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CHAPTER ONE
INTRODUCTIONc
In every business organization, the
prime concern is to maximize profit after the deduction of all expenses and to
make it a going concern. To maximize profit, there must be adequate and proper
planning in all departments of the organization including purchasing and supply
departments and co-ordination by management. The supply chain encompasses all
of those activities associated with moving goods from the raw-materials stage
through to the end user. Advocates for this business process realized that
significant productivity increases could only come from managing relationships,
information, and material flow across enterprise borders. The best companies
around the world are discovering a powerful new source of competitive
advantage. It’s called supply-chain management and it encompasses all of those
integrated activities that bring product to market and create satisfied
customers.
The Supply Chain Management Program
integrates topics from manufacturing operations, purchasing, transportation,
and physical distribution into a unified program. Successful supply chain
management, then, coordinates and integrates all of these activities into a
seamless process. It embraces and links all of the partners in the chain. In
addition to the departments within the organization, these partners include
vendors, carriers, third party companies, and information systems providers.
The supply function continues to
evolve as technology and the worldwide competitive environment require
innovative approaches. The traditionally held view that multiple sourcing
increases supply security has been challenged by a trend toward single
sourcing. Results from closer supplier relations and cooperation with suppliers
question the wisdom of the traditional arm’s-length dealings between purchaser
and supplier. Negotiation is receiving increasing emphasis as opposed to
competitive bidding, and longer-term contracts are replacing short-term buying
techniques. Organizations are continually evaluating the risks and
opportunities of global sourcing. All of these trends are a logical outcome of
increased managerial concern with value and increasing procurement
aggressiveness in developing suppliers to meet specific supply objectives of
quality, quantity, delivery, price, service, and continuous improvement (Evans,
2011).
1.1
Theoretical Background
Supply chains encompass the companies
and the business activities needed to design, make, deliver, and use a product
or service. Businesses depend on their supply chains to provide them with what
they need to survive and thrive. Every business fits into one or more supply
chains and has a role to play in each of them.
The pace of change and the uncertainty
about how markets will evolve has made it increasingly important for companies
to be aware of the supply chains they participate in and to understand the
roles that they play. Those companies that learn how to build and participate
in strong supply chains will have a substantial competitive advantage in their
markets.
The term “supply chain management”
arose in the late 1980s and came into widespread use in the 1990s. Prior to
that time, businesses used terms such as “logistics” and “operations
management” instead. Some definitions of a supply chain are offered below:
- A
supply chain is the alignment of firms that bring products or services to
market.
- A
supply chain consists of all stages involved, directly or indirectly, in
fulfilling a customer request. The supply chain not only includes the
manufacturer and suppliers, but also transporters, warehouses, retailers,
and customers themselves.
- A
supply chain is a network of facilities and distribution options that
performs the functions of procurement of materials, transformation of
these materials into intermediate and finished products, and the
distribution of these finished products to customers.
Effective supply chain management
requires simultaneous improvements in both customer service levels and the
internal operating efficiencies of the companies in the supply chain. Customer
service at its most basic level means consistently high order fill rates, high
on-time delivery rates, and a very low rate of products returned by customers
for whatever reason. Internal efficiency for organizations in a supply chain
means that these organizations get an attractive rate of return on their
investments in inventory and other assets and that they find ways to lower
their operating and sales expenses.
1.2
Statement of Problem
Most suppliers lack the technical
expertise to dispense their duties. This may lead to situations where the
supplier selected cannot meet the capacity and logistics requirement of the
company. Another problem is inadequate supplier selection and this is one of
the most important decisions in the purchasing process. There is also the
problem of lack of good contractual arrangement and a clear description of the
product or supplier requirements may not be available. Also, there are delivery
problems. Suppliers deliver too late, deliveries are not complete, products are
damaged or may not meet quality requirements, packaging of the product is not
sound and information labels in most cases cannot be read. The reason for this
can be traced back to unclear specifications or careless supplier
specification. The purchasing and supply department of many business
organizations lack clear rules and guidelines with regard to procurement and supply
governance. It is in view of these problems that this research study is carried
out.
1.3 Aim and
Objectives of the Study
The aim of the study is to implement
an automated system for supply management. The following are the specific
objectives of the study:
- To
develop an automated system for supply management to manage supply
functions
- To
develop a system that will aid easy capture and retrieval of supply
details.
- To
develop a system that will help in maximizing profit by determining
priority of supply
- To
develop a system that will present reports of supplies when needed by
management.
1.4
Significance of the study
The significance of the study is that it will provide a better means of
managing the supply function of Pepsi bottling company. It will enable the
organization to maintain adequate record of supply records and to easily
update, retrieve and get reports when needed. It will facilitate the
maximization of profit by enabling the organization to determine the priority
of supply. The study will also serve as a useful reference material to other
researchers seeking for information on the subject.
1.5 Scope of
the Study
This study covers automated
system for supply management using Pepsi Bottling Company, Ikot Ekpene as a
case study.
1.6 Organization
of the Research
This research work is organized into
five chapters. Chapter one is concerned with the introduction of the research
study and it presents the preliminaries, theoretical background, statement of
the problem, aim and objectives of the study, significance of the study, scope
of the study, organization of the research and definition of terms.
Chapter two focuses on the literature
review, the contributions of other scholars on the subject matter is discussed.
Chapter three is concerned with the
system analysis and design. It presents the research methodology used in the
development of the system, it analyzes the present system to identify the
problems and provides information on the advantages and disadvantages of the
proposed system. The system design is also presented in this chapter.
Chapter four presents the system
implementation and documentation, the choice of programming language, analysis
of modules, choice of programming language and system requirements for
implementation.
Chapter five focuses on the summary,
constraints of the study, conclusion and recommendations are provided in this
chapter based on the study carried out.
1.7
Definition of Terms
Customer: buyer: a person or company that buys goods or
services
Supply: To provide, give, sell, or make available
something that is wanted or needed by somebody or something.
Management: Administration of business, the organizing and controlling of
the affairs of a business or a sector of a business
Distribution: The handing out or delivery of things to a number of
people.
AUTOMATED SYSTEM FOR SUPPLY MANAGEMENT USING PEPSI BOTTLING COMPANY
Chapters: 1 - 5
Number of Pages: 70
Price: 3000 NGN
In Stock
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