Supply Chain Project Performance

Running head: SUPPLY CHAIN MANAGEMENT PLATFORM
Assignment 2: Australia’s Woolworths Chooses Supply Chain Management Platform
Name of the Student:
Name of the University:

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1. Sponsor letter
To,
The ABC software consultancy
Since last 2 to 3 years our company is facing some operational and functional issues. We
would like to implement a supply chain management system. In order to improve the existing
customer base we want to implement the supply chain management system. We request you to
sponsor a capital amount of $80,000 so that we can implement the system successfully within 6
months.
-Thanks and regards
Woolworths Limited Group
2. Project proposed
The project that has been proposed for Woolworths limited is Implementation of a
Supply chain management system within 6 months and a budget of $80,000.

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Table of Contents
1. Sponsor letter...................................................................................................................1
2. Project proposed..............................................................................................................1
4. Executive summary.........................................................................................................3
5. Introduction......................................................................................................................3
6. Context of the organization.............................................................................................4
6.1 Vision.........................................................................................................................4
6.2 Mission......................................................................................................................4
6.3 Business process........................................................................................................4
7. Internal environment........................................................................................................5
7.1 Structure.....................................................................................................................5
7.2 Leadership..................................................................................................................6
7.3 Culture.......................................................................................................................6
8. External environment.......................................................................................................7
8.1 PESTLE analysis...........................................................................................................7
8.2 SWOT analysis..........................................................................................................8
9. Project planning.............................................................................................................10
9.1 Identification of problem and opportunities available for Information System......10
9.2 IT infrastructure problems may occur.....................................................................11
9.3 IS/IT system (Managing Information system).........................................................11
9.4 Function...................................................................................................................11
9.5 Cost feasibility.........................................................................................................12
9.5.1 Tangible benefits..................................................................................................12
9.5.2 Intangible benefits................................................................................................12
10. System analysis............................................................................................................13
10.1 Business improvement...........................................................................................13
10.2 Functional requirements........................................................................................13
10.3 Non-functional requirements.................................................................................13
11. Build vs. Buy...............................................................................................................14
11.1 Design....................................................................................................................14
11.2 Develop..................................................................................................................15
12. Testing.........................................................................................................................16
12.1 Method selected.....................................................................................................16

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12.2 Implementation......................................................................................................16
12.3 Maintenance...........................................................................................................16
12.4 Project management...............................................................................................17
12.4.1 Risk management................................................................................................17
12.4.2 Role of a project manager...................................................................................18
References..........................................................................................................................19

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4. Executive summary
This report reflects the issues that the customers of Woolworths Limited were facing due
to lack of operational and functional deficiency. After analyzing the detail supply chain structure
of the company it is recognized that the company’s supply base is weak and no customer
focused. In this proposal a detail supply chain management process is implemented followed by
the other functional and nn functional development aspects.
5. Introduction
This report depicts importance of using project management planning prcatices essential
for designing and implementing any advanced IT excellence in a business organization. Today’s
business to business ecommerce service innovators are extremely focused on small, medium and
large sized business organization. The project scenario and organizational context that is
considered for this report is implementation of supply chain management system in Woolworth
Limited. For different organizations mission, vision and business processes are also different.
Woolworths Limited was facing various functional and operational risks due to lack of
IS/IT excellence. The problem scenario for which the company’s revenue structure was getting
interrupted is elaborate in this report. Apart from that, both the internal and external business
environment was analyzed in terms of PESTLE analysis, SWOT analysis and other factors
analysis. The steps following which Woolworths Limited can earn effective commercial revenue
in terms of design, development, planning, testing, maintenance and implementation are also
elaborated in this report.

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6. Context of the organization
6.1 Vision
The vision of Woolworths Limited is to become one of the leading global retailers by
delivering best in convenience, quality and values for their customers. The total numbers of
employees working for the organization are 201,000 and Woolworths serves for more than 29
Millions of customers. Woolworths Limited is much trusted business partners as well.
6.2 Mission
The mission of Woolworths Limited is to grow its market capabilities by improving the
operational and functional excellence of the company in terms if IS/IT system implementation.
The revenue expected from the company is all related to the vision statement (De Marco,
Demagistris and Mangano 2018). The mission of the company is to give best shopping
experience to their customers with effective and affordable services. The organization is made up
of numbers of departments. The departments will work all together for giving the best possible
outcomes. The mission of Woolworths Limited is to give best ever shopping experiences to the
global customers.
6.3 Business process
Woolworths Limited is one of the largest retail organizations in Australia that
encompasses different well known brands which includes Woolworth’s supermarket, BIG W etc.
The company is committed to continuous business process improvement plan for organizational
growth and its commercial profit as well. Woolworths implies process oriented an approach that
enables the organization’s business development and ongoing operational improvement as well.
It develops the company’s business process capabilities (Yuliadi and Nugroho 2019). The B2B

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EDI gateway enables the transactional exchange between Woolworths Limited and its trade
partners. The business process follows by Woolworths Limited reduces the issues manual
intervention, delicacy issues and process automation as well.
Users can purchase orders and give quick response on the given orders. It gives
opportunities to deliver advanced shipping notice and electronic invoice or feedback facilities to
the customers. The E-Commerce values follow by Woolworths Limited gives biggest values and
higher conversion rates for faster order fulfillment and direct relationship set up with the
customers (Malawige, N.N., 2018). The sales process to reach new market competitors also
become easier with B2B business process. However, the supply chain process of the organization
is effective enough, due to this reason the company has planned to implement an advanced
supply chain management system to improve their operational and functional activities.
7. Internal environment
7.1 Structure
The organizational structure of Woolworths Limited is comprises of three stage Board of
directors, N1 and N2. The CEO of the company is Brad Banducci and the five directors of the
company are Jillian Broadbent, Jennifer Carr smith, Holly Kramer, Siobhan McKenna, Scott
Perkins, Kathee Tesija and Micheal Ullmer. The CFO and COO of the organization are Stephen
Harrison. The N2 associates of the organization are fiance manager, legal advisor, marketing
head, HR manager, supply chain manager.
The internal structure of the company also holds chief general manager refresh 3, director
supermarket, chief logistic and information officer, general manager business development,

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general manager supermarket operations, Gm corporate services, GM Woolworths Academy,
GM Big W and GM Property. In order to implement the project the timeline and budget will all
estimated by the assigned project manager and checked by the project team associates.
7.2 Leadership
The leadership style of Woolworths Limited is completely different for any other retail
organization. In this present era of competition being leadership and competition it is determined
that market position maintenance is referred to a one of the most essential thing (Ayers and
Odegaard 2017). A manager must possess proper leadership features as well. In order to improve
performance of the organization and individual associate leadership is very important.
However, it is identified that performance of Woolworths Limited is getting negative
affected due to lack of leadership skill among the company associates. In order to effectively
manage the business activities proper leadership is lagged (Park and Lee 2018.). Due to lack of
proper leadership there was no one to direct and support the team towards the preliminary
objectives. The integrity of the business organization was not properly managed throughout. In
order to improve the business structure the management team associate need to hold
transformational leadership and transactional leadership skills as well.
7.3 Culture
It has been determined that, the company is earning huge revenue from global
competitive market due to its organizational behavior. During recession employee motivation is
very essential to give probably the best working experience to the staffs. In most cases the
employees of Woolworths are driven by money. However, for all case salary is not important
enough for the improving the organization culture (Kumar et al. 2019). The staffs were

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effectively motivated through improvement of work culture. The process of giving feedback was
very poor for Woolworths Limited. It is role of the project team members and other company
associates to motivate each other to create a great work culture to improve the productivity and
quality of services as well. In order to improve the work culture and workplace environment the
organization need to consider organizational behavioral theories and practically implement those.
8. External environment
8.1 PESTLE analysis
PESTLE is the other analytical tool used to analyze the external environment of
Woolworths Limited. Performance of the company can be either negatively or positively
impacted due to the external factors.
Political factor: The performance of Woolworths Limited is getting highly affected
because of the political environment. Some of the major independent players like Woolworths;
Coles etc are becoming unable to eliminate competitions due to the recently launched Australian
competition policy (Thorlakson, Hainmueller and Lambin 2018). The market dominance of these
retailers has resulted struggle for the retail industry.
Economic factor: The performance of Woolworths Limited is declining due to economic
condition throughout Australia. The international market operation of Woolworths Limited is
getting affected adversely for the declining economic market.
Social factor: The social factors of Australia are also affecting the retail market and
preventing Woolworths to reach societal and community development expectations. It is

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happening because of the social trends available within the customers. The negative societal
initiatives are creating significant negative impact on the retail operations.
Technical factors: The business and operation environment of Woolworths Limited is
getting negatively impacted due to the technical factors. Woolworths Limited has significantly
considered the green refrigeration
8.2 SWOT analysis
SWOT analysis
Strength
 Woolworths Limited is one of the
oldest retail companies in Australia
infact known as pioneer of retail trade
business model
 Woolworths Limited retail group holds
more than 900 stores allover Australia
 The brand name of the company is
strong enough and known for its
operational efficiency
 The company is successful to retain its
around 10,000 employees
 Infact in order to bring commercial
revenue Woolworths has different
brand loyalty scheme for their
Weaknesses
 The international or global presence of
the company is low than m any others
 The supplier relations of Woolworths
Limited holds a dominant position

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customers
 Many private label brand are owned by
Woolworths that are enough popular
among customers
Opportunities
 The company has opportunity to
promote their products through
advertisement, promotional activities,
social media presence and
advertisement as well
 The company has opportunity to open
new store in new locations which might
boost the business grow (Gürel and Tat
2017)
 In order to earn more customer
experiences it has opportunities to
enhance big data analytics for business
effectiveness and efficiency
Threats
 Many similar companies are entering to
the market as tough competitors
 The online market growth of the
company is lesser than many others.
 The commercial growth of the
company is getting affected due to
governmental interventions.

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9. Project planning
9.1 Identification of problem and opportunities available for Information System
After analyzing the current operational and functional activities it is defined that, benefits
and working efficiency of Information system can be divided into tangible benefits and
intangible benefits. The users can gather all useful information those are needed to do any task
on time and within assigned budget. Due to delivery of quality products and services
Woolworths Limited has become one of the most demanding retail organizations all over
Australia. The numbers of customers for Woolworths was increasing rapidly and managing large
numbers of customer and respective data have become a major problem. Managing large set of
data has become a major issue for Woolworths Limited.
The chances of error occurrence were also very high in case of manual data management.
The manual data management issue was completely resolves with advanced automated data
management. Information system gives information access opportunities to all the project team
associates. The process of decision making also become easier with this approach. It also gives
high level security to data stored in the server. It allows only the authorized person accessing
data from server. The degree of productivity gets improved and data comparison becomes easier
with this application. It gives real time information sharing opportunities along with reliability,
accountability, security, scalability and accessibility to users.
In order to improve the identified issues of Woolworths limited the company has planned
to implement supply chain management in their regular business operations and function. The
possible opportunities that the company will earn with this application include- effective and
efficient business process, the business cooperation gets improved, the supply chain network of

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the company also gets improved and the commercial profit rate of the organization also gets
improved a lot with this technical implementation (Düerkop and Huth 2017). Apart from this, it
also helps to create good relationship between the suppliers and owners. The logistics of the
company gets improved a lot with this application. Infact the product, facilities, finances also
helps to create good relationship between the business operators.
9.2 IT infrastructure problems may occur
For the above mentioned issues and opportunities the IT infrastructure of Woolworths
Limited can be interrupted. If all the security aspects were not properly managed and handled by
the project team, then the company may face major functional and operational risks.
9.3 IS/IT system (Managing Information system)
Managing Information System (MIS) is used by the project development team to give
better decision making opportunities to the developers (Phadermrod, Crowder and Wills 2019).
Developers can focus on different organizational assets such as financial, inventory, real estate,
manufacturing, marketing, R&D, raw materials, project timelines etc.
Woolworths Limited SCM project development team needs to manage the information
system to for collecting useful data from various sources. With the help of MIS customers and
employees can access all uptodate information. Information can be inserted easily. Information
delete, update, insertion activities become easier than any other.
9.4 Function
The SCM improve the relationship between the service providers and customer.

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9.5 Cost feasibility
9.5.1 Tangible benefits
The total budget estimated for design and implementation of the Supply chain
management system is $80,000. The tangible benefits that Woolworths Limited can earn from
the SCM are listed in a quantifiable form. For this project the components that will give tangible
benefits include:
 SCM contractual items
 Paid time off
 Insurance cost
 Detail profit and salary sharing
9.5.2 Intangible benefits
The company would be able to earn intangible benefits from the below components:
 Flexible shift timing to the employees
 Supporting and motivating collegues
 Skilled employees
 Capital managing expertise availability in the workplace

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10. System analysis
10.1 Business improvement
In order to improve the current business process of Woolworths Limited the actins to be
considered include:
 Process mapping
 Proper analysis of the process
 Redesign the process
 Resource acquiring and implementing and communicating changes
 Continuous change management plan
 Review the process periodically
10.2 Functional requirements
 Setup proper business requirements
 Proper administrative functions including authentication and authorization level
 Timely audit tracking
 Requirement certification and reporting requirements
 Keeping all historical data
 Legal and other regulatory requirements
10.3 Non-functional requirements
 Performance, capacity and data integrity of the system
 Proper serviceability, maintainability, security and manageability

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 Availability, reliability and usability
 Interoperability, regulatory and recoverability of the system
11. Build vs. Buy
11.1 Design
For designing the SCM system SDLC development phases are required to be followed in
terms of system planning, source, making, delivery and returning. Procurement is defined as
acquisition of services ad goods at the best possible price in correct quantity at proper time (Rao,
Kumar and Reddy 2018). In order to build good relationship with customer SCM system
implementation is essential. Before developing the SCM company needs to negotiate the
contract for successful schedule delivery.
Supply chain management is referred to as one of the integral part for most of the
businesses and essential to satisfy the expectation of the customers. The customer service
channel of the company will be improved. In other words, the customer service will be boost up.
Customers of the company will be able to get 24X7 service from the providers (Parihar and
Bharti 2019). The customers can give on time delivery with a proper sales support. The customer
service delivery structure follows by Woolworths Limited is weak. The SDLC stages to be
followed to complement the SCM system are as follows:
Project initiation: As soon as the contract is signed the project manager gets into the
planning phase. In this stage the objectives, aim and project goal are measured. A project charter
that includes expected budget, timeline, risk log, communication plan and major deliverables are
prepared and shared among the team members in this stage.

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Project design stage: In this phase the project scope statement is developed. The time and
detail budget distribution are also done in this stage. Apart from that hardware, software,
technical and non-technical components those are essential for the implementations are needed to
be considered in this stage. After that, detail and major milestones should be set in this phase (Jie
and Gengatharen 2019). Risk, communication, quality and procurement are the different project
management aspects considered in this project planning phase. Before designing the project
brainstorming, interviews, focus group, wireframes, mind map, documentation, user stories are
needed to be created. In the planning phase all required data and specifications are needed to be
collected from various resources.
11.2 Develop
Project development stage: In order to design and SCM for Woolworths Limited the two
design aspects those are to be considered include technical architecture and UI/UX design
standards. Appropriate design of the SCM system prototype will give clear mockup, wireframes,
workflow diagram, architecture description documentation and technology lists as well.
After complete design the system is developed in this stage. In this stage the software
developers set up an accurate working environment and start writing based on the requirements.
Stakeholder engagement strategy, risk management, communication plan are the other
development aspect must be considered to create the complete design (Thorlakson, Hainmueller
and Lambin 2018). The software specifications and hardware specifications are all properly met
or not must integrate all together.

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12. Testing
Testing phase: After completing the SCM structure it has to be tested before final
execution. The project testing stage is comprises of three phases unit testing, integrated testing
and user acceptance testing. Apart from that, the quality control supervisor must ensure that the
project quality has met the project objectives and other specifications.
12.1 Method selected
In order to develop or implement the SCM system for Woolworths among the different
SDLC, agile development method is selected. Agile development method is selected for the
project because it gives efficiency as well as process improvement opportunities to the
development team. Agile also helps the team to avoid some common project development
pitfalls related to cost, schedule, resources, quality etc. In this method multiple numbers of
activities can run paralelly. Infact, if required specific project activity can be modified even after
it is implemented. This method helps project development team to keep focused on the business
values. Companies those are customer focused use this development method. It helps the project
team to complete any project on predicted time and cost.
12.2 Implementation
12.3 Maintenance
Maintenance phase: After testing the SCM system design and developed, post
maintenance program must be developed in this stage (Singh, Shukla and Mishra 2018). Post
project maintenance will make sure that the system has specific abilities to administrate the
service expected from the Woolworths Limited company.

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Project closure: The project must be closed followed by stakeholder signoff, final draft
work submission and post maintenance program evaluation.
12.4 Project management
12.4.1 Risk management
In order to control the performance of the SCM the potential risks and respective
management plan that are to be considered are elaborated in the risks log plan.
Risk
Id
Risk Name Impact Likelihood Risk
ranking
Risk mitigation strategy
R1 Overrunning
project budget
High (4) Likely (4) Medium
(16)
Before developing the
final project budget a
feasibility report needs to
be created
R2 Over allocation of
project resources
High (4) Most likely
(5)
High
(20)
Resources must be
allocated to each project
development activity based
on their individual
complexity (Fernando et
al. 2018)
R3 Overrunning
project timeline
Catastrophic
(5)
Possible
(3)
Medium
(15)
After measuring the
complexity of each SCM
development activity time
distribution must be done

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by the project manager and
team
R4 Selection of
incorrect tool and
development
techniques
Catastrophic
(5)
unlikely (2) Medium
(10)
Comparing all possible
technical and tools the
affordable one has to be
chosen and applied
R5 Insufficient
communication and
lack of technical
skills among the
project team
associates
High (4) rare (1) Low (4) Open communication and
on-job training program
has to be arranged by the
members of Woolworths
to improve the technical
and non technical skills of
the project associates and
employees as well.
12.4.2 Role of a project manager
The assigned project manager needs to be play the below mentioned roles and
responsibilities:
 The project manager should have good communication, leadership and
communication skills

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 Before implementing the project a detail budget and timeline needs to be prepared
by the project manager
 Should have strong risk management abilities
 Must work directly with the vendors to control the project quality
 Should take all possible decision making power
 The main role of the project manager is to complete a project on time and within
estimated budget without any delay

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