hanging dynamic world of business. This may make data gathered to be inconsistent with the current market prices. This will make revenue forecasting hard.Supply chain management requires qualified personnel to increase efficiency.Extensive training is required for personnel as the system requires a complete understanding of the process (Bjerreskov & Bohlbro, 2013). 5.0. Recommendations and Conclusion In order to remain competitive, such firms as Barry’s Beans, which is a small business, it needs to offer superior quality god and services at the most profitable price possible. The management needs to reduce production costs. Cost of production is reflected in the prices of a particular product. With the perception of coffee set lifestyle the organization should reflect on offering the most appropriate price for their coffee. Zhang (2007) notes that supplychain management system can be used to reduce costs by reviewing all the processes of production right from the supplier. For a small business like Barry’s Beans which has a local market, supply chain management information system is most suited to solve their problems. Supplier management and customer management will help the organization to attract new customers and retain the existing customers. Data on consumer demand and orders will help the organization to design a variety of coffee blends that suit their customers. Forecast generated by the supply chain management system will enable the management increase production. A company that fosters close relationship with its customers and suppliers ensures timely order fulfilment. Timely responsiveness will increase sales and outputs as well as attract more customers. References BJERRESKOV DINITZEN, H., & BOHLBRO, D. (2013). Value-added logistics in supply chain management. Copenhagen, Academica. DAM JESPERSEN, B., & SKJOTT-LARSEN, T. (2005). Supply chain management: in theory and practice. Copenhagen, Business School Press. IJIOUI, R. (2008). Strategies and tactics in supply chain event management. Berlin [u.a.], Springer. JUNG, H., CHEN, F. F., & JEONG, B. (2007). Trends in supply chain design and management technologies and methodologies. Springer E-Books. London, Springer. http://public.eblib.com/choice/publicfullrecord.aspx?p=373036 KLOSE, A. (2002). Quantitative approaches to distribution logistics and supply chain management. Berlin [u.a.], Springer. LAMBERT, D. M. (2008). Supply chain management: processes, partnerships, performance. Sarasota, Fla, Supply Chain Management Institute. LEEMAN, J. (2010). Supply Chain Management: fast, flexible supply chains in manufacturing and retailing. Düsseldorf, Institute for Business Process Management. LUO, Z. (2012). Innovations in logistics and supply chain management technologies for dynamic economies. Hershey, PA, Business Science Reference. ZHANG, Q. (2007). E-supply chain technologies and management. Hershey, PA, Information Science Reference. http://search.ebscohost.com/login.aspx?direct=true&scope=site&db=nlebk&db=nlabk&AN=181460. Read More