ABC has a chain of twenty supermarkets. When stock items reach their re-order level in a supermarket the in-store computerized inventory system informs the stock clerk. The clerk then raises a request daily to the ABC central warehouse for replenishment of stock via fax or e-mail. if the local warehouse has available stock it is forwarded to the supermarket within 24 hours of receiving the request. I the local warehouse cannot replenish the stock from its inventory holding then it raises a purchase order to one of its suppliers. The supplier delivers the stock to the warehouse and the warehouse then delivers the required stock to the supermarkets within the area. The ABC area warehouse staff conducts all business communication with suppliers.
ABC recently conducted an IT consultant to analyze and make recommendations concerning their current supply chain briefly describe above. Following the initial investigation the consultant reported:
"To enable an established traditional company like ABC to develop a Virtual Supply Chain system it may be necessary to employ a Business Process Re-engineering approach.
Required:
Describe the BPR approach that should be adopted by ABC to implement change.