Project Integration and Procurement Management Assignment 1 - Analysis

This assignment solution addresses project integration and procurement management within the context of the Australian retail market, specifically focusing on Coles. It begins by analyzing the Australian retail trade market, considering both private and business customers and their evolving purchasing behaviors, supported by relevant data and statistics. The solution then outlines sustainable procurement practices applicable to Coles, encompassing capital, maintenance, and operating activities, as well as project versus operational considerations. Furthermore, it explores the impact of new technologies on procurement processes, examining their effects on both end customers and producers within the supply chain. Finally, the solution presents a detailed project integration management plan for Coles, outlining a seven-step process for successful project implementation and management, including developing a project charter, project management plan, and managing project knowledge, work, and changes. The solution incorporates current business literature and journal articles to support its analysis and recommendations.

Assignment 1: Project Integration (Individual Assignment)
Answer 1:
Australia is known for being the most urbanized societies worldwide having population of
near about 27 million. The urban cities of Australia include Sydney, Melbourne, Adelaide,
Brisbane, and Perth and 90% of the population of reside in these urban territories. Having
significant growth in per capita GDP, Australian market witnessed a significant growth in the
retail sector even after some unfavourable conditions such as low wage rate and increased
household debt. The segmentation of the retail sector is done basis the product category,
distribution channel, and market dynamics (Mordor Intelligence).
From 2.2% growth rate in the year 2018, the retail turnover growth will show a downfall in
the year 2019 reaching to 1.5% and then expected to strengthen again in 2020 by 2.9%.
(Deloitte Access Economics’ latest quarterly Retail Forecasts subscriber report, quarter 2,
2019).
Although the employment rate is on its level best, still the household finance is under
pressure due to slowdown in the increment rate in the wage resulting to decline in wealth.
This impacts the spending pattern of the consumers (David Rumbens, 2018)
Key Market Trends

 Disruptive forces such as fluctuation in the spending pattern of customers and foreign
company influx, are the future of Australian retail sector. New retailing approaches are
being formulated by the foreign influx.
 Consumer preferences have changed due to the foreign company’s influx which is the
major cause of change in the retail landscape in the country. Technological advancement
has also resulted in the shift in consumer preferences.
 To identify non-responsive retailers, agility and multiplicity of delivery platforms is the
need of the hour for the retail sector in Australia.
 Mining and housing markets are the major private investors to drive the Australia’s
economic growth. However, the Reserve Bank target was not achieved in terms of
inflation which was 1.75%.
Major international players operating in the Australian retail sector: (source: Mordor
Intelligence)
1. ALDI Group
2. Metcash Limited
3. Woolworths Group Ltd
4. Big W
5. Wesfarmers Ltd
6. JB HI-Fi Ltd
7. Kmart Australia Limited
8. Myer Group Pty Ltd
9. Kogan.com Ltd

The purchase preferences of customers, both private and business, has now shifted from
online to handy, that is, from digital to mobile digital, which simply means customers want
things to be within their reach 24 by 7. According to (Carver, 2017), increasingly the mobile
phone is becoming the ‘remote control’ for people’s lives. Mobile Contactless Payments are
expected to double by 2021. According to TechCrunch there were 447.9m mobile payment
users worldwide at the end of 2016 with mobile payments anticipated to exceed US$60bn
globally by end of 2017 (Oh & Jeong, 2019). Increasingly mobile apps are becoming the
customer engagement platform of choice for Generation Z and Millennials.
Answer 2:
Best possible sustainable procurement practices for Coles are described below:
 Achieving significant cost savings by focusing on a “whole life costing”
methodology for procurement, incorporating the “three Rs” – reduce, reuse, recycle
– to cut waste and improve the efficiency of resources. (Nextenders, 2014)
o As per coles commitment, by 2022, 90% of all waste from landfill will be
diverted through a focus on reduction, reuse and recycling.
 Enhancing an organisation’s public image by demonstrating a sustainable
approach to business and championing related environmental and social benefits.
(Nextenders, 2014)
o All Coles Brand packaging would be recyclable by 2020 to make packaging
more sustainable.
 Opening fresh markets for new products and services through technology and
innovation. (Nextenders, 2014)
o Apart from existing product, new products need to be introduced in new
markets using innovative and advanced technology.

 Improving management information, allowing tighter control of business risk and
facilitating better supplier management. (Nextenders, 2014)
o Coles commitment is to reduce excess packaging across our stores and supply
chain.
o More recycled content in Coles Brand packaging
 Getting ahead of the game through the early adoption of practices dictated by
increasingly environmentally-focussed legislation. (Nextenders, 2014)
o Provide in-store soft plastic recycling options in every Coles supermarket
o Introduce new labelling to promote recycling
Answer 3:
Impact of technology on procurement process:
The evolution of technology in the field of procurement has changes the process drastically
which can be observed through the innovation of e-procurement process which has digitized
the entire flow of work. It has made ‘one to one’ communication between the buyer and the
supplier without any intervention (Rejeb A., Sűle E and Keogh G John, 2019).
Technology has not only made things simple but also complex at the same time. Procurement
is no longer a set of straightforward and simple steps. It takes into account many potential
factors contributing to the complexity. For instance, timeline and duration, human resources
involved in the process and decision making, the number of suppliers contacted during the
search process, negotiating tactics, business risk, the composition of the decision making unit,
post-purchase evaluation which may reshape future direction (Doyle, P., Woodside, A. G.,
and Michell, P., 2016).
New technologies in procurement:
1. Big data analysis

Large amount of data is received and stored on a recurring basis. Big data analysis manages
such complexities in the procurement process where in the data can be stored, analysed and
retrieved when required within fraction of seconds (Aryal, Liao, Nattuthurai & Li, 2018). It
reduces the human effort in a tremendous way and has proven to give phenomenal results in
the procurement process (Rai, 2019). The computer based process has led to the shift from
supply chain to a value chain network. The use of smart techniques in the procurement
process creates a near-perfect and real-time information between all the supply chain
partners.
2. Automation and Robotics
Autonomous robots are in a increasing category of devices, including aerial robots (drones),
that may be programmed to do duties that do not involve or interact with human beings. They
differ greatly from robot process automation to flying cars with strong picture and
information capability, from size, functionality, mobility, dexterity, to artificial intelligence
and price (Rejeb, Sule & Keogh, 2019). Increasingly, independent robots are programmed to
acknowledge and learn from their environment with artificial intelligence and take
independent choices.
Artificial intelligence and machine learning have has significantly contributed in the
procurement and supply chain process. One such example is the automated guided vehicles,
which enhances the information visibility to a great extent for both inbound and outbound
process. Breakdown in the production process is reduced and stock out problem is resolved
through the process of synchronization with the material warehouse.
3. Internet of Things
Using sensors, actuators, and data communication technology, the IOT concept is emerging
to work wonders in the area of procurement and supply chain. IoT devices use sensors to
measure particular world elements around them, including place, temperature, humidity,
light, motion, handling, motion velocity and other environmental variables. In several ways,
IoT devices have different factors such as RFID chips, smart devices and mobile sensors
(Osmonbekov & Johnston, 2018). Internet of Things phones in the supply chain are an
efficient way of tracking and authenticating products and shipments using GPS and other
techniques. They can also monitor product storage circumstances that improve quality
management across the supply chain. They help in data generation which is stored in the

cloud-based computing and used for further analysis to derive results for future. The size and
complexity of the procurement centers is reduced via support of IOT in the procurement
function. Use of GPS device provides access to the location of shipment and trace the
condition of the goods as well (Osmonbekov, T., and W. J. Johnston, 2018). This allows the
manager to have information of goods and hence minimize the risk factor.
4. Smart Contracts
Szabo defines smart contracts as “a computerized transaction protocol that executes the terms
of a contract” (Hackius, N., and M. Petersen, 2018). An intelligent contract is a self-imposed
agreement integrated with a blockchain's computer code. The Code provides for a set of
guidelines according to which the contracting parties agree to communicate. The contract is
automatically implemented when and when the predefined guidelines are met (Petersen,
Hackius & von See, 2018) Intelligent agreements provide efficient management processes for
tokenized assets and freedoms of access for two or more sides. It can be thought of as a
cryptographical box, which frees up value or access when certain predefined circumstances
are fulfilled. In procurement concept, smart contract are the logics behind any purchase
transaction. Smart contract is useful as the transaction process is done in a secure, trusted and
decentralized manner (Allam, 2018). It also acts as a defender to any potential loss by
ensuring payment of logistics would be given to the logistics company once it confirms the
delivery of raw materials in a proper manner and according to the predefined requirements.
Answer 4:
Project integration management plan for Coles:
Project
Name
Phase Start
Date
Start
time
End
Date
End
Time
Duration Over/Under
time
Material
Purchased
($)
(End-
Start)
date
(End-Start)
time

Integration is a process of collection of things to poll them for best possible results. Project
integration management plan is a plan which includes process collection of various project
elements and coordination among them.
According to PMBOK® Guide,
“Project Integration Management includes the processes and activities to identify, define,
combine, unify, and coordinate the various processes and project management activities
within the Project Management Process Groups” (Hairul Nizam Md Nasir, Sahibuddin,
Ahmad & Sanim Mohd Fauzi, 2015).
Seven step plans are described for a project integration to be successful:
1. Develop Project Charter
2. Develop Project Management Plan
3. Direct and Manage Project Work
4. Manage Project Knowledge
5. Monitor and Control Project Work
6. Perform Integrated Change Control
7. Project Closure
1. Develop Project Charter: The project carter includes the steps to guide the entire process
starting from planning to delivery of the project. The charter is a formal document which
creates a link between the project and the organization objective. This answers the ‘what’ part
of the project. The following points need to be considered while preparing a project charter:
 Project Vision
 Project organization
 Implementation
 Risk management
2. Develop Project Management Plan: A framework of various steps and process to be carried
in the project with defined time frames is included in project management plan. This typically
answers the ‘how’ part of the project. Few aspects of project management plan are described
below:

 An initial brainstorming meeting
 Explanation of overall project goals to stakeholders
 Duties of team members and stakeholders
 A scope statement
 Develop baselines
 Create a staffing plan
 Analyse risks
 Develop a communication plan
3. Direct and Manage Project Work: After the planning phase, this is next step which
provides a direction to the plans formed and finds out ways to increase the success of the
project through various techniques.
4. Manage Project Knowledge: It is required for continuous learning and development of the
organization through the project learnings. It is done by using the historical data and referring
to other similar project documents and workflow.
5. Monitor and Control Project Work: The processes and tasks within the project are properly
tracked and reviewed regularly to be able to update the stakeholders the accurate information
and maintain transparency. Few aspects are as follows:
 Provide consistent updates
 Revisit the scope statement
 Control baselines
 Focus on quality control
 Monitor and control risks
6. Perform Integrated Change Control: Various iterations with respect to changes are received
and required to be taken care of in this process. The final review of various change request,
documents relating to the project are performed to make the project ready for delivery.
7. Project Closure: The last step in the project integration management plan is to finalize all
the work done and proper screening of the workflow. This step is completed by creating a
release date and document for making the project live.

References:
Allam, Z. (2018). On Smart Contracts and Organisational Performance: A Review of Smart
Contracts through the Blockchain Technology. Review Of Economic And Business
Studies, 11(2), 137-156. doi: 10.1515/rebs-2018-0079
Aryal, A., Liao, Y., Nattuthurai, P., & Li, B. (2018). The emerging big data analytics and IoT
in supply chain management: a systematic review. Supply Chain Management: An
International Journal. doi: 10.1108/scm-03-2018-0149
David Rumbens (2018), Deloitte Access Economics partner and Retail Forecasts principal
author, Media releases, Retail Forecasts - June 2019
Deloitte Access Economics’ latest quarterly Retail Forecasts subscriber report, (Q2, 2019).
Accessible at - https://www2.deloitte.com/au/en/pages/media-releases/articles/retail-
forecasts.html
Doyle, P., Woodside, A., & Michell, P. (2016). Organizations buying in new task and rebuy
situations. Industrial Marketing Management, 8(1), 7-11. doi: 10.1016/0019-
8501(79)90012-9
Hairul Nizam Md Nasir, M., Sahibuddin, S., Ahmad, R., & Sanim Mohd Fauzi, S. (2015).
How the PMBOK Addresses Critical Success Factors for Software Projects: A Multi-
round Delphi Study. Journal Of Software, 10(11), 1283-1300. doi:
10.17706//jsw.10.11.1283-1300
Mordor Intelligence (2018), Article – ‘Australia Retail Sector- Growth, Trends and
Forecast(2019-2024)’, The Market Is Segmented On The Basis Of Product Category,
Distribution Channel, and Market Dynamics - Growth, Trends and Forecast (2019 -
2024). Accessible at - https://www.mordorintelligence.com/industry-reports/retail-
industry-in-australia
Nextenders (2014), Blog- ‘6 steps for sustainable procurement strategy’. Assessible at -
http://www.nextenders.co.uk/sustainable-procurement-strategy/
Oh, J., & Jeong, B. (2019). Tactical supply planning in smart manufacturing supply
chain. Robotics and Computer-Integrated Manufacturing, 55, 217-233. doi:
10.1016/j.rcim.2018.04.003

Osmonbekov, T., & Johnston, W. (2018), ‘Adoption of the Internet of Things technologies in
business procurement: impact on organizational buying behavior’, Journal Of Business
& Industrial Marketing, 33(6), 781-791. doi: 10.1108/jbim-10-2015-0190
Petersen, M., Hackius, N., & von See, B. (2018), ‘Mapping the sea of opportunities:
Blockchain in supply chain and logistics’, It - Information Technology, 60(5-6), 263-
271. doi: 10.1515/itit-2017-0031
Rai, S. (2019). Big data - real time fact-based decision: the next big thing in supply
chain. International Journal Of Business Performance And Supply Chain
Modelling, 10(3), 253. doi: 10.1504/ijbpscm.2019.100853
Rejeb, A., Sule, E., & Keogh, J. (2019), ‘Exploring new technologies in procurement.
Transport & Logistics’, The International Journal, 18(45). Retrieved from
https://www.academia.edu/38066745/Exploring_New_Technologies_in_Procurement