Explain two benefits of computerised purchasing system

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Reference no: EM133040119

Question - Fareeda Wholesaler Sdn Bhd (FWSB) is a medium size groceries supplier that has four branches in Kedah, namely Sungai Petani, Alor Setar, Changloon and Pokok Sena. FWSB employs one manager, four supervisors and 20 general workers. It uses manual system to record all purchase transactions from main suppliers and to process goods to smaller package to sell to retailers in Kedah area.

After two months of operations, the manager realized that Sungai Petani and Alor Setar branches have high sales turnover compared to the other two branches. Two supervisors from Sungai Petani and Alor Setar branches have raised their concerns that the current practices of manual system created unnecessary bottleneck when retailers request for quick orders. Retailers also complained that lately orders were delivered late, and, in many incidents, wrong items were delivered. Some retailers mentioned that if cases keep recurring in future, they are seriously considering to look for another supplier other than FWSB.

Concerned about the above matter, the two supervisors have made an urgent request for a computerised purchasing system and computerised sales system. The manager who travels to all branches to monitor daily operation noticed the tense situation at the two branches. He also feels the heat when information required to make decisions on inventory purchase for each branch as well as sales to retailers are not available. The manual system could not provide updated information and information needed are not available when needed. He thinks that it is time to upgrade from manual purchasing to computerised purchasing system and to improve from manual sales to computerized sales system. He is also seriously considering the possibility to develop a system for all branches.

You have been appointed to study the FWSB system. You plan to conduct a preliminary investigation among system users on current system and to determine users' requirements.

REQUIRED -

(a) Describe ONE (1) suitable method to be used to gather users' requirements from:

(i) the management.

(ii) the general workers groups.

(b) Determine whether there is any business case from the above situation. Explain ONE (1) reason to justify your answer.

(c) Explain TWO (2) benefits of computerised purchasing system.

(d) Explain the best solution to solve the above situation. Give TWO (2) reasons to support your answer.

Reference no: EM133040119

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