Professional Documents
Culture Documents
Retailing Strategy
Retail Market Strategy
Financial Strategy Site Location
Information Systems
Retail Locations
Organizational Structure and HR Management
PPT10-3
PPT10-4
Information Flows
PPT10-6
Information Flow
1. When customer makes a purchase, sales associate scans UPC code on merchandise and customer credit card/loyalty card 2. Information about purchase is transmitted from POS terminal to the buyer/planner. 3. Information about purchases are aggregated by buyer/planner and sent to distribution center and vendor
PPT10-7
Information Flow
4. Buyer/planner communicates with vendor and places a purchase order to re-supply stores. 5. Buyer/planner notifies distribution center about incoming orders and how they are to be distributed to stores 6. Store managers inform distribution center about receipt of merchandise and coordinate deliveries
PPT10-8
Receipt of merchandise
Invoices for payment
PPT10-9
More cost effective More accurate sales forecasts Less merchandise in the individual store, thus a lower inventory investment system-wide.
Less out-of-stock
PPT10-10
Crossdocking
Merchandise flows directly from the vendors trucks through the retailers distribution center and is loaded on the trucks going to the retailers stores without being stored in the distribution center
PPT10-12
Logistics Strategy
Pull Merchandise shipped to stores based on sales and inventory levels in the stores Push Merchandise shipped to the stores based on forecasted sales rate
PPT10-13
PPT10-14
Benefits of QR Systems
Reduces lead time
Increases product availability and lowers inventory investment Reduces logistics expenses
PPT10-15
Transportation
Warehousing
Control
Freight Forwarders
Integrated Third Party Logistics Services
vs.
Cost
PPT10-16