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CASE STUDY ANALYSIS: SYSTEM ARE TEMPLATES TO BE LAID OVER PROCESES

1) Reneesh.k Email id: reneesh.srk387@gmail.com 2) G.Febin.K.Tomy Email id: febin775721@gmail.com


School of Management Studies CUSAT, Kochi-22

Summary: In this case related to supply chain management Company A is a major manufacturer of snack foods that sells through many outlets , the most prominent of which are the many stores of a mass merchandiser we called Retailer B. 60% of their trading are unplanned, customer came in the store to buy certain things,but also impulse bought Company A s product. so anything that helps the retailer get more customers walking through their stores is a value to the retailer.so Company A gives importance to Retailer B through more share in vendor float. What Company A developed was a forecasting and demand planning process to match the supply chain flow cycles i.e , the flow of the product,the flow of services, the flow of information, the flow of financial resources and the flow of demand and forecasts. What they discovered was an interesting fact that average time between a customer buying a Company A product in Retailer B and Company A finding out about its 23 days.Even with EDI,the traditional, logistics-oriented inventory management system, on average ,had a 23 day delay between store sales and Company A notification. This traditional system affected shelf life of the product average days of inventory that Retailer B carried in its stores and RDCs, inventory levels Company A carried to meet the sudden large order it eventually received from Retailer B and Company A production cost to meet this lumpy demand. After identifying this problem Company A devised an offer for Retailer B that , first of all , we are better at forecasting demand for our products in your stores than you are.give us all the details about our product in your stores which wants for this purpose . They also offered that , no need of inventory cost and no need to pay the money, until the customer buys their product . This offer motivates the Retailer B and they promote company A s product at maximum .They give better merchandising, better shelf location and better store placement. The supply chain management system that was put in place allows Company A to moniter sales of each of their products real time in each Retailer B store. Later the demand information cycle in this case

has been taken from 23 to 0 days. Retailer B concentrated on store management, advertising, and merchandising, and Compant A concentrated on forecasting and inventory and operational management. Keywords: EDI,MIS, vendor float,traffic, it application in scm

1.0 ANALYSING THE PROBLEM


Supply chain management is solely an information systems problem. However, no systems or computer package exists today that can overcome poorly thought out processes. Processes are the procedures, rules, steps, and personnel involved in accomplishing any tasks. Systems are the computer and communications devices, equipments and software brought to bear to bear to augment accomplishment of those processes. Thus, systems are templates to be laid over processes.

1.1 Identifying the problem

Lack of effective forecasting and planning in inventory management system Lack trained employees Uncertainty Didnt use E-commece properly Lack of proper sharing of information in Supply chain management system.
1.2 Various Alternatives for solving the problem

Implement ICT like MIS, ERP in the firm Appoint well trained staff to operate the system in order to get information Promote E-commerce

adequate

1.3 Best Alternate

Implement ICT like MIS, ERP in the firm

1.4 Reason for choosing the alterntive

While using ICT like MIS, ERP in the firm, firm can does forcast properly and reduce uncertainity.

1.5Conclusion In the case study given, we analyse the case according to driver Systems are templates to be laid over processes, we found that, Firm lacks an information sharing system which creates problem in forecasting inventory management. As a solution for this situation, should implement new technology like MIS, ERP, E-commerce to enhance the sale of Company As product. 2.0 REFERENCES 1. 2. 3. .anonymous, www.penseke.com , ford motor company six sigma initiatives streamline operations ,downloaded on 15-03-2012 Anonymous, www.moresteam.com/ad/elearn.cfm?gclid=CJ6M1qTLlKACFdRR6wodJ2bFcA download on 16-03- 2012 Anonymous, www.wikepedia.com referred on 16-3-2012