Proposal for an Information System solving inventory and supply chain management issues of VKC Group

1. Section D | Group 6
Term 2: DMIS Group Project
6

2. It is highly known for Hawai Slippers (Polyurethane) which is manufactured in Kerala and is
preferred by customer all over India
Currently, company have factories in 10 states in India and a joint venture in Bangladesh and
high export to Malaysia, gulf countries, Singapore and Africa
VKC Groups expect that the govt. would focus more on non-leather sector for adaptation of
new technology like knitting to gather more customer interaction
Non- leather footwear company based out of Kozhikode, Kerala
founded in 1984 by V.K.C Muhammed Koya
ABOUT VKC GROUP
V

3. Problem Statement

4. Frequent Stock Outs
On visiting the website of VKC Group we realized they are
plagued with stock-out issue
No organised demand forecasting
Raw materials are procured either based on intuition or simple
past trend, ignoring any seasonal trend
1.
2.
No IS in place for distributors and dealers
Lack of IS complicates tracking sales, order planning, inventory
management and future forecasting
3.
Lack of data
Absence of IS leads to lack of data with the company and not
able to plan their expansions in Northern parts of the country
4.
Lack of platform for suppliers
Company does not have a platform to procure raw materials from
supplier and incentivise their dealers based on the sales outcome
5.
Unable to manage production
6.
VKC group has 20 production facilities spread across 6 states.
Handling production at all the plants becomes a huge task
without an IS in place

5. ERP for VKC Group:
It will help VKC group to procure resources from suppliers and maintain
relationship with them. It will VKC Group to gain insights of sales and
revenue from multiple depots and dealers
Designing IS for depots
The software will help in order processing, order management,
inventory management, CRM
Build a model to supply products from plants to depots
Demand forecasting mechanism
MRP for individual plant
OBJECTIVES

6. Technical Feasability
Data is recorded in the computer but it is not well organised
Company uses technology but not fully relied on it
FEASABILITY STUDY
Operational Feasability
Economic Feasability Organisational Feasability
• Tangible benefit: Reduce inventory holding cost, reduce transportation cost
• Intangible benefit: Help in expansion, help in Customer and supplier relation
• Tangible Cost: Cost of service cost, developer cost, maintenance cost
• Intangible Cost: Loss of data
Company is having software developers and
operational head of depots are tech savvy
It will help organisation to grow in northern parts of India
and possibly expand in the South Asian subcontinent too
1.
2.
3.
4.

7. EXISTING SYSTEM
The depots keep the record of the sales and revenue in excel by manually entering the data
VKC group is having an IS for tracking sales and revenue
There is no IS for inventory management and procurement
Also, they are keeping record of sales of each depot
Identify stakeholders whom you seek to gather information and design an interview
questionnaire for gathering data
STAKEHOLDERS
SCM Head - Desikan Narayanan
COO - Raghu Chandrasekaran
Operation managers, Depots head, Dealers

8. REQUIREMENTS GATHERING
SCM Head
Q.
Existing Supply Chain Model - Procurement of raw material and
relationship with suppliers
Third party use for logistics or supply if any?
Sales Head
Region with highest sales?
Operations Manager
Q.
Distribution and Warehouse management
Inventory management Model
Since stock outs in website
Demand Forecasting of future years CRM if any?
COO
Q.
Expansionary plans if any?
Q.
IT Head
How the data is managed currently - stored and secured?
Q.
MM
Products line and width

9. AREAS TO BE PRIORITISED FOR
COMPUTERISATION
VKC Group, despite expanding business to PAN India, lacks a proper well integrated information system to
make the business process at ease. Hence the company could focus on these areas that should be prioritized:
Plant to warehouse
ERP of VKC Groups1.
2.
3.
Inventory Management
ERP of Depots
4.
5.
6.
Supply chain management
Chat bot feature

10. SDLC: WATERFALL MODEL
Why Waterfall?
Functional and non-functional requirements
gathered from various stakeholders are known
before hand, clear and static in nature
Implementing the whole IS is a short project
Technology is understood and is not dynamic.
The various tools/framework required are given
here >>>

11. ACTIVITY DIAGRAM

12. ER DIAGRAM

13. USE CASE
DIAGRAM
VKC GROUP
INFORMATION
SYSTEM

14. BUDGET PLANNING:
IN-HOUSE VS THIRD PARTY

15. COST ANALYSIS:
PHYSICAL SERVERS VS CLOUD

16. Corrective: To correct any errors or faults that may
occur during execution of system
Adaptive: If the company plans to modify its supply
chain system or their policies then the system has
to be maintained and updated for the new policies
and processes
Perfective: This activity will be carried out every 6
months where the existing systems will be checked
for efficiency and will be updated
MAINTENANCESECURITY
Authenticate users through central AuthN/AuthZ systems
Grant the minimum, sufficient access or privileges
Two-factor authentication for system access
Cost Components: Remote Servers, Central Databases,
encryption software
There will be three types of maintenance activities
carried out:

17. LOGISTIC RECOMMENDATION
SYSTEM

18. WIREFRAME: DEPOT INFORMATION SYSTEM
Designed in Adobe XD

19. Thank You!
“Torture the data, and it will confess to anything.” – Ronald Coase