Description
This is a PPT about MIS in retail industry.
MIS in Retail Industry
Manufacturer
Supplier
Customer Service
Warehouse
Customer
Transport
Store
STORE
STORE
LOGISTICS
LOGISTICS
WAREHOUSE
SUPPLIER MANUFACTURER
WAREHOUSE
POS Systems : The Last Impression
IT is in FASHION !!!
• The fundamental business requirement analysis. • Fashion Retailer : The Life Cycle of a Product
• Solution : Fast/Slow Seller Reporting
SUPPLY CHAIN may be defined as the series of companies that eventually make products and services available to consumers, including all of the functions enabling the production, delivery, and recycling of materials, components, end products and services
Supply Chain Management may be defined as the systematic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across business within supply chain for the purpose of improving the long term performance of the individual companies and the supply chain as a whole.
? ? ? ? ? ?
Purchasing Department Demand Forecasting Performance Evaluation Inventory Management Implementation of JIT ERP Systems
? ? ? ? ?
Electronic Data Interchange Material User initiates the purchase Connected suppliers get the order to bid upon Buyer can get in contact to number of suppliers This leads to better trackability
? Goal is to minimize the error in forecasting ? All the factors effecting demand are taken (T,C,S,N) ? Some of the softwares vendors are : 1. Business Forecast Sys. (Forecast System Pro) 2. Smart Software Inc.
Performance Evaluation
? It is the use of statistical evidence to determine progress toward specific defined organizational objectives. ? Data from Supply Chain Operations Reference
? Inventory is the raw materials, work-in-process goods and completely finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale. ? IT allows suppliers and buyers to share information
Inventory Management
? ? ? ?
International Truck and Engine Corporation Customized Trucks Trigent Configration Solution Increase in revenue, profits and reduction in BOM
Store Management
• Store management involves:
– selling profitably – satisfying customers – motivating the store associate
• •
Customer’s in store experience acts as the differentiator. A lost customer can cost $ 200,000 (Wallmart)
Tools for Successful Store Management
INFOSYS’ “SHOPPINGTRIP360”
• 360-degree view of in-store shopper and shelf activity. • Accesses a network of wireless sensor-based applications
• Retailers to know the total number of shoppers and their shopping trip paths.
• ShoppingTrip360 helps enable future applications.
Customer Relationship Management
CRM
? Definition: It is a process or methodology used to learn more about customers' needs and behaviours in order to develop stronger relationships with them.
? ?
Transaction ? Relationships Important Questions:
– – – – – Who are the most valued customers (MVC)? What do they need? What motivates them to purchase? Beyond transactions, how can one interact with MVCs in a relevant and profitable manner? How can one customize aspects of the business to meet customer’s needs and drive impact?
?
Role of Technology
CRM – Case in Focus
•
• •
Mitchells is a $65 million clothing retailer with locations in Greenwich and Westport, Connecticut. Didn’t really know who their customers were. Implemented customized CRM to manage customer relations effectively and profitably.
Implementation Outcomes: ? Tracking Most Valuable Customers. ? Campaign management through Customer Purchase History ? Missing Persons query
ERP
ERP systems refer to the software packages that integrate all the data and the related processes of an organization into a unified Information System. An ERP system uses a central database that holds all the data relating to the various system modules in order to achieve a seamless integration.
Components of Retail ERP
• • Supply Chain Planning Merchandise Management
–
– – –
Maintenance and Management of retail outlet Keeping track of price items Inventory management Key reporting functions
• •
Retail Planning Store Management
– – – – – Store Inventory Management Sales Audit Returns Management Perishables Management Labour Management
• •
CRM Corporate Administration
– – – – – – Compliance Report Accounts Receivables Accounts Payable General Ledger Asset Management Human Resource Management
ERP-Case in Focus-Saarthi
ERP Implementation in Pantaloon Retail:
Requirement: Growing at 100% annually.
? ? ? ? ? ? ? Robust Transaction Management Trend Analysis Collaboration with partners Merchandise planning Sourcing and Procurement Managing supply chain Marketing and Brand Management
ERP Vendor: SAP. Project was carried forward by SAP in collaboration with Novasoft. Project flagged off on June 2005 and implemented in three phases.
? mySAP CRM, mySAP SCM, SAP NetWeaver ? Implemented a data warehouse and a business intelligence tool (of SAP) on top of the transaction data
Project Cost: $10 million
ERP-Case in Focus-Saarthi
Hardware: The system runs on a HP Superdome server on HP UNIX 11i and the database is from Oracle. Challenges: ? Data Migration ? Migrating unorganized data into organized format. Benefits: ? Scalability ? Workflow automation (Auto Replenishment and Purchase Orders) ? Support for advanced functionality ? Centralized decision making
Erp packages used by Indian retailers
Shopper’ s Stop
Westside Pantaloons Reebo
Nike
Levi’s
Adidas
k SAP SAP Logic Apparel Logic Apparel Logic Apparel Shopper Retail
ERP software
JDA
Started in 1991
1998
1987
1895
1972
1853
1924
OBSERVATIONS FROM FIELD SURVEY
• • • • The survey was conducted at Reebok, Nike, Adidas and Levi’s. Educational qualification of person at POS: Passed 12th. Computer usage in the store: Adequate. Advantages of using computers are fast billing and appropriate knowledge of stock and database. • Not aware of the terms ERP and CRM but aware of the softwares used. • Investment in IT has a direct relation with customer satisfaction.
The story in numbers
• 51% of the retailers believe that their inventory control system helped increase sales. • Average increase in sales from an inventory control system is around 16.7% • The average decrease in expense from an inventory control system is around 14.3% • 53% of the retailers believe that their customer database helped increase sales.
? ? ? ?
RFID (Radio Frequency Identification) Smart Operating System Electronic Data Interchange Global Data Synchronization Network
? Organized retailing now accounts for three percent out of the total retailing, however is predicted to extend to 10 percent by the year 2010. ? This sector will be generating new 8mn jobs, in addition to the 21mn jobs that are already created by retail sector. ? India require generating at least 110mn sq ft of additional retail space a year for many years, only to meet the demand generated on account of a continued GDP growth rate of nearly 6 percent.
? A KPMG report says that the organized retail would grow at a higher rate than GDP in the next five years
Reference
• • • • • www.sap.com www.dmsretail.com/ Principles of Supply Chain Management by Joel D Wisner Case Studies on Innovation in India (ICFAI Center for Management Research) Achieving Business Benefits from Point-Of-Sale Systems (Aberdeen Group-June 2004)
Thank You
doc_181871957.pptx
This is a PPT about MIS in retail industry.
MIS in Retail Industry
Manufacturer
Supplier
Customer Service
Warehouse
Customer
Transport
Store
STORE
STORE
LOGISTICS
LOGISTICS
WAREHOUSE
SUPPLIER MANUFACTURER
WAREHOUSE
POS Systems : The Last Impression
IT is in FASHION !!!
• The fundamental business requirement analysis. • Fashion Retailer : The Life Cycle of a Product
• Solution : Fast/Slow Seller Reporting
SUPPLY CHAIN may be defined as the series of companies that eventually make products and services available to consumers, including all of the functions enabling the production, delivery, and recycling of materials, components, end products and services
Supply Chain Management may be defined as the systematic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across business within supply chain for the purpose of improving the long term performance of the individual companies and the supply chain as a whole.
? ? ? ? ? ?
Purchasing Department Demand Forecasting Performance Evaluation Inventory Management Implementation of JIT ERP Systems
? ? ? ? ?
Electronic Data Interchange Material User initiates the purchase Connected suppliers get the order to bid upon Buyer can get in contact to number of suppliers This leads to better trackability
? Goal is to minimize the error in forecasting ? All the factors effecting demand are taken (T,C,S,N) ? Some of the softwares vendors are : 1. Business Forecast Sys. (Forecast System Pro) 2. Smart Software Inc.
Performance Evaluation
? It is the use of statistical evidence to determine progress toward specific defined organizational objectives. ? Data from Supply Chain Operations Reference
? Inventory is the raw materials, work-in-process goods and completely finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale. ? IT allows suppliers and buyers to share information
Inventory Management
? ? ? ?
International Truck and Engine Corporation Customized Trucks Trigent Configration Solution Increase in revenue, profits and reduction in BOM
Store Management
• Store management involves:
– selling profitably – satisfying customers – motivating the store associate
• •
Customer’s in store experience acts as the differentiator. A lost customer can cost $ 200,000 (Wallmart)
Tools for Successful Store Management
INFOSYS’ “SHOPPINGTRIP360”
• 360-degree view of in-store shopper and shelf activity. • Accesses a network of wireless sensor-based applications
• Retailers to know the total number of shoppers and their shopping trip paths.
• ShoppingTrip360 helps enable future applications.
Customer Relationship Management
CRM
? Definition: It is a process or methodology used to learn more about customers' needs and behaviours in order to develop stronger relationships with them.
? ?
Transaction ? Relationships Important Questions:
– – – – – Who are the most valued customers (MVC)? What do they need? What motivates them to purchase? Beyond transactions, how can one interact with MVCs in a relevant and profitable manner? How can one customize aspects of the business to meet customer’s needs and drive impact?
?
Role of Technology
CRM – Case in Focus
•
• •
Mitchells is a $65 million clothing retailer with locations in Greenwich and Westport, Connecticut. Didn’t really know who their customers were. Implemented customized CRM to manage customer relations effectively and profitably.
Implementation Outcomes: ? Tracking Most Valuable Customers. ? Campaign management through Customer Purchase History ? Missing Persons query
ERP
ERP systems refer to the software packages that integrate all the data and the related processes of an organization into a unified Information System. An ERP system uses a central database that holds all the data relating to the various system modules in order to achieve a seamless integration.
Components of Retail ERP
• • Supply Chain Planning Merchandise Management
–
– – –
Maintenance and Management of retail outlet Keeping track of price items Inventory management Key reporting functions
• •
Retail Planning Store Management
– – – – – Store Inventory Management Sales Audit Returns Management Perishables Management Labour Management
• •
CRM Corporate Administration
– – – – – – Compliance Report Accounts Receivables Accounts Payable General Ledger Asset Management Human Resource Management
ERP-Case in Focus-Saarthi
ERP Implementation in Pantaloon Retail:
Requirement: Growing at 100% annually.
? ? ? ? ? ? ? Robust Transaction Management Trend Analysis Collaboration with partners Merchandise planning Sourcing and Procurement Managing supply chain Marketing and Brand Management
ERP Vendor: SAP. Project was carried forward by SAP in collaboration with Novasoft. Project flagged off on June 2005 and implemented in three phases.
? mySAP CRM, mySAP SCM, SAP NetWeaver ? Implemented a data warehouse and a business intelligence tool (of SAP) on top of the transaction data
Project Cost: $10 million
ERP-Case in Focus-Saarthi
Hardware: The system runs on a HP Superdome server on HP UNIX 11i and the database is from Oracle. Challenges: ? Data Migration ? Migrating unorganized data into organized format. Benefits: ? Scalability ? Workflow automation (Auto Replenishment and Purchase Orders) ? Support for advanced functionality ? Centralized decision making
Erp packages used by Indian retailers
Shopper’ s Stop
Westside Pantaloons Reebo
Nike
Levi’s
Adidas
k SAP SAP Logic Apparel Logic Apparel Logic Apparel Shopper Retail
ERP software
JDA
Started in 1991
1998
1987
1895
1972
1853
1924
OBSERVATIONS FROM FIELD SURVEY
• • • • The survey was conducted at Reebok, Nike, Adidas and Levi’s. Educational qualification of person at POS: Passed 12th. Computer usage in the store: Adequate. Advantages of using computers are fast billing and appropriate knowledge of stock and database. • Not aware of the terms ERP and CRM but aware of the softwares used. • Investment in IT has a direct relation with customer satisfaction.
The story in numbers
• 51% of the retailers believe that their inventory control system helped increase sales. • Average increase in sales from an inventory control system is around 16.7% • The average decrease in expense from an inventory control system is around 14.3% • 53% of the retailers believe that their customer database helped increase sales.
? ? ? ?
RFID (Radio Frequency Identification) Smart Operating System Electronic Data Interchange Global Data Synchronization Network
? Organized retailing now accounts for three percent out of the total retailing, however is predicted to extend to 10 percent by the year 2010. ? This sector will be generating new 8mn jobs, in addition to the 21mn jobs that are already created by retail sector. ? India require generating at least 110mn sq ft of additional retail space a year for many years, only to meet the demand generated on account of a continued GDP growth rate of nearly 6 percent.
? A KPMG report says that the organized retail would grow at a higher rate than GDP in the next five years
Reference
• • • • • www.sap.com www.dmsretail.com/ Principles of Supply Chain Management by Joel D Wisner Case Studies on Innovation in India (ICFAI Center for Management Research) Achieving Business Benefits from Point-Of-Sale Systems (Aberdeen Group-June 2004)
Thank You
doc_181871957.pptx