Information System for Perky Pies

1689 Words Mar 1st, 2013 7 Pages
Executive summary

This report provides an analysis of Perky Pies, a franchise organisation’s business background and the problems it faces in its supply chain management. Furthermore the concept of supply chain management was defined and the issues and benefits that results from implementing an information system in Perky Pies’ supply chain management were outlined.

A Supply Chain Management is a business model which is integrated and takes a view of how all business functions work together and also the relationship a business has with its suppliers and customers.

The report finds that the main issues the Perky Pies will face when a supply chain management information system is implemented are resistance from employees and internal
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Lately, Perky Pie’s central office has been receiving increasing number of complaints from their branches regarding the delivery of pies such as incorrect numbers, delays of orders and out of date pies. Some of the pies supplied from the kitchen in Footscray were defrosted hence had to be thrown away. Also, there are excessive amount of items which needs refrigeration and this leads to wastage and/ or there is an excessive production of some varieties of pies compared to others. These problems lead to wastage of inventory and money. It is believed by the owner that the problems have been caused by the rapid development of the business and the lack of information system in upstream and downstream of the supply chain. Hence, Kathy Walters has approached KGIS requiring advice on implementing an information system on Perky Pies’ supply chain management.

Supply Chain Management Systems

1 The meaning of SCM

The Supply-Chain Council defines supply chain management as “[m]anaging supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and order management, distribution across all channels, and delivery to the customer” (Wisner, Leong & Tan 2005).

2 Issues and Benefits

Resistance from employees and internal stakeholders is one of the issues of implementing a SCM information system (EPIQ Technologies 2012 ). Employees tend to do what feels

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