use of it in retail

8/9/2019 Use of IT in Retail

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A presentationon

IT in RetailPresented by: Gautam Dua

Rashmi GargRam Thakur


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Topics to be Discuss

Supply chain managementData warehousing

Enterprise Resource planning (ERP)The physical flow of Merchandise LogisticSecurityCRM


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Supply chain management

It is a network of facilities and distributionoptions that performs the functions of procurement of materials, transformations of

these materials into intermediate andfinished products, and the distribution of these products to the customers.


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Four basic processes in supply chain: Plan .

Source . Make . Deliver .


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NEED FOR MANAGING THE SUPPLY CHAIN

The most important need for the control of thecost involved in transportation warehousing andthe shipping of material to the end consumer willaffect the profitability of the business.


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Continued

To achieve strategic fitTo cater to the Competitive strategy

To reduce the holding cost.To tackle the national and internationalcompetition.

To earn more profit margin.


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Elements of SCM

Demand Creation and Forecast : Create aniche, Understand customer needs/preferences, Gauge Market

Potential, Study competitor environmentProduct Development andcommercialization : Product, Packaging,Price Structure

Distribution Network Configuration :Number and location of suppliers,production facilities, distribution centers,warehouses and customers.


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Distribution Strategy: Centralized versusdecentralized, direct shipment, CrossDocking, pull or push strategies, third party

logistics.Information : Integrate systems andprocesses through the supply chain toshare valuable information, including

demand signals, forecasts, inventory andtransportation etc.Inventory Management : Quantity andlocation of inventory including rawmaterials, work-in-process and finished

oods.


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FR A MEWORK OF SCM


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Data warehousing

Data warehouse is a consolidated database maintainedseparately from an organization's production systemdatabase. Many organizations have multiple databases. A

data warehouse is organized around informationalsubjects rather than specific business processes. Dataheld in data warehouses are time dependent, historicaldata may also be aggregated.


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ERPMany companies now view ERP system (e.g.. Baan, S A P, Peoplesoft, etc.) as the core of their IT infrastructure. ERP system havebecome enterprise wide transaction processing tools which capturethe data and reduce the manual activities and task associated with

processing financial, inventory and customer order information. ERPsystem achieve a high level of integration by utilizing a single datamodel, developing a common understanding of what the shareddata represents and establishing a set of rules for accessing data.


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Enterprise without ERP


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Enterprise with ERP


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The physical flow of Merchandise Logistic


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Bar coding and Scanner:

Bar code scanners are most visible in the checkout counter of super market. This code specifiesname of product and its manufacturer. Other applications are tracking the moving items suchas components in PC assembly operations,automobiles in assembly plants.


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Security


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CRM

The ideas and strategies that are used bycompanies to manage their relationships with their customers including capture, storage and analysisof customer information


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Technology usedCRM specific database or Enterprise Data WarehouseOperational CRM- agent support softwareCollaborative CRM- interactive website or automated

phone systemA nalytical CRM- statistical analysis software


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SWOT analysis


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Summery

Business Pr essu r es

Global Comp etiti o n for Mark et a nd Labor

Need for R e al- tim e Op e ra tio nsCha nging Work Forc eCust om e r Or ient a tio nTe ch n olo gi cal I nn ova tio n a nd Ob s ol es c en c eIn forma tio n Ov e rloa dSoc ial R es po nsi b ility

Gov e r n m ent Regu la tio n a nd De r egu la tio nEth ical I ssues

Or g a niz a tio n al R es po nses

S tra tegi c S yste m sCust om e r Foc us a nd Cust om e r S e rv ic eCo ntinu o us Improv e m ent Effor ts (J ust -in -Tim e, To talQu al ity Ma n a ge m ent)Business Proc ess Reenginee r ing (BPR )Te am-ba sed S tr u c tu r eBusiness Allia n c esEle c tro ni c Comm e rc e


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ConclusionWorld is shrinking day by day with advancement of technology.

Customers' expectations are also increasing and companies areprone to more and more uncertain environment. Companies will findthat their conventional supply chain integration will have to beexpanded beyond their peripheries. The strategic and technologicalinnovations in supply chain will impact on how organizations buy and

sell in the future. However clear vision, strong planning and technicalinsight into the Internet's capabilities would be necessary to ensurethat companies maximize the Internet's potential for better supplychain management and ultimately improved competitiveness. Internettechnology, World Wide Web, electronic commerce etc. will changethe way a company is required to do business. These companiesmust realize that they must harness the power of technology tocollaborate with their business partners. That means using a newbreed of SCM application, the Internet and other networking links toobserve past performance and historical trends to determine howmuch product should be made as well as the best and cost effectivemethod for warehousing it or shipping it to retailer.


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Your quires are welcomed!!


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Thank You

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