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virtual cafe quiz chapter 7

Chapter 7: Enterprise Systems: From Supply Chain to ERP to CRM

Management at the Wireless Cafe has a good relationship with their suppliers, though occasionally running out of tea or chopsticks or rice noodles reduces profits.  Jimmy remembers reading about SCM and ERP systems in his information technology class in college, but he’s not really sure if the Wireless Café is big enough to be concerned about managing its supply chain or planning enterprise-wide resource utilization.  You are tasked with identifying opportunities to better manage inventory – from noodles to napkins.  First, though, you need to better understand a café’s supply chain.


  1. Who is in the Wireless Café’s upstream supply chain?  Identify ingredients the chef uses to prepare meals for guests.  Then, use a tool like Visio, Word or PowerPoint to draw a diagram that shows the flow of these ingredients and their accompanying information through the supply chain to the Wireless Café.


Upstream supply chain (supplier)

Local farmer and fisherman


Ingredients the chef uses

Glass noodles



The Diagram will be at the bottom of this page.


  1. What are some potential problems in the supply chain?  Remember, an oversupply of lemongrass is just as problematic as an undersupply.  What kinds of information can be used by the Wireless Café management to prevent these problems?


Potential problem in the supply chain


Since both of the ingredients are raw material which have a short due date, therefore there are some potential problems occurs. It will involve the distribution decisions whereby when the right time to distribute glass noodles to Shanghai Wireless Café to prevent oversupply. Other than that, it also involve the production decision whereby the decision to find a quality wheat that can made a good glass noodles needed by Shanghai Wireless Café for customer satisfaction. Cash flow decision also can be one of the potential problems because the price of ginger and glass noodles are not fixed in every place. Therefore, the price may vary.


Information used by wireless café management to prevent the problem


The kinds of information that can be used by the Wireless Café management to prevent this problem is that the implementation of Supply Chain Management Software (SCM) in the organization. The objective is to improve the decision making for all the data in the supply chain. But, to use SCM, Enterprise Resource Planning System (ERP) needs to implement into Shanghai Wireless Café. Using ERP, integration of all departments and functional information flows across organization onto single computer system that can serve Shanghai Wireless Café management needs.


  1. Based on the days and nights you have spent at the Wireless Café, watching the operations, observing the customers, it is clear to you that the satisfied, repeat customers are the foundation of the Wireless Café’s success.  You can see a real opportunity for CRM to have an impact and help to build this loyal customer base.  Describe either a customer-facing application, customer-touching application, or customer-centric intelligence application you would recommend to Jade and Jimmy to help build their customer loyalty.


I would recommend customer-centric intelligence application. This is because using customer-centric intelligence application, Shanghai Wireless Café management can understand the behavior of their customers and how they prefer to do business. Other than that, Wireless Café management can understand the products and services that the customer need and the ones that they buy. The identification of best customers and the most loyal customer can be done. Using customer-centric intelligent application, Wireless Café management can understand how efficient and effective their marketing, sales, and service business processes.


Customer-centric intelligence applications are analytic applications that analyze the results of operational processing. The results can be used to improve the efficiency and effectiveness of operational CRM applications. The capabilities should include these high-level functions such as data warehousing, reporting and analytic applications.

Diagram of glass noodles ingredient through the supply chain

Diagram of ginger ingredient through the supply chain

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