Reference no: EM133706832

Discussion Post: Project & Operations Management

Prior to beginning work on this discussion post,

1) Read Chapters 7 and 11 of the course textbook, Contemporary Project Management: Plan-Driven and Agile Approaches.
2) Read Exploring the Value of Risk Management for Projects: Improving Capability Through the Deployment of a Maturity Model.

The business development manager for ILS (your project management case study) returned from a meeting with Walmart. Walmart and Proctor & Gamble successfully pioneered the use of vendor managed inventory (VMI), which is cited in the article, New Models for a Single-Manufacturer Multi-Retailer Supply Chain Under Vendor Managed Inventory Program (Parsa, 2018). The VMI concept enables the vendor or manufacturer to use the retailer's data to decide on the timing and quantity of restocking store shelves up to a certain maximum. During the meeting, Walmart suggested that ILS might implement a VMI on their behalf. This would require ILS to develop a system and a process to obtain Walmart's data and assume responsibility for ordering product from the various vendors and shipping to Walmart, ensuring no stock-outs without exceeding the maximum. The business development manager suggests adding this requirement to the scope of the Logistics Services Improvement project.

On the one hand, this is an opportunity for innovation that could ultimately reduce ongoing costs for Walmart and allow ILS to earn additional revenue. On the other hand, this new requirement would add risk to the project, as ILS would need to address several fundamental issues. In addition, ILS would need to develop information technology and processes that would integrate with Walmart on the outbound side and on the inbound side with Walmart's suppliers. A rough estimate indicates an additional project investment of $75,000. Finally, ILS has not yet secured Walmart's business, though the two companies have worked together in other countries and have a good relationship.

Tomorrow, the director of logistics services (DLS), the business development manager, and you will discuss the proposed change to the project scope. As the project manager, prepare for the meeting by providing a bulleted list of at least three opportunities and at least three threats to new requirements being added this late in the planning stage.