ISYS2000: Supply Chain Information Management – West Coast Java Coffee – Management Assignment Help

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Assignment Task :

West Coast Java Coffee 

West Coast Java Coffee (WCJC) is a drive-thru coffee store that was established in 2010 by two friends James and Mo. Their start-up venture was a small setup, one drive-thru store adjacent to a major new hospital/health care campus in Perth, Western Australia. The menu consisted of a few cold drinks, hot drinks and heathy food items. The startup was a success because of healthy breakfast items and early start (5.00 am daily, except Sunday). Moreover, most of their food items were prepared freshly on the premises. WAJC was soon very popular with early morning workers. James and Mo attributed much of their success to the design of their supply chain and their loyal customer base. 

Acknowledging the success of their business, WAJC expanded to five more drive-thru stores adjacent to other hospital/health care campuses in other suburbs across Perth. At the same time, they also included more items on their menu. 

This rapid growth, however, created challenges. Along with the usual logistical problems of quickly expanding operations, WACP was having problems managing its growing volume of data and using it for their supply chain planning. Moreover, WACP had been receiving pressure from suppliers, who complained that as WACP had grown, they felt that supplier relationship metrics had fallen below expected standards. 

WACP: Senior Leadership 

Co-Chief Executive Officers: James, Co-CEO 

James had previous experience working as a supply chain planner and logistics coordinator for a well-known fast-food chain. He was responsible for demand forecasting for the food items. James worked on a daily basis with a customised version of SAP. The SAP system at the fast-food chain included all of the core functionalities, along with some add-ons. The fast- food chain SAP solution also involved B2B EDI communication with upstream suppliers and downstream customers. 

Co-Chief Executive Officer: Mo, Co-CEO 

Mo is a graduate of Curtin Business School in Supply Chain Management. After graduation, Mo worked for K Catering in both the procurement and distribution functions of the operation. In both his roles, Mo had used Excel and Access to manage relevant information. 

WACP: An Awkward Conversation 

Recently, WACP’s two Co-CEOs sat down for coffee to discuss the future of their company. Mo began the discussion: 

We need to ensure that customer service doesn’t decrease. The success of our company relies on excellent customer service. That means sticking to our core strengths. 

James replied, 

I fully understand the need for good customer service and growth. However, the systems that we currently use are outdated. If we are to continue to grow our business in the future, we must first deploy information systems that can support expansion and minimise cost. I think our reliance on Excel and Access is what is limiting us. 

But IT is not our strength! Large coffee chains such as Coffee Club already have that advantage. Where we outperform is in the drive-thru healthy breakfast items and early start. Food items can only be maintained by delivering innovative menu items that set new trends. Our customers want to be viewed as trendy. If we begin the process of changing our systems now, then we’ll disrupt our innovative menu item process. Also, ERP systems are costly! 

James replied, 

Look, right now, we’re struggling to collect, clean, and manage our data. We have too many stand-alone Access databases that each serve a different organisational function. As a result, it takes too much time just to answer simple questions about our business! This could be so much easier! 

Mo retorts, 

James, a new IT system comes after our next success, not before it. Our current resources should be allocated to marketing and new menu items. With the equity we could earn from a hot new menu, we could finance your new ERP system. 

James, flatly states, 

Mo, our last external auditor report, just mentioned several times that data about our inputs and outputs are inconsistent across the different organisational functions. They also noted that data capturing our procurement and sales activity is inconsistent with corresponding physical documents. I think that may even be illegal! 

As both friends and business partners, James and Mo looked at each other thinking that they had wanted to celebrate their 10 year anniversary, now downed silently into their coffee cups. Even great success can be bittersweet. 

Questions 

1. Describe the key the problems WAJC is currently facing. 

2. If you were a Co-CEO of WAJC, outline other detailed information you would  consider useful to reaching decisions regarding your future growth?  

3. According to the case, suggest the kind of ERP modules and associated considerations that would enable strategic decision making along the entire supply chain.  

4. Acknowledging the cost of ERP systems, advise James and Mo of alternate 

solutions. Include in your answer both benefits and concerns from adopting any of these solutions. How could you address any objections that Mo or James may make? 

5. Evaluate Mo’s and James’s responses to the situation – how are their ideas alike or different? Include in your answer how the COVID-19 situation may impact on their responses. 

 

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