Coles System Analysis: Improving Procurement and Inventory System

This article discusses the analysis of Coles system and provides recommendations for improving the procurement and inventory system. It highlights the challenges faced by Coles, such as wastage of products, and suggests a new system that can track and provide a forecast on daily sales. The article also talks about the benefits of implementing an automated accounting instruction system and moving data to the cloud. The process to be improved is the registration of new customers before making a purchase.

Running Head: COLES SYSTEM ANALYSIS 1
COLES SYSTEM ANALYSIS
AUTHORS NAME
UNIVERSITY OF AFFILIATION

COLES SYSTEM ANALYSIS 2
Table of Contents
1.0Task 1.....................................................................................................................................................3
1.1Background information.....................................................................................................................3
1.1.2The confidence and growth..............................................................................................................4
1.1.3 Challenges and company opportunities.......................................................................................4
2.0 Task 2....................................................................................................................................................5
2.1 Time management plan......................................................................................................................5
3.0 Task 3....................................................................................................................................................5
3.1 Fact-finding...........................................................................................................................................5
3.1.1Interview.........................................................................................................................................5
3.1.2Questionnaire..................................................................................................................................5
3.1.3 Observation....................................................................................................................................6
3.1.4 Research.........................................................................................................................................6
3.1.5 Documentation review...................................................................................................................6
3.2.1Purpose introduction........................................................................................................................6
3.2.2Honesty........................................................................................................................................6
3.2.3 Non retaliation........................................................................................................................6
4.0Task 4.....................................................................................................................................................7
4.1Organization chart..............................................................................................................................7
4.1.2List of executives to be interviewed.............................................................................................7
4.2objectives....................................................................................................................................8
4.2.1 Interview with Chief Technology Officer.....................................................................................8
4.2.2. Interview with Chief Financial Officer........................................................................................8
4.2.3 Interview with Chief Executive Officer........................................................................................8
5.0Task 5.....................................................................................................................................................9
5.1 Report................................................................................................................................................9
5.2 Recommendation...........................................................................................................................9
6.0Task 6...................................................................................................................................................10
6.1Unified modelling language..............................................................................................................10
6.2 Process to be improved...................................................................................................................10
7.0Task 7...................................................................................................................................................11
7.1Recommendation..............................................................................................................................11

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8.0Task 8...................................................................................................................................................11
8.1Conclusion........................................................................................................................................11
REFRENCES............................................................................................................................................13
Bibliography............................................................................................................................................14
Appendix...................................................................................................................................................14

COLES SYSTEM ANALYSIS 4
1.0Task 1
1.1Background information
In the year 2014, Coles celebrated its 100th year anniversary of dedication to providing Aussies
families’ products and services that they were in need of for a happy, and healthy life at home for
a price that was affordable to them. When the first Coles store was opened the idea comprised of
the following; a manager requires a happy home life, staff that are contained, a store that would
make him a proud owner, the fellow respect should be earned by the property owner, to acquire
all that it a necessity for him to operate a successful business(Coles.com.au, 2015).The company
has been able to commit itself to providing charity to hospitals, reliefs fund for those without
jobs and for nursing home from its profit, despite the seasons of tough economies. The founder
of Coles believed that it’s the social responsibility of the organization to give charity to those in
need. The commitment to social responsibility still remains as the one of its responsibility today.
The company was becoming innovative and growing as the day goes by. The company was
marked by a sense of innovation and fresh thinking. The company took a different approach to
introducing the self-service that set the standard of supermarkets. The company introduced
catalogs of sales products and made a display of goods that were on sale on a table in the shop
center (Coles.com.au, 2015). The company has totally shifted its course from a variety store as
its origin to become the most important food retailer that comprises of all recent logistic,
warehousing and system distribution that were in need of such challenges.
1.1.2The confidence and growth.
Coles was prompted to introduce its first electronic scanners into its stores. The aim of this
scanner was to give customers printed receipts for their purchased items. With the rise and
advancement in technology, and the dot-com bubble borne from fast intensification in
technology and the initiation of the worldwide web. This a greater step to Coles as it made an
adoption of new technology that modernized tracking of inventory. The saved cost through the
introduction of this technology was reinvested into cutting the cost of the 6000 product lines.
1.1.3 Challenges and company opportunities
The decline of the Australian dollar brought about an influx of economic uncertainty as the
interest rates continued to rise. This was an opportunity to Coles as it saw its online channel

COLES SYSTEM ANALYSIS 5
through a growth period of being the largest foodstuff vendors online in the state. The company
reputable a countrywide grid of Coles express service stations that provided consumers with a
superior contact to food through its petrol and convenience stores that were new. The company
faces stiff competition from other companies such as Woolworths, ALDI, IGA, Costco
(Information, Search and Competition, 2017).The emerging issues that affect the company
comprise of, and the company amplified emphasis on the sector of agriculture. The need to
ensure that the food and grocery code of conduct is successful. Being a food retailer that is the
leading in Australia, the company faces challenges of wastage of products such as dairy, bakery,
meats and fresh vegetable. Through analysis of the current system to find its faults, it is possible
to overcome this problem through an introduction of an inventory system that can track and
provide forecast on daily sales. The upcoming development in the labeling country of origin
(Sims, 2015).The company approach advertising in a trust worth manner and including claims
that are free range.
2.0 Task 2
2.1 Time management plan
Requirement determination
Requirement specification
Feasibility analysis
final specification
hardware study
System design
System Implementation
System evaluation
System Modification
7-Oct-16 26-Nov-16 15-Jan-17 6-Mar-17 25-Apr-17 14-Jun-17
Start date

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3.0 Task 3
3.1 Fact-finding
Fact-finding will help the analyst collect information regarding the current system in use in Coles
Company. The analyst hopes to find accurate data that will help improve the system so as to
overcome the problem of daily food wastage.
3.1.1Interview.
This technique seeks to conduct a face to face interview with the chief executive officers of
Coles Company.
3.1.2Questionnaire
The analyst will draft a questionnaire for the staff of the Coles Company. The staff will be
trusted to provide accurate information regarding the current system that leads to daily wastage
of products.
3.1.3 Observation.
The analyst will gather information also through observation. The analyst will observe the day of
the activity in the Coles Company in trying to figure out the course of the problem and try to find
the solution.
3.1.4 Research
A research will be conducted on the current system and be compared to the system of
competitors. The aim of the research is to find if the supplier, supply products that are almost
going bad or what is the main course of the daily wastage of product.
3.1.5 Documentation review
The documentation of the different preserving methods in the company will be reviewed. The
refrigerator will be reviewed to check if it's working as per instruction. The current system
documentation will be reviewed too.
3.2.1Purpose introduction
The main purpose is to conduct fact-finding so as to discuss with you the current system being
used in Cole Company. This activity is aimed at gathering information from based on your
perspective with the interaction with the system. (Aselstine, 2016) the process will include

COLES SYSTEM ANALYSIS 7
various methods of fact-finding such as, interviewing the managers, research conduction and
survey. The aims of gathering the correct information will help in proving the business process
of the system and make it easier for the people using the system.
3.2.2Honesty
It is my expectation that the information provides your opinion will be very honest. This is
because as users of the system, you are very much aware of the inches of the system.
3.2.3 Non retaliation
As part of a fact finding it is of great importance to remind you that all participant involved in no
retaliation will be invested since the act is prohibited and necessary disciplinary action will be
taken.
4.0Task 4
4.1Organization chart
CEO
CFO
Retail and
Supply
chain
Customer CIO Coles
Brands Grocery Mercha
ndise
Acting
Finance
Merchandise
Transformati
on
Merchandise
State
Marketing
Finance
Property
Marketing
&Financial

COLES SYSTEM ANALYSIS 8
4.1.2List of executives to be interviewed.
Chief executive officer CEO:the CEO is responsible for company operation and strategy. The
CEO has full authority over the company. Other time the CEO act as the chairman of board .
Chief executive officer CEO: the CEO is responsible for company operation and strategy. The
CEO has full authority over the company. Other time the CEO act as the chairman of the board.
Chief financial officer. The CFO is in charge of all the company financial information. The CFO
is a member of the board of directors and reports to the Chief executive officer
(Theofficialboard.com, 2017).the treasure and the controller do report to the CFO.
The chief information officer: The CIO is in charge of all the data assets of the company. In
particular, the CIO is responsible for companies’ information system. The CIO reports to the
CEO in case of anything.
The chief operating officer or COO is in charge of making a decision regarding the daily
operation of the company and reports to the CEO.
Chief technology officer CTO. The CTO is responsible for all the strategy to be used in the
company technology. The chief technology officer reports to the CEO
4.2objectives
4.2.1 Interview with Chief Technology Officer
The first objective of the interview will be on the procedure of modeling requirements. The main
aim for these is to find the details of the existing system and find out the necessary desires for the
projected system. The requirement is likely to vary from the output which is electronically
printed from the existing system.
4.2.2. Interview with Chief Financial Officer
Secondly, the objective of an interview will be targeted to the chief financial officer and chief
operating officer (Sharma, 2015).The interview will be conducted to know about the system and
some of the business processes that can be automated in order to increase the efficiency of the
work. Analyzing the existing system business process and see it’s functioning. The business

COLES SYSTEM ANALYSIS 9
process that is still manual can still be automated and the impact on business be analyzed. An
interview objective on the chief financial officer will be to get his idea of implementing a system
that has an automatic accounting instruction upon any business transaction.
4.2.3 Interview with Chief Executive Officer
The third objective of the interview will be to interview the chief executive officer and chief
technology officer on the record review, procedures, and forms. A review of the records that are
existing and procedure of the system with an aim of seeking insight into a system which
describes the capabilities of the current system, its activities, and operations.
5.0Task 5
5.1 Report
Performing a systematic analysis of the Coles system was to obtain various objectives. First, the
reason for conducting system analysis on the existing system was so as to discover means of
system design due to conflicting objectives on the previous system. The second objective was in
order to achieve the inter-compatibility and purpose unity of the subsystems. Thirdly was to
place each subsystem of the main system in its perspective that is properly and context, so that
the system as whole may achieve its objectives with the minimum resources available. This, in
the end, creates a synchronization of the objectives and the system.
Coles Company has taken a huge step in implementing a business system for the procurement
department. Through the deployment of the automated replenishment, this deployment has
positively impacted on satisfying our consumer needs and has materially improved the
availability and efficiency of the Coles supply chain. The chief technology officer stated that
they have are constantly getting products delivered to their stores fresher and in a timely manner.
Coles has numerous changes that are underpinning it to meeting its objectives. Among them is
taking advantage of cloud and moving data to the cloud. As much as the company wants to take
advantage of this, it is clear that hosting of data on the internal server is cheaper than on the
external servers.

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5.2 Recommendation
While its evident that Coles faces a stiff competition from Woolworths, this is because both
companies have a very strong position in the grocery market of Australia. With the emerging
signs of both companies to attract consumers to their store through the fresh supplier of products,
it is a great idea for the procurement system to be redesigned (Aph.gov.au, 2017).The company
has been facing a great challenge of wastage of products due to going bad. The procurement and
inventory stem has not been able to keep track of and give out a report on the demand for
products in various months. A new system that can keep track of them and give out a report of
the products sold, products remaining and monthly forecast should be designed. This will help
solve the issue of procuring a lot of goods from the supplier hence leading to wastage.

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6.0Task 6
6.1Unified modelling language
6.2 Process to be improved
The process to be reviewed in the system is the registration of the new customer before
proceeding to make a purchase .most consumer will consider this as a waste of time and hence
they will opt for other groceries vendors. With the growth in technology, the online shopping for
Coles Company should be simplified. The most consumer will opt for a system that is user-
friendly and easy to use for shopping at the convenience of their homes. The registration of new
customers should be done away with.

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7.0Task 7
7.1Recommendation
Based on all the strategies that were implemented at the start of the report, the recommendation
reflects on: in-depth research into what the current view of the system analysis. The
requirements needed in order to offer support for human roles in the system. One of the most
crucial recommendations the integration between human system and human performance can
never be most effective in analysis and design of a system unless it is viewed by all the
stakeholders as part of the system process re-engineering, from the beginning of the exploration
till the evaluation of the concept. The Coles company system has failed because the humans were
put into consideration after the identification of the design problems. This is too late to make
changes that are required to produce responsive systems to user needs.
Coles Company has realized that there is need to put more consideration into the human during
the system design face. Majority of commercial software and hardware industries are starting to
wake to the realization of success in the commercial requires great attention to the needs of the
customers, in order to achieve that success there is an inference for the operation team.
The recommendation to the executive and stakeholder of the Coles Company is that they should
understand the human system integration is more important from the start of system design to the
last step of the cycle. In the circumstances of putting emphasis on the human system, integration
will have a great significance in the system performance. If the human system integration is left
out till the stage of testing the system, little percentage improvement can be grasped under the
greatest environments and there will be organization risk that the goals will not be satisfied.
8.0Task 8
8.1Conclusion
Throughout the task of system analysis of the Coles company, the objective behind was to have
an analysis of the current competitive strategies through four aspects: quality control of products,
cut price, cut down on expenditure on innovation and operation. It was realized that techniques
for strategic management accounting which suits operation of the company to be in a dominant
position. Taking all those objective under consideration, it provided a clear path of the

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13
expectation of the organization.it has been concluded that the user requirement definition should
start at the idea of system conception. This will help solve the problem of daily wastage of
products such as meat, grocery. Those requirements should act as clear path to offer significant
evaluation criteria till the time when the system has been placed to use.

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REFRENCES
Aph.gov.au. (2017). Summary and recommendations – Parliament of Australia. [online]
Available at: https://www.aph.gov.au/Parliamentary_Business/Committees/Senate/Economics/
Completed_inquiries/2010-13/dairyindustrysupermarket2011/report/b02 [Accessed 5 Dec.
2017].V
Aselstine, L. (2016). The Golden Rules of Fact-Finding: Six Steps to Developing a Fact-Finding
Plan. [online] Queen's University IRC. Available at: http://irc.queensu.ca/articles/golden-rules-
fact-finding-six-steps-developing-fact-finding-plan [Accessed 5 Dec. 2017].
Coles.com.au. (2015). Our History. [online] Available at: https://www.Coles.com.au/about-
Coles/centenary [Accessed 6 Dec. 2017].
Information, C., Search, C. and Competition, C. (2017). COLES GROUP LIMITED Names of
Competitors - Companies & Details - Hoovers.com. [online] Hoovers.com. Available at:
http://www.hoovers.com/company-information/cs/competition.Coles_group_limited.3a9d18d4f2
a00862.html [Accessed 6 Dec. 2017].
Referenceforbusiness.com. (2017). Systems Analysis - organization, definition, business, Project
proposal. [online] Available at:
http://www.referenceforbusiness.com/management/Str-Ti/Systems-Analysis.html [Accessed 6
Dec. 2017].
Sims, R. (2017). New and emerging issues in the grocery sector. [online] Australian Competition
and Consumer Commission. Available at: https://www.accc.gov.au/speech/new-and-emerging-
issues-in-the-grocery-sector [Accessed 5 Dec. 2017].
Sharma, P. (2015). System Analysis: Objectives, Reasons and Tools | MIS. [online] Your Article
Library. Available at: http://www.yourarticlelibrary.com/management/mis-management/system-
analysis-objectives-reasons-and-tools-mis/70388 [Accessed 5 Dec. 2017].
Theofficialboard.com. (2017). Meaning of the most used corporate titles - The Official Board.
[online] Available at: https://www.theofficialboard.com/info/main-titles [Accessed 5 Dec. 2017].

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Bibliography
Ablebits.com. (2017). How to make Gantt chart in Excel (step-by-step guidance and templates).
[online] Available at: https://www.ablebits.com/office-addins-blog/2014/05/23/make-gantt-
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Kendall, J. (2005). Systems Analysis and Design. 6th ed. Englewood Cliffs: NJ: Prentice-Hall..
Joey G,. Hoffer J(2004). Essentials of Systems Analysis and Design. 2nd ed. Englewood Cliffs,
NJ: Prentice-Hall.
Sumner,G(2004). Management Information Systems. 9th ed. Englewood Cliffs, NJ: Prentice-
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The Conversation. (2017). Company results: how competition is transforming Australia's retail
sector. [online] Available at: http://Theconversation.com/company-results-how-competition-is-
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Appendix
Questionnaire
(Please complete the following questionnaire accurately and honestly.)
1. Is responsible for managing the inventory system?
CTO CIO CEO
2. Is there an order of approval before the supplier is requested to supply the product?
Yes No
3. Is the preservative in the organization to prevent the products from going bad?
Yes No
4. What is the frequency of the consumer who purchases the perishable product?
Often Not often
5. Upon supply of the perishable goods from the vendor are they checked to see how fresh
they are?
Yes No

COLES SYSTEM ANALYSIS
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6. Is there a forecast used to know the demand at various period
Yes No
7. How many vendors does the company have?
1-5 5-10
8. Where do you purchase your perishable product such as meat, grocery?
Coles Grocery retail
9. What is the main reason behind product going to waste?
Requesting too much from the supplier Ineffective use of the preservatives
10. How would you compare the grocery price to that of other retailers?
Expensive Fair cheap