retail mis 2

8/11/2019 Retail MIS 2

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RETAIL MANAGEMENT

SYSTEM IN MIS



• A retail chain differs from other industries by nature of its

number of locations.

• A retail industry has sales from a large number of locations.

Each store requires an inventory control system, a Point of

Sales system and an accounting system (may be also a

production system)

Introduction



Vendor Managed Inventory (VMI)

VMI is a continuous replenishment program in which

the retailer provides the supplier with detailed information to

allow the supplier to manage and replenish product at thestore or warehouse level

– Benefits of VMI

• Solidified customer-vendor relationships

• Reduced shipping costs and lead time

• Fewer human errors

• Improved service levels



Efficient Consumer Response (ECR)

Programs that companies need to have in place are:

Category management (i.e. managing a group of products as

strategic business units within each store)

Continuous replenishment program (CRP)

Further support is needed of the following technologies:

Barcodes / Scanners

Electronic Data Interchange (EDI)

Computer aided ordering (CAO)

Cross docking / direct store delivery

Activity based costing



Collaborative Planning, Forecasting andReplenishment (CPFR)

CPFR allows cooperation across the supply chain, using a

set of processes and technology models.

Providing dynamic information sharing and integrating both demand and supply

side processes, for effectively planning, forecasting and replenishing customer

needs through the total supply chain.

Advantages of CPFR:

Increased responsiveness

Product availability assurance

Optimized inventory and associated costs

Increased revenues and earnings

Improved relationships with trading partners



Electronic marketplaces

• A distinction can be made between Open exchanges (accessible for everyone) and

Private exchanges (only for members)

• An e-marketplace can provide a platform for:

– Core commerce transactions which can automate and streamline the entire

requisition-to-payment online

– A collaborative network for production design, supply chain planning, optimization

and fulfillment process

– Industry wide product information that is aggregated into a common classification

and catalogue structure

– An environment in which sourcing, negotiations and auctions can take place in real-

time

– An online community for publishing and exchanging industry news, information and

events



Radio frequency Identification Detection

• RFID is a term for technologies that use radio waves to automatically identify.

• Auto-ID Center is developing an open global network (a layer on top of

internet) that can identify anything, anywhere, automatically.

• This network will give companies near perfect supply chain visibility

• Also, if widely adopted the network could:

▫ eliminate human error from data collection

▫ reduce inventories

▫ keep product in stock

▫ reduce loss and waste

▫ free up staff to perform more value added functions

▫ improve safety and security



Supply chain strategy trends

The four major developments show how the landscape of the traditional

retail buyer has changed

Advanced systems will allow them to optimize their supply chain operations

Future competition in retail will no longer be between individual companies,

rather it will be among clusters of companies

As research shows the development towards this kind of collaboration

can be troublesome

Trust between the partners, a long term commitment and a balanced

sharing of risks and rewards is required to be successful



Thank You,

All!

retail mis 2

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