Running head: OPERATIONAL AND INFORMATION MANAGEMENT 1

Operational and Information Management Review for BakeryCo that include SWOT

Analysis, Process Improvement, ERP Evaluation, and Industry 4.0 Implementation.

Student Number: @00503007

Effective word count: (_)

Declaration: I do hereby confirm that all work in this assignment is my original work.

Work from others has been cited as appropriate.

Module Title: Operations and Information Management

Module Leader: Professor John Sharp

University of Salford, Manchester

OPERATIONAL AND INFORMATION MANAGEMENT 2

Operational and Information Management Review of BakeryCo

Executive Summary

This report offers a detailed assessment of BakeryCo's management of its Business operations

and information upon acquisition by BoulangerieCo. The research identifies important

bottlenecks and provides practical solutions to them using SWOT analysis, operational

assessments, business process modeling, ERP evaluations, and Industry 4.0 investigation.

BakeryCo's difficulties include manual operations, inefficient information management, and

ineffective capacity planning. Digital transformation plans, such as ERP adoption address the

underlying performance deficiencies. Effective inefficient management of its strengths and

opportunities would deliver a breakthrough in realization of its anticipated performance

objectives.
OPERATIONAL AND INFORMATION MANAGEMENT 3

Table of Contents

Introduction...............................................................................................................................................3

1. SWOT Analysis..................................................................................................................................4

3. Current Business Process Model (BPM)......................................................................................9

Operational Improvement Strategies.......................................................................................................9

3.1 Capacity Management.....................................................................................................................9

3.2 Quality Management.....................................................................................................................10

3.3 Supplier Management...................................................................................................................10

3.4 Customer Relationship Management...........................................................................................10

4. Proposed Business Process Model (BPM)..................................................................................11

Business Process Modelling....................................................................................................................12

5. ERP Evaluation Table.........................................................................................................................12

5. Industry 4.0 Technology: Internet of Things (IoT)...........................................................................14

7. Conclusion............................................................................................................................................15

References................................................................................................................................................15
OPERATIONAL AND INFORMATION MANAGEMENT 4

Introduction

BakeryCo is a small-sized bakery business that focuses on handmade bread production.

BakeryCo is known for its dedication to quality and long-standing relationships with local stores

and cafés. Despite its substantial market presence, the company strategy is still primarily reliant

on manual methods in both production and data handling, leading to profound inefficiencies.

Constraints such as poor estimation, inconsistent supply chain interaction, and operational

rigidity have hampered its ability to satisfy rising or variable customer demand. Furthermore,

external forces such as inflation and shifting consumer choices for lower-cost items represent a

significant challenge to market retention.

BakeryCo, which was acquired by BoulangerieCo, a highly innovative and globally

focused parent firm, must modernize to remain competitive. This paper offers a thorough

examination of BakeryCo's current processes and recommends thoroughly considered

approaches to meeting its performance objectives. The recommendations range from optimizing

supply chain communication to using corporate systems and ERP for forecasting, continuous

tracking, and scalable manufacturing. BakeryCo’s strategic solutions revolve around the state of

the art digital business process models that would enhance efficiency and effective in managing

the capacity within its disposal.

OPERATIONAL AND INFORMATION MANAGEMENT 5

1. Development of a SWOT Analysis of the current situation at BakeryCo.

SWOT Analysis is a structured planning method that evaluates the strengths, weaknesses,

opportunities and threats involved in a business venture (Sarsby, 2016). It assesses an

organization’s competitive standing by examining its internal strengths and weaknesses as well

as external opportunities and threats (Davenport, 1998). A SWOT analysis of Bakery Co. will

allow an understanding of its strong and weak business points to propose an appropriate business

model.

Table 1: BakeryCo.’s SWOT Analysis

Strengths Weaknesses

Quality baked bread with constant flavor Manual documentation leads to errors.
and appearance. Limited supplier base

Limited automation in industrial operations.

A loyal clientele with strong brand Poor management of suppliers
awareness.

Skilled bakers with long-term and Poor organizational integration between units such as
specialized skills. sales, inventory, and procurement.
Strategically positioned, which attracts Unavailable real-time tracking of customer demands and
walk-in buyers. inventory.
Opportunities Threats
Increasing demand for healthy bakery Increasing costs of supply products due to supply chain
products. instability.

Long term customers Increasing inflation rates

Incompetent management of client demands
Growth into the digital space for orders Rising competition from both other small and medium
and delivery services. local bakeries.
Integration of digital marketing tools and Regulatory shifts affecting food safety requirements.
modern ERP systems.
Use of modern technology such as AI for Economic declines affecting consumer-spending choices.
demand forecasting and customized
marketing.
OPERATIONAL AND INFORMATION MANAGEMENT 6

According to the SWOT evaluation, BakeryCo has an excellent basis in product quality and

client retention, but it suffers from operational deficiencies caused by outdated processes. A

SWOT analysis tool conducts in-depth based analysis aligned with real objectives and supported

by structured implementation plan (Blokdyk, 2019). Adopting digital transformation presents

opportunities, notably in production management and consumer involvement. Threats like as

cost swings and competitiveness necessitate strong, efficient, and effective management to

achieve performance goals.

2. How more effective and efficient management of capacity, quality, and both

suppliers and customers can improve performance objectives.

2.1 Capacity’s effect on performance

Capacity in terms of operation is the maximum level of value added activity over a period of

time that a process can achieve under normal operating circumstances. A well thought out

capacity management can majorly boost Bakery Co. meet its new performance objectives in

terms of:

i. Cost reduction. As cost reduces in Bakery Co.’s operations, they will manage to counter

the rising inflation and the rising supply chain costs. This will solve the 20% market

reduction as their product prices reduces, which will enable Bakery Co. satisfy its

customers cost effectively.

ii. Speed of response. Bakery Co.’s current lead-time for delivery, which is over two weeks

will be reduced drastically.

OPERATIONAL AND INFORMATION MANAGEMENT 7

iii. Dependability of Supply. Bakery Co.’s customers will have their orders supplied in time

by reversing the current trend of cancelling orders at short notice due to changes in

customer demand.

iv. Revenue Boost. By widening the company’s revenue streams, all demands will be met;

hence, sealing all revenue losses.

v. Increased Working Capital. A rise in working capital will enable Bakery Co. cope with

its customer demand as this would effectively finances sourcing of production materials

and related logistics.

2.2 Quality’s effect on performance

Quality implies consistent conformance to standard in the context of customers’ expectations

by doing things right. Operations are geared toward meeting customer needs through

providing error-free products, which are ‘fit for their purpose.’

Bakery Co.’s upholding of quality will lead to performance objectives through:

i. Increased dependability. Bakery Co.’s improved quality will lead to a higher

customer satisfaction. It will have a positive internal impact of stability and efficient

processes. This will cure incidences of canceling their customers’ orders in short

notice.

ii. Speed. Faster customer service will earn Bakery Co. short deliver time, which will

culminate into reduced lead-time.

iii. Cost reduction. The fewer mistakes Bakery Co. makes in each operation process, the

less time will be needed to correct the mistakes. Resultantly, less confusion and

irritation among their customers due to proper specification for products and services.

For example; if the Bakey Co. s production factory dispatches defective wheat
OPERATIONAL AND INFORMATION MANAGEMENT 8

products to their retailers, it will imply staff time, extra logistical costs and defects

correction costs.

iv. Bright company image. Enhanced product quality associated with Bakery Co.’s

products will create a significantly positive reputation among its key stakeholders

creating a competitive edge against their competitors.

v. Advanced production technology. By adopting modern technology, Bakery Co. will

undergo a paradigm shift in production technology from handmade baking

technology to the current state of art manufacturing technology.

2.3 How effective and efficient suppliers and customers management can help Bakery

Co. meet its new performance objectives

i. Risk Mitigation. If Bakery Co. adopted effective suppliers and customer management, it

will enable them identify and mitigate supply chain risks prior to their occurrence.

ii. Broad supplier and customer base. A wide and diverse customer/supplier base would

provide contingency plans with key suppliers/customers. The company will conveniently

deal with supply disruptions, price volatility as well as geopolitical risks as opposed to

their current struggle in maintaining effective relationships with their

suppliers/customers.

iii. Enhanced product quality. Bakery Co.’s close ties to its suppliers and customers will

deliver a better quality control.

iv. Dependability. To Bakery Co.’s dependability will bring reliability because of

minimized chances of stock outs or production disruptions. This will ensure continuous

and steady supply to their customers.

 OPERATIONAL AND INFORMATION MANAGEMENT 9

v. Value creation. By establishing strategic relationships, Bakery Co. will create value

through joint product development and shared market insights. Accessibility to supplier

and customers innovations would open ICT opportunities for automation/digitalization of

Bakery Co.’s business operations.

vi. Cost Savings. By fostering long-term relationships with key suppliers and customers,

Bakery Co. can negotiate volume discounts emanating from economies of scale and

favorable payment terms. This would deliver realization of high profit margins.

Collaborative efforts in process improvement and innovation can also lead to reduced

total cost of ownership between them and BoulangerieCo.

3. Current Business Process Model (BPM)

a) Figure: Current BakeryCo BPM

Order Order
Started Confirmation
Cli
Product Order Creation Manually Order
ent configuration (By telephone) created invoice Completed

Sales
Order
Sal
Details Validation by phone Manually
es recorded (Manually) created invoice
(manually
Start
Figure 1: Current BakeryCo BPM

Narrative of Current BPM:

BakeryCo's present workflow begins with raw material purchase, then manual recording and

storage. Daily production scheduling is mainly based on experience instead of data-driven

OPERATIONAL AND INFORMATION MANAGEMENT 10

projections, which can lead to excess production or shortages. Finished products are generally

kept and sold as walk-in purchases, with transactions manually recorded. Lack of automation

leads to delayed access to data and poor departmental collaboration.

Operational Improvement Strategies

3.1 Capacity Management

BakeryCo presently employs a reactive capacity planning methodology, with short-term orders

driving the majority of its operations. Manual estimates cause frequent discrepancies between

demand and production. Underproduction causes lost income potential, whereas overproduction

leads to waste, especially in perishable bread products.

Recommendation: Use ERP systems to provide demand forecasting based on past information

analytics. Demand cycles can be predicted using forecasting techniques. Real-time dashboards

that are coupled with order management systems enable the dynamic modification of production

schedules (Slack et al., 2020).

3.2 Quality Management

While excellent product quality is BakeryCo's trademark, present quality assurance is based on

personal inspections. As productivity rises, manual checks become inadequate raising the

possibility of mismatched batches.

Recommendation. Implementation of a Statistical Process Control (SPC) and a Total Quality

Management (TQM) strategy and using IoT devices. This strategy enhances compliance,

essential for food safety in global markets (Bas, Ersun & Kıvanç, 2019).
OPERATIONAL AND INFORMATION MANAGEMENT 11

3.3 Supplier Management

BakeryCo's local suppliers ensure authenticity but limit scalability and reactivity. The lack of

performance measurements and digital connections impedes collaboration.

Recommendation: Establish supplier assessment criteria on an ERP platform to monitor delivery

timeliness, defects, and fill rates. Digital supply platforms provide visibility into vendor

inventories and integrate with the business's material requirements planning (MRP) system.

Long-term relationships with key suppliers should be prioritized via coordinated forecasting and

shared scheduling sessions (Handfield et al., 2020).

3.4 Customer Relationship Management

Effective supplier management is essential for guaranteeing constant quality and timely delivery

of raw materials. BakeryCo should create a system for evaluating suppliers based on factors such

as quality of goods, cost stability, delivery dependability, and food safety adherence. Long-term

agreements with high-performing suppliers can help decrease procurement risks and increase

cost efficiency. Digital supply chain management systems may help with inventory forecasting,

reducing stockouts, and streamlining purchase orders. Furthermore, diversifying sources of

crucial components might help BakeryCo avoid disruptions and preserve operational continuity

even amid supply chain crises.

4. Proposed Business Process Model (BPM)

Table: Proposed BakeryCo BPM with ERP Integration

OPERATIONAL AND INFORMATION MANAGEMENT 12

Figure 2: Proposed BakeryCo BPM with ERP Integration

Narrative of Proposed BPM:

BPM enables businesses to scan, communicate, and effectively improve their operations (Havey,

2005). In the suggested approach, an ERP system combines procurement, inventory,

manufacturing, and sales. Raw material receipt prompts an automated inventory update, while

barcode tracking increases stock accuracy. Production is directed by ERP-generated projections

based on previous sales data and seasonal trends, which reduce waste. Sales are processed using

an integrated POS system, which automatically updates inventory and generates real-time

information for management decision making. Integration of ERP, MRP, and BPM offers a

comprehensive framework for enhancing efficiency coordination and responsiveness across the

entire supply chain spectrum (Vollmann et al. 2004).

Business Process Modelling

Focus Area: Supplier Management

Current State (AS-IS):

 Order volumes estimated manually based on telephone orders

 Material requirements written by staff without software support

OPERATIONAL AND INFORMATION MANAGEMENT 13

 Orders placed individually via phone or email

 Supplier delays addressed only when issues arise

Proposed State (TO-BE):

 Orders received through integrated CRM portal

 ERP calculates real-time raw material requirements using demand data

 Supplier interface allows seamless reordering and lead time estimation

 System alerts for low inventory and missed deliveries

Benefits: Improved agility, fewer stockouts, better vendor relationships, and data-driven

performance monitoring.

5. ERP Evaluation Table

Table 2: ERP Evaluation Table

Criteria SAP ERP Oracle NetSuite ERP
License Cost High upfront cost; perpetual Subscription-based costs (SaaS) has
license and subscription a cheaper starting cost than SAP,
alternatives available; substantial but recurring payments might be
installation costs. costly.

Implementation Medium (3-9 months), but faster

Time Typically takes 6-18 months because of cloud-based
owing to the intricacy and implementation.
customisation requirements.

Customization Highly adaptable to complicated SuiteScript and SuiteFlow allow for

and large companies; needs customization, making it suitable
competent advisors. for both small and big
organizations.
Scalability Extremely scalable; ideal for Highly scalable, particularly for
global organizations with fast-growing organizations and
complicated processes. international development.
User-Friendliness Complexity causes a steeper The interface is more
learning curve; considerable straightforward, making it simpler
training is required. for non-technical workers to use.

Deployment On-premise, cloud, and hybrid 100% cloud-based

alternatives are all accessible.
OPERATIONAL AND INFORMATION MANAGEMENT 14

Integration Excellent integration with other Good interaction with numerous

SAP solutions and third-party business tools and APIs.
apps.
Support & Comprehensive assistance, but The membership includes vendor-
Maintenance pricey; SAP-certified partnerships provided 24/7 assistance, as well as
accessible worldwide. frequent automated updates.

Industry Fit Ideal for manufacturing, Excellent in retail, e-commerce, and

distribution, retail, banking, and medium-to-large enterprises.
large-scale businesses.

Analysis:

For BakeryCo, open-source ERP systems such as Oracle and SAP (Systems, Software, and

Products in Data Processing) are the most practical options owing to their ease of use, flexible

architecture, and adaptability for small to medium-sized businesses. SAP is a way of using

information technology to develop and reengineer business processes (Curran, Keller, & Ladd,

1998). While professional ERP systems provide many capabilities, the price and complexity may

exceed the benefits for a medium-sized bakery.

5. Industry 4.0 Technology: Internet of Things (IoT)

ERP systems store and process information collected that help SMES to reduce uncertainty,

improve operations and managing decision-making (Davenport, 1998). According to Slack et al.,

2007, the following are the benefits emanating from ERP implementation:

o By implementing ERP, BakeryCo stands to realize significant efficiency and

effectiveness in its performance by enabling best practices to be implemented uniformly

across the entire organization. It therefore improves BakeryCo’s overall operations.

OPERATIONAL AND INFORMATION MANAGEMENT 15

o Through the software, communication across all functions, BakeryCo will have

appropriate visibility of the happenings in all its business operations.

o BakeryCo will foster its efficiency and operational effectiveness as ERP will instill

changes in the business processes.

o It will experience improved control of its operations, which will lead to continuous

improvement.

o Its communication with customers, suppliers, and other business partners will get

sophisticated, creating more access to timely information networks.

o ERP creates an integrated whole supply chain system for effective management and

coordination of suppliers for BakeryCo.

o With ERP, BakeryCo will achieve a robust database for a proper planning and control

tool.

o Going forward, BakeryCo will acquire a client–server architecture. Access to the

information system is open to anyone whose computer is linked to the central computer.

o BakeryCo’s decision-making on its operations will be easier and well fact-based.

o ERP will enable BakeryCo to interface with other standard application programs which

are commonly used, e.g., spreadsheets.

o BakeryCo will henceforth manage to operate on most common platforms, e.g., Windows,

UNIX, Linux, etc.

7. Conclusion

BakeryCo’s success hinges on its ability to embrace digital transformation. Operational

inefficiencies rooted in manual processes can be mitigated through strategic investments in ERP
OPERATIONAL AND INFORMATION MANAGEMENT 16

systems, IoT infrastructure, and customer/supplier integration platforms. By adopting these

changes, BakeryCo not only streamlines current workflows but also creates a foundation for

scalable, quality-centric, and resilient operations aligned with BoulangerieCo’s global strategy.

References

Bas, M., Ersun, A. S., & Kıvanç, G. (2019). The evaluation of food safety practices in food

service establishments. Food Control, 100, 208–215.

Blokdyk, G. (2019). SWOT Analysis A Complete Guide. Edition Kindle Edition The Art of

Service [http://theartofservice. com].

Choudhury, M. M., & Harrigan, P. (2019). CRM implementation: A strategic and tactical

perspective. Journal of Strategic Marketing, 27(5), 456–472.

Curran, T., Keller, G. and Ladd, A. (1998) Business Blueprint: Understanding SAP’s R/3

Reference Model, Prentice Hall, NJ. A practitioner’s guide. Helpful if you are really

doing it.

Davenport, T.H. (1998) ‘Putting the Enterprise into the Enterprise System’, Harvard Business

Review, July–August. Covers some of the more managerial and strategic aspects of ERP.

Handfield, R. B., Monczka, R. M., Giunipero, L. C., & Patterson, J. L. (2020). Purchasing and

Supply Chain Management (7th ed.). Cengage.

OPERATIONAL AND INFORMATION MANAGEMENT 17

Havey, M. (2005). Essential business process modeling. " O'Reilly Media, Inc.".

Sarsby, A. (2016). SWOT analysis. Lulu. com.

Slack, N., Brandon-Jones, A., & Burgess, N. (2020). Operations Management (9th ed.). Pearson.

Slack, N., Chambers, S., & Johnston, R. (2007). Operations management. Pearson education 5th

Edition.

Vollmann,T.W., Berry, D.C., Whybark, F.R. and Jacobs, F.R. (2004) Manufacturing Planning

and Control Systems for Supply Chain Management: The Definitive Guide for

Professionals, McGraw-Hill Higher Education. The latest version of the ‘bible’ of

manufacturing planning and control. Explains the ‘workings’ of MRP and ERP in detail.

Wallace, T.F. and Krezmar, M.K. (2001) ERP: Making it happen, Wiley. Another practitioner’s

guide but with useful hints on the interior mechanisms of MRP.