BSMAN3190: Myer Logistics Information System Business Plan

This report presents a business case for the implementation of a logistics information system for Myer, Australia. It addresses the need for change within the company's internal supply chain operations. The report includes an executive summary, measurable objectives, analysis of the current situation, and a problem/opportunity statement. It details critical assumptions, constraints, and an analysis of options with recommendations. The report also includes preliminary project requirements, a budget estimate with financial analysis, and a schedule estimate. Potential risks associated with the project are identified. The business plan proposes improving customer services, quality, and financial profit. The project is estimated to be completed in six months with an estimated cost of $84,160.00. The report also includes references and appendices with detailed budget and schedule estimations, and a risk matrix.

Running head: PROJECT MANAGEMENT
Implementation of logistics information system for Myer, Australia
Name of the Student:
Name of the University:

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Executive Summary
The business plan is based on implementing a logistics information system for Myer, Australia to
improve over the internal supply chain operations of the selected company. The company has
opportunities to be undertaken for improving over customer services, quality as well as financial
profit of the company. The project manager has taken organizational objectives required to meet
for achieving the client’s requirements. It allowed the company to remain economical plus
operate efficiently in Australian market. Benchmarking is required to get project work on
schedule plus cost for better understanding project requirements. Due to lack of management
support, poor technical planning and improper design of system is considered as project risks. It
is estimated that the project completed in 6 months with estimated cost of 84,160.00. The project
is requiring increasing its quality control over products and services to increase in successful
project outcomes.

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Table of Contents
1. Project Background.....................................................................................................................4
2. Measurable Objectives.................................................................................................................5
3. Current situation..........................................................................................................................5
3.1 Problem Statement.................................................................................................................5
3.2 Opportunity Statement...........................................................................................................6
4. Critical assumptions and constraints...........................................................................................6
5. Analysis of Options and Recommendations................................................................................7
6. Preliminary project requirements................................................................................................8
7. Budget estimate and financial analysis........................................................................................8
8. Schedule estimate........................................................................................................................9
9. Potential risks.............................................................................................................................10
10. Conclusion...............................................................................................................................11
References......................................................................................................................................12
Appendices....................................................................................................................................14
1. Budget Estimation.................................................................................................................14
2. Schedule Estimation..............................................................................................................16
3. Risk matrix.............................................................................................................................19

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1. Project Background
The business plan contains “Implementation of logistics information system for Myer,
Australia to improve logistics operations”. The report is provided with understanding of the
framework of this particular business plan included learning theories for supporting this paper.
Myer is an up-market in the departmental store of Australia store chain. The company
retails wider range of the products like women, men, clothing of children, footwear and others.
Myer is used traditional system to deliver the products to the customers (reuters.com, 2019). The
current logistics operations of company involved to take raw materials and make physical
products transferred to the customers. It takes long time to deliver the ordered products to the
customers and there are also data entry errors of products in the stock.
In order to overcome with this problem, Myer desired to implement digital supply chain
involved digital products to be delivered to the customers. This system helps the customers to
provide information on availability of products, status of order as well as delivery schedule
promoted to the customer services. It lessens need of inventory in addition to human resources.
The performance of logistics information system provides impact on the cost structure, revenue,
quality of logistics services as well as competiveness within the Australian supermarket industry
(Timm et al., 2016). The logistics activities are evolved with changes into globalization,
restricting, production procedures plus technical advances.
By performing this business plan, triple constraint framework is used to analyze the
project time, cost and scope aligned with implementation of logistics information system for

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Australian industry (Lai & Cheng, 2016). The financial benefits and schedule plan is also
provided for successful completion of this project work.
2. Measurable Objectives
In order to overcome with inventory and supply chain issues of Myer, the management
team decided to implement the logistics information system for the company.. The
implementation work of the project is to be completed by the year 2020. The project work is
included with business plan 2020 and is aligned with the strategic business plan. It will ensure to
provide longer term viability and also increase into production and quality processes for
improving logistics operations. The implementation plan of the logistics system has been
completed with a budget of $20,000 (financial operating budget) to complete the project in 6
months. It is allowed of labor and staff costs for completion of project.
3. Current situation
3.1 Problem Statement
In the current business operations of Myer, globalization leads to increase into
complexity of supply chain. The current operation limits visibility of the supply chain at ordering
or product along with shipment alternatives. Therefore there is inaccurate plan, higher
operational cost and critical to forecast the products selling. Information as well as data is to be
passed between parties slowly, therefore it leads to poor response time (Barreto, Amaral, &
Pereira, 2017). The traditional logistics system is ineffective to handle the demands of customers
across channel access as well as inability to purchase and take delivery of ordered products on
scheduled time.

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3.2 Opportunity Statement
Due to implementation of logistics information system in Myer, there is opportunity to
improve over the customer services as they are required full transparency in the delivery
processes. The expectations of customers are increasing as they are unwilling to pay for anything
extra. The retailers are managed facilities for enabling to keep the stock into anticipation and
demand of the products. Through proposed system, the products are being transported efficiently
from order of the product to delivery to the customers (Basso et al., 2019). Then the retailers can
manage logistics operations which involved with various forms of transport and schedule and
availability of the products in the departmental store.
4. Critical assumptions and constraints
Following are list of the assumptions which are taken into consideration while meetings
with the business objectives such as:
 The equipments required to implement the system are outsourced by the
company.
 Training is provided to the staffs and company’s personnel’s so that they can
knowledge on handling the technical equipments. Training manual is also
provided as guidelines.
 The business profit is set to increase by 10% within 6 months.
 The actual budget is not so much greater from the estimated budget.
 The project personnel’s are required to train and have competencies for
undertaking the project tasks linked with the implementation work.

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 HSE needs are established with personnel’s ensured that proper processes are
adhered to the business work.
Following are list of the constraints which are taken into consideration such as:
 The operational hours worked by the staffs are 8:00 am – 4:00 pm.
 There is no health and safety guidelines are provided to the staffs to handle
and maintain the logistics information system.
 There is higher increase into the project schedule time; therefore they are
delay in the entire project completion time.
5. Analysis of Options and Recommendations
The option which is given for Myer to improve its internal logistics operation is
implementation of logistics information system so that the customers can get proper availability
information related to the product, status of their ordered products as well as schedule of their
product delivery (Laudon & Laudon, 2016). It helps the management team of the company to
promote their customer services.
It is recommended that the proposed system will help the business organization to
improve over the response time to the customers so that they can get proper details of their
ordered products from shipping to delivery process. It will help to reduce initial operational cost
as well as deliver of high return on investment so that it is expected from its implementation
plan. The project is recommended to proceed with schedule timeframe and can get a proper
capital project budget.

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6. Preliminary project requirements
The project manager is mainly responsible to complete the entire project work on
scheduled timeframe. The operation manager is performed and reviewed the work on weekly
basis so that on time they can make changes into the required logistics operations area. The
report is to be completed by following the scheduled estimate and budget estimate so that the
project can get success (Qu et al., 2016). The business plan is required to identify the issues
which are raised in the project due to use of traditional logistics system and unscheduled
activities are to be completed on urgent basis. The project manager is main person who is
responsible to meet with project requirements (Mehmood & Graham, 2015). The major measure
which is used to calculate the project success is key performance indicator.
7. Budget estimate and financial analysis
Following are the items which are included while estimating the project budget and
analyzing the finance of the implementation plan on logistics information system such as: The actual cost if the project has a cost variance which is approximately 2% from the
estimated budget cost. The main cost element of the project is labor those are involved in implementation work
of information system. The total cost associated with the project is consisted with its four phases is $84,160.00. The maintenance cost of equipments and system maintenance is not included into the
project budget (Wei et al., 2018). The additional prices outside of allocated budget are required to be included after
preparing the project budget plan.

10PROJECT MANAGEMENT There is no forecasted of any return through entire project work.
Below table shows the total budget estimated for the project with its min activities as:
WBS Task Name Cost
0
Implementation of logistics information system for
Myer
$84,160.00
1 Project Initiation $6,400.00
2 Process Planning and Scoping $15,360.00
3 System requirement analysis $53,360.00
4 Project Closure $9,040.00
8. Schedule estimate
The entire business plan is being scheduled to be completed in six months. The external
business operations of Myer are providing a bad impact on schedule so that the project is not
completed on time. It is a major issue where the budget of the busines plan is expected to affect.
Now extra allowances are to be added to the project schedule which caused delay into the project
completion date.
WBS Task Name Duration Start Finish
0 Implementation of logistics information 180 days Fri 8/2/19 Thu 4/9/20

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system for Myer
1 Project Initiation 13 days Fri 8/2/19 Tue 8/20/19
2 Process Planning and Scoping 26 days Wed 8/21/19 Wed 9/25/19
3 System requirement analysis 126 days Thu 9/26/19 Thu 3/19/20
4 Project Closure 15 days Fri 3/20/20 Thu 4/9/20
9. Potential risks
Risk analysis is performed through entire project work so that on time the project risks
and factors impacted the project success are identified and assessed. Following are list of the
project risks such as:
Failure to meet with the redesign business processes to fit with the information system:
The Company is fitted with new logistics information system to fit with their existing business
processes (Korpela, Hallikas, & Dahlberg, 2017). It is required to redesign current processes for
purchasing the information system. It is critical to change existing processes and customize the
system for fitting with current processes is time consuming.
Lack of management support: Support from the management is required to meet with
project objectives. When the management is not provided proper support to the project team,
then delivery to the customer is a risk (Tseng & Liao, 2015).

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Poor technology planning: Lack of technical expertise as well as improper technology
infrastructure to support the project needs is a risk for the project (Qu et al., 2017).
10. Conclusion
It is concluded that the business plan is allowed with analysis of the quality objectives for
assessing with the project success attained with strategic goals of the business organization. It is
supported by the business plan submitted by previous years. Benchmarking is required for the
employees to achieve feedback for system effectiveness. The financial benefits are a long term
needs for the project to get proper financial returns and as it is stated that financial returns are not
seen until vintage of 2020. If no such actions on the business problems are to be taken, then there
is loss of business organization is continue to boost into unsubstantial levels. Project schedule
and budget estimation is required so that the work is completed on scheduled timeframe. The
project work is to be monitored to keep the management update with the project progress. A
complete report is provided to evaluate the project problems as well as opportunities when
undertaking of future work.

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References
Barreto, L., Amaral, A., & Pereira, T. (2017). Industry 4.0 implications in logistics: an
overview. Procedia Manufacturing, 13, 1245-1252.
Basso, F., D'Amours, S., Rönnqvist, M., & Weintraub, A. (2019). A survey on obstacles and
difficulties of practical implementation of horizontal collaboration in
logistics. International Transactions in Operational Research, 26(3), 775-793.
Korpela, K., Hallikas, J., & Dahlberg, T. (2017, January). Digital supply chain transformation
toward blockchain integration. In proceedings of the 50th Hawaii international
conference on system sciences.
Lai, K. H., & Cheng, T. E. (2016). Just-in-time logistics. Routledge.
Laudon, K. C., & Laudon, J. P. (2016). Management information system. Pearson Education
India.
Mehmood, R., & Graham, G. (2015). Big data logistics: a health-care transport capacity sharing
model. Procedia Computer Science, 64, 1107-1114.
Qu, T., Lei, S. P., Wang, Z. Z., Nie, D. X., Chen, X., & Huang, G. Q. (2016). IoT-based real-
time production logistics synchronization system under smart cloud manufacturing. The
International Journal of Advanced Manufacturing Technology, 84(1-4), 147-164.
Qu, T., Thürer, M., Wang, J., Wang, Z., Fu, H., Li, C., & Huang, G. Q. (2017). System dynamics
analysis for an Internet-of-Things-enabled production logistics system. International
journal of production research, 55(9), 2622-2649.

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reuters.com. (2019). ${Instrument_CompanyName} ${Instrument_Ric} Company Profile |
Reuters.com. Retrieved 3 August 2019, from
https://www.reuters.com/finance/stocks/company-profile/MYR.AX
Timm, I. J., Woelk, P. O., Knirsch, P., Tönshoff, H. K., & Herzog, O. (2016). Flexible mass
customisation: managing its information logistics using adaptive cooperative multi-agent
systems. In Developments in Logistics and Supply Chain Management (pp. 203-211).
Palgrave Macmillan, London.
Tseng, P. H., & Liao, C. H. (2015). Supply chain integration, information technology, market
orientation and firm performance in container shipping firms. The International Journal
of Logistics Management, 26(1), 82-106.
Wei, W., Rahman, M. A., Ali, M. J., Bhuiyan, M. Z. A., Yao, L., & Tao, H. (2018, December).
Overview of Logistics Equilibrium Distribution Networks System: An Urban
Perspective. In International Conference on Security, Privacy and Anonymity in
Computation, Communication and Storage (pp. 282-293). Springer, Cham.

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Appendices
1. Budget Estimation
WBS Task Name Cost
0 Implementation of logistics information system for Myer $84,160.00
1 Project Initiation $6,400.00
1.1 Identification of the problems raised $2,800.00
1.2 Meetings with needs of project stakeholders $2,800.00
1.3 Sign off the business plan $800.00
2 Process Planning and Scoping $15,360.00
2.1 Gathering information on current situation of the company $1,600.00
2.2 Analyzing requirements of logistics information system $5,120.00
2.3 Scope statement $5,040.00
2.4 Review and approval of scope documents $3,600.00
3 System requirement analysis $53,360.00
3.1 Design the system as per requirements $5,760.00
3.2 Preliminary Conceptual Design $6,720.00

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3.3 Final design of information system $7,680.00
3.4 Develop test plan $18,240.00
3.4.1 Analyzing the test case for the information system $5,760.00
3.4.2 Identification of project resources $6,720.00
3.4.3 Identification of tools needed $5,760.00
3.5 Risk management plan $5,360.00
3.5.1 Identifying the risks in the project $3,920.00
3.5.2 Assessment of identified risks $1,440.00
3.6 User training $9,600.00
3.6.1 Setting the project schedule $6,000.00
3.6.2 Perform training to the company's personnel’s $3,600.00
4 Project Closure $9,040.00
4.1 Submitting the project report $2,880.00
4.2 Releasing the stakeholders $4,480.00
4.3 Final submission $1,680.00

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2. Schedule Estimation
WBS Task Name Duration Start Finish
0
Implementation of logistics
information system for Myer
180 days Fri 8/2/19 Thu 4/9/20
1 Project Initiation 13 days Fri 8/2/19 Tue 8/20/19
1.1
Identification of the problems
raised
5 days Fri 8/2/19 Thu 8/8/19
1.2
Meetings with needs of
project stakeholders
7 days Fri 8/9/19 Mon 8/19/19
1.3 Sign off the business plan 1 day Tue 8/20/19 Tue 8/20/19
2 Process Planning and Scoping 26 days Wed 8/21/19 Wed 9/25/19
2.1
Gathering information on
current situation of the company
4 days Wed 8/21/19 Mon 8/26/19
2.2
Analyzing requirements of
logistics information system
8 days Tue 8/27/19 Thu 9/5/19
2.3 Scope statement 9 days Fri 9/6/19 Wed 9/18/19
2.4
Review and approval of scope
documents
5 days Thu 9/19/19 Wed 9/25/19

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3 System requirement analysis 126 days Thu 9/26/19 Thu 3/19/20
3.1
Design the system as per
requirements
12 days Thu 9/26/19 Fri 10/11/19
3.2
Preliminary Conceptual
Design
14 days Mon 10/14/19 Thu 10/31/19
3.3
Final design of information
system
16 days Fri 11/1/19 Fri 11/22/19
3.4 Develop test plan 38 days Mon 11/25/19 Wed 1/15/20
3.4.1
Analyzing the test case for
the information system
12 days Mon 11/25/19 Tue 12/10/19
3.4.2
Identification of project
resources
14 days Wed 12/11/19 Mon 12/30/19
3.4.3 Identification of tools needed 12 days Tue 12/31/19 Wed 1/15/20
3.5 Risk management plan 16 days Thu 1/16/20 Thu 2/6/20
3.5.1
Identifying the risks in the
project
7 days Thu 1/16/20 Fri 1/24/20
3.5.2
Assessment of identified
risks
9 days Mon 1/27/20 Thu 2/6/20
3.6 User training 30 days Fri 2/7/20 Thu 3/19/20

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3.6.1 Setting the project schedule 15 days Fri 2/7/20 Thu 2/27/20
3.6.2
Perform training to the
company's personnel
15 days Fri 2/28/20 Thu 3/19/20
4 Project Closure 15 days Fri 3/20/20 Thu 4/9/20
4.1 Submitting the project report 4 days Fri 3/20/20 Wed 3/25/20
4.2 Releasing the stakeholders 8 days Thu 3/26/20 Mon 4/6/20
4.3 Final submission 3 days Tue 4/7/20 Thu 4/9/20

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3. Risk matrix
Probability
Consequences
Very low Low Moderate Major Critical
5- Very likely Failure to
meet with
the redesign
business
processes to
fit with the
information
system
4- Most likely
3- Likely Lack of
managemen
t support
Poor
technology
planning
2- Not likely
1- Rare
Red- Very high
Orange- High
Yellow- Medium
Green- Low
Grey- Very low