Bp Case Study

Topics: Management, Supply chain management, Process management Pages: 19 (5841 words) Published: October 7, 2011
This is a research analysis report on BP Connect Convenience Stores’ Supply Chain Management Process using appropriate analysis models, and identification of key issues operations management issues within the organisation. This report has identified strategic fit between the organisation’s current portfolio processes and systems. The overall process flow of the supply chain has been identified and described in details by using appropriate operation management theories and organisation’s operations. Suitable financial evaluation of cost implications has been identified and described of organisation and its stakeholder, shareholders in particular. Innovative recommendations for appropriate and effective operations management strategy deployment. Suggestion of budget and evaluation methods for the recommended Operations Management Strategy implementation.

BP Connect Convenience Store Supply Chain Management System Process CUSTOMER




Order Processing Delay Old Order Information / Stock Shortage




BP and M&S Food have a joint venture and BP is responsible for sale of M&S Food products in its BP Connect Convenience Stores at its Petrol Pumps. BP Connect stores also buy other products from different suppliers like Coca Cola, Pepsi, Newspapers, and other groceries items. The above data flow diagram shows the supply chain management process. This process shows how the purchase order generates everyday and how the products have supplied to different stores. The main problem of this process is delay and to analyse the causes of this problem cause and effect analysis has been used to identify the causes. Cause-and-Effect Analysis Dr. Kaoru Ishikawa, a Japanese quality control statistician, invented the fishbone diagram. Therefore, it may be referred to as the Ishikawa diagram. The fishbone diagram is an analysis tool that provides a systematic way of looking at effects and the causes that create or contribute to those effects. Because of the function of the fishbone diagram, it may be referred to as a cause-and-effect diagram. The design of

the diagram looks much like the skeleton of a fish. Therefore, it is often referred to as the fishbone diagram. In case of supply management process of BP Connect stores the


Stock Reorder Level Order Processing Stock Updation Deliveries


Automated Order Generation Stock Management Skills

Inventory Control System Problem Solving Skills


Here, the root causes that determine how good or how bad the end product of customer service might be are hypothesized and sorted into a standard 3M&P model: Methods: Methods are the processes and procedures used by management in order to manage the stock in every single BP Connect store. These could be: Stock Reorder Level: BP Connect has an automated stock maintain system and this system has set stock reorder level for every product. This system is

directly connected with the store sales. Stock checking is also done by duty managers in store and they also input the data in the system. System also tells them that how much stock is available in the store, and how much to order? Managers have to input the details of the waste, damages, and also have to generate the purchase order till 10pm every day. There is no automated system available to checking the waste and damages and it has to be done manually. The purchase order cannot be updated when it is done.

Stock Updation: There is a central database and stock is updating on continuous basis but after purchase order generation the system cannot update the purchase order. The main problem which store managers and customer services assistant faced is stock shortage because BP Connect has 24 hours services and it has been noted that different product stock finish in the night and in morning when the delivery...
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