ppt10-1 5 th edition. ppt10-2 chapter 10 information systems and supply chain management...
TRANSCRIPT
![Page 1: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/1.jpg)
PPT10-1
5th Edition5th Edition
![Page 2: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/2.jpg)
PPT10-2
Chapter 10
Information Systems and Information Systems and Supply Chain ManagementSupply Chain Management
McGraw-Hill/IrwinLevy/Weitz: Retailing Management, 5/e Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
![Page 3: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/3.jpg)
PPT10-3
Retailing Strategy
Retail Market Strategy
Financial Strategy Site Location
Information Systems
Retail Locations Organizational Structure and HR Management
Customer Relationship Management
![Page 4: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/4.jpg)
PPT10-4
Supply Chain Management is the integration of business processes from end user through original suppliers that provides products, services, and information that add value for customers.
Supply Chain Management
![Page 5: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/5.jpg)
PPT10-5
What Supply Chain Management Entails
Logisticsor
PhysicalDistribution
Logisticsor
PhysicalDistribution
![Page 6: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/6.jpg)
PPT10-6
Illustration of Supply Chain
![Page 7: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/7.jpg)
PPT10-7
Strategic Importance of Supply Chain Management
• Opportunity to Reduce Costs
– Transportation Costs
– Inventory Holding Costs
• Provide Value to Customers by Making the Right Merchandise is in the Right Place at the Right Time
– Fewer Stockouts
– Greater Assortment with Less Inventory
• Improved ROI
![Page 8: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/8.jpg)
PPT10-8
Return on assets = Net profit margin x Asset turnover
Net profit = Net profit x Net sales
Total assets Net sales Total assets
Improve Return on Investment
Efficient Supply Chain Management Higher Asset Turnover
Same Sales Using Less Inventory
![Page 9: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/9.jpg)
PPT10-9
The Flow of Information and Merchandise
- - - - Merchandise flow Information flow
Buyer
Vendor
Stores
Distribution center
Customer
Quick response systems
Sales info
![Page 10: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/10.jpg)
PPT10-10
Information Flows
![Page 11: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/11.jpg)
PPT10-11
Information Flow
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
1. When customer makes apurchase, sales associatescans UPC code on merchandiseand customer credit card/loyalty card
![Page 12: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/12.jpg)
PPT10-12
Information Flow
6. Store managers inform distribution center about receipt of merchandise and coordinate deliveries
4. Buyer/planner communicates withvendor and places a purchase orderto re-supply stores.
5. Buyer/planner notifies distributioncenter about incoming orders andhow they are to be distributed to stores
![Page 13: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/13.jpg)
PPT10-13
Data Warehousing
Data warehousing is the coordinated and periodic copying of data from various sources, both inside and outside the enterprise, into an environment ready for analytical and informational processing
Wal-Mart makes good use of its data warehouse. It should. Experts estimate that it is second in size only to that of the U.S. government
![Page 14: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/14.jpg)
PPT10-14
Data Warehouse Structure
![Page 15: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/15.jpg)
PPT10-15
Electronic Data Interchange
• EDI is the computer-to-computer exchange of business documents between retailers and vendors
• Merchandise sales
• Inventory On Hand
• Orders
• Advanced shipping notices
• Receipt of merchandise
• Invoices for payment
![Page 16: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/16.jpg)
PPT10-16
Networks for EDI
• Proprietary Systems – Network using special software
• Extranet – Public internet with access restricted to partners
• Intranet – Internet withaccess restricted topeople within acompany
security
Easeof
access
![Page 17: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/17.jpg)
PPT10-17
Physical Flow of Merchandise
Merchandise is sent from vendoreither to the retailer’s distributioncenter (1) or directly to store (3).
Retailer send merchandise from itsdistribution center to its stores (2).
![Page 18: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/18.jpg)
PPT10-18
• More cost effective
• More accurate sales forecasts
• Less merchandise in the individual store, thus a lower inventory investment system-wide.
• Less out-of-stock
Advantages of Using a Distribution Center
![Page 19: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/19.jpg)
PPT10-19
When to Use Distribution Centers
• Unpredictable merchandise sales – wide fluctuations in demand
• Frequent replenishment required – high number of units sold per day
• Items shipped to store in less than full case quantities
• Many retail outlets that are not concentrated in one area
![Page 20: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/20.jpg)
PPT10-20
When to Use Direct Store Delivery
• Retailer has only a few outlets
• Many retail outlets are concentrated in metro areasyielding increased efficiency of direct store delivery
• Important to get merchandise in store quickly
•Fashion - first to have latest video game
•Merchandise perishable - produce
![Page 21: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/21.jpg)
PPT10-21
Activities Performed by Distribution Center
• Managing inbound transportation
• Receiving and checking merchandise
• Storing or cross docking merchandise
• Preparing merchandise for the sales floor
– Ticketing and marking
– Putting on hangers
• Shipping merchandise to stores
• Managing outbound transportation
![Page 22: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/22.jpg)
PPT10-22
Crossdocking
Merchandise flows directly from the vendor’s trucks through the retailer’s distribution center and is loaded on the trucks going to the retailer’s stores without being stored in the distribution center
![Page 23: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/23.jpg)
PPT10-23
Logistics Strategy
PullMerchandise shipped to stores based on sales and inventory levels in the stores
PushMerchandise shipped to the stores based on forecasted sales rate
![Page 24: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/24.jpg)
PPT10-24
Quick Response Delivery System
QR delivery systems are inventory management systems designed to reduce the retailer’s lead time for receiving merchandise, thereby lowering inventory, improving customer service levels, and reducing logistics expenses.
![Page 25: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/25.jpg)
PPT10-25
Benefits of QR Systems
Reduces lead time
Increases product availability and lowers inventory investment
Reduces logistics expenses
![Page 26: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/26.jpg)
PPT10-26
Costs of QR Systems
Smaller orders - more expensive to transport
Greater order frequency - deliveries and transportation more difficult to coordinate
Computer hardware and software must be purchased by both parties.
![Page 27: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/27.jpg)
PPT10-27
Logistics Support for Electronic Channel
• Requires a different type of distribution center
– Picking and packing individual items sent to customer vs.
– Receiving, storing, and cross docking cartons to stores
• Multi-channel retailers may outsource fulfillment of Internet orders to third party
– Target, Toys R Us Target
![Page 28: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/28.jpg)
PPT10-28
Outsourcing Supply Chain Management Functions
Transportation
Warehousing
Freight Forwarders
Integrated Third PartLogistics Services
Cost
vs.Control
![Page 29: PPT10-1 5 th Edition. PPT10-2 Chapter 10 Information Systems and Supply Chain Management McGraw-Hill/Irwin Levy/Weitz: Retailing Management, 5/e Copyright](https://reader036.vdocuments.site/reader036/viewer/2022081512/551c02cf550346a84f8b4ce6/html5/thumbnails/29.jpg)
PPT10-29
Third-Party Logistics Companies
These firms facilitate the movement of merchandise from manufacturer to retailer, but are independently owned.
• Transportation
• Warehousing
• Freight forwarders
• Integrated third-party logistics services