MNG03218 Report: Analyzing and Implementing SCM System for XYZ Company

This report focuses on the implementation of a Supply Chain Management (SCM) system at the XYZ Company, a restaurant in the hospitality industry. The report begins with an introduction to the company and the challenges it faces in its supply chain. It then delves into the organizational context, external and internal environments, and identifies the problems and opportunities for Information Systems/Information Technology (IS/IT). The report justifies the chosen SCM system and discusses its analysis, design, development, testing, and implementation phases. It also covers post-implementation activities, project management, change management, and risk management. The SCM system aims to address issues such as lack of transparency, real-time information, and delays in the supply chain. The system includes order acquisition, fulfillment, and collaborative order management. The report highlights the use of interviews to gather requirements and outlines the development, testing, and implementation processes, including unit and integration testing. The SCM system is designed to improve inventory management, order processing, and overall supply chain efficiency, leading to better customer service and reduced costs.

Running head: INFORMATION SYSTEM ADMINISTRATION
INFORMATION SYSTEM ADMINISTRATION
Name of student
Name of university
Author’s note:

1
INFORMATION SYSTEM ADMINISTRATION
Executive summary
The report intends to discuss the implementation of the supply chain management system in
the XYZ company that would help in eliminating the issues of supply chain. The XYZ
Company is a popular restaurant that works in the hospitality industry and specialises in the
various kinds of meat provided to the customers. The company procures the raw materials
from the suppliers and then produces the goods according to the specifications of their
customers. This report intends to discuss the implementation of SCM system in the XYZ
Company that would help in eliminating the issues faced in supply chain management.

2
INFORMATION SYSTEM ADMINISTRATION
Table of Contents
Introduction....................................................................................................................3
Organisational context...................................................................................................3
External and internal environments...............................................................................4
Identification of problem and opportunity for IS/IT......................................................5
Justification of chosen system........................................................................................6
System analysis and design............................................................................................7
Development, Testing and Implementation...................................................................8
Post implementation activities.......................................................................................9
Project management, change management and risk management...............................10
Conclusion....................................................................................................................11
References....................................................................................................................12

3
INFORMATION SYSTEM ADMINISTRATION
Introduction
In present times, there is a common trend of introducing the modern technologies in
the business that helps in ensuring that the business functions properly. Various technologies
are being introduced in the hospitality industry that would help in managing the major aspects
of the business. The XYZ Company is a popular restaurant that works in the hospitality
industry and specialises in the various kinds of meat provided to the customers. The company
procures the raw materials from the suppliers and then produces the goods according to the
specifications of their customers. This report intends to discuss the implementation of SCM
system in the XYZ Company that would help in eliminating the issues faced in supply chain
management.
Organisational context
The industry in which the XYZ company functions is the hospitality industry that is
observed to be effectively growing in the modern times. The hospitality mainly deals with
providing the customers with the best quality products and services with the help of modern
technology. The XYZ company presents executes their business with the conventional
methods and with the increase of demand in the company, there are several issues faced in
the business that are leading to the decrease in revenue gained by the company.
The mission statement of the XYZ company is the creation of apparel company that
could provide the superior designs, quality as well as value to consumers. The company
would achieve this task by being significantly committed to providing services as well as real
value to the business consumers as well as the partners.
The vision of the company is that “We strive in being the global leader in the fashion-
knit and the fashion outwear by the empowering of innovation as well as design for providing
the complete customer satisfaction. We strive in being the caring as well as properly managed

4
INFORMATION SYSTEM ADMINISTRATION
organisation for the business partners, employees and customers as well as the responsible
corporate citizen to the society.”
External and internal environments
SWOT analysis of XYZ company could be considered as:
 Strengths: Unique designing abilities, strong presence in the market, brand value and the
design advantage
 Weaknesses: Lack in advertising, Generalised collection, and the reduced security stock
 Opportunities: The Online eCommerce presence, supporting some of the designs of
flagship, developing market potential, market development
 Threats: Reduced advertising, grasp of the company and competition
In the present times, the most promising technology that is reaching the hospitality
industry is the implementation of the IoT technology. This particular technology is help in
mechanising the world by allowing the people in interacting with the daily life objects using
the internet. With the introduction of the IoT technology in the hospitalityindustry, the
companies are gaining the innovative methods of providing the customers with the most
improved services.
With the introduction of the artificial intelligence in the hospitality industry, the
companies in the hsopitality industry are discovering the improved methods of doing business
effectively. The social media platform in providing the customers with the effective platform
for mending as well as shaping the trends. Instead of manually gathering the data the
managers of restaurants are presently using the artificial intelligence technology for
collecting, organising, analysing as well as sorting the data into associated categories. The
customers are presently provided with the most optimised platform for searching the products
according to their preferences and order the products using the mobile applications.

5
INFORMATION SYSTEM ADMINISTRATION
In the present times, the internet access is significantly readily available and with the
introduction of smartphones in the businesses of hospitality industry, the customers are being
provided with the most optimised products and services. With the introduction of the
applications of social media, the digital wallets as well as the communication applications, it
has become clear that implementation of the mobile phones in the present times is helping the
customers of hospitality industry significantly.
Identification of problem and opportunity for IS/IT
The hospitality industry in the present times, has become significantly volatile aspect
because of the various costs, risks as well as the demand for the products and materials that
changes frequently and the global factors like the economic environment are some kind of
challenges that are residing in the clothing industry. In the hospitality industry, if anything
slows or even stops movement of the materials as well as the food products could be
considered as the issue in supply chain. It may be the issues involved with the stocking of raw
materials, increasing tariffs in the countries where suppliers, warehouses as well as the
factories are established. These challenges in the supply chain could have the major impact
on the profits of the company and it could also make the daily business processes
significantly unpredictable. The most common supply chain issues in the hospitality industry
of XYZ restaurant are the lack of transparency among the various departments related with
the supply chain and the lack of centralised platform in the company for gaining real-time
information about the occurrences in supply chain of company.
The company does not have the resources of viewing all the real time information
regarding the major happenings in supply chain of company. XYZ company is facing this
issue majorly when there is any shipping damage as well as the lost shipments and the
company cannot gain the real time information regarding the delays and the customer are not

6
INFORMATION SYSTEM ADMINISTRATION
provided with the products in specified time. The overseas manufacturing delays information
is also not gained by the company in real time that is restricting the company to introduce the
contingency plans for the improvement of supply chain. As the main raw materials are
procured from the companies of various countries, sometimes, there are delays made by the
suppliers in providing the products in specified time. The laws of the countries sometimes,
plays the major role in delaying the delivery of products to the company.
Justification of chosen system
At the most basic level, the supply chain management system could be described as
the management of the flow of the goods, finances and the data associated with the services
or products from obtaining the raw materials to the delivery of finished product at the final
destination (Niu et al. 2017). Presently, the digitally dependent SCM system includes the
materials handling as well as the software for all the parties associated with the creation of
the product or the services, the order fulfilment, as well as the information tracking, like
suppliers, wholesalers, manufacturers, the retailers, transportation as well as the logistics
providers (Giannakis, Spanaki and Dubey 2019). The activities in supply chain mainly spans
through the procurement, supply chain planning, the product lifecycle management, logistics
as well as the order management (Gao et al. 2018). The applications in the modern times of
includes the innovative technologies to the manufacturing and it has been labelled into the
Industry 4.0 or the fourth industrial revolution (Marota et al. 2017). In the industry 4.0 the
methods by which the enterprises applies the technology to supply chain is basically different
from the methods by which the technologies were integrated in the past (Xu et al. 2017).
The introduction of the various technologies in supply chain management system
within the XYZ Company helps in predicting any cause of delays in the supply chain and
discover the alternative methods of avoiding the delays. The technologies introduces the

7
INFORMATION SYSTEM ADMINISTRATION
centralised platform in the XYZ Company that allows the transparency between the various
parties associated in the supply chain management. Information could be analysed and then
accurate data could be deduced (Christopher 2016). The industry 4.0 supply chain
management offers the significant advantage over the conventional supply chain management
because it allows the aligned planning and the execution along with delivering the substantial
cost savings (Fredendall and Hill 2016). The product development could be closely associate
with the customer demand and it creates the accurate forecast in the companies (Suryanto,
Haseeb and Hartani 2018).
System analysis and design
The main functional specifications of the SCM system in the XYZ company are the
order acquisition, order fulfilment and the collaborative order management. During the order
acquisition phase, the main goal of the company is obtaining the order whose terms are the
consensus among the organisation as well as the customers by eliciting the needs of
customers as well as the available options of communication. The modified supply chain
management system in the company should provide extensive transparency in the
information flow among the various groups associated in supply chain of the company. The
system should provide the accurate inventory management option for tracking as well as
managing availability of the raw materials, and the stocked goods (Genovese et al. 2017).
This particular features should help with the asset management, forthcoming inventory and
the price forecasting (Yusuf and Shehu 2017).
The system should provide extensive order management for automating the processes
of purchase orders that includes the production as well as tracking the purchase orders,
scheduling the deliveries of the suppliers as well as creating the product and pricing
configurations (Meredith and Shafer 2019).

8
INFORMATION SYSTEM ADMINISTRATION
The methods that have been used for generating information regarding the SCM
system in the company is interview processes with the employees of the organisation. With
the help of accurate interview with the employees of the organisation, all the requirements of
the various employees could be effectively derived and depending on the requirements, the
implementation of the modules of SCM system could be done effectively. The interview of
the managers of the organisation helps in deducing the manager level requirements from the
system, that includes the report generating and accurate forecasting. And the interview with
the other employees of the organisation helps in deriving the basic functions that are required
from the system. The interview with the suppliers helps in deducing the solutions for all the
issues faced in order management and generation of invoice of the supplies provided.
Development, Testing and Implementation
All the required hardware for the new supply chain management system would be
purchased from the vendors of IT products and the software would be rented from the third
paXYZ software vendors. The vendors would be contacted for gaining the hardware products
and then all the required hardware would be implemented in the company according to the
specifications of the new system. The best quality software that would be needed for the
various modules of the SCM system would be rented from the third party vendors for
eliminating the issues of software upgrading.
Unit testing would be executed on the software of SCM system where the individual
components of the software would be tested. The main purpose is the validation of each of
the software executes as designed. The software developers would be performing this testing
for validating each of the units of the software.
In the integration testing phase, the various modules of supply chain management
system would be integrated and then analysed as the group. The main intention of this stage

9
INFORMATION SYSTEM ADMINISTRATION
is exposing the faults within the various interaction among the integrated units. The test
drivers as well as the test stubs would be used for assisting with the integration testing.
After testing the integrated software, the system testing phase would be initiated. The
system testing would be utilised for validating the total and complete joined software product.
The main intention of this system test is the evaluation of the end-to-end specifications of the
system.
After executing the testing of integrated software, the user acceptance testing would
be executed. A team of end users would be employed in the company would be provided with
some test conditions of the software and the complete system. After conducting the user
acceptance testing with test users, any issues found in the system would be mitigated before
deploying the system in the company.
Post implementation activities
After implementing the system in the company, the review phase would be initiated.
The employees would be provided with the review form that would be required to be filled by
the users. The emphasise would be provided to the importance of being significantly open as
well as honest and the users of the system would not be punished if they are open. The
practices as well as the procedures would be documented that has led to the success of the
project. If any issue has been detected during the review of the system, the project team
would be contacted and then the appropriate fix for the issue would be implemented before it
impacts the organisation significantly. A help desk as well as the support team would be
introduced in the company whose sole task would be the consideration of all the issues faced
by the users of the system and determine the most urgent issues that are required to be
mitigated.

10
INFORMATION SYSTEM ADMINISTRATION
Project management, change management and risk management
The sponsor of this project would be the manager of XYZ company who needs the
improved supply chain management system in the company for ensuring that all the supply
chain issues in the company are mitigated (Suter II 2016). The risk management system in the
company would be implemented that consists of the three crucial sectors, risk assessment and
analysis, risk evaluation as well as the risk treatment
The initial stage of the process of risk management is referred as the risk assessment
and the analysis (Bahr 2018). The risk assessment would be used for evaluating the exposure
of the organisation to some kind of unspecified events that could impact the system and also
estimates the major damage that could be imparted by the events on the revenue and the
reputation on the organisation. With the effective assessing as well as analysis of all the risks
of the system, the XYZ company would have the ability of protecting the assets, enhance the
decision making as well as optimising the operational efficiency across board for saving time,
money as well as the resources (Aven 2016).
The next stage of the risk assessment is the risk evaluation. After executing the risk
assessment, the risk evaluation would be conducted (Slovic, Fischhoff and Lichtenstein
2016). The risk evaluation would be mainly used for comparing the predicted risks against
the risk criteria that are already established in the organisation.
After conducting the risk assessment of the system in the organisation, the risk
treatment as well as response would be initiated. In this stage, the implementation of the
policies as well as the procedures would be done for avoiding as well as minimising the
major identified risks. The risk transfer as well as the risk financing would be executed if it is
required in the organisation.

11
INFORMATION SYSTEM ADMINISTRATION
Conclusion
Therefore, it could be concluded from the above discussion that the introduction of
the improved supply chain management system would assist the company in management of
the supply chain more proficiently. The system would be implemented in the organisation
and then the testing of the system would be done for ensuring that none of the issues causes
any major damage to the organisation.