ASSIGNMENT 3

I. Theoretical basis
1. Meet quality standards
a. Accuracy
Supply chain information must be accurate and reliable to prevent problems like stock
shortages, transportation delays, and dissatisfied customers. Incorrect information can
lead to severe consequences, so it's crucial to ensure reliability and trustworthiness in
decision-making.
b. Accesability
Supply chain managers face challenges in accessing accurate information due to scattered
systems managed by external organizations. Technical issues must be addressed, and
trust built between organizations to ensure efficient supply chain management.
c. Relevancy
Supply chain managers require relevant and essential information for efficient decision-
making. Too much data can cause distractions and waste time, so irrelevant details should
be avoided.
d. Timeliness
Supply chain information needs to be up-to-date and available in a reasonable time frame
to be relevant. Timely data from a highly synchronized SCIS allows managers to monitor
supply chain conditions and respond quickly with corrective actions to avoid problem
escalation.
e. Transferability
To facilitate accessibility and timeliness, information in the supply chain must be
transferred quickly between locations and systems. Paper-based systems cannot support
these requirements, so information must be in electronic formats that can be readily
transmitted and converted.
f. Usability
Information must drive effective decision-making, so up-front efforts must be made to
define information requirements and capture appropriate data. This will avoid capturing
unnecessary data that won't be used by supply chain decision makers. Information is only
useful if it can be seamlessly shared and translated from one format to another without
any loss of data.
g. Reliability
Reports and transaction data sets must contain reliable and authoritative information from
within the organization and trusted supply chain partners. The data provided must be
accurate, unaltered, and reasonably complete to support intended uses. When incomplete
or estimated data is provided, a clear explanation of the missing values and assumptions
is needed to adjust a supply chain manager's analysis accordingly.
h. Value
Achieving the seven quality standards for supply chain data is expensive and challenging.
The hardware and software required are costly, with an average spend of over half a
million dollars for supply chain software. Executives must ensure that proposed
information technology investments provide tangible performance benefits.
2. Factors affecting the ability to develop supply chain and solution
functions
The importance of supply chain information technology has been organizations. Apple,
Amazon, Procter & Gamble and other members of Gartner admit it
 The ability to reduce perceived risk is necessary to limit supply chain
costs and drive organizational revenue growth.
To do that, a company must succeed on three factors:
- the entire planning, purchasing, manufacturing, shipping and return processes of the
supply chain are facilitated.
- a tightly linked network of integrated technologies
- identify risks to overcome and maximize profits.
 Some of the capabilities a supplier needs to maintain and improve the
supply chain
Organizations need technology to help them grow.
That is, information systems must support cross-chain visibility, flexibility, speed,
synchronization, adaptability, segmentation, and optimization. Helping organizations
achieve significant levels of performance
Below are some of the capabilities that suppliers need to maintain and improve supply
chains

 Cross-chain visibility: Managers should control key supply chain

operations. Supply chain is a prerequisite for effective decision making and
quick response to issues. It provides instant access to global supply chain
information, alerts generation, management support and trade facilitation.

 Agility: It allows managers to recalibrate plans and react to fluctuations in

supply and demand. It offers the ability and flexibility to deliver comparable
customer support, quality, and cost.

 Velocity: It stipulates that the speed of products circulating in the supply

chain must match customer expectations.

 Segmentation: It allows organizations to tailor supply and demand

responsiveness to optimize net profit per customer segment.

3. Software selection
When choosing supply chain software, managers must decide which type is needed,
compare commercial and in-house solutions, choose between single or multiple vendors,
and consider licensing options.
a. Development Alternatives
Organizations can choose to develop supply chain software in-house or purchase it from
external vendors. In-house solutions provide customization tailored to the company's
needs but are costly and time-consuming. Most organizations rely on external software
vendors as these tools can be implemented faster, built with interoperability in mind, and
have some customization ability. This approach is suitable for most organizations with
less complex supply chains.
b. Solutions Packages
When purchasing software, organizations can choose to buy individual applications from
various providers, an integrated suite from a single vendor, or a mix of both. Single
vendor suites have advantages such as lower implementation time and cost, fewer
compatibility issues, and easier training. However, they may not have the advanced
functionality found in best-of-breed applications. The challenge is for buyers to
understand their organization's needs and the constantly changing vendor landscape.
c. Purchase Options
Supply chain software buyers historically had to license and install software on their
client-server systems, which was costly and complex. However, the internet and cloud
computing have changed the landscape, and software as a service (SaaS) is now a popular
option. SaaS offers fast implementation, low capital requirements, scalability, easy web-
based access, and simplified software upgrades. However, potential issues such as data
security, service outages, and regulatory compliance must be considered.

II. Case study summaries

Two college roommates, Pat and Jeff, created an inflatable tent after their original one
was destroyed. They won a competition and used the prize money to start Inflate-a-Dome
Innovations (IDI). With the help of a supply chain management grad, Vic, they were able
to better manage inventory, production, and transportation. IDI's success grew
exponentially after a Hollywood star used their tents at her wedding reception. Inquiries
from retailers and licensing groups increased, causing Vic to worry about the SCIS's
ability to handle increased demand and variety. A strategic planning meeting was needed
to address the concerns about supply chain ability, flow and its technical problems

III. Solution for case study

Question 1 : As its customer base grows and becomes more diversified, how will the
information requirements of the IDI supply chain change?

As the customer base of IDI grows and diversifies, the information requirements of its
supply chain will become more complex. The company will need to manage a wider
variety of products, which will require more detailed and accurate inventory
management. The company will also need to be able to handle larger order sizes and
more complex shipping and delivery requirements. In addition, as the company expands
into new markets and sells to larger retailers, it will need to meet more stringent quality
and performance standards. All of these factors will require a more sophisticated supply
chain information system that can handle increased volume and complexity. The SCIS
will need to be able to provide real-time visibility into inventory levels, production
schedules, and shipping status, as well as support more advanced forecasting and
planning capabilities. Overall, the information requirements of the IDI supply chain will
need to become more comprehensive and integrated to support the company's growth and
diversification.
As the customer base of IDI grows and becomes more diversified, the information
requirements of the company's supply chain will also change. Here are some potential
changes that may occur:
 Increased demand for customized products: As IDI begins to receive orders
from sporting goods retailers, NCAA licensing groups, and Amazon.com, it
may need to provide customized products, such as tents in new colors or with
college logos. This will require the company to have accurate and up-to-date
information about its inventory levels, production capacity, and raw material
availability.
 Larger order sizes: With orders ranging from 50 to 500 units, the company
will need to ensure that it has enough raw materials and production capacity to
meet demand. This will require a more sophisticated inventory management
system that can accurately forecast demand and optimize production
schedules.
 Expanded distribution network: With more retailers and distributors selling
IDI products, the company will need to manage a more complex supply chain,
including transportation and logistics. This will require better coordination
between suppliers, manufacturers, and distributors, as well as more advanced
technology to track shipments and manage inventory across multiple locations.
 Increased emphasis on data analytics: With a more complex supply chain
and more diverse customer base, IDI will need to collect and analyze more data
to make informed decisions about inventory levels, production schedules, and
distribution. This may require the use of advanced data analytics tools and
software to help identify trends, forecast demand, and optimize supply chain
operations.
In summary, the information requirements of the IDI supply chain will need to evolve as
the company grows and expands its customer base. This will require more sophisticated
inventory management systems, better coordination between suppliers and distributors,
and increased emphasis on data analytics to support informed decision-making.
Question 2 : Given its anticipated volume growth and inventory variety expansion,
what supply chain capabilities will IDI need?

Is an important function in the Supply Chain of any business. The inventory management
process must work closely with the entire chain.
First of all, we must understand what is inventory?
Inventory is the amount of goods kept in the warehouse. Includes finished goods and
unfinished products (Unfinished goods – components, ingredients, raw materials, semi-
processed materials, and subassemblies). However, actual inventory is complex and has a
huge impact on the performance of the entire supply chain. Therefore, businesses need an
effective Inventory Management plan.
IDI will need much tighter inventory management capabilities. They will have a wider
variety of production materials, a much larger number of units in stock, and a higher level
of finished products.
In the current situation where order size is growing at an out-of-control rate With massive
volume growth anticipated, there will be additional capabilities that need to be developed
in the supply chain, therefore, There is also a certain complementarity between
information requests such as:
 Centralized control system
 Demand forecast
 Integrated business planning
 Process optimization
 Better shopping and delivery
The supply chain capabilities required for Products due to volume growth and inventory
diversification expansion are as follows:
 Cross-chain visibility: Managers should control key supply chain
operations. Supply chain is a prerequisite for effective decision making and
quick response to issues. It provides instant access to global supply chain
information, alerts generation, management support, and trade facilitation.
 Agility: It enables managers to recalibrate plans and respond to fluctuations
in supply and demand. It offers the ability and flexibility to deliver comparable
customer support, quality, and cost.
 Velocity: It provides that the speed of the product circulating in the supply
chain must match the customer's expectations.
 Segmentation: It enables organizations to adjust supply and demand
responsiveness to optimize net profit per customer segment.
Question 3 : In preparation for the strategic planning meeting, what technology
risks must Vic think about?

As an enterprise, vic should evaluate and review the entire process of its supply chain,
thereby drawing experiences and risks that may be encountered in its supply chain.
Below are the risks that vic may have to anticipate and overcome

Overall risk – demand risk, environmental risk, business risk, supply risk and physical
plant risk in addition to planning and control risk, contingency risk and production risk
and related technology risks
In the context of the current 4.0 technology era, it is impossible not to mention the
developed software and technology equipment to serve our lives in entertainment as well
as in work, but besides that, There are always risks involved.
System vulnerabilities and their security concerns
Downtime and risk of data loss
The technology risks that should be considered during the preparation of the strategic
planning meeting are as follows:
• During the strategic planning meeting, the supply chain manager should focus on the
functionality of the software. Because, it can lead to implementation and operational
problems.
• Unplanned IT or telecommunications disruptions can cause supply chain disruptions. So
the manager should focus on IT software and networking.
Question 4: With limited funds available, what SCM software should Vic
recommend? Why?