Proposal To Implement Supply Chain Management Program Essay

1589 Words 7 Pages
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
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• Differentiate products and services
The company may stand different from other companies which do not offer the same products and services.

• Serve new markets
By going online, the company would attract new market segments who are the frequent users of the internet or those who prefer online shopping.

• Lock in customers and suppliers
By using efficient customer response and supply chain application.

At the firm level, the system can be used to:
• Achieve new efficiencies.
• Enhance services by tying together the operations of separate business units.
• Promote sharing of knowledge across business units.

At the industry level, this system will:
• Promote competitive advantage by facilitating cooperation with other firms.
• Creating avenue for sharing information, exchanging transactions or coordinating activities.

6.0 Justifications
Sustainable Competitive Advantage through e-Commerce can be supported by the Porter's Five Forces Analysis and Value Chain Analysis.

6.1 Porter's Five Forces Analysis
As described by Porter's Competitive Forces Model, there are five important forces that determine competitive power in a situation. These are:

Supplier Power
Here, we assess how easy it is for suppliers to affect prices or in other words, to drive up the price. The power over prices normally driven by the number of suppliers that we have, the quality and uniqueness level of their

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