Management Information System
BY: Mohamed Kathafi Eyahudeen
ID NO: 12222
UNIT LEADER: George
From a very simple beginning to a grand success story, ODEL has changed the clothing retailing business in Sri Lanka with leaps and bounds. ODEL offers not just clothing solutions for its millions of customers spread across borders, but a change in life style and a memorable shopping experience. How does the leading clothing retailer in Sri Lanka actually conduct their operations so efficiently to satisfy not only the domestic market, but also its international market? Not visible to those who visit their shopping arcades or visit their online store, there is an advanced Information Technology enabled system with professionals working tirelessly to provide their customers with a satisfying shopping experience.
This is the reason I have selected ODEL as the organization under my purview for the purpose of my assignment on Management Information System within the CMI Level-07 Executive Diploma in Management. This report is based on the information I received from the head of Information Technology during my visit to the ODEL head office in Sri lanka when I was in my holiday.
2. Analysis of the ODEL value chain
In order to understand the activities through which ODEL develops its competitive advantage and create value for its stakeholders, it is useful to separate its business system into a series of value creating activities as referred to in Michael Porter’s value chain model.
Figure 1: Porters Value chain (Source: CIMA Organisational Management & Information systems study text)
2.1) Inbound Logistics
This is concerned with receiving and warehousing of fabrics in the ODEL Warehouse at Rajagiriya and distribution for stitching as and when they are required. The item wizard in administration module is updated every time a new item needs to be purchased and new supplier details added. After entering the required quantities and other information regarding the purchase, the PO is automatically generated. The supplier then, delivers the goods along with the supplier’s invoice, and the receiving department raises a GRN and accepts the goods after checking with the details in the Purchase Order.
The receiving department then passes on these items to the Quality checking department where quality inspections will take place. After quality checking is done they are transferred to the relevant stores. ODEL has 2 main storing facilities categorized under off ware and Main ware.
This is generally concerned with the transforming of inputs into finished goods. ODEL does only a very small proportion of manufacturing in their factory which accounts for only about 1% of the total items displayed in their outlets.
Main operation at ODEL is the clothing retailing activity. There are POS terminals at each outlet where transactions will be recorded when customers purchase items and make payments for them. These POS terminals are connected to a store server having a native client data base. There are seven ODEL outlets and each having a database where store details and movement of inventory and sales data are recorded. This server is in turn connected to the Head Office main server.
2.3) Outbound logistics
Outbound logistics is concerned with warehousing and distribution of ready made garments to relevant outlets. When goods are released from one location to another, these data will be updated in the Microsoft Dynamics NAV 4.0 system’s Retail Module. Until the receiving store or warehouse manager log in to the system and update it as accepted, these will be shown as goods in transit.
2.4) Marketing and Sales
The identification of customer needs and the generation of sales are normally covered under this category.
This refers to support granted for customers...