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
Supply chain strategy trends
Modern supply chain management retail is based on
the following concepts:

Vendor Managed Inventory (VMI)
Efficient Consumer Response (ECR)
Collaborative Planning, Forecasting and
Replenishment (CPFR)
Electronic marketplaces (E-marketplaces)
Radio frequency Identification Detection (RFID)
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 the
store 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)
ECR is a grocery industry supply chain management
strategy aimed at eliminating inefficiencies, and non-value-
added costs, thus delivering better value to the end customers

ECR attempts to eliminate inefficiencies by introducing strategic
initiatives in four areas:
Efficient store assortment
Efficient product information
Efficient promotion
Efficient product replenishment
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 and
Replenishment (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!