customer smart card evoucher system -- save gasoline

8/9/2019 Customer Smart Card Evoucher System -- Save Gasoline

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Ultimate Objectives for participating in theUltimate Objectives for participating in the

Microsoft internship programmeMicrosoft internship programme Become an logistics researcherBecome an logistics researcher

Get into research forGet into research for better Logistics systemsbetter Logistics systems

Better and more feasible energyBetter and more feasible energy--savingsaving--solutionsolution

Consumer Behavior in Grocery shopping if incentives is givenConsumer Behavior in Grocery shopping if incentives is given

Brand switching strategy for Grocery suppliersBrand switching strategy for Grocery suppliers

Build a prototype of a marketable wristBuild a prototype of a marketable wrist--watch that show morewatch that show morethan local timethan local time


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M I S andrew @ G mail . ComM I S andrew @ G mail . Comwelcome to email mewelcome to email me

TopicTopic

Better than the RFID systemBetter than the RFID system

Using the eUsing the e--wallet (HongKong widespread Octopus systemwallet (HongKong widespread Octopus system butbutI am proposing to take a FURTHER STEP) forI am proposing to take a FURTHER STEP) for

better Collaborative effort in FMCG forecastingbetter Collaborative effort in FMCG forecastingFor promotional items in Grocery shopping experienceFor promotional items in Grocery shopping experience

byby


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Agenda :Agenda :

1.01.0 IntroductionIntroduction 2.02.0 RFID / octopus card (payment card)RFID / octopus card (payment card) 4.0 Wal mart4.0 Wal mart RFID inititativeRFID inititative

5.05.0 my proposed systemmy proposed system O2WO2W 6.06.0 5 forces5 forces 7.0 Comparison7.0 Comparison 8.08.0 reduction on truck Gas Costreduction on truck Gas Cost/ PULL/ PULL

>> Push grocery market strategy>> Push grocery market strategyO2W == we will call the new sys in this powerpointO2W == we will call the new sys in this powerpointIn essence, it is an eIn essence, it is an e--voucher supermarket systemvoucher supermarket system

to facilitate Accurate Quantity Deliveries to every POSto facilitate Accurate Quantity Deliveries to every POS


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RFID is a JourneyRFID is a JourneyImplementationImplementation -- tuning of equipment / automationtuning of equipment / automation

2003 2004 2005

Process Changes

R&DSet 2005 Target

Testing & Pilots

Infrastructure Deployment

Technology Goals

Data Discovery

Go Live

Suppliers are reluctant to implement it as it incurs extra cost to themSuppliers are reluctant to implement it as it incurs extra cost to them


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RFID progress so far . ..RFID progress so far . ..

Installed inInstalled in 104 Wal104 Wal--Mart StoresMart Stores

36 SAMs Clubs36 SAMs Clubs

3 Distribution Centers3 Distribution Centers

Installed alreadyInstalled already Over 14,000 pieces ofOver 14,000 pieces of

hardwarehardware

230 miles of cable230 miles of cable

(data, cable & coax)(data, cable & coax)


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RFID Potential Benefits for SuppliersRFID Potential Benefits for Suppliers

that has not yet been realisedthat has not yet been realised Total end to end supplyTotal end to end supply

chain visibilitychain visibility

Improved in stockImproved in stock

Smart recallsSmart recalls Improved cold chainImproved cold chain

compliancecompliance

Product protectionProduct protection(anti(anti--counterfeiting)counterfeiting)

Internal efficienciesInternal efficienciesBuyerBuyerSupplierSupplier


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Realisable benefit on FMCGRealisable benefit on FMCG

AndrewAndrew

Basic information about Octopus card in HONG KONGBasic information about Octopus card in HONG KONG can be found incan be found inhttp://tiny.cc/octopus8http://tiny.cc/octopus8


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Octopus easy payment systemOctopus easy payment system

Cashless payment systemCashless payment system Octopus cardOctopus card Cards/wristbands with RFID chips storeCards/wristbands with RFID chips store

HK people can recharge the card orHK people can recharge the card orwristband after the stored value has beenwristband after the stored value has beendepleted.depleted.

i.e. it is a contactless money deduct cardi.e. it is a contactless money deduct cardfor payment in transportation / supermarketfor payment in transportation / supermarket


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Porters 5 force analysis on thePorters 5 force analysis on the

benefits of my Proposed IT systembenefits of my Proposed IT systemSUPPLIERSSUPPLIERS

-- Brand Switching fromBrand Switching fromcustomerscustomers

-- Less money given to theLess money given to thesupermarket for shelves spacesupermarket for shelves spacepromotionpromotion

CUSTOMERSCUSTOMERS

-- Good Bargain when they useGood Bargain when they usethe ethe e--vouchervoucher

-- Interactive shoppingInteractive shoppingexperience that they find out theexperience that they find out theinfo of a product (expectation)info of a product (expectation)

Famous Brand substitution / newFamous Brand substitution / newproducts promotionproducts promotion

-- Customer passively get involved forCustomer passively get involved for

the current promotion methodthe current promotion method

-- Suppliers spend lot of $ while theSuppliers spend lot of $ while the

result is not proportion to theresult is not proportion to themanufacture costmanufacture cost


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Implementation of O2W system is more Feasible and ViableImplementation of O2W system is more Feasible and Viablewith the Technology Available Todaywith the Technology Available Today

in this powerpoint, I am going to name itin this powerpoint, I am going to name itO2W i.e. using octopus card to tell my own LOCAL branch ofO2W i.e. using octopus card to tell my own LOCAL branch ofsupermarketsupermarketwhat I will BUY in my next shopping trip [ 2 weeks later]what I will BUY in my next shopping trip [ 2 weeks later]

by picking the Future Sales Items in the INby picking the Future Sales Items in the IN--STORE TouchSTORE TouchScreen Computer that show eScreen Computer that show e--voucher that I could purchasevoucher that I could purchase

How O2W system will work >>>How O2W system will work >>>

[ In the viewpoint of grocery shoppers ][ In the viewpoint of grocery shoppers ]


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How the voucher sys. work?How the voucher sys. work?1.1. An eAn e--voucher ticketvoucher ticket--machine (emachine (e--coupon) will be foundcoupon) will be found

near the supermarket cashiernear the supermarket cashier

2.2. Grocery Customer must pay a PhysicalGrocery Customer must pay a Physical--Visit toVisit tothe ethe e--voucher ticket issuing machinevoucher ticket issuing machine3.3. Customer Octopus Card will get voucher price deductedCustomer Octopus Card will get voucher price deducted

(say $2 in HongKong or US$1 in USA), However, they(say $2 in HongKong or US$1 in USA), However, theycould get a e.g. $10 discount at the end, say pack of milkcould get a e.g. $10 discount at the end, say pack of milkor bottle of wine [bigger discount than normal Sale price]or bottle of wine [bigger discount than normal Sale price]

4.4. Data regarding the voucher could even be stored inData regarding the voucher could even be stored inindividual stores computer only, this will relieve theindividual stores computer only, this will relieve theworkload on existing octopus computer systemworkload on existing octopus computer system shortshortimplementation / low investment for this projectimplementation / low investment for this project

5.5. Period before exercising the voucher, the customer willPeriod before exercising the voucher, the customer willspend time to study the products that he/she neverspend time to study the products that he/she neverbought before.bought before.

6.6. With the same token, the suppliers get their promotionWith the same token, the suppliers get their promotionmoney well spent becausemoney well spent because Unlike traditional system, this does not lead to overUnlike traditional system, this does not lead to over--production when product isproduction when product is

launched / promotedlaunched / promoted

Brand Recognition (rather then impulseBrand Recognition (rather then impulse--buy) as there is a latent periodbuy) as there is a latent period


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Hurdles in RFID vs Benefit of OctopusHurdles in RFID vs Benefit of Octopus

RFIDRFID O2W voucher systemO2W voucher system

Tuning of equipmentTuning of equipment metal rackmetal rackand liquid can make RFIDand liquid can make RFID

eliminate the PUSH process (i.e. make theeliminate the PUSH process (i.e. make theproduct occupies significant shelve spaceproduct occupies significant shelve space

Range 10 meter, but it does alwaysRange 10 meter, but it does alwaysaffected by a lot of environmentalaffected by a lot of environmentalfactorsfactors

Using nonUsing non--contact smart card but thecontact smart card but theconsumer have to put their Oct2pusconsumer have to put their Oct2pusWOOD card within few centimeters of theWOOD card within few centimeters of theREADER (in the supermarket)READER (in the supermarket)

suppliers putting extra resourcessuppliers putting extra resourceson RFID research whileon RFID research while

The Consumer , the supermarket andThe Consumer , the supermarket andespecially the Suppliers wouldespecially the Suppliers would

welcome itwelcome it ---- using existing UPC (barusing existing UPC (barcode) and octopus cardcode) and octopus card


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FEW MAJOR BENEFITS, there are more.FEW MAJOR BENEFITS, there are more.

Supermarket store will know the customerSupermarket store will know the customer

demand of each promotion itemdemand of each promotion item with pinwith pin--point accuracy.point accuracy.

RaisingRaising brand awarenessbrand awareness of a newof a newpromotional itempromotional item

reductionreduction of bullof bull--whip effectwhip effecttotallytotally (def :(def :fluctuation in seasonal demand)fluctuation in seasonal demand)

NEGOTIATE A LOWER FIXED PRICE with theNEGOTIATE A LOWER FIXED PRICE with thesupplier (not a price according to scale ,supplier (not a price according to scale ,

volume)volume)

customer smart card evoucher system -- save gasoline

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