Improved Inventory Management System

SS

PROJECT SCOPE STATEMENT

IMPROVED INVENTORY MANAGEMENT SYSTEM

GROUP 4
BALWINDER, VANDANA, SUVETHA, UDITH, AND POOJA

COMPLETION DATE
JUNE 15, 2024

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Table of Contents
Introduction................................................................................................................................... 3
Scope Description.......................................................................................................................... 3
Major Deliverables.........................................................................................................................4
Major Milestones...........................................................................................................................5
Key Inclusions, Exclusions, constraints, and assumptions..............................................................5

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INTRODUCTION

This document outlines the scope, objectives, and deliverables of the project –
Improved Inventory Management System. This project aims to address inventory management
as its primary priority. It aims to optimize inventory management practices for businesses,
producing more outcomes, reduced costs, and more customer satisfaction through innovative
ideas and practical solutions. Loblaws Inc, a well-known business partner, is happy to support
this effort. They are dedicated to applying their extensive experience and knowledge to support
initiatives that advance operational excellence and company growth. Thanks to their
sponsorship and advertising, it can provide them with efficient storage and delivery solutions by
utilizing their assets and expertise.

SCOPE DESCRIPTION

Creating an inventory management system that will enable businesses to accurately

monitor their stock levels will be one of our primary efforts. This system will have multiple
features, including automated low-stock notifications, real-time updates, and barcode scanning.
Demand forecasting capabilities will be integrated into the inventory management system.
Through the analysis of historical data, industry trends, and other relevant aspects, the
technology will produce accurate demand estimates.
 Optimization of Reorder Points: The zero solution will additionally contain a method for
reorder point optimization. The system will determine the best time to restock
inventory depending on lead time, demand changes, and targeted service levels, among
other factors. Stock-outs will be prevented and carrying costs linked to excessive stock
will be decreased as a result.
 Reporting and Analytics: To provide enterprises with information about the
performance of their inventory, our system will have significant analytical and reporting
features. Business clients will have access to key performance indicators (KPIs) such as
the fill rate, carrying costs, and stock turnover ratio. These indicators will aid businesses
in inventory management by providing data-driven decision-making, ongoing process
optimization, and opportunity discovery for improvement.
 Scalability and Integration: It provides integrating the zero-sum system with ERP
(enterprise resource planning) and warehouse management systems (WMS) as well as
other existing corporate systems. By doing this, businesses will be able to utilize their
existing infrastructure and ensure an effortless transition.
The aim of the level zero deliverable for our project is to create a solid foundation for
effective inventory management. By employing inventory tracking systems, demand
forecasting, reorder point optimization, reporting, and analytics features, businesses can
improve customer satisfaction, save costs, and simplify inventory management practices.

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MAJOR DELIVERABLES

The initial step involves understanding what required to be done. Majorly defining the
project’s goals, what it should achieve and how to measure success. Stakeholder Identification
and Requirements Gathering: to determine who is involved and what they want. Gathering
requirements means understanding what features or functions are critical for the project.
Creating a Plan: put together a detailed roadmap development phase. This plan includes the
budget, schedule (when things will happen), and timeline (how long the project will take).

Design and Architecture: In this phase important decisions are taken. Selection of the right
database system and collect data about products, stocks, suppliers, and delivery partners.
Additionally, decide on the technology to be used for development.
 Automated Stock Updates: This involves receiving updates from suppliers. It ensures
that the stock information is accurate and up to date.
 Real-Time Updates: Based on sales and returns to keep the stock data current in real
time. This helps to make informed decisions.
 Low Stock Alerts: We set up alerts to notify us when stock levels run low. This way, we
can act promptly.

UI Development: This step involves creating the visual interface for the inventory management
system. It involves designing and building a dashboard where users can view and interact with
inventory data.
Testing and Quality Assurance
 Component Testing: Thoroughly testing each component to ensure they work correctly.
 Integrated POS and Inventory Testing: Specifically test and emphasize the integrated
point-of-sale (POS) system and inventory management.
 Validation and Reliability: Validating the tests and ensure the system is reliable enough.

Training and Documentation

 Training: We provide training to both suppliers and staff. This ensures they understand
how to use the system effectively.
 Documentation: We create detailed documentation. It serves as a reference for future
use, helping users navigate the system confidently.
Deployment of Software in Production Environment
 Deployment: We put the system into action by deploying it on production servers.
 Reliability and Data Accuracy Check: We thoroughly test for reliability and ensure that
the data accuracy meets our standards. If any issues arise the team can address them
promptly.

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 Migrating from Old to New: Smoothly shift from the old system to the new tool,
ensuring a seamless migration for users as well.
Maintenance and Feedback
 Periodic Performance Review: Regularly assess how well the system is performing.
 Security and Scalability: Address security risks and ensure the system can handle
growth.
 User Engagement: Conduct interviews and surveys with users to gather feedback and
make necessary improvements.

MAJOR MILESTONES

EST Delivery Date Milestone Title

February 10, 2024, by 5:00 PM
March 5, 2024, by 5:00 PM
March 20, 2024, by 5:00 PM
April 10, 2024, by 5:00 PM
May 1, 2024, by 5:00 PM
May 15, 2024, by 5:00 PM
June 1, 2024, by 9:00 AM
June 15, 2024, by 5:00 PM
Ongoing after deployment
Design and architecture finalization
Implementation of Automated Stock Updates
Real-Time Updates and Low Stock Alerts Integration
UI Development Completion
Testing and Quality Assurance
Training and Documentation
Deployment in Production Environment
Migrating from Old to New System
Maintenance and Feedback Collection

These milestones provide a structured timeline for the project, ensuring that key activities are
completed on schedule and enabling effective tracking of progress toward the overall goal of
implementing an improved inventory management system with cloud and POS integration.

KEY INCLUSIONS, EXCLUSIONS, CONSTRAINTS, AND ASSUMPTIONS

Inclusions:
 Utilization of industry-standard tracking technologies like barcoding and RFID.
 Integration with modern hardware and software, including Enterprise Resource Planning
(ERP) systems.
 Implementation of predictive analytics for demand forecasting.
 Development of an online training program for end-users.
 Establishment of a support and maintenance program for ongoing system operation.
 Adherence to relevant regulatory standards governing data security and privacy in the
retail sector.

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Exclusions:
 Custom hardware or software development: Custom solutions beyond the scope of
inventory management are excluded.
 Non-essential business systems integration: Integration with systems not directly
related to inventory management is excluded.

Constraints:
 Budget limitations: The project must operate within allocated budget constraints.
 Time constraints for project completion: The project must adhere to specified timelines
to minimize disruption to ongoing operations.
 Regulatory requirements governing data security and privacy: The project must comply
with relevant regulatory standards.
Assumptions:
 Strong support from key stakeholders: Assumed to ensure smooth project execution.
 Reliability of technology vendors: Assumed to deliver scalable and reliable solutions.
 Effectiveness of online training for end-users: Assumed to facilitate a smooth transition
to the new system.

SPONSOR ACCEPTANCE

Approved by the Project Sponsor:

___________________________________________ Date:____________________
Loblaws Inc.
Chief Operations Officer (COO)