An Analysis of the Inventory

Management System of Jollibee:

A CASE STUDY
 Introduction

Jollibee is the dominant leader in fast food

chain in the Philippines with annual sales of
PHP 131.91B(2016) with inventories of 24% of
their current assets.
 Problem in Inventory Management

In 2014 Jollibee food corporation (JBFCF)

undertook a major IT change that was to
blame for the lack of the popular ”Chicken Joy”
in some of the stores. The change affected the
fast food giant’s inventory and delivery system,
forcing 72 store to closed and costing the
company estimated 180 million of pesos losses
a day.
 ISSUES
System migration
Jollibee had been using a product from software
company Oracle to manage its supply chain,
which includes inventory, placing of orders and
delivery of supplies to stores. Insiders said a
dispute with Oracle prompted Jollibee to switch
to its rival, SAP. The company shell out PHP 500
million to migrate to a new system.
 SOLUTION
1. START SMALL
Such complex and large IT project must start
in a small scale were they do the virtualization
of the project in the laboratory were all the
changes and testing are done.
Solution provider must have enough expertise,
experience and manpower to rollout such kind
of big project.
2. FAT SYSTEM
The Factory Acceptance Test (FAT) is a major project
milestone in a laboratory automation project where
the equipment and/or system integrator
demonstrates that the system design and
manufacturing meets the contract or Purchase
Order (P.O.) . Actual testing in the laboratory must
be witness by system owner and be certified
successfully tested.
3. DEPLOYMENT
The new system must be installed in parallel
with the exiting IT system. During system
test it must be given time or window were
it can be deployed the new software and
revert back to old software when the test is
finished. Deployment must be in phases so
that when error occur it can be revert back
to old system fast enough.
4. ROLL OUT
During the final roll out of the project all the
system developer must be present and all the test
must be transparent to the owner.
5. OLD SYSTEM
When the new system is already deployed and
smoothly running, the old system must be used
as redundant to the new system and until such
time all parties specially the owner is confident
enough to unplug the old system.
6. CONTINUOUS MONITORING
Monitoring of the system must be
continuous and most pass an special event
like Christmas were the activities likely
increase by 30-50% and the likelihood of an
error will come out if it was seen during the
testing. .