Information System Implementation in Supply Chain Management Initiative Case Study in XY Company

Abstract

Supply Chain Management (SCM) has been recognized as foremost business strategy that can improve business process, save costs, enhance company’s revenue. This strategy application spans all range of businesses from manufacturing to service company. In order to be successful, SCM requires full commitment from corporate executive, supported by thorough strategic and tactical planning. In this report, we audit current supply chain status of PT XY and aim to identify some processes where ineffective operations are being carried in its supply chain activities. The company currently struggles to hold their position in overseas market from vicious competitors from China and Vietnam. Therefore, XY wants to make better and more rapid supply chain decisions in response to volatile customers demand and increasing supply costs. Based on the findings of XY business situation, we recommend process improvements in supplier relationship, product development, transport management, procurement activity and customer relationship management, which will increase XY customer service level. We also propose supply chain information system (SCIS) implementation in production planning, inventory control and distribution which will improve XY supply chain processes, support critical strategy decision and give significant advantages over its competitors.