Posted: May 24th, 2022
IT solutions that meet business objectives
Haircuts Case Study
Proposed technology solution
In this case a supply chain management solution is imperative. Among the companies that provide IT solutions for improving supply chain management is Logility, a company that provides supply chain solutions for small companies like Haircuts. These solutions are intended to help maximize supply chain visibility and to improve its efficiency. The hardware required by this solution is represented by two computers: one at the Haircuts salon that employees can use, and a personal computer for the manager. The required software is offered by Logility, the services provider. Communication will take place orally or on the phone, in written form, and electronically through emails.
Generic Strategy: Business development by increasing number of customers and employees.
Strategic business area: Operations management.
Process to be improved: Supply chain management.
Haircuts manager meets with Logility representatives to discuss the business needs and for them to assess the requirements their products should meet. Logility proposes supply chain management solutions appropriate for Haircuts. These refer to demand optimization, inventory optimization, and supply optimization.
Haircuts manager analyzes Logility’s solutions in order to determine whether their price is within Haircuts range.
Haircuts manager agrees the appropriate solution with Logility and purchases the software.
Logility specialists install the software on Haircuts premises and train the manager and staff on using them.
Haircuts starts using the software and the manager analyzes the benefits.
Human resources: Haircuts does not require additional human resources for implementing this solution. This requires that the manager will appoint one of the employees to enter data into the software, or will assign this activity for each employee to report their own data.
Financial resources: Haircuts manager must determine whether this investments level in software solutions can be supported by the business’s profits.
Demand optimization: improve demand forecast accuracy, reduce inventory costs, increase gross margins, identify risks and opportunities, reduce costs.
Inventory optimization: reduced inventory, increased inventory turns, reduced inventory costs, improved customer service performance (Logility, 2014).
Supply optimization: increased market demand satisfaction, reduced costs, increase transportation efficiency.
System Development Life Cycle:
Evaluation: this software system is evaluated by interviewing Logility specialists and making adjustments for the Haircuts business if necessary.
Requirements: in case the Haircuts manager has identified deficiencies to the software, Logility specialists improve them.
System design: company specialists develop a software system intended to address Haircuts’ needs (Search Software Quality, 2014).
System development: the agreed system is developed and installed. Users are trained by company specialists.
System implementation: the software company’s specialists install the software to computers assigned by Haircuts manager.
Evaluation: maintenance is performed by Logility specialists in accordance with software requirements.
The software solution proposed in this case is an important technological advancement that requires a change management process in order to be assimilated by Haircuts staff. The most important factor that can affect the success f this implementation refers to the fact that employees do not have the technical background required by using such solutions. It is important that the Haircuts manager discusses this change with employees in order for them to understand the implications of this process, the objectives of this solution, and what is expected from them in order to successfully implement it. The specialists from Logility will train Haircuts’ employees into using the software solution efficiently, which means their lack of technical background should not be a problem in this case. In addition to this, they will consider this issue when designing the program so that it can be easily used by personnel with little training.
It is expected that changes to the solutions are possible after it is implemented. This is because the manager will assess the utility of the software program and decide whether some features must be added, removed, or modified in order to be mostly appropriate for this business model.
In this case, employee training is ensured by the company providing the software.
By implementing this software solution, the Haircuts manager expects significant improvements in the business’ supply management and connected areas. It is expected that the increasing necessary of supply stock should be adequately maintained. This refers to keeping track of used supplies and of those that must be purchased, but also to a more efficient forecasting of demand. This demand supply forecasting can help forecast other areas of the business, like sales, busy periods, preferred products by customers, and others. This is also useful in determining customers’ references and increasing their satisfaction.
This software solution refers to improving supply management, and its success is defined by measuring different indicators, like: forecasting demand of supplies before the supplies actually run out, placing all supply orders in time in accordance with their delivery in order to have them at the business’ headquarters before other supplies run out, reduced numbers and quantities of supplies that employees use rarely or that customers do not prefer, increased customer satisfaction level, increased efficiency on employees’ schedule, and others.
The benefits of this software solution are intended to help Haircuts efficiently develop the business while providing high quality services to customers. It is important to identify the factors that this solution can influence in order to improve productivity.
1. Systems Development Life Cycle (2014). Search Software Quality. Retrieved May 3, 2014 from http://searchsoftwarequality.techtarget.com/definition/systems-development-life-cycle.
2. Supply Chain Solutions (2014). Logility. Retrieved May 3, 2014 from http://www.logility.com/solutions/supply-chain-solutions.
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