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ABC Company is a company engaged in FMCG which has more than 12 thousand employees and has its head office in Medan and Jakarta. The
ABC Company is a company engaged in FMCG which has more than 12 thousand employees and has its head office in Medan and Jakarta. The company has 3 factories and has a distribution network that is divided into 4 regions with a total of 27 distributors of which 7 distributors are located on the island of Sumatra, 10 distributors on the island of Java, 7 distributors on the island of Bali and 3 distributors are located in Sulawesi. Each distributor has around 15 salespeople to market products directly to customers, which can be retailers, small shops, wholesalers, supermarkets, minimarkets or hypermarkets. Although the number of distributors on the island of Sulawesi is the smallest, in terms of sales volume, Sulawesi contributes almost 50% of the company's total turnover. Currently the sales process is still done manually where each salesman will visit the customer and manually record orders from customers. At the end of the day/afternoon the manual notes will be inputted into the legacy system (old system, using Foxpro technology) by the admin in each office area for further issuance of invoices, travel documents and proof of goods release, which will be used by the warehouse team for make delivery of goods, the fastest the next day. However, because the process is still manual, generally new orders will be processed by the warehouse and sent to the customer 3 days after the order is received and can take up to 7 days. When the invoice is due, the salesman team will also carry out billing activities to customers which will be inputted into the system by the admin team in the afternoon. ABC company has many competitors, and two of them are company XYZ and KLM. Although both companies have smaller sizes and fewer products, both are more advanced in terms of technology and marketing. The industry in which ABC Company is located is a very fastpaced industry in terms of technology, with many new technologies and initiatives generally being introduced every quarter. Some time ago, employees from competitors from the IT and Finance divisions with Senior Manager level have resigned and joined ABC company. Management decided to implement an online sales system in assisting the marketing and sales process in responding to increasingly fierce competition with the growth of other digital companies. Customer demands for faster service and management strategies for market expansion are also the driving factors for this vision. This system will broadly consist of 3 parts, a handheld system that will be used by salesmen to input transactions online using the Android operating system, a hub/region system that will be placed in each regional office to process customer orders on the same day. and place orders for goods to the head office. The last is the system at the head office, which has a function to handle transactions from each hub/region, an inventory function that is connected to the warehousing system, reporting and analysis. This system will also must be integrated with accounting and financial systems, so that every transaction and movement of goods that occurs can be directly reflected in the accounting records and financial statements. You are appointed as one of the newly recruited employees who will implement this project, and you are assigned as a project manager who also has the function to manage the planning process, you have a superior lT director, together with other team members, you are responsible for coordinating and implementing a system for efficiency of the overall marketing and sales process. This project is expected to be completed and implemented nationally within 12 months. 5. Project ELQQMLamm Procurement planning involves identifying which project requirements can best be met using a product or service outside the organization. This involves deciding whether to procure, how to procure, what to buy. how much to buy, and when to procure. An important output of this process is a make or buy decision. Based on the case above, explain the strategy or steps that you must apply to support this management decision and ensure the project can run well if it is decided that the project will be carried out with a "make" mechanism and a "buy" mechanism. which do you think is the right decision
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