Information System

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Information system has to work in conjunction with all systems An organization runs with the help of its subsystems. One department can make the whole organizations. These are different subsystems, components or dep artments, which constitute the organization. So do in the case of XYZ export firm. If we want to define it can be in three words, input  process and output.

Input

Process

Output

Input for the XYZ would be of two types, for the products it produces and a nd the products, which the other firms provide it for the export. There would be raw material purchase,  production, produced goods, inventory management for the goods, matching production  process with the quality required by the supplies etc, etc. How all these things could be kept in record and updated. Today is the world of high competition and change. How a XYZ would respond to the instant changes in the environment in the market, in the changes in legal laws and requirements of the Pakistani legal system and Saudi legal system. It is information system, which integrate with all other systems and coordinate with then to keep them updated and instantly responding to the changes in the external system. The database is the primary means of integration of the various subsystems. A data item that is stored or updated to one subsystem is then available to the other subsystems. E.g. sales and inventory information used by the marketing of the XYZ would be supplied through the logistics subsystem, the same data would be used by the manufacturing subsystem of XYZ for the production planning and resource scheduling.

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Database management system or MIS Database

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All these system integrate through the help of the information system. These systems are further composed of subsystems, which can be: Marketing system: Sales forecasting system Sales planning Customer and sales analysis Manufacturing system: Production planning Scheduling Cost control analysis Logistics system: Planning and control of purchasing Inventories Distribution Personnel system: Planning personnel requirements Performance analysis Salary administration Finance and accounting system: Financial analysis Cost analysis Capital requirements Income measurement Information processing: IS planning Cost effectiveness analysis Top management: Strategic planning Resource allocation

How these systems would work? Theses systems would share the information at every  point in time through IS and would make the working relationship with the other systems and subsystem. One order fulfillment can be like this:

The systems that would be there are: Order management system:

Inventory management system

Order from customer 

Check the already inventory

Entered into the databases

If exists than sent to order  fulfillment

Sent to inventory mgt system

If doesn’t ordered to  production system

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Suppliers of specific products

Contact to the finished products suppliers Details of products and date of delivery

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Production system

Check the raw material If present than  produce

If no than contact to suppliers

Send to inventory mgt system

Transportation system

With reference to xyz firm write a detail discussion on Enterprise system and system for supply-chain management Enterprise system: Enterprise system is also known as enterprise resource planning system. I t collects data from various key business processes and store the data in a central repository. This information can be shared across the firm and different parts of business can work in collaboration with each other.

The basic function of Enterprise system is to speed up the communication of information through out the organization making it easier for business to coordinate the daily operations. Any part of the organization that require any information necessary for them have an access to it.

For XYZ firm: XYZ whose basic objective is to provide quality food to Saudi Arabia need to have an enterprise system for the better coordination among its departments. It’s Sales and Marketing department, accounting and finance department, customer relations management department, purchase department, production department, Human resource department and others need to work in collaboration to achieve the common goal. For example: When any order will be placed by a customer to XYZ, the data will automatically flow to all the concerned parts of the organization. The order placement will make them start working on the order and fulfill it as soon as possible through effective information flow. The Enterprise system will thus help XYZ in:  Providing them flexibility to respond quickly.  Having proper amount of inventory (neither having excess nor the shortage to avoid any unnecessary cost).  More accurate order fulfillment.  Improving management decision making (by having access to all detailed information and data).

Supply Chain Management system: It deals with managing the entire supply chain. It is a much broader concept and requires looking beyond the boundaries of the organization. The supply chain includes the suppliers, the middle men in providing logistics (in bond and out bond logistics), the manufacturers, the whole sellers, the retailers, the customers. Here is a n eed to manage the entire supply chain by coordinating these independent firms to work for the benefits of all the organizations involved.

For XYZ firm: XYZ needs a supply chain management system as it is working with a large number of  suppliers who are providing variety of stuff to them, they may also have third party logistics service providers, the may have whole sellers in Sa udi Arabia, retailers and of  course the final customers . They need to develop a very effective supply chain management system for working on the core idea of Network Coordination where we suggest following important practices for XYZ to develop a successful Value Chain:    

Developing and managing relationships across supply chains Interactivity across supply chain Life time customer value(the worth of different customers for the organization) Customization (in terms of providing the highly demanded items)

How XYZ can survive in Saudi Financial System  Trade Situation Saudi Arabia became the 149th member of the World Trade Organization (WTO) on December 11, 2005. Trade and foreign investment will benefit from the commitments made by the Kingdom as part of its accession agreement. Saudi Arabia agreed to reduce trade restrictions and improve trade and investment avenues in an effort to diversify its economy. The Saudi government is committed to reducing tariffs, eliminating import   prohibitions in the manufacturing and agricultural sectors, and opening additional markets in telecommunications, energy related services, insurance, and other financial services. The Kingdom is a member of the Gulf Cooperation Council (GCC), which includes Kuwait, Qatar, Bahrain, the United Arab Emirates and Oman. Membership confers special trade and investment privileges to member countries. Manufactured food  products produced in any of these countries are imported into Saudi Arabia duty free. In January 2003, the GCC implemented its long awaited customs union. According to the agreement, the six member countries agreed to implement a five percent across-the-board duty rate on most imported foodstuffs that enter member countries from non-GCC suppliers. Saudi Arabia also is a member of the Arab League, which recently agreed to negotiate an Arab free trade zone.

Agricultural Trade Situation Saudi Arabia is the largest importer of agricultural, fish and forestry products among GCC countries. The potential for agricultural production in Saudi Arabia is limited due

The operational feasibility analysis of XYZ should also based on the standard practices and procedures currently available in the international markets and has been updated in line with the harmonization of proposals currently being d etermined by the industry.

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