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Performance Measurement
Store Back-end Inventory Management Order Placement Inbound Logistics Inventory Management Replenishment Analysis Store Front-end Point of Sale Merchandising Transaction Processing Supply Chain Management After Sales Service Reverse Logistics
Flow of Information
Store Frontend
Purchase Entry
Store Backend
Stock Levels
Warehouse Supplier
Stock Levels
Order
Information Collection and Access Supply Chain Management Inventory Management Order Placement Point of Sale and Merchandising Transaction Processing, Billing and Delivery After Sales Service and Reverse Logistics
Procurement
Inbound Operations logistics Outbound Marketing logistics and sales Service
Primary Activities
*Competitive Advantage by Michael Porter
A
B C
Annual Sales
Estimate of the average life span of the 5 years entire retail information system Estimate of the percentage of sales the 1% = 1/100 = average retailer spends on information 0.01 technology Retail System Budget =AxBxC = Rs. 10 Crores
*Based on benchmark survey by PricewaterhouseCoopers LLP and RETAILTECH, April 2000
Be open to the IT investment option Conduct a thorough feasibility study Set a budget for IT spending Determine the IT budget allocations Draw out detailed plan for process re-engineering Plan a post implementation analysis
Hardware Software Training & Implementation Supplies & Upgrades Total Retail System Budget
Be open to the IT investment option Conduct a thorough feasibility study Set a budget for IT spending
Retrieval
Output Variables
Net
annual sales per square footage of store Operating Profit Margins Profits Margins x Inventory Turnover Rate Customer Perspective
Customer
Internal Processes
Average
inventory per Quarter Average Ordering Cost per Order Transaction Processing Time
In India, as organized retail blooms, the business case for IT will get stronger
Thank You
References:
IBM RFID Solutions Wal-mart's Supply Chain Management Practices - ICMR Case Collection An application of the balanced scorecard in retailing - The International