Letter Proposal for Implementing Supply Chain Management System

Running Head MIS 0
SOUTHERN CROSS UNIVERSITY
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Student Name: Rahul Muddasani
Student ID No.: 23201284
Unit Name: Managing information system
Unit Code: MNG03218
Tutor’s name: Rahul Raghavan
Assignment No.: 1
Assignment Title: Report
Due date: 05-12-2019
Date submitted: 04-12-2019
Declaration:
I have read and understand the Rules Relating to Awards (Rule 3 Section 18 –
Academic Misconduct Including Plagiarism) as contained in the SCU Policy
Library. I understand the penalties that apply for plagiarism and agree to be bound
by these rules. The work I am submitting electronically is entirely my own work.
Signed:
(Rahul
Muddasani)
Date:04-12-
2019

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Cover Letter
To
Top Management
Woolworths Supermarket
Subject: Proposal for implementing Supply chain management system
Dear Sir,
This proposal includes the implementation of the Supply chain management system in the
organization. It is analyzed that the business is facing the issue of supply chain and the SCM
system will be effective for managing the process of the organization and the organization is
facing various issues with the current system. The implementation of the system in business is
easy and takes less time and will provide various benefits to the organization. All the issues and
opportunities are discussed in the report. The procedure will be followed for implementing the
system in an effective manner. It is necessary for the business to bring changes and update the
system with the latest technology. The new system will be implemented for increasing the
productivity and performance of the business.
Request you to kindly accept the proposal of implementing SCM system in the organization after
analyzing the requirements and issues.
Thank you

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SCM SYSTEMS

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Contents
ASSIGNMENT COVER SHEET................................................................................................................0
Cover Letter.................................................................................................................................................1
Executive summary.....................................................................................................................................4
Introduction.................................................................................................................................................4
Internal and external operating environment...............................................................................................5
Problems for information system.................................................................................................................5
Strategies issues...........................................................................................................................7
Ethical consideration....................................................................................................................7
Feasibility studies........................................................................................................................................7
Cost benefit analysis....................................................................................................................7
Improvement in the system..........................................................................................................................8
Information system......................................................................................................................................9
System development life cycle..................................................................................................................10
Planning.....................................................................................................................................11
Analysis......................................................................................................................................11
Design........................................................................................................................................11
Development..............................................................................................................................11
Testing........................................................................................................................................12
Implementation..........................................................................................................................12
Maintenance...............................................................................................................................12
Conclusion.................................................................................................................................................13
Reference...................................................................................................................................................13
Appendices................................................................................................................................................16

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Executive summary
In the process of business, the information system is required for managing the operations.
Technological innovations are required for managing the process and improving the performance
of the business. Productivity and profitability can be improved with the system. Supply chain
management is vital to be implemented in Woolworths which is a retail industry. In this report,
the research proposal is provided for meeting the challenges of the current system of the
organization and the new system will be provided for better outcomes in the organization.
The new IS system will be helpful for managing the operations of the firm. The report will
discuss the various business opportunities that will be provided because of the new supply chain
management system. The sponsor of the report is the top management which requires
implementing the new system. The various role of the IS system will be included for improving
the productivity of the firm.

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Introduction
An information system is an essential part of managing the process of business in an effective
way. The information system provides the various benefits in operations and different business
functions which help the business for growing and developing. This report includes the
implementation of Cloud computing for improving the efficiency and efficiency of the business.
The various types of information systems are used by the business for managing the business
functions. The different processes of the company are managed by the different information
systems like CRM, SCM, MIS, and ERP. It is essential for improving the firm's process for
growth and development. This report includes the implementation of a supply chain management
system in Woolworths. Also, Woolworth is required to use an information system for improving
the performance as well as efficiency. In Woolworths, it is necessary to use digital strategies for
making things effective.
This report will include the various issues which are faced by the organization in the existing
system. The proposal for a new information system will be provided in this report. The changes
will be discussed which are beneficial for improving the existing system of the business and the
new information system will be introduced and the opportunities will be developed with the help
of a new information system.
Internal and external operating environment
In the retail industry, it is necessary to consider the environment for the operations of the
business. The internal environment is required to be considered which is required for
understanding the market. In the retailing industry, it is vital for applying the information system
to manage for delivering the services to the customers. The supply chain management system
will be beneficial for the Woolworths for delivering the products and services on time to
customers (Fernie and Sparks, 2018). The external environment which is required to be
considered for implementing the information system includes the customers, suppliers,
technology, and stakeholders of the company. It is necessary to implement and make changes
according to their requirement.

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Problems for information system
For the success of the business, it is essential to develop and implement an information system. It
is analyzed that if the information system is implemented effectively in business, it helps in
supporting an agile organization, transforming the business and meeting the employee's needs
and also helps in making the decisions. In Woolworths, the management is facing the issue to
deliver the products on time to customers. Supply chain management is considered as setting the
process which includes the information of goods from moving or supplying to the customers.
The organization is facing the issue of product flow, finance, and information flow. The
company is required to efficiently manage the supermarket chain. It is necessary to manage the
flow of goods and services for making the movement in the stores (Chaffey, et al., 2010).
Woolworths was founded in 1924 and leads to supermarkets and grocery stores. They had
achieved a position in the market by providing the best products and services to customers. They
aim to provide services to customers by efficiently managing the flow of goods. They are serving
more than 1024 locations which require the supply chain management system (Ballou, 2017).
In Woolworths, supply chain management(SCM) is considered essential and it required
managing the process of operations by using the technologies innovations and upgrading the
technologies in the existing system. It is analyzed that Woolworths has a huge influence on
indigenous suppliers. Woolworths is able to procure products on cheap prices and principles of
supply chain management system are required to sell quality goods at low prices. Moreover,
customers are requiring the SCM system for existing customers and they provide the best prices
and services (Ballou, 2017). The issue of security was faced by the organization which leads to
failure of the system. It is analyzed that the various systems are used for improving the
performance of different business functions which includes the inventory management system,
vendor management system and delivery management system.
The manager of the supply chain is required for coordinating the logistics which requires
effective planning, sourcing of services and raw material, manufacturing, delivering and logistics
and also returning system is required for the satisfaction of customers. The supply chain is
required for connecting the network, resources, activities, and technologies that are involved in
manufacturing and selling the products and services (Brandenburg, et al., 2014). It starts from
delivering the raw material from suppliers to manufacturers and it ends in delivering the finished

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products and services for the end consumers. Supply chain management(SCM) is for centralizing
the management of goods and services flow which includes the process for transforming the raw
material into the final products. The issues which are required to be improved using the new
system include the areas are:
Strategies issues
The information and data are required to be managed with effective strategies. It is essential to
improve the basic services of the organization. There are various strategies that are required to be
followed in implementing the information system. The management is required to improve the
strategies which also include improving the data and information in the system. Also, the
business function is required for improving management. In the organization, international
standards are required to be used to manage the numerous risks (Avers and Odegarrd, 2017).
Ethical consideration
In the organization, improved rules and regulations are required for improving the security of the
information system. It is analyzed that the code of ethics is required for improving data and
information security. Security is required to be provided to the customers for attracting and
retaining the customers. There are multiple IS systems that can be used to manage different
processes. The existing system is required to be modified for the additional functioning of the
business (Avers and Odegarrd, 2017).
Feasibility studies
Cost benefit analysis
SCM system is essential for the Woolworths as cost benefit analysis is done which includes the
systematic technique for reviewing and evaluating the costs and benefits if the system. SCM
system helps in costs as well as time of the management. It helps in determining the feasibility of
the investment and exploring the alternative options for achieving the goals.
The implementation of an information system is required to provide a large element of
controlling the system. For gaining wide acceptance, the standards are mandatory to be set for
leading the technologies. The strategies are required to be implemented which helps in easily
enabling and accessing the data and information in case of global perspective. Security measures
are required to be accessed for lowering the threats of data security (Addo-Tenkorang and Helo,

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2016). The feasibility study is required to be done for examining the existing system and
proposed for applying the supply chain management system. In this case, the economic, technical
and scheduling feasibility study is required for providing productivity and profitability.
Improvement in the system
In the new world era, emerging technologies are required in the system for improving the
performance and productivity of the organization. It is analyzed that the legacy systems are
reducing the productivity and performance in business. The management is required to adopt the
system approach for the method of problem-solving in which problems and opportunities are
required to be examined (Arvidsson, et al., 2014). The system approach is required to be adopted
which includes the five stages which are defining a problem with the help of system thinking,
developing and evaluating the alternative system solutions, selecting the solution of system for
meeting the requirements, designing the selected system for meeting the requirement and
implementing as well as evaluating the success for designing the systems. The new technologies
help in attracting the customers and also help in getting fast responses from customers.
Woolworths is required to upgrade the process of the supply chain with the help of a cross-
docking concept which is effective for reducing cost and time. The approach of cross-docking
helps in providing various benefits in supply chain process. The process is required to manage
the technologies which include the implementation of the SCM system (Chen, et al., 2015).
In order to meet the necessities of customers and employees, the process of data collection is
required for the decision making process. The integration of various systems is required which
includes the CRM system, SCM system, and Decision support system (Feng, 2012). The system
helps in providing the various advantages as a SCM system required for the growth and
development of the company in the market. Technologies are required to be adopted for
improving performances. Woolworths is required to develop new technology for improving the
delivery of products and services. SCM system is required to be used for managing vendors and
customers in an effective manner. Information systems(IS) like management information
systems and decision support systems(DSS) are required for managing and decision making. The
analysis of data is required for checking the status and requirements of the products and services
(Gopal and Thakkar, 2012).

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SCM system is used for planning, information, and sourcing, managing inventory, production of
products, location, transporting and returning of goods. The activities of the supply chain in
Woolworths include procurement, product life cycle management, planning for the supply chain
as inventory planning and maintenance of the production as well as asset lines, logistics which
includes the transportation as well as management of fleet and order management. SCM helps to
manage the activities which require managing the global suppliers and producers of the process
in the international market (Ittmann, 2015).
Information system
The application of a new information system will help in providing the various benefits to the
organization. The development of the system will support in making the success of the business
which includes increasing the revenues, repairing for maintaining brand reputations, preventing
liabilities, and increasing productivity (Arli, et al., 2013).
In an information system, the cyber issues are faced in managing the supply chain which requires
managing the technical issues. In Woolworth, the various vulnerabilities are included in the
system which helps in creating the ways for treats (Huang, 2010). Information systems are
required for data management. It requires to store a large amount of data. It includes the
databases, warehouses, and centers for preparing the infrastructure of storing the data. It is
required for accessing and providing better services to customers. Woolworths is required to
maintain the data by storing the information in an effective manner. Woolworths has considered
the various vendors for improving the SCM system (Minculete and Olar, 2014). In Woolworths,
the R&D team is required to take the initiative for implementing the system for overcoming the
issues in the system.
For growing the business in the future, the supply chain helps in creating the responsiveness and
experiences of customers which are required to be understood and managed with the help of an
effective network. The network of the supply chain helps in attuned and creating flexibility for
the customers’ needs and requirements and the factors are required to be considered for sourcing,
trading policies and creating a new mode of payment (van Hoek, et al., 2015).
The SCM system offers many opportunities in the market, which is good for the company. The
SCM system includes a variety of content, including purchasing, distribution, and inventory

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systems. Woolworth uses technology to improve basic services for everything. In addition,
automation can reduce manpower because machines can get things done quickly in the case of
the supply chain. Therefore, various services can be used to minimize the process. In the long
run, this is good for the company and its customers (Zeng, et al., 2012).
ERP system provides various opportunities for growth and development. Woolworths can attract
more customers towards the services by implementing information system. In order to manage
the business effectively, the SCM system helps in improving the capabilities of the business by
managing the various work automatically and providing accurate information on time (Wu, et al.,
2013). The effective services help in attracting the customers and increase the interest level of
customers to purchase the products from them. Emerging technologies help the business in
managing the work automatically and more focus to be given on making effective decisions.
With the help of the SCM system, the basic services can be improved which includes
transporting and delivering the products on time which helps in satisfying the customers on large
scale (Nour and Mouakket, 2013). ERP cloud helps the business in gathering the information
from the different sources and integrates for making the decisions. In Woolworths, the global
distribution system is considered as an opportunity for the business. It helps in enhancing the link
of the supply chain by creating relations with the huge number of vendors. The delay in
processes can be managed which helps in the growth and development of the business.
System development life cycle(SCM)
In the SCM, the system approach is required for solving the problems of the business. The
system development life cycle is required to be followed for effectively implementing the new
system in the process. SDLC is also considered as waterfall methodology which is considered for
solving the problems of the business. Software is required to be implemented which helps in
increasing the control in every phase and provides the opportunity to form the stages for
enhancing the chance to capture the requirements of the project and reducing the chances of
losing the information. The stages are required to be considered in the development life cycle
which includes the planning, phase, analysis phase, design phase, development phase, testing
phase, implementation and maintenance phase. The various activities are involved in the
different phases (Lusch, 2011).

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Planning
At the stage of planning, the management is required to identify and select the system which is
required to be implemented for growing the business. In Woolworths, the supply chain
management system is required in the business process. It includes the analysis of the business
requirement and assessing the project feasibility and developing the project plan which is
required to be implemented (Peng and Gala, 2014). The management is required to understand
the problem or opportunities which occur in the business and it required the product feasibility
study which helps in determining that the business requires the new or improved system with the
help of the feasible solution.
Analysis
At the stage of analysis, the team is required to gather the necessary information and
requirements of the system. Data analysis is required to be done with the information. In
Woolworths, developing of system requires to gather the supply chain information for creating
an effective system. The requirements are required to be analyzed for fulfilling and managing the
supply chain management system. Technologies are required to be analyzed which are effective
for the operations. It includes creating the diagram of the process which is required to be
followed. The analysis for buying or building the system is required to be done (Sanders and
Sanders, 2012).
Design
In the design phase, the new system is required to be designed in a manner for solving the issues
and challenges which are faced in the existing system. It requires to adopt the creative and
innovative approach for effectively managing the business. SCM system is required to be
adopted and designed with flexibility. It requires to include the designing of IT infrastructure and
system models according to the requirement of the business. In Woolworths, the SCM system is
required to be designed for fulfilling the requirement of the customers and employees and also to
make an effective decision-making process.
Development
In the development stage, the team is required to develop the information technology
infrastructure which includes the development of databases and programs. The proper layout is
required to be formed of the system to make the employees understand the changes in the

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system. SCM system requires effective design and flexibility in the system (Sanders and
Sanders, 2012).
Testing
At the stage of testing, the various conditions are required to be tested which includes the
techniques and cases. It is necessary to test the system for analysis of the advantages and
disadvantages of the system for the business. It helps in analyzing the performance of the system
for growth and development (Sanders and Sanders, 2012). In order to avoid errors and mistakes,
the system is required to be tested so that the proper system can be managed and controlled in an
effective manner.
Implementation
During implementation, the detailed information of the users is required to be documented which
helps in determining the method of implementation for the success of the system. In this stage, it
is necessary to provide effective training to the users for understanding making the process easier
(Wahyuni, 2010).
Maintenance
At the maintenance phase, it requires to build the help desk for supporting the users of the
system. SCM system in Woolworth will be used by the various business units, so every unit is
required to understand the system and system maintenance is required to be performed. It is
necessary to provide the environment for supporting the changes in the system. Suggestions and
feedbacks are required to be considered for effectively implementing the system. Moreover,
system development is required to avoid the issues and problems for making the process of the
company. Woolworths is required to develop and implement the new supply chain management
system(SCM) for the growth and development of the industry in the retailing sector (Zhang, et
al., 2010).
With the implementation of the system, project management, risk management, and change
management are required to be considered for effectively implementing the system. With the
change in the system, various risks are associated with the system as change requires providing
the effective learning and understanding of the system to employees with the help of training.

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Conclusion
To concluding the report, an ERP system is used for managing the processes and operations of
the organization. It helps in improving the performance of a system for improving the revenue
and profits with the help of the supply chain management system(SCM). The organization was
facing the issue of managing the supply chain. For the growth and development of the business,
management is required to implement the supply chain management system. SCM system is used
for planning, information, sourcing, managing inventory, production of products, location,
transporting and returning of goods.
Woolworths is required to adopt the new trend which includes the SCM for making the system
effective and suitable for the employees. In the existing system, the various changes are required
for improving the productivity and performance of the overall system. The organization is
essential to adopt the advance system to deliver the products on time to customers and the
products are required to be delivered directly to them. The effective use of the SCM system will
help in improving the performance of all the business functions and making the products
available at the time of requirement. The report included various alternatives for solving the
issues in the existing system.
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management: A literature review. Computers & Industrial Engineering, 101, pp.528-543.

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Appendices
Supply chain management of Woolworths

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Source: (Ballou, 2017).

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Source: CBINSIGHTS, 2019
System development life cycle
Source: (Sanders and Sanders, 2012)