Part I: Case Study Analysis of Clambake Company
Organizational growth determines the complexity of internal processes. Clambake Company has grown tremendously and with the current headcount of thirty individuals, the company requires robust and coherent control system. It is difficult to evaluate the performance and the impact of the current information systems on organizational activities due to the data limitations. It is evidenced, however, that the projected growth and current setting of the company will benefit from the implementation of a user-friendly and integrated Management Information System (MIS). Given the fact that the company will grow through acquisition and will increase its headcount from current thirty to fifty-four employees, the challenges in the adjustment of skills and expertise will place further pressure on the business processes (Kroenke, 2013).
With the above mind, the evaluation of the suitable technological solution should consider the three elements: cost-effectiveness, integration between Finance and Sales interface and “intuitivity” of the system interface, functions and layout. Based on these considerations, it is recommended to focus on Supply Chain Management (SCM)-oriented MIS for Small and Medium Enterprises (SMEs). Taking into consideration that the market offers effective off-the-shelf solutions, which comprise SCM, Sales and Finance interface, a ready solution can provide cost-effective solution (Blackwell, Shehab, and Kay, 2006; Levi and Powel, 2005). One of the basic solutions for the company would be to implement and Systems Application Product (SAP) SME Business All-in-One solution, which allows complete management interface for the HR, finance, SCM and Customer Relationships Management. Some of the critical for the Clambake Company elements include Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) and SAP Finance Interface as it will allow for cross-functional planning and management (Chocron and Steigerwald, 2010; Gupta, 2011).
Part II: Wal-Mart
Wal-Mart Stores Inc., founded in 1969, is the world´s leading chain, operating over 100,000 stores across 29 countries. The company works with various store formats, starting from the Wal-Mart Supermarkets, wholesales Sam´s Club stores, outlets, small and neighborhood markets and other concepts under the Walmart and Wal-Mart brands (Chandran, 2003). The majority of the Wal-Mart´s operations are fully owned, and this asset-heavy strategy continuously places emphasis on the cost-effectiveness of the Supply Chain Management (SCM) operations of the company, where Wal-Mart became an exemplary and pioneering in many senses organization.
Traditional SCM includes various constructs, such as purchasing, operations, distribution and integration. The scope and scale of the activities within these elements and their automation define the complexity of the SCM ( The University of San Francisco, 2014). The secret of the Wal-Mart´s SCM strategy is the efficiency of the upstream operations, which enable significant cost-saving in operations and storage as well as high level of on-shelf availability. First of all, the company operates a fully integrated SCM management system, which links the activities on the downstream of the retail stores with the manufacturing facilities and suppliers. The company widely utilizes postponement and targets zero buffer stock at the distribution and retail locations (ASA, 2011). As such, once the cashier in a given retail location makes a purchase of an item, the information is automatically sent all the way up the SC to the distribution center and the manufacturer of the product or its components.
Innovation of SCM management is evidenced in the distribution practices, which almost eliminate unproductive inventory, logistics operations which utilize less-then-truck-load (LTL) practices and administration management (Traub, 2012). This system superiority allowed the company to beat the barrier of a minimum three days stock replenishment and made it one of the leading SCM companies in the world. The combination of progressive and embracing SCM practices significantly reduced the cost structure of the company and, consequently, increased its operating profit. Today, Wal-Mart is effectively manages even such complex products as fad items, which become a cost stumble block for many of its competitors (ASA, 2011).
References
ASA (2011). Supply Chain. ASA Research. Retrieved 3 April 2014, http://www.asaresearch.com/ecommerce/supplychain.htm
Blackwell P., Shehab E.M., and Kay J.M. (2006). An effective decision-support framework for implementing enterprise information systems within SMEs. International Journal of Production Research, Vol. 44, Issue 17. Print.
Chandran M. (2003). Wal-mart´s Supply Chain Management Practices. OPER-20. ICRM Case Collection. Center for Management Research. Retrieved 3 April 2014, http://mohanchandran.files.wordpress.com/2008/01/wal-mart.pdf
Chocron and Steigerwald (2010). The Roles of Functional and Cross-functional Planning in Managing the Enterprise . Integrated Management Systems. Retrieved 3 April 2014, http://www.imsi-pm.com/home/library/functional_planning.pdf
Gupta H. (2011). Management Information System. An Insight. New Delhi, IN: International Book House. Print.
Kroenke, D. (2013). The Importance of MIS. Using MIS (pp. 216-245). Upper Saddle River: Pearson Learning Solutions.
Levy M., and Powel P. (2005). Strategies for Growth in SMEs: The Role of Information and Information Systems. Burlington, MA: Elsevier Limited Publishing. Print.
SAP (2014). SAP Business Solutions for SMEs. SAP Corporate Website. Retrieved 4 April 2014, http://www.sap.com/solution/sme/software/erp/all-in-one/index.html
Traub T. (2012). Wal-Mart Used Technology to Become Supply Chain Leader. Arkansas Business [Online]. Retrieved 4 April 2014, http://www.arkansasbusiness.com/article/85508/wal-mart-used-technology-to-become-supply-chain-leader?page=all
