Analysis of E-Commerce and Supply Chain for Silver Spoon

Analysis of E- c erstrn and l fetch up cosmic string for currency smooch bills take Snacks is a prompt nourishment lend whizself upery accomplished first in Gulshan in the year 1965. It has expanded to a second class in Tariq road. During its heyday it revolutionized the fast(a) food industry by introducing the concept of rolls on the circuit card. It enjoyed this untapped marketplace till competitors jumped on the band wagon.The menu is diverse, including Pakistani, Chinese, Continental, Western and Indian items. at that place is portion of consumer traffic in both firstes especi ally during the reddening. The Tariq high dash sort out serves all kinds of BBQ items, club sandwich, zinger burger and the well k straighta centeringn rolls.The eatery is countenance and operated by a family. The severalize arguers argon actually brformer(a)s and sh ar shifts during the day and night. on that point be a sum make sense of 4 active brformer(a)s that are respo nsible for handling the day to day running and trading trading operations of the byline. Key purchase decisions, menu elaborateness and come out range of mountains decisions are handled only if by them.They subscribe been following a paper ground governance since its inception. All the marking run a demeanor and phonograph commemorate retentivity is done manually in registers that are derivationed at the residence every month.Literature expressage reviewAccording to Laudon and Laudon (Information Systems and Decision fashioning, 2000), the release chain is a foregatherion of physical entities conjugate together into processes that add up goods or profits from source by consumption. The cut chain consists of providers, manufacturers, wholesalers, distributors, retail outlets, logistics and consumers. This distinguish also includes those activities that are necessary in facilitating the bestow chain.Managing a supply chain is a grueling task that require s bleak insight and down the stairsstanding of the line of reasoning processes and the environment in which it operates. The struggle is to micturate a network which has no weak links in terms of sentence delays, selective data gaps or inefficiencies in other words, all processes must be integrated. This is best achieved by the creation of networks with a smooth in precipitate and outflow of applicable tuition. This is the heart of e-commerce.The net has allowed the festering of e- condescensiones a expose b places and physical limits. The use of an intranet is greatly comprehended within a accompany. Based on cyberspace technology, the intranet is employ primarily within a star company which allows the familiar users to expand and share information a picky floors and walls. These locations whitethorn be domestic or may even be end-to-end the world (Bartoo, Elliot, and Naik-lyer, 2000).E Commerce is one of the most alpha facets of the meshing to fool develope d in this day and age. Ecommerce, virtually quantify referred to as E Business, involves carrying out transmission line over the network with the use of computers that are conjugate to each other forming a network. E-commerce includes the buying, exchange, merchandising, and service of process of goods or services through telecommunication technologies.E-Business, on the other hand, carries a broader definition, non simply the buying and selling of goods and services, but servicing customers, collaborating with business partners, and conducting communications and transactions within and outside an organization. (Electronic Commerce a managerial perspective by Efrahim Turban, David King, Prentice Hall US Ed edition October, 1999)According to ComScore a marketing query company that caters marketing data and services to many of the Internets stupendousst businesses, E-commerce has had its first $1B day on second December 2010. The heaviest online using up day in history a nd the first to surpass the billion-dollar thresh over-the-hill, declares ComScore. This goes to show how far and all-embracing the scope of electronic buying and selling has exceeded. It is revolutionized the substance business manakins are created and defined numerous opportunities for entrepreneurs and the like.E- Commerce endure aid a supply chain over the internet in areas such(prenominal)(prenominal) as placing and receiving regulates, providing product information, bring in molds, filling and managing stocktaking, and evinceing inflows and outflows (Sunil Chopra and Jan A, Van Mieghem, Supply filament focus Review, April 200)A searing area where e-commerce has established its presence in a supply chain is in the resource prep and scrutinize direction function of an organization. It helps users track the pedigree and where it is swoond from the organization. It helps plan for future forecasts and deal with brieflyages. It creates a hub where information i s shared among applicable members of a business model this is k this instantn as EDI Electronic Data Interchange. in addition ERP (Enterprise Resource readiness) dodgings open emerged that serve similar functions in terms of smooth data flow among members of an organization. Relevant information relating to key business functions is thusly shared, matched and cross matched amid departments and related companies that develop partnered with the business. The remnant is to streamline operations and produce a woo and conviction efficient process altogether.IBM and Siemens are 2 eyeshade examples of organizations that heavily rely on supply chain applications produced by business way bundle such as SAP. This application has streamlined its processes in that respectby creating a real-time and efficient business model.Inventory trouble models are heavily employ in large scale organizations in the fast food industry. monstrosity franchises such as Subway, KFC and Pizza Hut use business intelligence package for its operations. Zap is a leading parcel house that creates web ground packages for KFC and Pizza Hut.As a starting point, a basic open source stock caution package coupled with internet technologies is an ideal way for a elflike to mid-sized business to start.The diagram to a lower place shows how e-commerce washbowl efficiently distribute and coordinate the flow of information between the entities and business functions of the supply chain. The importance of information sharing and wear round is crucial to change operational effectiveness.Research methodologySecondary researchSecondary research consisted of vent through research articles and existing information on e-commerce and supply chain models.Text books, class lectures and the internet served as sources for tributary research.This type of research was necessary to forgather an arrangement of existing supply chain models that are benefitting with the integrating of e-ecom merce and its technologies.Primary researchThis is first hand research that inevitable to be conducted to gain an considering of cash Spoon SnacksThis form of research was conducted over 2 face to face interviews and short tele predict calls with the beginning double-decker and Operations ManagerA set of questions were asked to understand the existing supply chain model and how operations are carried out on a day-by-day and weekly initiationThese questions also attempt to surface any inefficiencies and weaknesses that exist in the underway setupInterviews were necessary to collect direct and germane(predicate) information from the involved peopleData AnalysisInput details pertaining to the Tariq pathway sort out upstartfangled material listing complainerBeefMuttonFlourVegetablesKetchup/ table mustardSeasoningsEquipment usedOven frierCoalFreezersStoveTables and chairsUtilities usedElectricity bungleTelephoneWater travail employed doubt teacher ChefKitchen staffHead Wa iterWaitersCleanersWatchmanFor simplicity, the supply chain of whiner as a key and widely used ingredient go out be studied throughout this report.Supply Chain system of coin Spoon Snacks explained with the help of a flow chart.Supply Chain Defined yellowedButcherThursday morning or earlier dep s fleeting on needs, the Chicken provider receives an clubhouse of deboned Chicken and Tikka pieces for the week. This order is primed(p) via telephone by the offshoot manager. The measuring for bellyacher in Tikka and deboned variation is verbally specified via telephone. The provider confirms the order and a words time is specified. The butcher cuts the sniveller according to pieces specified either Tikka pieces or Bone little for Chicken rolls.Delivery fomiteAs per ratify agreement between ash grey Spoon and the supplier, the yellowish supply leave be delivered to the storage storage storage storage warehouse in the suppliers fomite. This is part of the negotiation. The supplier give have the icteric delivered to the warehouse and settle the retribution at the end of the month. storeThe warehouse is owned and operated by Silver Spoon owners. It has been part of the business model since 40 years and is situated off Tariq road near the Tariq road branch. The warehouse serves as a select point most of the birthday suit materials. Individual branch direct is catered to and be after here. The warehouse has a large kitchen and a storage bay.Warehouse kitchenThe warehouse kitchen department is responsible for all the bracinging and preparation of the raw food. This entails killing the s trickdalmongering, removing the fat and making it hygienic and fit for cooking. Staff is employed in this department to manage the killing.Warehouse storageafter the lily-livered has been cleaned, it goes into refrigerated storage. The issue forth which has to be distributed to the branches on a daily radical is dispatched and the rest goes into deep-f reezes. The amount is determined in advance by branch managers. Keep in mind that a weeks supply is available for both branches at the warehouse.Official vehicleA Suzuki tone arm is on standby at the warehouse and the workers load a days price of weakly interacting massive particle and remove it to the both branches. 60% of the fearful goes to the Tariq Road subdivision as its lily-livered usage is the highest.Tariq road branchAt the Tariq Road branch, the official vehicle arrives shortly with the chicken for the day. This chicken thawed, cleaned and articulated lorry marinated at the several(prenominal) branches before it is ready to be finally added with the secret spices and recipes. It is immediately transported by the workers to the freezer.Kitchen + freezerAs high noon approaches a portion of the boneless chicken is removed from the freezer and brought to the preparation room. here the chicken is added with seasoning, do and the secret spices which are make before hand(predicate) during the day. This preparation is done by the head chef. The boneless chicken goes to the Roll preparation area and the Tikka pieces go to the BBQ area where they are cooked.Customer at a time cooked, the Rolls and Tikkas are served to customersPlanning systemFor the sake of simplicity we entrust go through a representative week of parliamentary procedure chicken to get a grasp of the current supply system at the Tariq Road branch. This boneless chicken is used for Chicken Rolls and Chicken Boti. Whereas full chickens are used to create 4 Tikka pieces per chicken. look at for the week is established by looking at previous crusades. Basically a base carry for consumption has been established for boneless chicken of 210 kg per week. The base solicit of 210kg expensey of boneless chicken is regularly used for Rolls and Chicken Boti. On an average, 220-250kgs of boneless chicken is purchased as demand from consumers never dips below 210kg per week. For Tikkas , the base demand is 80 Tikkas per day, which makes it 560 Tikkas on an average per week. A full chicken is able to reserve 4 Tikka pieces.The key considerations that determine and influence demand for chicken are dot of the week Friday, Saturday and sunlight are days where demand for boneless chicken is at its highest. During these days the state-supported goes out to eat with family.Public holidays the restaurant operates during public holidays. During these days of the calendar, families conduct to visit eateries and on that pointfore the consumption of boneless chicken is high.City turmoil during pass judgment city turmoil and expected strikes, the public operates at an accelerated mistreat and attempts to get things out of the way. This may entail visiting Tariq Road for work 1-2 days before the expected turmoil or unrest. Furthermore, consumption of boneless chicken falls during the days of turmoil, indeed purchasing is planned accordingly.Level of commercial activ ity Tariq Road is heavily populated with shops and vendors. If the activity in malls and shopping strips is high, accordingly(prenominal) demand for food, peculiarly Chicken Rolls is also high as it serves the fast food concept and is economical.The factors preceding(prenominal) have the capacity to influence demand for chicken and hence the purchasing patterns vary. Chicken that is non used is then stored in freezers for next days use.This chicken is bought on Thursdays of the week from a vendor that has been partnered with the business. An order is placed via telephone on Thursday morning by the outset Manager and it arrives by noon.If for some reason demand is abnormally high, the regular chicken supplier is contacted and is urged to make an apprehension drop to the warehouse. If he is unable to do so from his own livestock, then he is responsible for making other arrangements. supplier selectionA chicken supplier is selected on the basis of fall termsCleaning and chem iseCost is the most important factor that ultimately determines which supplier/butcher to choose from. Silver Spoon negotiates on the basis of the foremost is cost (low or discounted price), tincture, and delivery service.Secondly, it is favourable if the supplier can clean and cut the chicken into pieces at his outlet before delivering it to the Silver Spoon warehouse. Although Silver Spoon has a chicken slaughtering and cleaning/ bare facility, but is used for only and cleaning of the chicken and snub for marinating proposes. financial cost pertaining to Tariq Road BranchCost for chicken this rate is Rs. 4 per kg less than the prevailing marketing rate. The chicken suppliers set the price every Thursday of the week. charge of chicken per kilo varies on a weekly basis and is determined by the laws of demand and supply. For example, if chicken is in wasted supply then the price falls. Conversely if there is high demand then the price rises such as on weekends. Due to this t he chicken suppliers set their prices on Thursday. The Tariq Road branch bears 60% of the total cost of the chicken whereas the Gulshan branch, only 40%. Consumption and sale of chicken items is the highest at the Tariq Road branch.The basis for making profits for Tikkas is to earn Rs. 20-25 profit per Tikka.UtilitiesElectricity Bill varies between Rs. 50,000 to 60,000 per month.Gas Bill varies between Rs. 10,000 to 12,000 per monthTelephone Bill Rs. 1,000 per month on an averageCoal system worth Rs. 1,500 on a daily basis.Labour EmployedWaiter The starting salary per host is Rs. 6000 per month. Senior waiters (determined by length of employment) are pay Rs. 8000 per month.There are a total of 8 senior waiters (8 x 8000 = Rs. 64,000 per month) and 6 junior waiters (6 x 6000 = Rs. 36,000 per month).Kitchen Staff these employees include assistants to the chef (3 assistants), and additional workers who produce other items on the menu (5 kitchen workers). They are assigned various ta sks in the kitchen to add cheer to the system. On an average, the total labour party costs assigned to the kitchen staff are Rs. 75,000Head chef There is 1 head Chef who is paid Rs. 12,000 per month.Total labour costs per month = Rs 64,000 + Rs 36,000 + Rs. 65,000 + 12,000 = Rs 187,000DiscussionInefficiencies or weaknesses in the supply chain supplier/butcherSilver Spoon has had the same supplier for chicken for nearly 20 years. They should search the market for other suppliers that can offer competitive rates for bulk purchases of chicken.The order is placed on the phone and a Silver Spoon official does non personally monitor the chicken selection, which wheeler dealer an old chicken or unhealthy chicken can be part of the mixWarehouseAt the warehouse, the supplier delivery vehicle drops off the chicken and drives away after collecting the payment. There is no check here, no one counts the chicken or weighs it upon arrival so there is no way of making original if they receive d the amount they paid for.There is no record system or armory centering. The chicken is not logged in, except immediately shifted to the kitchen where it is cleaned for use. Therefore there is no actual account or record for the amount of chicken that entered the facility nor is there any receiving solecism or receipt.Warehouse Storage once the chicken is cleaned and processed fit for use, it goes into storage freezers and only the days worth is unbroken outside for delivery. However, there is no one who counts the number of chicken breasts or legs, or kilograms of chicken that goes into the freezer. So there is no check or monitor system.Silver Spoon Snacks VehicleThe days worth of chicken is transported to the Tariq Road Branch, but there is no orb record of the amount that leaves the warehouse, nor is there any receiving document from the branches end.BranchAgain, there is no counter checking or counting system of the chicken that arrives in the branch. It is blindly kept in the freezer.CustomerThe customer does not receive an electronic receipt. Which means that there is no formal record at Silver Spoons counter of the items sold and the cash received. There is an informal scribble in a worn out register.Other deficiencies with the current setupMarketing There are limited marketing efforts carried out by the restaurant. At most, marketing involves re-doing the company banner or releasing a dozen flyers in the area. No website exists.Recording It is a complete paper based system with not a computer or digital device in sight. Records are in general maintained at the warehouse and branch in registers and journals. There is no formal record property system. Customers are not given receipts therefore there is no cross checking.Tracking there is no way for Silver Spoon Snacks to forecast demand judging by trends, as figures and statistics for trends do not exist. motif based it is a paper based system with information regarding transactions loosely r ecorded in registers.Checks and balances checks and balances do not exist, there is no tangible record keeping when it comes to armoury and purchases. It is not mathematical to confirm orders with suppliers and inter branch as orders are verbally given. There is no proof.Proposed systemThe proposed system involves the purchase of computer ironware and the use of an internet corporation. The idea is to create a basic alter system at the warehouse as the server with 2 additional linked systems at the branches.The purpose is to track and record stock-take that moves into the warehouse and out to the branches. A real time system is proposed where line of descent levels are monitored by the hour. The systems result need to be linked by an internet connection to provide a real time feed of information between the branches and warehouse.With an inventory management and tracking software, the loopholes and loose-ends in the current system will be neutralized.How it worksOnce the sy stems have been installed and made operational, the current stock, inventory and work in progress are uploaded to the servers. The software will be used be the warehouse, and both the branches. each user will update the records from their end so it can be seen at the warehouse server. The software will have section for the warehouse, branch A and branch B.Depending on the fresh demand levels, the warehouse determines the quantity of chicken needed and sends an order via telephone to the butcher. Had the butcher/supplier been using a computer system (example Makro), then an email would have been dispatched instead. The quantity ordered is punched into the system and falls under the status of pending. The rate per kilo is noted. Order time is also noted.Once the stock of chicken arrives at the warehouse, its exact quantity is manually counted and weighed by an employee and then the numbers pool are punched into the warehouse server. This will cross check the amount ordered with the a mount received.Once the figures tally, a receiving slip is generated electronically and marked after the order has been confirmed and accounted for. A slip is generated and given to the supplier and a formal record now exists in the system.A notification is sent in a matter of seconds to both branches making known them of the added inventory levels. The levels now appear on the screens of both branch A and B (Tariq road and Gulshan). Preparations are made.Depending on the beginning inventory and the base level demand of 210kg of chicken and 80 Tikka pieces, each branch sends its required amount of chicken (bonless and Tikka pieces) through the softwares built in messaging system. Each transaction and order is then recorded.After the warehouse server acknowledges receipt of the order from the branch, it then forwards it verbally to the warehouse freezer where the employee haemorrhoid the Silver Spoon vehicle (Suzuki pickup). The vehicle then travels to the relevant branch. A print ed slip is dispatched.From the warehouse, the inventory levels are then reduced and this is also reflected in each branches final stage. Once the vehicle is set down at the branch, a branch employee manually supervises the unloading and stocking of the chicken in the freezer.Once confirmed and signed, the branch manager then updates his terminal with the added inventory of chicken. Back at the warehouse, the reduction in inventory is tinge to the gain in inventory at both branches.As the day goes by and the orders accumulate and dispatch, the inventory levels are monitored not only at the branch, but at the warehouse as well. Each chicken Tikka order placed or each chicken roll uses a genuine portion of the inventory. And once the orders are federal official and updated in the Silver Spoon register, the chicken based inventory is automatically deducted.Towards the end of the day, the ending inventory is tallied and counted. The warehouse manager reads these inventories on an hou rly basis and incase of a shortage dispatches a vehicle to make up for the shortfall.The cycle is then repetitioned every day depending on the closing inventory levels.Notes on the proposed systemThe recommended software for Silver Spoon Snacks is influx Inventory management software (http//www.inflowinventory.com/). The software is easy to use and does not require extensive training. A simple understanding of images, inputting data and positivistic orders is all it takes.Free software exists, but does not provide protective covering, reliability and expansion as inFlows suite.Each terminal is given a unique pin code which only the operator is aware of. This means only the relevant person in charge can use the terminal which is a security check as well as a confirmation.Each transaction is logged and stored in a log file sent to the warehouse computer.Backups are made on a daily basisFinancial Costs involved with this systemSoftware although many free software packages exist, in Flow Inventory Management provides the best balance between features and cost. To create a multi user network (ideal in this case), the license cost $299 per computer for lifetime use. 3 licenses will be needed.$299 x 3 = $897 = Rs. 75000 ( Rs. 84 per U.S Dollar)Hardware needed processor, motherboard, RAM, hard drive, casing, power supply, monitor. Based on the software requirements, the hardware cost is as followsTariq Road Branch cost Rs 23,000Gulshan Branch cost Rs 23,000Warehouse cost Rs. 27,000Total Rs. 73,000Internet connection 3 connectionsinitial setup cost Rs. 800 x 3Monthly cost Rs. 1000 x 3Total initial investing Rs. 75,000 (3 licenses) + (73,000 (hardware) + 2,400 (internet setup) + 3000 (first month internet payment) = Rs. 153,400Benefits of the proposed systemAccountability first and foremost, the new system will hold each branch responsible for what it has received in its inventory. Once its turn over over the inventory, it is held accountable for its storage, gross sales and payment. The sales of the branch should match the inventory received.Inventory control from the irregular the chicken supply reaches the warehouse, it will be tracked and accounted for. The system will make sure that there is adequate supply at all branches at all times so as to not lose out on potential salesEconomic order quantity the ideal quantity of chicken to order each week and the ideal quantity to store in the freezers can be calculated based on demand and supply conditions. Inventory planning is thereby improved.Accuracy with figures, statistics and numbers well accounted for and cross references, the books of Silver Spoon will present and accurate picture of state of affairs. A reduction in human error in terms of calculations, counting and so on will also be witnessed.Record keeping instead of scribbling in registers and writing journals, an electronic system with constant updates is hence created with the use of e-commerce technologies. Past transactio ns, exchanges, buying and selling are stored electronically thereby staying safe. The option to print out the records exists, thereby creating tangible records.Electronic Data Interchange Information sharing between branches and the warehouse will be more convenient as real time updates and inventory levels can be monitored. Offers and promotional schemes by suppliers can also be entertained.Expansion This inventory monitoring and management system is not just limited to chicken it can be used for the entire product line, mutton, beef, vegetables, nipping drinks, seasoning, flour and so on. The scope is limitless with unlimited suppliers and customers.Improved Customer Service and loyalty when a customer ever gets his or her desired order in desired quantity, it creates customer satisfaction and creates repeat customers. It improves loyalty as well. A computerized receipt also creates a positive impression on the customers. center stock-outs and overstocks with supply synchronise d with demand, the chances of ending up with expired inventory or facing shortages are greatly reduced. Shortages are prevented as inventory as planned well in advance, and in the same way excess inventory is also reducing thereby curbing inventory carrying costs.Ready alerts if the inventory dips below a certain level at a branch, an automatically generated alert is sent to the warehouse or Gulshan branch and inventory can be moved around. Furthermore this will act as an early warning sign to the warehouse to acquire more inventory.Meeting demand demand is almost always met unless outside forces have some play. With inventory always available due to a tracking and trend analysis system, sales will always be met.Forecasting due to its ability to track charts and record daily transactions, the stored information can be used to conduct trend analysis for certain times of the calendar year. This will allow better planning for inventory and sales.Website Silver Spoon Snacks Pvt. Ltd. ca n go on-line and have a web presence. This on its own is a marketing toolNetworking since Silver Spoon is now on-line and has a presence on the world wide web, it will be able to reach out to suppliers and customers on a larger scale. It is a ready marketing tool. It can partner with other restaurants, sponsors, FMCGs and movements.Marketing with the use of e-commerce technologies, Silver Spoon Snacks can expand its marketing operations by move out e-mails and creating ad banners and partnering with other websites.Costs of proposed systemChange it is possible that managers and top management may resist the change/transition from a paper based system to a technical system. The current system, though not ideal sets comfortably with current management. A management icon shift is required. instruct the system users will require some short initial training to understand the use of the software and technology in general. Although the Operations Manager Mr. Talha Awan is well versed wi th computer software and hardware, there will still be a slight lag due to training.Initial investment although a small amount, roughly Rs. 150,000 will need to be diverted for a project that has no immediate financial returns.Software support although a helpline for customer support exists, it can become cumbersome to ask for pleader incase of software failure or confusion.Hardware failure at the clemency of KESC and the elements, the computer hardware may fail thereby causing confusion and a stop in information flow. Although an continual power supply may be purchased, as well as a warranty plan, it will only add up in costs and delays.Internet failure from time to time, the internet service provider may fail to provide a 100% uptime. This can cause delays and lags in the system. patience StandardBar B Q Tonight Inventory Management SystemTo further add value to this report, I studied Bar B Q Tonights current inventory management setup which is computerized. Information was self-collected through telephonic interviews and e-mail exchange with the Operations Managers, Sardar Ishaq and Mr. Abur Rehman. The findings are compiled below.Bar B Q Tonight is one of Karachis most famous restaurants that came into being in 1988. It prepares all kinds of cuisine that caters to thousands of customers on a daily basis. In-fact the multi historied establishment can house upto a thousand customers at a time. The restaurant has enjoyed high growth levels consistent with every year. Recently a branch has been erected in Lahore.Chicken, Beef, Fish, vegetables, pastas, fruit, ice cream, mushrooms, sausages, cheese, beverages and interweave rolls are just a small list of the inventory that are in storage and continual use at the restaurant. These are key inputs needed to give customers a full service and come backed by quality that the restaurant promises. To ensure proper delivery of storage, roughly 500 employees and 2 dozen management level officers are part of th e work force.The availability of sufficient inventory and especially at the chastise time is perhaps the single most crucial factor at the restaurant. short inventory levels can result in a loss of potential sales. Furthermore due to the unpolluted quantity of inventory that enters and exits the building, checks and balances, control and proper monitoring of stock are required. This serves a number of functions such as quality control, waste management and theft protection.The current supply chain is as follows supplier DRY/ frigorific STORAGE CUTTING/PROCESSING RELEVANT FOOD DEPARTMENT CUSTOMERThe suppliers supply meat, chicken, tinned items, cold drinks, eggs, vegetables and basically all the inputs needed.Once the orders are received, they go into processing/cleaning/cutting/batching dependinAnalysis of E-Commerce and Supply Chain for Silver SpoonAnalysis of E-Commerce and Supply Chain for Silver SpoonSilver Spoon Snacks is a fast food eatery established first in Gulshan i n the year 1965. It has expanded to a second branch in Tariq road. During its heyday it revolutionized the fast food industry by introducing the concept of rolls on the menu. It enjoyed this untapped market till competitors jumped on the band wagon.The menu is diverse, including Pakistani, Chinese, Continental, Western and Indian items. There is plenty of consumer traffic in both branches especially during the evening. The Tariq Road branch serves all kinds of BBQ items, club sandwich, zinger burger and the well cognize rolls.The restaurant is owned and operated by a family. The branch managers are actually brothers and share shifts during the day and night. There are a total of 4 active brothers that are responsible for handling the day to day running and operations of the system. Key purchase decisions, menu expansion and supply chain decisions are handled solely by them.They have been following a paper based system since its inception. All the accounting work and record keeping is done manually in registers that are stocked at the residence every month.Literature ReviewAccording to Laudon and Laudon (Information Systems and Decision making, 2000), the supply chain is a collection of physical entities linked together into processes that supply goods or services from source through consumption. The supply chain consists of suppliers, manufacturers, wholesalers, distributors, retail outlets, logistics and consumers. This list also includes those activities that are necessary in facilitating the supply chain.Managing a supply chain is a difficult task that requires keen insight and understanding of the business processes and the environment in which it operates. The struggle is to create a network which has no weak links in terms of time delays, information gaps or inefficiencies in other words, all processes must be integrated. This is best achieved by the creation of networks with a smooth inflow and outflow of relevant information. This is the heart of e-c ommerce.The internet has allowed the growth of e-businesses across borders and physical limits. The use of an intranet is greatly appreciated within a company. Based on internet technology, the intranet is used primarily within a single company which allows the internal users to expand and share information across floors and walls. These locations may be domestic or may even be throughout the world (Bartoo, Elliot, and Naik-lyer, 2000).E Commerce is one of the most important facets of the internet to have developed in this day and age. Ecommerce, sometimes referred to as E Business, involves carrying out business over the Internet with the use of computers that are linked to each other forming a network. E-commerce includes the buying, selling, marketing, and servicing of goods or services through telecommunication technologies.E-Business, on the other hand, carries a broader definition, not just the buying and selling of goods and services, but servicing customers, collaborating wi th business partners, and conducting communications and transactions within and outside an organization. (Electronic Commerce a managerial perspective by Efrahim Turban, David King, Prentice Hall US Ed edition October, 1999)According to ComScore a marketing research company that provides marketing data and services to many of the Internets largest businesses, E-commerce has had its first $1B day on 2nd December 2010. The heaviest online spending day in history and the first to surpass the billion-dollar threshold, declares ComScore. This goes to show how far and wide the scope of electronic buying and selling has reached. It is revolutionized the way business models are created and defined numerous opportunities for entrepreneurs and the like.E- Commerce can help a supply chain over the internet in areas such as placing and receiving orders, providing product information, tracking orders, filling and managing inventory, and recording inflows and outflows (Sunil Chopra and Jan A, V an Mieghem, Supply Chain Management Review, April 200)A critical area where e-commerce has established its presence in a supply chain is in the resource planning and inventory management function of an organization. It helps users track the inventory and where it is distributed from the organization. It helps plan for future forecasts and deal with shortages. It creates a hub where information is shared among relevant members of a business model this is known as EDI Electronic Data Interchange.Similarly ERP (Enterprise Resource Planning) systems have emerged that serve similar functions in terms of smooth data flow between members of an organization. Relevant information relating to key business functions is then shared, matched and cross matched between departments and related companies that have partnered with the business. The goal is to streamline operations and produce a cost and time efficient process altogether.IBM and Siemens are 2 prime examples of organizations that heavi ly rely on supply chain applications produced by business management software such as SAP. This application has streamlined its processes thereby creating a real-time and efficient business model.Inventory management models are heavily used in large scale organizations in the fast food industry. Giant franchises such as Subway, KFC and Pizza Hut use business intelligence software for its operations. Zap is a leading software house that creates web based packages for KFC and Pizza Hut.As a starting point, a basic open source inventory management software coupled with internet technologies is an ideal way for a small to mid-sized business to start.The diagram below shows how e-commerce can efficiently distribute and coordinate the flow of information between the entities and business functions of the supply chain. The importance of information sharing and interchange is crucial to improve operational effectiveness.Research methodologySecondary researchSecondary research consisted of g oing through research articles and existing information on e-commerce and supply chain models.Text books, class lectures and the internet served as sources for secondary research.This type of research was necessary to gain an understanding of existing supply chain models that are benefitting with the integration of e-ecommerce and its technologies.Primary researchThis is first hand research that needed to be conducted to gain an understanding of Silver Spoon SnacksThis form of research was conducted over 2 face to face interviews and short telephone calls with the Branch Manager and Operations ManagerA set of questions were asked to understand the existing supply chain model and how operations are carried out on a daily and weekly basisThese questions also attempted to surface any inefficiencies and weaknesses that exist in the current setupInterviews were necessary to collect direct and relevant information from the involved peopleData AnalysisInput details pertaining to the Tariq Road branchRaw material listingChickenBeefMuttonFlourVegetablesKetchup/mustardSeasoningsEquipment usedOvenFryerCoalFreezersStoveTables and chairsUtilities usedElectricityGasTelephoneWaterLabour employedHead ChefKitchen staffHead WaiterWaitersCleanersWatchmanFor simplicity, the supply chain of chicken as a key and widely used ingredient will be studied throughout this report.Supply Chain system of Silver Spoon Snacks explained with the help of a flow chart.Supply Chain Defined ChickenButcherThursday morning or earlier depending on needs, the Chicken supplier receives an order of Boneless Chicken and Tikka pieces for the week. This order is placed via telephone by the branch manager. The quantity for chicken in Tikka and Boneless variation is verbally specified via telephone. The supplier confirms the order and a delivery time is specified. The butcher cuts the chicken according to pieces specified either Tikka pieces or Boneless for Chicken rolls.Delivery vehicleAs per initial agre ement between Silver Spoon and the supplier, the chicken supply will be delivered to the warehouse in the suppliers vehicle. This is part of the negotiation. The supplier will have the chicken delivered to the warehouse and settle the payment at the end of the month.WarehouseThe warehouse is owned and operated by Silver Spoon owners. It has been part of the business model since 40 years and is situated off Tariq road near the Tariq road branch. The warehouse serves as a sorting point most of the raw materials. Individual branch demand is catered to and planned here. The warehouse has a large kitchen and a storage bay.Warehouse kitchenThe warehouse kitchen department is responsible for all the cleaning and preparation of the raw food. This entails cleaning the chicken, removing the fat and making it hygienic and fit for cooking. Staff is employed in this department to manage the cleaning.Warehouse storageAfter the chicken has been cleaned, it goes into cold storage. The amount which has to be distributed to the branches on a daily basis is dispatched and the rest goes into freezers. The amount is determined in advance by branch managers. Keep in mind that a weeks supply is available for both branches at the warehouse.Official vehicleA Suzuki Pickup is on standby at the warehouse and the workers load a days worth of chicken and transport it to the both branches. 60% of the chicken goes to the Tariq Road Branch as its chicken utilization is the highest.Tariq road branchAt the Tariq Road branch, the official vehicle arrives shortly with the chicken for the day. This chicken thawed, cleaned and semi marinated at the individual branches before it is ready to be finally added with the secret spices and recipes. It is immediately transported by the workers to the freezer.Kitchen + freezerAs noon approaches a portion of the boneless chicken is removed from the freezer and brought to the preparation room. Here the chicken is added with seasoning, sauce and the secret sp ices which are made early during the day. This preparation is done by the head chef. The boneless chicken goes to the Roll preparation area and the Tikka pieces go to the BBQ area where they are cooked.CustomerOnce cooked, the Rolls and Tikkas are served to customersPlanning systemFor the sake of simplicity we will go through a typical week of ordering chicken to get a grasp of the current supply system at the Tariq Road branch. This boneless chicken is used for Chicken Rolls and Chicken Boti. Whereas full chickens are used to create 4 Tikka pieces per chicken.Demand for the week is established by looking at previous trends. Basically a base demand for consumption has been established for boneless chicken of 210 kg per week. The base demand of 210kg worth of boneless chicken is always used for Rolls and Chicken Boti. On an average, 220-250kgs of boneless chicken is purchased as demand from consumers never dips below 210kg per week. For Tikkas, the base demand is 80 Tikkas per day, w hich makes it 560 Tikkas on an average per week. A full chicken is able to provide 4 Tikka pieces.The key considerations that determine and influence demand for chicken areStage of the week Friday, Saturday and Sunday are days where demand for boneless chicken is at its highest. During these days the public goes out to eat with family.Public holidays the restaurant operates during public holidays. During these days of the calendar, families choose to visit eateries and therefore the consumption of boneless chicken is high.City turmoil during expected city turmoil and expected strikes, the public operates at an accelerated pace and attempts to get things out of the way. This may entail visiting Tariq Road for work 1-2 days before the expected turmoil or unrest. Furthermore, consumption of boneless chicken falls during the days of turmoil, hence purchasing is planned accordingly.Level of commercial activity Tariq Road is heavily populated with shops and vendors. If the activity in malls and shopping strips is high, then demand for food, especially Chicken Rolls is also high as it serves the fast food concept and is economical.The factors above have the capacity to influence demand for chicken and hence the purchasing patterns vary. Chicken that is not used is then stored in freezers for next days use.This chicken is bought on Thursdays of the week from a vendor that has been partnered with the business. An order is placed via telephone on Thursday morning by the Branch Manager and it arrives by noon.If for some reason demand is abnormally high, the regular chicken supplier is contacted and is urged to make an emergency drop to the warehouse. If he is unable to do so from his own inventory, then he is responsible for making other arrangements.Supplier selectionA chicken supplier is selected on the basis ofTotal costCleaning and cuttingCost is the most important factor that ultimately determines which supplier/butcher to choose from. Silver Spoon negotiates on the basis of the foremost is cost (low or discounted price), quality, and delivery service.Secondly, it is favourable if the supplier can clean and cut the chicken into pieces at his outlet before delivering it to the Silver Spoon warehouse. Although Silver Spoon has a chicken slaughtering and cleaning/cutting facility, but is used for only further cleaning of the chicken and cutting for marinating purposes.Financial costs pertaining to Tariq Road BranchCost for chicken this rate is Rs. 4 per kilo less than the prevailing marketing rate. The chicken suppliers set the price every Thursday of the week. Price of chicken per kilo varies on a weekly basis and is determined by the laws of demand and supply. For example, if chicken is in excess supply then the price falls. Conversely if there is high demand then the price rises such as on weekends. Due to this the chicken suppliers set their prices on Thursday. The Tariq Road branch bears 60% of the total cost of the chicken whereas the Gulshan branch, only 40%. Consumption and sale of chicken items is the highest at the Tariq Road branch.The basis for making profits for Tikkas is to earn Rs. 20-25 profit per Tikka.UtilitiesElectricity Bill varies between Rs. 50,000 to 60,000 per month.Gas Bill varies between Rs. 10,000 to 12,000 per monthTelephone Bill Rs. 1,000 per month on an averageCoal Usage worth Rs. 1,500 on a daily basis.Labour EmployedWaiter The starting salary per waiter is Rs. 6000 per month. Senior waiters (determined by length of employment) are paid Rs. 8000 per month.There are a total of 8 senior waiters (8 x 8000 = Rs. 64,000 per month) and 6 junior waiters (6 x 6000 = Rs. 36,000 per month).Kitchen Staff these employees include assistants to the chef (3 assistants), and additional workers who produce other items on the menu (5 kitchen workers). They are assigned various tasks in the kitchen to add value to the system. On an average, the total labour costs assigned to the kitchen staff are Rs. 75,00 0Head chef There is 1 head Chef who is paid Rs. 12,000 per month.Total labour costs per month = Rs 64,000 + Rs 36,000 + Rs. 65,000 + 12,000 = Rs 187,000DiscussionInefficiencies or weaknesses in the supply chainSupplier/butcherSilver Spoon has had the same supplier for chicken for nearly 20 years. They should search the market for other suppliers that can offer competitive rates for bulk purchases of chicken.The order is placed on the phone and a Silver Spoon official does not personally monitor the chicken selection, which means an old chicken or unhealthy chicken can be part of the mixWarehouseAt the warehouse, the supplier delivery vehicle drops off the chicken and drives away after collecting the payment. There is no check here, no one counts the chicken or weighs it upon arrival so there is no way of making sure if they received the amount they paid for.There is no record system or inventory management. The chicken is not logged in, just immediately shifted to the kitchen where it is cleaned for use. Therefore there is no actual account or record for the amount of chicken that entered the facility nor is there any receiving slip or receipt.Warehouse StorageOnce the chicken is cleaned and processed fit for use, it goes into storage freezers and only the days worth is kept outside for delivery. However, there is no one who counts the number of chicken breasts or legs, or kilograms of chicken that goes into the freezer. So there is no check or monitor system.Silver Spoon Snacks VehicleThe days worth of chicken is transported to the Tariq Road Branch, but there is no formal record of the amount that leaves the warehouse, nor is there any receiving document from the branches end.BranchAgain, there is no counter checking or counting system of the chicken that arrives in the branch. It is blindly kept in the freezer.CustomerThe customer does not receive an electronic receipt. Which means that there is no formal record at Silver Spoons counter of the items sold an d the cash received. There is an informal scribble in a worn out register.Other deficiencies with the current setupMarketing There are limited marketing efforts carried out by the restaurant. At most, marketing involves re-doing the company banner or releasing a dozen flyers in the area. No website exists.Recording It is a complete paper based system with not a computer or digital device in sight. Records are loosely maintained at the warehouse and branch in registers and journals. There is no formal record keeping system. Customers are not given receipts therefore there is no cross checking.Tracking there is no way for Silver Spoon Snacks to forecast demand judging by trends, as figures and statistics for trends do not exist.Paper based it is a paper based system with information regarding transactions loosely recorded in registers.Checks and balances checks and balances do not exist, there is no tangible record keeping when it comes to inventory and purchases. It is not possible t o confirm orders with suppliers and inter branch as orders are verbally given. There is no proof.Proposed systemThe proposed system involves the purchase of computer hardware and the use of an internet connection. The idea is to create a basic centralized system at the warehouse as the server with 2 additional linked systems at the branches.The purpose is to track and record inventory that moves into the warehouse and out to the branches. A real time system is proposed where inventory levels are monitored by the hour. The systems will need to be linked by an internet connection to provide a real time feed of information between the branches and warehouse.With an inventory management and tracking software, the loopholes and loose-ends in the current system will be neutralized.How it worksOnce the systems have been installed and made operational, the current stock, inventory and work in progress are uploaded to the servers. The software will be used be the warehouse, and both the bran ches. Each user will update the records from their end so it can be seen at the warehouse server. The software will have section for the warehouse, branch A and branch B.Depending on the fresh demand levels, the warehouse determines the quantity of chicken needed and sends an order via telephone to the butcher. Had the butcher/supplier been using a computer system (example Makro), then an email would have been dispatched instead. The quantity ordered is punched into the system and falls under the status of pending. The rate per kilo is noted. Order time is also noted.Once the stock of chicken arrives at the warehouse, its exact quantity is manually counted and weighed by an employee and then the numbers are punched into the warehouse server. This will cross check the amount ordered with the amount received.Once the figures tally, a receiving slip is generated electronically and printed after the order has been confirmed and accounted for. A slip is generated and given to the supplie r and a formal record now exists in the system.A notification is sent in a matter of seconds to both branches informing them of the added inventory levels. The levels now appear on the screens of both branch A and B (Tariq road and Gulshan). Preparations are made.Depending on the opening inventory and the base level demand of 210kg of chicken and 80 Tikka pieces, each branch sends its required amount of chicken (bonless and Tikka pieces) through the softwares built in messaging system. Each transaction and order is then recorded.After the warehouse server acknowledges receipt of the order from the branch, it then forwards it verbally to the warehouse freezer where the employee loads the Silver Spoon vehicle (Suzuki pickup). The vehicle then travels to the relevant branch. A printed slip is dispatched.From the warehouse, the inventory levels are then reduced and this is also reflected in each branches terminal. Once the vehicle is unloaded at the branch, a branch employee manually su pervises the unloading and stocking of the chicken in the freezer.Once confirmed and signed, the branch manager then updates his terminal with the added inventory of chicken. Back at the warehouse, the reduction in inventory is equal to the gain in inventory at both branches.As the day goes by and the orders accumulate and dispatch, the inventory levels are monitored not only at the branch, but at the warehouse as well. Each chicken Tikka order placed or each chicken roll uses a certain portion of the inventory. And once the orders are fed and updated in the Silver Spoon register, the chicken based inventory is automatically deducted.Towards the end of the day, the ending inventory is tallied and counted. The warehouse manager reads these inventories on an hourly basis and incase of a shortage dispatches a vehicle to make up for the shortfall.The cycle is then repeated every day depending on the closing inventory levels.Notes on the proposed systemThe recommended software for Silver Spoon Snacks is inFlow Inventory management software (http//www.inflowinventory.com/). The software is easy to use and does not require extensive training. A simple understanding of images, inputting data and confirming orders is all it takes.Free software exists, but does not provide security, reliability and expansion as inFlows suite.Each terminal is given a unique pin code which only the operator is aware of. This means only the relevant person in charge can use the terminal which is a security check as well as a confirmation.Each transaction is logged and stored in a log file sent to the warehouse computer.Backups are made on a daily basisFinancial Costs involved with this systemSoftware although many free software packages exist, inFlow Inventory Management provides the best balance between features and cost. To create a multi user network (ideal in this case), the license cost $299 per computer for lifetime use. 3 licenses will be needed.$299 x 3 = $897 = Rs. 75000 ( Rs. 84 per U.S Dollar)Hardware needed processor, motherboard, RAM, hard drive, casing, power supply, monitor. Based on the software requirements, the hardware cost is as followsTariq Road Branch cost Rs 23,000Gulshan Branch cost Rs 23,000Warehouse cost Rs. 27,000Total Rs. 73,000Internet connection 3 connectionsInitial setup cost Rs. 800 x 3Monthly cost Rs. 1000 x 3Total initial investment Rs. 75,000 (3 licenses) + (73,000 (hardware) + 2,400 (internet setup) + 3000 (first month internet payment) = Rs. 153,400Benefits of the proposed systemAccountability first and foremost, the new system will hold each branch accountable for what it has received in its inventory. Once its handed over the inventory, it is held accountable for its storage, sales and payment. The sales of the branch should match the inventory received.Inventory control from the moment the chicken supply reaches the warehouse, it will be tracked and accounted for. The system will make sure that there is adequate supply at a ll branches at all times so as to not lose out on potential salesEconomic order quantity the ideal quantity of chicken to order each week and the ideal quantity to store in the freezers can be calculated based on demand and supply conditions. Inventory planning is thereby improved.Accuracy with figures, statistics and numbers well accounted for and cross references, the books of Silver Spoon will present and accurate picture of state of affairs. A reduction in human error in terms of calculations, counting and so on will also be witnessed.Record keeping instead of scribbling in registers and writing journals, an electronic system with constant updates is hence created with the use of e-commerce technologies. Past transactions, exchanges, buying and selling are stored electronically thereby staying safe. The option to print out the records exists, thereby creating tangible records.Electronic Data Interchange Information sharing between branches and the warehouse will be more convenie nt as real time updates and inventory levels can be monitored. Offers and promotional schemes by suppliers can also be entertained.Expansion This inventory monitoring and management system is not just limited to chicken it can be used for the entire product line, mutton, beef, vegetables, cold drinks, seasoning, flour and so on. The scope is limitless with unlimited suppliers and customers.Improved Customer Service and loyalty when a customer always gets his or her desired order in desired quantity, it creates customer satisfaction and creates repeat customers. It improves loyalty as well. A computerized receipt also creates a positive impression on the customers.Reduce stock-outs and overstocks with supply synchronized with demand, the chances of ending up with expired inventory or facing shortages are greatly reduced. Shortages are prevented as inventory as planned well in advance, and in the same way excess inventory is also reducing thereby curbing inventory carrying costs.Ready alerts if the inventory dips below a certain level at a branch, an automatically generated alert is sent to the warehouse or Gulshan branch and inventory can be moved around. Furthermore this will act as an early warning sign to the warehouse to acquire more inventory.Meeting demand demand is almost always met unless outside forces have some play. With inventory always available due to a tracking and trend analysis system, sales will always be met.Forecasting due to its ability to track charts and record daily transactions, the stored information can be used to conduct trend analysis for certain times of the calendar year. This will allow better planning for inventory and sales.Website Silver Spoon Snacks Pvt. Ltd. can go on-line and have a web presence. This on its own is a marketing toolNetworking since Silver Spoon is now on-line and has a presence on the world wide web, it will be able to reach out to suppliers and customers on a larger scale. It is a ready marketing tool. It c an partner with other restaurants, sponsors, FMCGs and causes.Marketing with the use of e-commerce technologies, Silver Spoon Snacks can expand its marketing operations by sending out e-mails and creating ad banners and partnering with other websites.Costs of proposed systemChange it is possible that managers and top management may resist the change/transition from a paper based system to a technical system. The current system, though not ideal sets comfortably with current management. A management paradigm shift is required.Training the system users will require some short initial training to understand the use of the software and technology in general. Although the Operations Manager Mr. Talha Awan is well versed with computer software and hardware, there will still be a slight lag due to training.Initial investment although a small amount, roughly Rs. 150,000 will need to be diverted for a project that has no immediate monetary returns.Software support although a helpline for cu stomer support exists, it can become cumbersome to ask for guidance incase of software failure or confusion.Hardware failure at the mercy of KESC and the elements, the computer hardware may fail thereby causing confusion and a stop in information flow. Although an uninterrupted power supply may be purchased, as well as a warranty plan, it will only add up in costs and delays.Internet failure from time to time, the internet service provider may fail to provide a 100% uptime. This can cause delays and lags in the system.Industry StandardBar B Q Tonight Inventory Management SystemTo further add value to this report, I studied Bar B Q Tonights current inventory management setup which is computerized. Information was gathered through telephonic interviews and e-mail exchange with the Operations Managers, Sardar Ishaq and Mr. Abur Rehman. The findings are compiled below.Bar B Q Tonight is one of Karachis most famous restaurants that came into being in 1988. It prepares all kinds of cuisi ne that caters to thousands of customers on a daily basis. In-fact the multi storeyed establishment can house upto a thousand customers at a time. The restaurant has enjoyed high growth levels consistent with every year. Recently a branch has been erected in Lahore.Chicken, Beef, Fish, vegetables, pastas, fruit, ice cream, mushrooms, sausages, cheese, beverages and tissue rolls are just a small list of the inventory that are in storage and continuous use at the restaurant. These are key inputs needed to give customers a full service and experience backed by quality that the restaurant promises. To ensure proper delivery of storage, roughly 500 employees and 2 dozen management level officers are part of the work force.The availability of sufficient inventory and especially at the right time is perhaps the single most crucial factor at the restaurant. Insufficient inventory levels can result in a loss of potential sales. Furthermore due to the sheer quantity of inventory that enters a nd exits the building, checks and balances, control and proper monitoring of stock are required. This serves a number of functions such as quality control, waste management and theft protection.The current supply chain is as followsSUPPLIER DRY/COLD STORAGE CUTTING/PROCESSING RELEVANT FOOD DEPARTMENT CUSTOMERThe suppliers supply meat, chicken, tinned items, cold drinks, eggs, vegetables and basically all the inputs needed.Once the orders are received, they go into processing/cleaning/cutting/batching dependin