1. SCM Implementation
A Business Case for Sobeys Inc.
Submitted By:
Sharad Srivastava
12810076
DoMS, IIT Roorkee

2. Contents
Executive Summary .................................................................................................................................... 3
Introduction ................................................................................................................................................ 4
Project Name: ......................................................................................................................................... 4
Project Team: .......................................................................................................................................... 4
Project Description: ................................................................................................................................ 4
Background & Problem Definition .............................................................................................................. 4
Why SCM Package at Sobeys Inc.? ............................................................................................................. 5
Market Study across the Retail Industry..................................................................................................... 6
Measurable Organizational Value (MOV) ................................................................................................... 8
Quantifying the MOV ................................................................................................................................ 10
Framework for evaluating the Implementation ....................................................................................... 11
Total Cost of Ownership ........................................................................................................................... 12
Total Benefits of Ownership ..................................................................................................................... 13
Financial Analysis ...................................................................................................................................... 13
Total Cost of Ownership Details ............................................................................................................... 15
Total Benefits of Ownership Details ......................................................................................................... 16
Comparative Study of Alternatives ........................................................................................................... 19
Recommendations .................................................................................................................................... 23
Risk Management ..................................................................................................................................... 24

3. Executive Summary
ERP implementation business case for Sobeys Inc. discusses the various issues for ERP
implementation proposal in the company. The company has more than 1500 stores in 10
provinces. It also has a national network of 25 distribution centers. The firm is now running
on different applications for different functions across different locations in the organization
and now they are facing various issues like Inventory Management, Material Requirement
Planning, Warehouse Management, Shop Floor Management, Requisition, Purchase orders ,
Goods receipts and BOM’s, Quality Management, Lack of proper communication across the
Supply Chain, Unutilized spaces in the Warehouse, Unsatisfied On Time Delivery
Performance. All these factors drive them to think about an ERP implementation across all
the locations. The business case then discusses various measurable organization values and
the time frame it will take to achieve it. Finally the case concludes with the risks involved
and recommendations.

4. Introduction
Project Name: SCM implementation for the Sobeys Inc.
Project Team: The team consists of basically: -1. Steering Committee: The members of this particular committee include project
sponsors, the SCM consulting manager and the project manager.
2. Consultants
3. Global Procurement Team
4. Change Managers
5. Consortium of Product Dealers
Project Description:
The project is all about implementing SCM package across 25 distribution centres and
thousands of stores of Sobeys Inc. covering 10 different geographies. Canada. The project
covers various aspects like integrating the various supply chain functions across the
organization in to a single system that can serve all the purpose of the functions specific
needs.
Background & Problem Definition
Sobeys Inc., Canada’s second largest food retailer, was founded in 1907 as a meat delivery
business. In 1924 it decided to expand business to full line of groceries and finally in 1939
the Sobeys’ chain of stores started. The first modern supermarket was opened in 1947 and the
company has been growing since then. In 2009, Sobeys opened its first distribution center.
The second was opened in 2013. Today Sobeys employs over 95,000 employees in around
1583 stores, and is one of Canada’s largest private employers. As is the case with many
companies known for pioneering innovation in their industries, Sobeys Inc. is committed to
using advanced technology systems to assure a continually productive operating
environment. Sobeys’ technical support group monitors and runs the company’s numerous
business process applications, including softwares used by the distribution and billing
departments as well as inventory. If any one of these systems fail, the support group has to
communicate as quickly as possible with key stakeholders, especially those in the
distribution centers to avoid delays in order fulfillment. The technical support group had been
historically relying on manual pages and phone calls to communicate, but they eventually
decided it wasn’t an adequate manner for such time critical tasks. The company required a
wireless system that quickly communicated critical information and, as will be described in
greater detail, could display its capability to match with Sobeys as the company expanded its
use of wireless technology.

5. Some of the issues which the organization was currently facing included:
Inventory Management
Material Requirement Planning
Warehouse Management
Shop Floor Management
Requisition, Purchase Orders, Goods receipts and BOM’s
Quality Management
Lack of proper communication across the Supply Chain
Unutilized spaces in the Warehouse.
Unsatisfied On Time Delivery Performance
Why SCM Package at Sobeys Inc.?
The grocery industry in Canada is competitive and dominated by eight major chains that hold
approximately 75% of the traditional food distribution market. Loblaw Companies Ltd. Is the
market leader in Canada and eighth largest in North America, followed by Sobeys Inc.
Sobeys Inc. must re-examine and fine-tune their supply chain processes to deliver high
quality goods at very low costs that too with good quality. This is essential for staying ahead
in the competition. Globalization has led to increase in competition and quality awareness
and therefore it has become very important for the industry to integrate itself with latest
information technology to survive. Most of the competitors in the food distribution market
have turned to several SCM packages for their supply chain optimization and used the
technology and domain expertise of SCM IT Solutions in demand management, inventory
handling, sales and operations planning, category management, and transportation and
logistics management. Some of the Key benefits one can expect out of application of such
packages are:
Drive visibility and optimization with synchronized demand. Companies can develop
efficient demand plans that enhance forecast accuracy, reduce inventory costs and
optimize income.
Manage inventory levels to match current and future demand. Companies can
accomplish unmatched optimization by using demand-supply matching to support
their complex replenishment and logistics processes while minimizing inventory and
logistics costs.
Sense and respond faster to changing market conditions with daily planning and
scheduling. Companies can quickly respond to daily variation in customer demand,
ranging from manufacturing activities through logistics functions.
Integrate planning and execution across enterprise with sales and operations planning.
Companies can lessen operational silos and gain a single, broad view of the business,
including potential and barriers that must be reconciled with corporate goals.
Establish optimal inventory for better cash flow management. Companies can free up
working capital stuck in ineffective inventory and accelerate responsiveness to

6. marketplace changes.
Profitably manage and maximize category performance. Companies can utilize the
strategic space and category management capabilities to increase insight into market
trends while enhancing sales and market share.
Strategically manage transportation and logistics functions. Companies can attain a
competitive advantage in their supply chains through strategic global logistics
network management.
To conclude, the classic demand chain begins with the customer and extends from the point
of sale then back to the retailer's distribution centre, whereas the classic supply chain begins
with the raw material suppliers and extends down through the distribution network. With
enhanced competition resulting from globalization and newer business models, the shift
toward a holistic perspective of the entire supply and demand chain is converging into what
Experts call the "customer-driven value chain."
Market Study across the Retail Industry
The Retail industry is consolidating at a rapid pace as the top players attempt to expand their
networks across the globe. Global retail sales were $15.2 trillion in 2012. The United States
retail sector features the largest number of large, profitable retailers in the world. A 2012
Deloitte report featured in STORES magazine indicated that of the world's top 250 largest
retailers by retail sales revenue in fiscal year 2010, 32% of those retailers were based in the
United States and those 32% accounted for 41% of the total retail sales revenue of the top 250.
Among retailers and retail chains a lot of consolidation appeared over the last couple of decades.
Between 1988 and 2010, globally 40,788 mergers & acquisitions with a total value of $2,255
billion have been declared. The largest transactions involving retailers in/from the United States
have been: the acquisition of Albertson's Inc. for $17 billion in 2006, the merger between
Federated Department Stores Inc. with May Department Stores valued at $16.5 billion in 2005
(now Macy's) and the merger between Kmart Holding Corp and Sears Roebuck & Co with a
value of $10.9 billion in 2004. In June 2013, Sobeys announced the purchase of Canada Safeway
for $5.8 billion, positioning the Company as a leading grocer in Western Canada and #1 in the
Alberta market.
The 2012 Global Retail Development Index reflects dramatic changes in the global economy and
the different ways in which developing countries have been affected. Some developing markets
have come out from the recession stronger than before, while others surrendered to the political
turmoil that economic distress brings. Today, as top international retailers are rewarded for their
flexibility and long-term outlook in the face of short-term ambiguity, it is time to concentrate on
a set of countries—with diverse risk levels, at various stages of maturity and with distinctive
consumer profiles—to balance short- and long-term opportunities.
The GRDI is an annual study that ranks the top 30 developing countries for retail expansion
worldwide. The Index considers 25 macroeconomic and retail specific parameters, both to assist
retailers devise successful global strategies and to identify emerging market investment

7. opportunities. The GRDI is unique because it not only identifies which markets are the most
successful today but also which markets offer the most potential in the future. The Global Retail
Development Index ranks 30 developing countries on a 0-to-100-point scale—the higher the
ranking, the greater urgency there is to go into a country. Countries are chosen from 200
developing nations based on three criteria:
Country risk: 35 or more in the Euromoney country-risk score
Population size: two million or more
Wealth: GDP per capita of more than $3,000 (Note: The GDP per capita threshold for
countries with more than 35 million people is more flexible because of the market
opportunity.)
Case of Walmart SCM Initiatives
Walmart, the market leader of Retail Market, has successfully integrated its vast
operations across a customer driven value chain or Supply Chain by implementing the
SCM packages across the organization levels. Some of the major benefits out of that
successful implementation are: -Desired Objective
Operating cost
Inventory Level
Warehouse Number
Logistics Cost
Accuracy of Sales Forecast Data
Customer Satisfaction Level
Time to Market for a Product
Change Brought
Reduced by 9%
Reduced by 20%
Number reduced by 7
Reduced by 10%
Increased by 6%
Rose to 98%
Reduced by 2 weeks
These factors have been the testimony for the fact that implementing SCM packages in
the system increases our benefits.

8. Measurable Organizational Value (MOV)
By implementing an SCM application, the organization wants to integrate all functions
like procurement, demand management, vendor network, inventory management etc.
across the organization into a single customer driven value Chain that can serve all the
purpose of the functions specific needs of Supply Chain. Now breaking down the benefits
of implementing an SCM package will give the following benefits: -Financial and Strategic Benefits:
Reduced Inventory Cost
Reduced Logistics & transportation Cost
Greater adaptability to market variations
Reduction in operating cost and thereby giving Increased Profits
Achievement of company-wide consistency of information
Gain greater visibility into sales order and fulfilment data
Enhanced order fulfilment by accelerating the sales order process
Centralized Demand forecasting & Planning
Standardized business processes, reports, and data for increased efficiency and
control
Increased business transparency to control costs and support operational decisions
Improved data accuracy and consistency via real-time monitoring for informed
decisions
Operational Benefits
Improved spend management
Reduced Bullwhip effect across the supply chain
Reduced Lead time or Time to Market for products
Better workflow & assembly processes
Organization moves from being a push system to pull driven system
Enhance employee productivity considerably
Established greater operational efficiency via integrated processes
Improved inventory management and also helps in reducing material wastage
Gained better supply chain visibility and control to support negotiations and service
Reduction in non value added activities across the supply chain
Rationalized and consistent business processes
Customer Benefits
They can track their orders
Enhanced On-Time Delivery of Products

9. Proper visibility and transparency
Improved Customer Satisfaction levels
Improved ability to meet customer commitments & developing long term partnership

10. Quantifying the MOV
In order to calculate whether the project is successful or not it was very essential to find out a
quantified targets which will be achieved with the help of this project .So in this case we
have calculated the measurable organisational value for a period of 5 years and have
formulated certain targets which the project is supposed to meet at the end of 5 years to
become a successful project. Following can be the measurable organizational value for this
project:

Implementation of SCM solution across the organization should result in 20%
increase in the market share.

SCM solution should reduce the time to market for a product by 40%.

It should result in the Inventory cost reduction by 30%

It should result in 15% more resource and asset utilization.

It should reduce the Logistics & Transportation cost by 30%.
There are some other measurable organization value attached with the project and it will be
helpful to summarize all these in tabular format, so that it could be verified at the end of
stipulated time period.
Sr. No.
Desired Objective
Change Factor
1
Operating cost
Reduction by 10%
2
Inventory Cost
Reduction by 20%
3
Time to Market
Reduction by 5%
4
Logistics Cost
Reduction by 8%
5
Market Share
Increase by 5%
6
Resource & Asset Utilization
Increase by 7%
7
Warehouse Area
Reduction by 11%
8
Higher Accuracy of Sales Forecast Data
Increase by 5%
9
Order Turnaround Time
Reduction by 2%
10
Productivity Level
Increase by 6%
** Values derived using previous similar implementation
Time
2 Years
18 Months
18 Months
1 Year
2 Years
1 Year
18 Months
1 Year
1 year
1 Year

11. Framework for evaluating the Implementation
An intuitive framework for evaluating the cost savings, business value and strategic benefits
for implementation was developed for this case. This framework includes four vital elements:
1. Implementation cost analysis
2. Post-implementation cost savings analysis
3. Post-implementation business value improvement analysis
4. Post-implementation strategic benefit analysis
Framework Cost and Benefit Drivers
Now in order to carry out the above mentioned analysis it was very essential that we need to
have some parameters for the analysis. The below mentioned table provides a record of the
cost, cost savings, business value and strategic drivers included in this implementation
business case framework and economic analysis.
Implementation
Cost of Line Items
Planning Cost
Cost Saving Line
Items
Operating Cost
Internal
Implementation
Third Party
Implementation
Inventory Cost
Training
Hardware Cost
Logistics Cost
Product Cost
OS Licensing Cost
Resource & Asset
Utilization
Warehouse Area
OS Support Fee
DB Licensing Cost
Admin. And Misc.
Transportation
Cost
Higher Accuracy
of Sales Forecast
Data
Order Turnaround
Time
Productivity Level
Business Value
Line Items
Enhanced Decision
Making
Process or Cycle
Time Saving/Value
Improved
Customer
Satisfaction
Strategic Benefit
Line Items
Market Share
Competitiveness
Overall Business
Agility
High Efficiency
Enhanced
Customer Loyalty
Less Variation
Customer driven
Value Chain

12. Now based on the cost, cost savings and business value drivers in the preceding table, a
comprehensive, comparative cost and benefit model to quantify the implementation return
on investment (ROI) over a five-year analysis horizon was developed. The costs and
benefits were based on the actual and expected costs and benefits validated in the primary
and secondary research phases of the project. A discounted cash flow approach was used
to account for the relative timing of the costs and benefits spanning the five years.
Total Cost of Ownership
For quantifying the cost related to the project following factors are taken into
consideration for calculating the total cost of ownership. The various costs that incurs
during an implementation includes: -Planning cost: It is the cost associated with planning prior to implementation. 

Implementation (Internal): Internal labour for the implementation activities
including installation, configuration as well as testing 
Implementation (3rd party): 3rd party labour for the implementation activities
including installation, configuration as well as testing 
Training: The training investment for the new package 
Hardware cost: Cost for the hardware’s associated with new implementation 
OS Licensing cost: Server licensing cost and the user accounts costs 
New Server OS support fees: Ongoing server OS Support Cost (annual) 
Database licensing cost: Licensing cost for the new database associated with ERP 
Admin/ Misc: Admin / Misc cost associated with migration 

13. Total Benefits of Ownership
These are the savings or the benefits which company will receive because of
implementing ERP across the organisation. These benefits are classified into: -1. Cost Saving Line items
2. Implementation Value Drivers
3. Strategic Implementation Drivers
Cost Saving Line Items
Operating Cost
Inventory Cost
Transportation Cost
Total Benefit of Ownership
Business Value Line
Items
Enhanced Decision
Making
Process or Cycle Time
Saving/Value
Improved Customer
Satisfaction
Logistics Lost
Product Cost
Resource & Asset
Utilization
Warehouse Area
Strategic Benefit Line
Items
Market Share
Competitiveness
Overall Business
Agility
High Efficiency
Enhanced Customer
Loyalty
Less Variation
Customer Driven Value
Chain
Higher Accuracy of Sales
Forecast Data
Order Turnaround Time
Improved Profit Margin
Productivity Level
Financial Analysis
Here we are using the Return on Investment Method to calculate the ROI and from this
we will calculate the payback period also
Project ROI = (Total expected benefits – Total expected costs)
Total expected costs
Payback Period = Initial Investment
Net Cash Flow

14. The following analysis provides a summary of the return on investment and expected
breakeven based on implementation cost/benefit analysis over five years. The results are
based on the net present value (NPV) of the cost and benefit cash flows over the five
year period.
Based on an average five-year implementation cost of $675K, with an average
implementation length of six months from initial planning to production deployment, the
companies interviewed cited substantial cost savings and business value drivers, yielding a
total five-year benefit of $2.15M. This results in a five-year Return on Investment (ROI) of
220% and a payback of 19 months from the completion of the migration.

15. Total Cost of Ownership Details
Cost Line Items
Planning Cost
Internal Implementation
Third Party
Implementation
Training
Hardware Cost
OS Licensing Cost
OS Support Fee
DB Licensing Cost
Travel
Admin. & Misc.
Total
Cost for 5 Years (in $)
1,11,000
1,68,000
1,44,000
% of 5 Years Cost
14.64%
22.16%
18.99%
75,000
46,667
24,000
91,667
24,500
36,667
36,667
7,58,168
9.89%
6.16%
3.17%
12.09%
3.23%
4.84%
4.84%
100.00%

16. A few key elements of analysis from the implementation cost research are listed below: -The labour costs for the implementation planning and implementation represent the majority
of the cost of the migration, 56% of the total five-year cost. The primary reason for the
substantial amount of cost is that the implementation includes the buying of the SCM
application itself as well as the underlying SCM database implementation 
Software support fees are the next major cost element, primarily because this is a recurring
annual cost of approximately $18K that amounts to about $92K over the five-year period. 
New hardware purchase represents 6% of the total five-year cost, with a cost of $46K. 
Server OS Licensing Costs represent only 3% of the total five-year cost, with a cost of $24K. 

Total Benefits of Ownership Details
Now as we saw in the previous section the various costs associated with the implementation here in
this section we will see what all are the savings or the benefits which we will receive because of
implementing SCM Solutions. These benefits are classified into: -1. Cost Saving Line items
2. Implementation Value Drivers
3. Strategic Implementation Drivers
Cost saving Line items
These benefits are summarized in the form of a table which is shown below: -Saving Line Items
Operating Cost
Inventory Cost
Transportation Cost
Logistics Cost
Product Cost
Resource & Utilization Cost
Warehouse Area
Higher Accuracy of Sales
Forecast Data
Order Turnaround Time
Productivity Level
Total
Saving in 5 Years (in $)
1,93,489
2,37,645
1,42,737
1,29,910
1,06,213
1,29,876
41,256
89,356
% of 5 Years saving
15.20%
18.67%
11.21%
10.20%
8.34%
10.20%
3.24%
7.02%
76,498
1,26,226
12,73,206
6.01%
9.91%
100.00%

17. Implementation Value Drivers
The figure below presents the average implementation business value drivers based on the BI
implementation project along with the percentage of the five-year benefit for each cost line item.
Business Value Line Items
Enhanced Decision Making,
Process or Cycle Time/Value
Improved Customer
Satisfaction
Total
Value in 5 Years (in $)
4,02,378
3,82,675
5,66,212
% of 5 Years Value
29.78%
28.32%
41.90%
13,51,265
100.00%

18. Strategic Implementation Drivers
Below data represents the rank order of the strategic implementation benefits based on the similar SCM
implementations. Based on the research and previous experiences, a rank was assigned to a set of six
strategic migration drivers from most impact (rank 1) to least impact (rank 6). The top two ranked items
– business agility and high efficiency – are of particular business value that spans beyond the IT
organization and affects the entire organization. In addition to those listed, there were others cited by
interviewees including the strategic value of collaboration
Cash Flow Summary Analysis
The figure below illustrates the annual analysis of the implementation cost (investment), cost savings
and business value for the initial year through year five. Also illustrated are the cumulative
costs/investment and the cumulative economic benefits.
Implementation Cost
Cost Saving
Business Value
Cost Saving + Business Value
Year 1
6,75,407
1,96,435
1,98,412
3,94,847
6,75,407
Cumulative Cost
3,94,847
Cumulative Benefit
** Cash Flows are actual & not discounted.
Year 2
18,333
2,06,709
2,48,666
4,55,375
Year 3
18,333
3,41,523
2,76,980
6,18,503
Year 4
18,333
3,26,489
3,03,566
6,30,055
Year 5
18,333
2,02050
3,23,641
525,691
6,93,740
8,50,222
7,12,073
14,68,725
7,30,406
20,98,780
7,48,739
26,24,471

19. Financial Summary
Business Case Summary
6,75,407
Implementation (Investment)
Cost Saving (NPV of Cash Flows) 10,49,901
11,02,505
Business Value
21,52,406
Five Year Benefit (NPV)
14,76,999
Net Benefit
(Return less Investment)
218.68%
Return on Investment (RoI)
19 Months
Estimated Payback (in months)
Comparative Study of Alternatives
Now in order to find out which SCM package can best suit the need and which can basically meet the
quantified targets, we would like to carry out a comparative study between various SCM solutions. It
includes: -1. SAP SCM, part of SAP Business Suite
2. Oracle Supply Chain Management (SCM) Suite
3. JDA Supply Chain Planning & Optimization

20. Source: Gartner
*Ariba's estimates represent 9 months of business operations before its acquisition by SAP
SAP SCM, part of SAP Business Suite
SAP Supply Chain Management (SAP SCM) enables collaboration, planning, execution, and
coordination of the entire supply network, enabling you to adapt your supply chain processes to an everchanging competitive environment. SAP SCM is an element of the SAP Business Suite, which gives
organizations the distinct ability to perform their essential business processes with modular software that
is designed to work with other SAP and non-SAP software. SAP SCM can assist transform a sequential
supply chain into a responsive supply network – in which communities of customer-centric, demanddriven companies share knowledge, intelligently adjust to changing market conditions, and proactively
respond to shorter, less predictable life cycles.

21. SAP SCM delivers a complete set of features and functions for building adaptive supply chain
networks. The application enables: -Supply chain planning and collaboration – With SAP SCM, you can model your existing
supply chain; set goals; and forecast, optimize, and schedule time, materials and other
resources. Supply chain planning functionality enables you to maximize return on assets and
ensure a profitable match of supply and demand.
Supply chain execution – SAP SCM enables you to carry out supply chain planning and
generate high efficiency at the lowest possible cost. You can sense and respond to demand
through an adaptive supply chain network in which distribution, transportation, and logistics
are integrated into real-time planning processes.
Supply chain visibility design and analytics – SAP SCM gives you network wide visibility
across your extended supply chain to perform strategic as well as day-to-day planning. The
application also enables collaboration and analytics, so you can monitor and analyze the
performance of your extended supply chain using predefined key performance indicators
(KPIs).
SAP SCM can help you transform a traditional linear supply chain into an adaptive network with the
following array of benefits: -Faster response to changes in supply and demand – With increased visibility into the
supply chain and adaptive supply chain networks, you can be more responsive. You can sense
and respond quickly to changes and quickly capitalize on new opportunities.
Increased customer satisfaction – By offering a common information framework that
supports communication and collaboration, SAP SCM enables you to better adapt to and meet
customer demands.
Compliance with regulatory requirements – You can track and monitor compliance in areas
such as environment, health, and safety.
Improved cash flow – Information transparency and real-time business intelligence can lead
to shorter cash-to-cash cycle times. Reduced inventory levels and increased inventory turns
across the network can lower overall costs.
Higher margins – With SAP SCM, you can lower operational expenses with timelier planning
for procurement, manufacturing, and transportation. Better order, product, and execution
tracking can lead to improvements in performance and quality – and lower costs. You can also
improve margins through better coordination with business partners.
Greater synchronization with business priorities – Tight connections with trading partners
keep your supply chain aligned with current business strategies and priorities, improving your
organization's overall performance and achievement of goals.

22. Oracle Supply Chain Management (SCM) Suite
Oracle Supply Chain Management (SCM) is a comprehensive suite of applications with open and
flexible architectures, best-in-class capabilities, complete functional coverage, and both integrated and
modular deployment options. Being open, integrated, and complete allows Oracle SCM to transform
your operations from a functional necessity to a value-driven competitive advantage. Using Oracle’s
best-in-class suite of SCM solutions, companies can transform their operations across the demand,
supply and product pillars to deliver operational and innovation excellence.
With Oracle SCM solutions companies can reap the following benefits: -Sense, shape and respond to demand using best-in-class demand management and a complete
suite of value chain planning applications
Adapt and fulfil demand with best-in-class transportation management and a complete value
chain execution suite of applications
Accelerate innovation with best-in-class product lifecycle management and complete product
value chain management
Optimize all supply management costs, reduce risk & supply volatility with performance
driven supply management
Drive functional, enterprise and value chain alignment with best-in-class sales and operations
planning and integrated business planning
JDA Supply Chain Planning & Optimization
Manufacturers need to be able to generate multi-site manufacturing and distribution plans that respect
materials and capacity constraints — and be able to quickly adjust those plans as demand changes to
ensure that customer orders are delivered on time. JDA’s Supply Chain Planning solutions provide
global, end-to-end supply chain optimization across procurement, manufacturing and distribution,
enabling manufacturers to improve service levels, increase productivity, reduce operational costs and
drive profitable growth.
Transform your business by using JDA solutions to:
Maximize on-time delivery and prioritize demand based on due dates, customers and
demand types across the supply chain
Coordinate production plans across in-house and/or outsourced manufacturing facilities
Reduce inventory levels across procurement, manufacturing and distribution
Support materials requirements planning for centrally managed items

23. Other Major Key Benefits delivered by JDA Solutions are: -Delivering Rapid ROI: -- With JDA’s Supply Chain Planning & Optimization solution, you can
leverage and extend the value of your current ERP transaction system investment. Built on the highperformance JDA® Enterprise Architecture solution – proven worldwide in hundreds of production
deployments – JDA’s solution seamlessly integrates with any ERP or legacy system, including SAP and
Oracle, delivering new supply chain performance and optimization levels previously not possible. This
low-risk, stable and proven solution will not only reduce your supply chain costs but also minimizes
impact to your operations.
Integrated Optimization & Visibility: -- Only the JDA Supply Chain Planning & Optimization
solution suite provides the scalability, flexibility and depth and breadth of capabilities necessary to
address the complete, integrated supply chain process and achieve consumer-centric, adapted demand
– while also extending the value of your current transaction solution investment. JDA’s solution also
enables you to enhance sales and operations planning (S&OP) processes by ensuring alignment with
strategic business plans providing capabilities that include demand shaping, optimized constrained
distribution and production planning, robust reporting and advanced scenario planning.
Modular Phased Approach: -- This powerful solution does not require a comprehensive, extensive
implementation up front. All of the Supply Chain Planning & Optimization applications reside on a
single platform with a common security model and an integrated data model that enables minimal data
maintenance, zero custom integration, easy reconfiguration and infinite scalability. Since the system is
modular yet integrated, it can be implemented in phases that deliver rapid benefits on your business’s
high-priority needs.
Managing Multiple Levels of Customer Demand: -- Using intelligent forecasting algorithms for
utmost accuracy, JDA’s Supply Chain Planning & Optimization solution enables you to manage and
reconcile demand across multiple levels of hierarchies and multiple attribute groups down to the SKU,
customer and point-of-sale (POS) level for all planning horizons – short term, medium term and
strategic. Driving business performance and productivity, users will no longer have to rely on laborintensive, time-consuming spreadsheet exporting, importing and macros in order to manage the
appropriate granularity of demand. JDA’s solution also uniquely provides you with an integrated
demand signal repository within the demand planning environment, complete with analysis and
reporting capabilities.
Recommendations
As Sobeys needs to integrate a large number of Supply Chains across 25 distribution centres to single
application in which each unit can speak to other and also reduces the inventory & operational cost, the
company should go for SCM implementation and that too with JDA’s Supply Chain Planning &
Optimization solution. As discussed in the business case the advantages of JDA’s solution over the

24. other two SCM packages which are being compared here are numerous. The return on investment for
JDA’s implementation is better than the other two packages and also JDA has been among the market
leader in the innovative supply Chain Solutions and there have so many testimonials for the increased
efficiency and customer satisfaction for JDA’s. Moreover the acquisition of i2 technologies by JDA has
further enhanced the portfolio of Supply Chain Management packages & solutions.
Risk Management
Technology Risks: -The Application might not respond properly to the current data traffic
SAP implemented has some bugs in it that limit its functionality like failing to generate daily
report
Problems in migrating existing data to new system
Technology Obsolescence
Piracy
People Risk: -Lack of skilled resources
Training required to be given to Sobeys Inc. Resources are not available
Lack of role clarity between the resources
People living in between the project
Organizational Risk: -Resistance from staff at Sobeys Inc.
Organizational structure is restructured so that different managements are responsible for the
projects.
Organizational problems reduce the project budget
Requirement Risk: -Requirement may change once the project starts resulting in major rework
Customer fails to understand the impact of requirement change
Estimation Risk: -The time required for SCM implementation is underestimated.

25. The modules of SCM selected to integrate overall application can be underestimated.
Risk
The application might not
respond properly to the
current data traffic
SCM implemented has some
bugs in it that limit its
functionality like failing to
generate daily report
Problems in migrating
existing data to new system
Probability
Impact
Moderate Catastrophic
Moderate
Serious
Moderate
Mitigation Strategy
Plan the transition and Keep the back-up
options ready
Serious
Plan the transition from the legacy
software to the new solution and keep the
back-up options ready
Serious
Continuously monitor the external
environment
Tolerable
Proper SLA’s with all vendors & dealers
and slowly making them trustworthy
partners
Catastrophic Alert customer of potential difficulties and
the possibility of delays
Tolerable
Prepare a well documented resource
hiring plan for specific skill set
Technology Obsolescence
Moderate
Privacy
High
Lack of skilled resources
High
Training required to be given
to Sobeys. Resources are not
available.
Lack of role clarity between
the resources
Moderate
Moderate
Tolerable
Resistance from Sobeys staff
Low
Serious
Organizational structure is
restructured so that different
management are responsible
for the project
Organizational problems
reduce the project budget
Requirement may change
once the project starts
resulting in major rework
Customer fails to understand
the impact of requirement
change
The module of SCM selected
to integrate overall application
can be underestimated
High
Serious
Low
Catastrophic
Moderate
Serious
Moderate
Low
Alert customer of potential difficulties and
the possibility of delays
Make documented and clear
roles/responsibilities before the project
starts
Inform them about advantages of SCM
implementation
Prepare a briefing document for senior
management showing how project is
making a very important contribution to
the goal of the company
Same as above
Devise traceability information to assess
the requirement change impact, maximum
information hiding in the design
Tolerable
Prepare a briefing document to tell how
the project will be impacted because of
requirement change
Catastrophic
Constant monitoring at each phase of
project with proper checks

26. Risk monitoring table
Risk
Technology
People
Organizational
Requirement
Estimation
Indicators calling for attention and monitoring
Many technology problems, Problems in integration
Poor staff morale, Threat of job retention, poor relationship among team members
Organizational gossip, Lack of action by senior management
Change in management plan, Indecisive and non-committal response from client and
customer complaints
Failure to reach the schedule delay