Proposal To Implement Supply Chain Management Program

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Project Proposal Sheet

1.0 Idea

HANA KIMI CO. would like to adopt an online Supply Chain Management System (SCM) whereby the customers may buy company's products online via company's website and able to track the status of the order including the availability of the stocks by integrating the Online Sales System with the company's Inventory, Manufacturing and Production System.

2.0 Type of Project

√ Revenue Generating

√ Cost Savings

3.0 Type of System

Horizontal:

The implementation of the online SCM will involve the operational level only

Vertical:

The following functions will be integrated:

* Manufacturing and Production System

* Sales and Marketing System

* Inventory System

4.0 Business Imperative

To perfectly match the supply side activities of procurement, production planning, distribution planning, production allocation, warehouse planning, inventory planning and so forth with the demand side activities of incoming orders and forecasts so that all demands are met with the least cost and most convenience, and as the initial step for the implementation of Enterprise Resource System (ERP).

5.0 Benefits

The online SCM system and ERP support various business strategies for competitive advantage over other companies, among others: Support business strategy, and provide E-Business benefits.

5.1 Support Business Strategy

At the business level, this system helps the company to:

• Reduce operating costs

The system attempts to integrate business processes across departments onto a single enterprise-wide information system. The major benefits are improved coordination across functional departments and increased efficiencies of doing business. The immediate benefit from implementing ERP systems w...

... middle of paper ...

...e shared among various business functions, thereby resulting in tremendous cost savings and increased efficiency.

When making the implementation decision, management must considered fundamental issues such as the organization's readiness for a dramatic change, the degree of integration, key business processes to be implemented, e-business applications to be included, and whether or not new hardware need to be acquired. In order to increase the chance of user acceptance, employees must be consulted and be involved in all stages of the implementation process. Providing proper education and appropriate training are also two important strategies to increase the end user acceptance rate. The organization is also going through a drastic change, with changes in the way businesses are conducted, the organization being restructured, and job responsibilities being redefined.

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