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System Analysis and Design

Supply Chain Management System
Of BBQ Soldier

Cua, Roselyne G.
De Guzman, Pamela Louise. T.
Dungca, Portia Abigail Joy A.
Gatmaitan, Aristotle Onassis C.
Marasigan, Nikka Lalaine R.
Mateo, Evangeline B.
Ocsan, Shaira C.

Abstract

This study aims to provide an organized and effective supply chain

system for BBQ Soldier. BBQ Soldier had a good start in its operations
since its business opening but experienced various problems in their
supply management later on.

To provide recommendations for their

problems, the proponents used variety of techniques such as interview

with the owners and using the internet as source for related literature. The
results of the study recommended that having an alternative line of
suppliers and a network of wholesale distributors will help the business
cut down inventory costs and ensure timely delivery of products and
services to their customers.

Introduction
BBQ Soldier, a burger restaurant that is directly operating under
Real Edge Company, was founded on May 2015 by Partners A, B, C, and
D. The name was inspired by the famous song Buffalo Soldier sung by
Bob Marley. The partners were classmates and friends since 2012 and
eventually decided to put up their own business since November 2014.
The business is located at 2286C Topacio St. Cor. A. Francisco, 1017 Sta.
Ana, Manila and operates from 4:00 pm to 1:00 am Tuesday to Sunday.
The restaurant mainly offers a wide variety of burger products and buffalo
chicken wings to its constituents. Several reviews have also been
published online and have helped significantly in the advertising and
marketing efforts of the restaurant. The first few months of the operations
had gone by smoothly and nearby residents had started to be familiar with
what they offer. The restaurant gets most of its inventory in a nearby
supermarket on a weekly basis. Its main ingredient, ground beef patties, is
delivered by their one and only supplier on a daily basis. However, sales
started to decline on August 2015. This might be due to the inclement
weather conditions challenging the region and consecutive delays in
supply deliveries. This has led to customer dissatisfaction and a problem
in the internal inventory control of the restaurant. Sales slightly increased

on September 2015 after the rainy season but its inventory and supplier
problems still prevail.

Research Method
The proponents conducted an interview with the restaurant partners
to gather sufficient information regarding its start-up and day-to-day
operations. The internet was also used in gathering images and
information.

1.

Literature Review
Supply chain management is the streamlining of a business'

supply-side activities to maximize customer value and to gain

a competitive advantage in the marketplace. Supply chain management
(SCM) represents an effort by suppliers to develop and implement supply
chains that are as efficient and economical as possible. Supply chains
cover everything from production, to product development, to the
information systems needed to direct these undertakings. (Investopedia,
2015)

SCM aims to centralize the control of production, shipment and

distribution of the product. By doing this efficiently, companies are able to
cut down costs and products faster. This can be done by implementing a
tighter control of internal inventories, production, distribution and sales.
Food Supply Chains provide the link between primary producers
and

the

consumer

manufacturers,

through

ingredients

intermediaries
suppliers,

such

marketing

as

processors,

organizations,

wholesalers and retailers. Not only must all of these aspects of the food
supply chain link effectively together, but they must address the issues of
sustainability by considering the economic, social and environmental
aspects and impacts of food supply. As supply chains become more
integrated, there is also greater emphasis on food safety and quality,
traceability and public health. Primary producers now have to work as
part of the chain to meet the needs of consumers in a dynamic workplace.
This degree, therefore, focuses on addressing these issues, as well as the
management and quality enhancement of products from field to fork.
(Royal Agricultural University, 2015)
According to Professor Steve Melnyk, in the modern world of
Supply Chain Management: Strategy, if it doesnt consider the role culture
plays in it, it is bound to fail. The culture understands how the game is

played. It can wait things out, and it can transform a strategy from a top
management initiative into one thats acceptable by the system as a whole.
Culture is one of the many forces that a company has to develop. When
used correctly, culture can ensure that your front line employees are doing
what needs to be done when they interact with customers. This results in a
company that is in true harmony, better customer service and experiences,
and decisions that are made by people who know and understand the
overall goals of their organization.
(Steve Melnyk, 2015)

Problem in the company

BBQ Soldier initially had a good start in its operations since its
opening on May 2015. But after a few months, the company started
experiencing a decline in their sales due to unforeseen weather conditions
and delays in raw material delivery with the restaurants sole supplier.
During the proponents interview with the restaurant owners, the following
problems have been listed down:

BBQ Soldier only has one supplier of their main ingredient,

ground beef patties. The supplier, which is supposed to be
making deliveries on a daily basis, is making the deliveries
every other day, thus making the lead time longer than
normal. This results to a shortage in the restaurants daily
operations because demand is continuous but the supply is
limited.

BBQ Soldier buys most of its other ingredients in the

supermarket. Because of this, they are incurring higher
ordering costs, which in turn is being passed on to their
customers through higher menu prices.

2.

Recommendation and Problem Solving

Upon careful analysis by the proponents, the following

recommendations have been formulated:

The only supplier, which is incapable of meeting the

restaurants demand, should be replaced if possible. If not,
the restaurant and supply owners must meet and discuss the
current problem and come up with a tighter supply terms
and conditions.

The restaurant must have alternative or contingency

suppliers in line just in case that the first supplier cannot
meet the demand or the deadline. The restaurant must have
an organized flow of purchases depending on the material
that it is ordering, including an alternative supplier as a
contingency plan. Knowing the inventory re-order point is
also important. In doing this, they can be assured that there
will be timely delivery of their ingredients.

The restaurant must also have a network of distributors for

their other ingredients instead of buying them at local
supermarkets. In doing this, they can cut down on ordering
costs and purchase prices will be at a wholesale basis.

3. Conclusion
BBQ Soldier can be a profitable business if it will organize its
supply chain. Committing to one supplier can be an advantage because it
will ensure uniformity in the quality of raw materials but it can also be a
disadvantage in case that this sole supplier fails to meet the restaurants
demands. Therefore, having an alternative line of suppliers will help in
ensuring that products will be delivered to customers on time but the
company must also make sure that these alternative suppliers meet
industry quality standards. Also, maintaining a wide variety of distributors
for their ingredients is also a good way of cutting down on ordering costs
by way of wholesale (bulk) ordering thru which the expenses made by the
company may be decreased. An effective and organized supply chain of
BBQ Soldiers can increase their productivity and will help the company in
garnering higher revenues in the long run.

4. References

Investopedia. (2015). Retrieved from Supply Chain Management:

http://www.investopedia.com/terms/s/scm.asp
Royal Agricultural University. (2015). Retrieved from Food Production
and Supply Management:
http://www.rau.ac.uk/study/undergraduate-study/food-productionsupply-management/bsc-hons-food-production-and-supplymanagement
Steve Melnyk, P. (2015, September 27). Supply Chain Management
Review. Retrieved from Supply Chain Outlook Summit:Culture
Counts:
http://www.scmr.com/article/supply_chain_outlook_summit_cultur
e_counts
BBQ Soldier System Design Problem and Solution

Supplier

Customer

0
Food
Ordering
System

Kitchen

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Manager

Context Data Flow Diagram is the entrance of a data flow model. It

contains one and only one process and does not show any data store.
Level 1 Data Flow Diagram

Customer

Order

1
Order Food

Order

Kitchen

Bill

Order Detail

Inventory Detail

Order

D
Inventory
Orders
Inventory Details

2
Generate
Report

Manager

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Inventory Details

Reports

Main
Supplier

Inventory Order

Inventory Order

Order
Inventory

Based on the diagram, the Customer will place an order. The Order
Food receives the order processes it and forwards it to the kitchen. The
Secondary
order will store this as an order data and will update Inventory if the Supplier

customers order is available. The Order Food will also process the
Bill to the customer. Manager can receive reports through the
Generate Reports process in which inventory details will be taken from
and order (customer transactions) details as input from the inventory and
order data store.

Managers can also initiate the order Inventory process by providing

Inventory Order. The process will forward the inventory order to the
Main Supplier and stores the updated inventory details in the inventory
store data.

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As we know, the Main Supplier has always delayed their delivery so we

come up into the option of a Secondary Supplier as a solution to the
problem. The BBQ Soldier has no contingency plan when it comes to their
supplier. Through this another supplier, it will minimize the time, cost and
delayed of their needed demand. Also less worry to the owner.

The system maximizes the usefulness of information through the

following:

The BBQ Soldier can easily check the availability

of the customers order.

The order and billing process is simultaneously

encoded so the information or document directly
stores in the system.

As to Inventory, management always uses FIFO

Policy (First In, First Out) especially if the product
is perishable, hence, what was bought first, must be
consumed first. With the help of the system, the
manager can easily track inventory count.

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The manager can now measure when to purchase an

order. It will also minimize the delay from the main
supplier and cost of buying burger patties from
other stores because now, they have a secondary
supplier to run to.

The new system will enhance the following:

Inventory (Stock)
The management will be stricter than before in
terms of what raw material to be ordered first, when
to order, how to minimize the cost and also the
margin of safety where you can measure the buffer
of your supply. With the use of system, it will be
feasible for the management to determine which
from their inventory is/are easily consumed and
which isnt/arent.

Purchase Order

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Through

an

ingenious

way

of

inventory

management, the purchase order will be in control.

The management must have a buffer stock so if ever
the main supplier will have a delay (of lets say a
day), the company will still have a supply of their
own. And the customers order and billing will
stores directly to the system.

How managers need to understand cost associated with the following:

Production

Production cost is the cost that the business incurred

in providing service. Managers need to understand
the cost of production so that it can make a better
pricing of its product and to have a picture on the
total cost of the business.

Distribution

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BBQ Soldier has a direct contact to the customers

since it was the first branch opened.

Storage
BBQ Soldier stores a lot of frozen products like
burger patties, meat and ham also with perishable
goods like cabbage. As to proper storage, the
inventory manager will maintain the important
factors like time and temperature to avoid
contamination and spoilage as well with proper
handling and sanitation of the storage room of this
products.

Security

Nowadays, cases of burglars are rapidly increasing

mostly

here

in

Metro

Manila.

Most

of

establishments today like BBQ Soldier installed

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CCTV cameras, not only to record baleful incidents

but also for customers safety. And when it comes to
internal control, the system will keep on track of
inventory

counts,

orders,

billings

and

other

confidential files that only a manager or other

trusted employees can access through logging on
their accounts. Managers should be vigilant and
responsible in securing this business transactions
inside and out.

Information Retrieval
A manager should be knowledgeable enough to
their system. In case of retrieval of information, the
manager can easily respond and take action. The
manager can comply immediately if such problems
occur in the system. This information also provide
monitoring of internal control to detect fraud, waste
and abuse of any aspects in the management.

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System Analyst

What is a System Analyst?

A System Analyst is a professional in Information Technology
who specializes in analyzing, designing and implementing a well-order
system. It selects and configures computer systems for an organization or
business. Their job typically begins in determining what the computers
main intention is. This means that the analyst must know how and
understand the general and specific objectives of the business, as well as
what the individual user requires. Once determined by the system analyst,
it can choose an appropriate system that will suit and accomplish the
companys goal.

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Roles of a System Analyst

SYSTEMS ANALYST AS SUPPORTING EXPERT

Their main role is to identify, understand and plan a sequential

process of its management in an organization or business entity in a
technical way to minimize time and cost as well as to maximize benefit. It
will give the users a feasible way of controlling each department through
the use of new technical requirements that are properly integrated with
existing processes and sets of skills. A system analyst may set up a new
computer system, both the hardware and software like adding a new
software application that will help increase computers productivity.

SYSTEMS ANALYST AS AGENT OF CHANGE

A system analyst can be defined as a person who serves as a

catalyst for change, develops a plan for change, and works with others to
facilitate such changes. They also advocate a particular avenue of change,
because changes in information system do not occur independently but
because changes in the rest of the organization as well.

SYSTEMS ANALYST AS CONSULTANT

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System analyst frequently acts as a system consultant to

humans and their businesses for they rely on the information system users
to help them understand the organizational culture from other view point.
And business organization hired outside consultants for they believe that
they may bring fresh and advantageous perspective that other people in the
organization might not possess. System analyst considered as consultant
for the reason that they provide advice or information systems strategy,
policy, management, security and also conduct independent third-party
reviews to asses quality assurance practices, software and information
systems.
The Importance of a System Analyst

The importance of a system analyst is to choose the most

efficient and effective solution to make a recommendation regarding its
management while making sure that the system meets all the criteria when
it comes to the needs of the company. In order to come up with the best
decision, a system analyst should have a solid knowledge and
understanding in computer hardware and software. They keep updated
with the latest technology. They are responsible for the design and
development of a new computer system, or customizing an existing

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system. They typically perform testing to make sure systems are working,
and they may train end users or write manuals as per instructions.

Application of System Development Life Cycle

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