Project 1

MobileExpert expanded its mobile phone retail business from a small shop eight years ago to ten outlets
spread across Singapore. Its current business operation is mainly paper-based. There are frequent
stockouts of popular brands of mobile phones at its outlets. The CEO of MobileExpert is keen to improve
its business competitiveness and transform its supply chain management(SCM) to e-SCM.

1) What is SCM? What is e-SCM? The general differences between them.

2) Explain the SCM process in MobileExpert now (the paper based concept)
3) Explain the proposed e-SCM process for MobileExpert
4) The advantages and disadvantages of proposed e-SCM
5) Conclusion of decision

1. SCM & ESCM in general

a. What is SCM?
Supply chain management is the management of the flow of goods and services
and includes all processes that transform raw materials into final products.
SCM represents an effort by suppliers to develop and implement supply chains that are
as efficient and economical as possible. Using the telephone, fax and regular mail to
contact their upstream (supplier) and downstream (customers) connections
b. How does SCM work?
SCM attempts to centrally control or link the production, shipment, and distribution of a
product. This is done by keeping tighter control of internal inventories, internal production,
distribution, sales, and the inventories of company vendors.

i. Inbound Logistics
Refers to movement of goods and raw material from suppliers to the company.
Using telephone, fax and regular mail to contact their upstream (supplier)
ii. Operations
To monitor supply chains and evaluate purchasing strategies in order to help
the company to become more efficient in an increasingly competitive global
market. Outbound Logistics
The outward movement of final or finished goods, from the company to the end user.
Using telephone, fax and regular mail to contact their downstream (customers)
connections or face-to-face.
iii. Marketing
Marketing promotes collaboration between buyers and suppliers, customers and sales.
iv. Services
Service dedicated to providing service on products. It addresses the supply of parts,
materials, personnel and services needed to provide timely and effective product
service, such as repair and maintenance.

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 c. What is e-SCM?
It is similar with SCM but instead of using telephone, fax and regular mail to contact their
upstream (supplier) and downstream (customers) connections. In the e-SCM environment,
it is primarily Internet-based, e-SCM only requires a free Web. And having most or not all of
their data stored in a database or cloud.

i. Inbound Logistics
Refers to movement of goods and raw material from suppliers to the company. Using
voip, e-mail to contact their upstream (supplier)
ii. Operations
to monitor supply chains and evaluate purchasing strategies in order to help the
company to become more efficient in an increasingly competitive global market.
iii. Outbound Logistics
The outward movement of final or finished goods, from the company to the end user.
Using voip or e-mail to contact their downstream (customers) connections
iv. Marketing
Marketing promotes collaboration between buyers and suppliers, customers and sales
to reduce lead time by using voip, e-mail.
v. Services
Service dedicated to providing service on products. It addresses the supply of parts,
materials, personnel and services needed to provide timely and effective product
service, such as repair and maintenance.

d. General Differences
Traditional SCM always used the telephone, fax and regular mail to contact their upstream
(supplier) and downstream (customers) connections, however, the use of face-to-face
negotiation is no longer needed, as it involved lots of time and costs.

In the e-SCM environment, which is primarily Internet-based, the costs of information

exchange along the supply chain are greatly reduced. In fact, it has been stated that
operating in the e-SCM context only requires a free Web.

e-SCM, while structurally based on technology-enabled relationships, makes decisions

based upon efficiency benefits. As e-SCM was created using electronic linkages, it thereby
provided low switching costs, which allows for the supply chain design to be very adaptable
to changing trends, consumer preferences and competitive pressures.

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 2. SCM process in MobileExpert now
a. Inbound Logistics
The inbound logistics for MobileExpert currently is when a supplier delivers mobile phones
to their MobileExpert Headquarters they will write down the amount of phones added to
their inventory on paper. Or when there are phones from their outlets need to be returned
back to the HQ.
b. Operations

Mobile expert order phone to supplier and supplier give to mobile expert an invoice, and
then they confirm the price and shipping the phone.
c. Outbound Logistics
When one of MobileExpert outlets runs out of stock for phone x, the staff will deliver a
request for phone x from the Headquarters. The Headquerters will then check if any outlets
has phone x, if it does then the HQ will transfer phone x from one outlet to the other using
their delivery transportation. If none of the outlets have phone x stock then the HQ will
send an order request to the supplier.
d. Marketing
Lets say a customer comes in one of the MobileExpert’s outlet and then purchase one of
the phones in that outlet. The staff will then write down an invoice for that particular
phone and then stores the copy of the invoice somewhere in a drawer or shelf.
e. Services
In Mobile Expert the service SCM are like warranty for each mobile customer has bought.
The warranty is write in a paper, you get the warranty paper when you buy a phone. The
warranty paper is blank, so whenever you have a problem with your mobile or it’s broken,
you can claim the warranty with notes. the warranty can be claim in specific period. When a
person claims its warranty, the services team will validate the phone if the phones are
legitimate for warranty claim. If the phone is legitimate, we will give the customer a new
phone(refurbished) and the phone that is given to us will be sent back to HQ to be
refurbished.

3. Proposed e-SCM process for Mobile Expert

Overall we proposed using a online MobileExpert e-SCM system on a website and store all
their data inside a database or cloud. These are the combinations of modules and integrations
in the e-SCM system:
a. Inbound Logistics
We advised in adding an Inbound Logistics module that is connected through all of their
outlet. All of their inbound logistics from all outlets will then be recorded using this system.
The HQ can look at the inventory in all of their outlets or in the HQ itself and the outlets can
view their own current inventory. The process pretty much still remains the same as previous

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 but instead of using paper, we will be using a website which will be connected to the
database.
b. Operations
We propose adding Operations Module. The process is like, Mobile expert order phone to
supplier and supplier give to mobile expert an invoice, and then they confirm they price and
shipping the phone. The difference here that using this system all the data will be centra
and stored inside a database.

c. Outbound Logistics
We propose adding Outbound Logistics module. It has functionalities that outbound
logistics need. Using the example mentioned before, this system can send a request or
notify the HQ if an outlet needs to be restock. The system will show all the data needed to
help the HQ decide if it needs to restock from another outlet or order from the supplier.
After the choice has been made by the HQ, the outlet that needs restocking will be notified
that their request has been seen and processed by HQ. The delivery and time estimate of
the restocking process will be shown in the system as well.
d. Marketing
We propose adding POS, for every transactions or purchases that happens on each outlet.
The marketing manager will use this POS to record every one of it. This will also
automatically update the inventory so that there will be of no need to update the inventory
manually which can cause data to not be synchronized. This will also help HQ to see sales
for each or every outlets easily and efficiently.
e. Services
In Services, we advised adding a warranty module and integrate it with e-SCM system, this
will help identify the phone is legitimate and also bought from MobileExpert along with
determining if the phone has passed it’s warranty date or not. If the phone passes
validation the phone will be recorded in system as returned phone that the HQ can see as
well. So that the returned phone can be refurbished later on in the HQ.

4. Advantages
The advantage of using the paper, is that when there are blackout or no internet connection
the outlets can still do all their operations because writing does not require electricity, and
as for lights they can use emergency lights or flashlight.

The advantages of using e-scm is that this will increase productivity and efficiency in all
sectors (Inbound, outbound, operations, marketing, services) all of the outlets and HQ will
be connected in one system. Every operations can be updated across this system such as
inventory, transactions, warranty, etc. Looking for a product takes no time at all, just type
something in the search bar and then if there is a result, it will pop up. It takes less space to

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 use the e-scm system than using paper based. Because a computer or a system takes less
space to store a data compared using a paper.

5. Disadvantages
The disadvantages of using Paper is that this process is relatively slow and is a very tedious
process, if there is a transaction the inventory will need to be updated manually. Which will
decrease productivity and efficiency within the company. If there are deliveries coming in
and there needs to be an sales update, then they would have to write it down, not to
mention any other thing that the sales is connected to needs to be updated as well. Which
is very time consuming. Searching for a something on paper will take forever like trying to
find an invoice, product, while using a the web system you can just type it and it will pop up
the search results. Using paper will result in a much more use of space in storing paper. The
more that something needs to be written and stored, the more space it will take up.

The disadvantages of using e-scm is that if there is a slow internet connection, the company
will work a little bit slow, searching, adding, updating, and deleting something from the
web, it might take a while and overall would slow the productivity and efficiency of the
company until the internet connection is fast again.

6. Conclusion & Decision

After listing out all the current Supply Chain Management of MobileExpert and Giving a proposed
Electronic Supply Chain Mangement along with their advantages and disadvantages. We can
confidently say that it would be a good investment for MobileExpert to use our proposed system. By
doing this the company will increase their staff productivity and their Supply Chain Management
efficiency just like we mention in the advantages and disadvantages section.

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