This chapter serves the purpose of providing the reader with a comprehensive understanding of the research topic: Bachelor of Science in Business studies and supply chain management, UCD, Ireland

Chapter 1: Introduction 

⦁ Introduction
This chapter serves the purpose of providing the reader with a comprehensive understanding of the research topic, elucidating the reasoning behind selecting this particular subject, and delineating the methodology employed in conducting the research. The dissertation aims to delve into the examination of an Automated Procurement System’s implementation within a Small and Medium-sized Enterprise (SME) Contract Bakery.
According to Orzes et al. (2018), SME food manufacturers have exhibited a slower adoption of new technology compared to their larger counterparts. Consequently, this study will investigate automated procurement implementations within larger food manufacturing companies and with suppliers. The objective is to ascertain the relevance of such implementations to the case study, underscore the potential benefits they could yield, and formulate a comprehensive implementation action plan.

⦁ The rationale for the research
This research is motivated by a critical examination of the existing ordering system within the context of Coghlans’ Artisan Bakery. The current system will be scrutinized in terms of the time it consumes, the uncertainties it introduces, and its implications on stock management, particularly in relation to high stock levels and aged inventory. Understanding the impact of the current ordering system on working capital and planning is integral to identifying areas for improvement and optimizing operational efficiency. By delving into these aspects, the research aims to provide valuable insights that can contribute to enhancing the overall effectiveness of the bakery’s ordering processes.
The current ordering system is heavily reliant on one staff member ensuring appropriate stock levels are maintained, timely contact is made with suppliers when placing orders and no stock runouts occur that will halt production. These concerns in turn often lead to over-ordering of stock tying up a lot of working capital, which is worrying from our financial controller’s point of view, damaged and out-of-date stock and holding costs must also be considered.