IMPLEMENTATION OF
ERP-BASED AUTOMATED INVENTORY MANAGEMENT SYSTEM AT SABANA FRIED CHICKEN
FRANCHISE COMPANY
Antonius Cahyono1*,
Manik Ayu Titisari2, M. Nusron Ali M3
1,2,3 Universitas PGRI Adi Buana Surabaya
Email: antonwongso168@gmail.com
Abstract
The implementation of an
Automated Inventory Management System (AIMS) based on Enterprise Resource
Planning (ERP) has a crucial role in improving the operational efficiency of
franchise companies. This research investigates the AIMS implementation
strategy for Sabana Fried Chicken, detailing the process and benefits.
Qualitative approaches and literature analysis are used to deeply understand
this implementation. Sabana Fried Chicken adopts JD Edwards Enterprise One 9.0
to manage accounting and inventory. The system facilitates tight control over
inventory, allowing store managers to accurately plan, manage, and forecast
inventory. In addition, this system also simplifies the process of journal
entry, allocation, and bank account reconciliation. A deep understanding of the
Operational Information System, Enterprise Collaboration System, Sabana Fried
Chicken Management System, and Sabana Fried Chicken's Field Management System
was revealed. Successful implementation is supported by comprehensive employee
training, efficient inventory management, as well as adaptation to fluctuations
in customer demand. Risk coverage analysis and SWOT analysis highlight the
challenges and opportunities facing companies, with strategic recommendations
to address risks and capitalize on existing opportunities. This research
provides in-depth insight into AIMS implementation strategies in franchise
companies and makes important contributions to the inventory management and ERP
literature. The findings are expected to guide other companies in facing
similar challenges and harnessing the full potential of technology to improve
their efficiency and competitiveness.
Keywords: AIMS, ERP, Sabana, Inventory Management
Introduction
In the modern business
era that continues to grow, efficient and accurate inventory management is one
of the key aspects of maintaining company sustainability. Companies, including
Sabana Fried Chicken, are increasingly recognizing the importance of adopting
technology to automate and improve their inventory management
A case research conducted by Septian Widianto, a researcher at Semarang State
University, proves the importance of implementing this system in minimizing
errors in data management and speeding up the process of incoming and outgoing
goods transactions
In addition, case studies in research conducted by
Thus, this research will not only provide a
comprehensive overview of the implementation process and benefits obtained by
Sabana Fried Chicken but can also be a valuable reference for other companies
that are considering the adoption of an ERP-based Automated Inventory
Management System
Method
This research
uses a qualitative approach with a
literature research to investigate the implementation of an
Automated Inventory Management System based on Enterprise Resource
Planning (ERP) in Sabana Fried Chicken companies. The qualitative approach
was chosen because this research aims to understand in depth the implementation
process as well as the benefits obtained by companies from this automated
inventory management system. Literature research became the main method in this
research. Researchers will collect data from various literature sources,
including scientific journals, books, articles, and documentation related to
the implementation of ERP-based Automated Inventory Management Systems
in similar companies
The
research process begins with the identification of relevant literature on the
Automated Inventory Management System and its implementation in the business
context, especially in the restaurant and franchise industries such as Sabana
Fried Chicken. The literature data found will be filtered based on inclusion
and exclusion criteria to ensure the accuracy and relevance of the information
used in the research. In addition, this research will also involve critical
analysis of case studies, scientific articles, and research reports related to
the implementation of the Automated Inventory Management System in
companies similar to Sabana Fried Chicken. The data from the literature research
will be carefully organized, analyzed, and compiled to gain an in-depth
understanding of the implementation process and the benefits obtained by the
company from this system.
Qualitative
analysis methods will be used to evaluate the literature data that has been
collected. This approach allows researchers to dig deep into information about
the implementation of ERP-based Automated Inventory Management Systems,
including challenges that may be faced by companies and effective strategies for
overcoming these problems. Through a literature research approach with this
qualitative method, this research is expected to provide deep insight into the
process of implementing an ERP-based Automated Inventory Management System in
Sabana Fried Chicken companies and the benefits obtained by the company
Result
and Discussion
Sabana
Fried Chicken Operational Information System
Sabana
Fried Chicken's Operational Information System uses a Transaction Processing
System (TPS) as an important part of supporting its business operations. TPS is
responsible for processing and recording business transaction data in two basic
principles, namely batch processing and real-time (online) processing. Sabana
Fried Chicken has integrated a computer network with their customers, providing
order information through a Point of Sale (POS) system. POS is a vital part of
the operational process, managing direct transactions with customers. The
transaction process starts when the customer orders food, the cashier checks
the stock inventory, and if stock is available, the cashier inputs the
transaction data and delivers the food to the customer. If stock is not
available, customers can choose another menu or wait
Figure
1. Sabana Fried Chicken Operational Information System Flowchart
Enterprise
Collaboration System (ECS)
The
Enterprise Collaboration System (ECS) adopted by the Sabana Fried Chicken
franchise company marks a step forward in optimizing communication and
collaboration within the company. By utilizing intranet, extranet, and
internet, Sabana Fried Chicken forms a global communication network that
connects customers, internal parties, suppliers, and other stakeholders. The
system not only facilitates email messaging and video conferencing, but also
provides a platform for teamwork, increased productivity, and work automation.
For example, ECS allows Sabana Fried Chicken outlets to be connected to a
single network, enabling efficient coordination and exchange of information
Process Control System
Sabana
Fried Chicken has developed an internal control system called the Sabana Fried
Chicken Management System. The system provides support to store managers to
perform business forecasting, inventory management, and human resource
management. Through this control system, Sabana Fried Chicken outlets can
operate efficiently and effectively, optimizing profits. The advantage of this
system lies in its ability to facilitate business planning, inventory
management, and human resource management, all of which are key factors in a
company's operational success. The system is also automatically connected to
the headquarters, allowing managers to monitor performance, control operations,
and coordinate with each outlet more efficiently
Management
Support System
The
Management Support System implemented by Sabana Fried Chicken, known as Sabana
Fried Chicken's Field Management System, is an Information System that provides
reports and data views to managers and business professionals of the company.
For example, sales managers can access information through computer networks,
view sales results of their products, and access daily sales analysis reports
through the company's intranet. The system also allows the evaluation of sales
results carried out by sales staff
Decision
Support System/DSS
Decision
Support System / DSS is a system that provides computer support directly to a
manager in the decision-making process. For example, a production manager in a
manufacturing company can use DSS to determine the number of products to be
produced, based on sales estimates related to promotions to be carried out,
sales locations, and the availability of necessary raw materials. DSS provides
managers with the information needed interactively using a variety of analysis
models, simulations, and other tools. In the context of Sabana Fried Chicken,
the use of DSS is seen through the ability of each store manager to monitor
system performance directly and interactively. They can also use management
analysis tools in forecasting business and managing inventory more effectively
ERP
Implementation in Sabana Fried Chicken
The
implementation of the Enterprise Resource Planning (ERP) System in Sabana Fried
Chicken can involve the use of various kinds of software, one of which is JD
Edwards Enterprise One 9.0. This software has a variety of features that help
manage key aspects of the company, including finance, assets, projects,
suppliers, fulfillment processes, and manufacturing. Some of the key features
include improved data input capabilities that ensure data consistency and
accuracy, a new user interface that adopts Oracle standards to increase
productivity, and dynamic configuration capacity that allows sales and customer
service to enter complex sales orders. In addition, the integrated accounting
module ensures sophisticated project accounting and provides accurate data for
compliance and financial management. There are also improvements specific to
the food and beverage industry, as well as support for standards such as Web
Services for Remote Portlets (WSRP) and Java Database Connectivity (JDBC) to
increase IT staff flexibility and make it easier to use systems effectively
JD
Edwards General Accounting (G/L)
JD
Edwards General Accounting (G/L) is a general accounting module that allows
users to set up an accounting system to record and post journal entries from
various modules within JD Edwards. This module covers the process of sales
renewal, receipt of purchase orders, inventory transactions, vouchers and
checks payable, accounts receivable and receipt of receivables, and other
functions. Users can record these journal entries in multiple currencies, and
even create balances per G/L account and currency for easier analysis. This
module also allows users to allocate costs to various business units and
accounts automatically by using an allocation program. In addition, users can
enter budgets either as journal entries or upload them from Excel
J.D.
Edwards also provides automated programs for bank account reconciliation,
accounts payable trading, accounts receivable trading, voucher suspension
logging, and received-not-vouchered liability accounts. At the end of the
month, users can restate balances in multiple currencies and create
consolidated financial statements based on the restated balances. With these
features, JD Edwards General Accounting makes it easier for users to manage and
analyze company financial data with accuracy and efficiency. JD Edwards General
Accounting System provides a variety of key features that include:
1.
Account Management
The system allows users to manage the
company's account list, enter new accounts, change account details, and set up
the account structure according to business needs.
2.
Incoming Journal Processing
Users can record and process incoming
journal entries from various modules within J.D. Edwards, including entries
from sales, purchasing, inventory, and other finance.
3.
Allocation
The system facilitates the automatic
allocation of costs to different business units and accounts, helping companies
manage expenses and income more efficiently.
4.
Automatic Account Reconciliation
This module includes automated programs
to accurately and efficiently reconcile bank accounts, accounts payable,
accounts receivable, voucher suspension logging, and received-not-vouchered
accounts.
5.
Consolidated Reporting in Every
Currency
The system allows restating account
balances in multiple currencies and creating consolidated financial statements
with accuracy, making it easier for companies operating in global markets.
6.
Yearly Closing
This module supports the closing
process of the financial year, ensuring all transactions and journal entries
are completed correctly and accurately.
7.
Integrity Reporting
The system allows users to monitor data
integrity, check for errors, and identify anomalies in journal entries and
transactions, ensuring the accuracy and reliability of the company's financial
information.
With
these features, the JD Edwards General Accounting system provides strict
control, high accuracy, and efficiency in a company's accounting management,
ensuring that the resulting financial statements are a proper reflection of the
company's financial health.
JD Edwards Automated Inventory Management System
Figure 2. JD Edwards Inventory Management System
The JD
Edwards Inventory Management Module serves as the information hub for all
inventory items in the Company's system
1.
Stock and Non-stock Goods Management
This module allows companies to manage
stocked items and non-stocked items, ensuring the availability of goods needed
for company operations.
2.
Cost and Price of Goods
This system allows accurate management
of costs and prices of goods. This pricing and cost information is important
for profit and loss calculations and decision-making in selling pricing.
3.
Lot Processing dan Serial Number
Tracking
This module allows tracking of goods
based on lot number (lot processing) and serial number (serial number
tracking). This is very important, especially in industries such as
pharmaceuticals or electronics, where the unique identification of each item is
urgently needed.
4.
Inventory Transaction Processing
This system records all inventory
transactions, including receipt of goods, issuance of goods, and stock
adjustments. This provides full visibility into the movement of goods
throughout the supply chain.
5.
Tag Number and Cycle Count
This module supports regular stock
counting by setting the number of counting cycles and generating a list of
items that must be checked in each counting cycle.
6.
Kit Processing
This module allows companies to create
product kits or packages from several different items in stock, providing
flexibility in selling products in package form.
With
these features, JD Edwards Inventory Management enables companies to
efficiently manage inventory, ensure the availability of the right goods at the
right time, and accurately track and manage stock movements, which are key
aspects of successful supply chain management.
Risk
Coverage Analysis
Table 1.
Risk Coverage Analysis of Sabana Fried Chicken Franchise Company
|
No. |
Risk |
Coverage |
Time |
Cost |
Quality |
Expected Results |
Success Indicators |
|
1. |
Lack of Low Employee / HR Training |
Provide comprehensive training for all new and
existing employees |
Complete training within a certain time before
the restaurant opens |
Allocate sufficient budget for employee training |
Ensure that employees understand the appropriate
standards and procedures for preparing food and serving customers |
Employees who are well-trained and ready to
provide superior service |
Employee attendance and understanding rate in
training |
|
2. |
Inconsistent Raw Material Inventory |
Build strong relationships with raw material
suppliers and have a backup plan in case there are delays in delivery |
Establish consistent delivery schedules and
ensure sufficient stock to meet customer demands |
Manage budgets wisely and find alternative
solutions if raw material costs rise sharply |
Maintain the quality of raw materials to match
restaurant standards |
Consistent and high-quality raw material
inventory |
Availability of sufficient raw materials and under
quality standards |
|
3. |
Fluctuations in Customer Demand |
Use market analysis to understand trends in
customer demand |
Monitor demand patterns and adjust restaurant
supplies and staff according to changing demand |
Develop a budget that takes into account
fluctuations in customer demand |
Ensuring that customer service remains
satisfactory despite customer surges |
Increase customer satisfaction and high customer
retention |
Analysis of sales trends and customer feedback |
|
4. |
Competition with Other Franchises in the Same
Area |
Identify competitive advantages and marketing
strategies that differentiate from competitors |
Conduct attractive and unique promotions and marketing
strategies to attract customers |
Looking for ways to reduce operational costs
without sacrificing quality |
Ensure better service and products than
competitors |
Increased market share and competitive advantage |
Increased market share and long-term
sustainability |
|
5. |
Changes in Food Health and Safety Regulations |
Have an in-house team or consultant who
understands current regulations and ensures compliance |
Update procedures and protocols if there are
regulatory changes |
Allocate budget for periodic inspections and
testing |
Ensure that all products comply with applicable
food health and safety standards |
Comply with all health and food safety
regulations |
Satisfactory inspection and inspection results
from local authorities |
SWOT
Analysis
Table 2.
SWOT Analysis of Sabana Fried Chicken Franchise Company
|
Aspects |
Strengths |
Weaknesses |
Opportunities |
Threats |
|
Internal |
||||
|
Special Products |
Unique fried chicken recipe and taste that
customers love. |
The limited variety of the menu may make some customers
look for other options. |
Introduction of new menus or increased variety in
menus. |
Competition with other fast food restaurants. |
|
Known Brands |
Sabana Fried Chicken has built a brand that is
known in the local market. |
Lack of innovation in marketing and branding. |
Aggressive marketing campaigns to increase brand
awareness. |
Defamation or competitor attacks on brands. |
|
Employee Training |
Employees are well-trained to provide superior
customer service. |
Limited human resources can affect the quality of
training. |
Development of better training programs and
improved human resource management. |
A high employee turnover rate can reduce the
quality of service. |
|
Quality of Raw Materials |
Use of high-quality raw materials to ensure
consistent taste. |
Dependence on certain suppliers who can
experience supply problems. |
Establish relationships with multiple suppliers
to reduce supply risk. |
Rising raw material prices can affect profit
margins. |
|
External |
||||
|
High Market Demand |
The constant demand from customers who love fast
food. |
Low acceptance in some locations due to local
food preferences. |
Market penetration in areas that have not been
reached by competitors. |
Changes in dietary trends lead to a decrease in
fast food consumption. |
|
Pertumbuhan Waralaba |
Increasing public interest in opening a
restaurant franchise. |
High start-up capital requirements for opening a
franchise can reduce the interest of potential investors. |
Support and training programs for prospective
franchisees to increase the number of outlets. |
The success of competitor franchises can reduce
market share. |
|
Health and Hygiene Awareness |
Possibility to present a healthy menu and
low-calorie food options. |
Changes in consumer preferences are leading to
the demand for organic and healthy foods. |
Development of healthy menus and marketing
campaigns to attract customers who care about health. |
Stricter government regulations related to food
health and hygiene. |
|
Technology and Online Booking |
Use of technology to improve ordering and
delivery efficiency. |
Expensive technology investment to implement an
online ordering system. |
Launch of online ordering applications and
delivery services to improve customer satisfaction. |
Competition with large online food ordering
platforms. |
Conclusion
The introduction of an ERP-based Automated
Inventory Management System in Sabana Fried Chicken has had a significant
impact on the company's operations and decision-making. Through the use of ERP
technology, companies can automate inventory management processes, optimize
finances, and obtain accurate data for smarter decision-making. This system not
only improves operational efficiency but also improves service quality and
customer satisfaction. With this integration, Sabana Fried Chicken can
strengthen its position in the franchise market and strengthen the foundation
for long-term growth.
In the face of challenges and
opportunities in the market, Sabana Fried Chicken has identified and managed
risks through careful coverage strategies. From employee training to efficient
raw material inventory management, companies have taken concrete steps to
address risks that may arise. Along the way, the company's SWOT analysis shows
success in leveraging internal strengths, such as distinctive products and
familiar brands, to deal with external challenges, such as competition with
other franchises and changing consumer preferences. With a focus on innovation,
training, and regulatory compliance, Sabana Fried Chicken has successfully
established itself as a formidable player in the fast-food franchise industry.
With these measures, the company has a solid foundation for sustainable success
in this competitive market.
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