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Required Assignment 1—Business Case and Proposal for Project Selection

You work for Centervale Apparel, a large clothing
manufacturing firm. Centervale Apparel has budgeted $9.7 million for new
technology initiatives in the coming year but the project requests
currently in the queue for next year total about $15 million. Your boss,
the executive director of operations, has asked you to put together a
proposal for this project to replace legacy order fulfillment
technologies by implementing a supply chain management (SCM) system.
Your boss wants to ensure this project will be prioritized over other
projects on the list and will be implemented in the coming year. Use the
following data to prepare a proposal using a balanced scorecard
approach to demonstrate the project’s value to Centervale Apparel.

Here is your brief:

Business Problem: The order fulfillment
team has been using several legacy technology systems to manage
inventory and distribution. The current systems do not work together,
requiring redundant information input and processing. Because of the
redundant processes, work is duplicated requiring multiple data entry
points and sometimes results in inaccurate and irreconcilable data.
There is a constant overage or shortage of supply due to the time it
takes for data to get from one point to another. This causes unhappy
customers and inventory carrying costs that could be avoided.

Project Description: Replace legacy order fulfillment technologies by implementing a SCM system.

Project Cost: The project will cost
approximately $1.2 million including infrastructure and resources to
complete the implementation and $250,000 annually to support and
maintain the new system with a ten-year lifecycle for the system.

Project Benefit: It is estimated that
the implementation of a supply chain management system will improve the
order fulfillment processing time and reduce inventory-carrying costs.
Implementing the SCM system will also enable the retirement of several
legacy systems. Estimated annual cost savings are:

  • Data entry staff reduced from 10 FTE to 8 FTE = $100,000/yr savings
  • Reduction in inventory carrying costs = $300,000/yr savings
  • Improved order fulfillment = 10–20% decrease in order to delivery time. This will improve customer satisfaction and retention
  • Improved data accuracy
  • Legacy system maintenance retirement savings = $100,000/yr

Using the information that details the primary business
goals for the coming year, you will need to demonstrate how implementing
the SCM system will help achieve the business objectives.

Note: Customers are retail companies who order from this clothing manufacturer. Assume a ten-year lifecycle for the SCM system.

Using the module readings and the Argosy University
online library resources, research methods of developing proposals by
applying the balanced scorecard approach. Select two scholarly resources
for use in this assignment. You will use these resources to justify
your recommendations.

The proposal should include the following:

  • Describe the measureable value. This should include
    a cost-benefit analysis, such as payback period or ROI that relies on
    tangible measures of organizational value through cost savings, revenue
    enhancements, or improvements in the speed, quality, or efficiency of
    key processes that help achieve competitive advantage (note the
    difference between tangible and intangible measures in this proposal).
  • Evaluate and choose alternatives. Make sure to
    identify any alternatives to the project implementation and provide a
    justification for each.
  • Complete a risk assessment of all risks associated
    with implementing the project using an enterprise risk management (ERM)
  • Describe total cost of ownership and include descriptions of implementation project and ongoing maintenance costs.
  • Explain the benefits of the project, which include tangible and intangible benefits.
  • Fully justify a recommendation with a compelling proposal that aligns to the business goals.

Write a 6–8-page paper in Word format. Apply APA standards to citation of sources.