Information System for Perky Pies

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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 stakeholders and also the possibility of the system’s software to be incompatible with the company’s existing ERP systems. The benefits that could be reaped are better customer satisfaction, a competitive advantage and a higher profit as well as the increased speed of all supply chain activities. Hence, KGIS recommends that a supply chain management information system where the system supports the supply chain management activities by automating the tracking of the inventory and information both upstream, downstream as well as internally should be implemented so that the fulfilment, production, revenue and profits are optimised within Perky Pies’ supply chain management. This leads to customers’ satisfaction, better relationship with suppliers and also the resolution of issues faced by the franchise organisation’s supply chain management. The system’s specifications were outlined which covers the element hardware, software, data, procedures and people in the supply chain management of Perky Pies.

KGIS concludes that Perky Pies should implement an information system in their supply chain management to resolve the issues they face currently as well as to reap more benefits.

Introduction

According to Ireland and Webb (cited in Fawcett, Magnan & McCarter 2008),The strategic supply chain continues to be adopted by organizations as the medium for creating and sustaining a competitive advantage. Such a displacement is understandable considering the potential benefits of successful supply chain management. Kathy Walters, owner of Perky Pies who realizes that that the franchise’s supply chain management is defective has approached KGIS to rectify the situation. The purpose of this report is to create and implement an effective supply chain management (SCM) system to resolve the various problems faced by Perky Pies. This report will extensively cover the background information on Perky Pies and the problems encountered by Perky Pies. It also focuses on the concept of supply chain management (SCM) in relation to Perky Pies, issues that are encountered by Perky Pies if supply chain management (SCM) information system is implemented and the benefits that it can provide. The current trends and examples of SCM are also covered in the report. The report also constitutes of recommendation of a supply chain management (SCM) information system for Perky Pies and the specifications of the system.

Background

Perky Pies is a franchise organisation which sells a franchise for $20,000 to those who are interested who then buy pies from the organisation for a set fee and sell them to customers. These pies are sold at branches and stores set up based on a prescribed business model. Perky Pies who found that the lunchtime market is rapidly expanding, took the opportunity to sell gourmet pie which are high in quality to eat on premises or to take away. Perky Pies also found that customers are willing to pay higher price for a healthy and quickly obtained pie. Perky Pies’ products are produced in a variety of different flavours and are delivered to the branches upon order request. The centrally located commercial kitchen where the pies are produced receives the raw ingredients from...
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