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Business Process Reengineering - Cargills' Food City Supermarkets.

Extracts from this document...

Introduction

Business Process Reengineering Cargills' Food City Supermarkets by Gehan Jayawardane Rasini Mahagamage Yusuf Ali Isaam GF0241COM GCOM-20000401-FULLTIME-1 Bachelor of Science in Computing Staffordshire University A project submitted in partial fulfillment of the award of the Bachelor of Science in Computing Presented to Syed Rehan ACKNOWLEDGEMENT We wish to express our sincere thanks to Mr. Sanjay Niles, who is the Financial Controller for the Cargills super market chain for giving of his valuable time to enlighten us on the operations of Cargills supermarkets. We wish to also thank Mr. Susith Dissanayake, the Manager of Staple Street Cargills for helping us to understand the processes that exist at the Supermarket. CONTENTS Purpose of Report . Cargills Ceylon Ltd. . The 'As Is' Process 4 'As Is' Findings 5 The 'To Be' Process 12 'To Be' Processes Overview 14 'To Be' Process Description 16 'To Be' Process Description 16 'To Be' System Workflow 20 'To Be' Working Environment 22 SWOT Analysis of 'To Be' System 23 Obstacles and advantages of the BPR initiative 27 Obstacles 27 Advantages 27 Transition from 'As Is' to To Be' 30 Conclusion 32 References 33 Purpose The study is on the working of the Cargills supermarket in Staple street, Union Place. The objective is to study the goals of the supermarket and the current processes and propose a new technology to help redesign the processes. The aim is to meet the goals of the company by increasing profitability and reducing costs and inefficiencies in the processes. The starting point of any BPR project is the customer focused processes within the company. This is due to the fact that customer is king and the firm should adopt to meet the needs and aspirations of the customer. By increasing the efficiency of serving the customer and reducing costs the firm will increase its organizational force and speed. To this end the customer focused processes should be looked at. ...read more.

Middle

A copy of the invoice will be handed back to the dispatch and the transaction will end; confirmation of delivery and payment received. 'TO BE' PROCESS DESCRIPTION PROCUREMENT 1A. Procurement of goods from a warehouse; * System generates order for the warehouse * Warehouse checks system orders and dispatches corresponding goods with Transfer Out note * Branch receives goods and acknowledges with Transfer In note 1B. Procurement of goods from external supplier; * System generates order for external supplier * Manager authorizes order and communicates order to supplier. * Branch receives goods and sends acknowledgment to supplier 2. Products are labeled SALES 1. Customer presents product to checkout counter 2. Product details are entered into system using barcode 3. Value is determined and customer is informed 4. Customer makes payment and receives receipt 5. Customer accepts goods CALL CENTER REGISTRATION 1. Customer applies for call center service 2. Manager approves customer application and registers customer 3. Customer is provided with ID and personal identification number CALL CENTER PURCHASING 1. Customer calls 'Call Center' 2. Customer identifies and authenticates himself 3. Customer informs 'Call Center' personnel of order 4. Order is read back to customer 5. Customer enters PIN and confirms order 6. 'Call Center' personnel informs customer of projected delivery time 7. 'Call Center' personnel communicates (electronically) order to dispatch 8. Dispatch personnel gather goods and generate invoice. 9. Dispatch personnel schedule delivery 10. Goods and invoice a sent to delivery 11. Goods and invoice are delivered to customer 12. Customer makes payment and receives receipt via affixing of seal on customer invoice copy. 13. Copy of invoice is returned to dispatch 14. System is updated See diagram. CALL CENTER PURCHASING 'TO BE' SYSTEM WORKFLOW PROCUREMENT (FROM WAREHOUSE) PROCUREMENT (FROM SUPPLIER) SALES CALL CENTER REGISTRATION CALL CENTER PURCHASING 'TO BE' WORKING ENVIRONMENT ORGANIZATIONAL CULTURE - Require focus (or re-focus) on customer needs and satisfaction - Adapt to change and constructively assess new systems to further their efficiency - Understand benefits of Information Technology TECHNOLOGICAL ENVIRONMENT - New input devices (e.g. ...read more.

Conclusion

IMPLEMENTATION OF THE 'CALL CENTER' SYSTEM The call center process will be completely new to the existing system, with the addition of new infrastructure etc. Inventory management for example (the development of which is currently not focus) will need more attention if it is to place a strong supporting role to the call center. The introduction of the call center as a new process rather than a morph or amalgamation of an existing process little affects existing processes. While support from existing processes is required, the introduction of the call system will not affect the fundamentals of the process. Overall, owing to the fact that the organization has a culture of change acceptance in all strata of the organization, the transition from the current system would not be faced with many difficulties and would probably be smooth. CONCLUSION Cargills Food City, Staples Street, Colombo 2 is an efficient organization, constantly endeavoring to improve itself with the goals of supporting the customer. Though the organization is efficient and can easily be considered as a benchmark for the industry in many aspects, certain processes need re-engineering to create optimal resource management and performance. With analysis it was evident that processes relating to the customer relationship and sales were being compromised and as a result of the efficiency reducing, customer dissatisfaction was rising. Two main features of reengineering are the use of barcode stickers in place of traditional stickers and the implementation of Customer Relationship Management through the use of a 'call center' allowing customers to make purchases using a telephone rather than having to visit the supermarket. Usage of the existing resources (especially the efficient IS that is in place) is the hallmark of the re-engineered efforts. The question of cost justification does not even occur when presented with the benefits of the system, both from a sales as well as customer satisfaction perspective. Issues surrounding the implementation, though very few, should be addressed an the organization should ensure effective and smooth transition to new reengineered processes, changing not only the technological working environment but also the organizational culture. ...read more.

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