The inventory management system is required to be automated to make it more efficient and effective, so that reordering can be done at lower levels, thus saving cost of ordering and the inventory carrying costs.
To satisfy the requirements of quick and fast communication, the company needs to upgrade its obsolete machines. As the company has purchased 10 new desktops, 5 of these should be provided to the 5 people working in the office. These people do not require notebooks since they do not move along often. The remaining 5 desktops should be installed at the plant site, so that plant management and employees can have access to the company's network.
In order to produce reliable and accurate office documents quickly and efficiently, and to extract the full potential of office automation software, the company should purchase enterprise wide licenses of the latest Microsoft Office 2007 suite; which contains MS Word for documents generation and reporting, MS Excel for financial spreadsheets and numerical analysis, MS Power Point for presentation development, and MS Outlook to support emails.
Royal Chocolates has a high volume of inter-office correspondence (assumption). An intranet email facility can eliminate most paper based communication. The system will provide instantaneous delivery, significantly reducing the time and manual record keeping overhead costs. The company is recommended to implement Exchange Server 2003 for better management of email system. One of the newly acquired servers should be used as email server. Appropriate software should be installed that include not only the exchange server software, but also email clients like MS Outlook, antivirus software and others.
Intranet and Extranet
To provide the necessary infrastructure for internal office correspondence, and email facility, the company should implement an intranet for communication between people in the office, and between office and plant.
In addition, extranet needs to be developed to communicate with vendors and suppliers. The development of intranets and extranets is a part of e-business which can be said to include e-service, the provision of services and tasks online (Nelson, 2001). The extranet will allow the company to establish a VPN (Virtual Private Network) with the vendors, who