as#2,scm retail,Tousief Ahmed

8/7/2019 as#2,scm retail,Tousief Ahmed

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A Business Success

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` emphasized the need to reduce purchasing costs

and offer the best price to the customer.

` directly procured from manufacturers, by passingall intermediaries.

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` finalize a purchase deal only when it is fully

confident that the products being bought is not

available else where at a lower price.

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` spend a significant amount of time meeting

vendors and understanding their cost structure.

` By making the process transparent, the retailercan be certain that the manufacturers are doing

their best to cut down costs.

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` The computer systems of Wal-Mart wereconnected to those of its suppliers.

` EDI enabled the suppliers to download purchase

orders along with store-to-store salesinformation relating to their products sold.

` On receiving information about the sales of

various products, the suppliers shipped therequired goods to Wal-Marts distributioncenters.

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` An important feature of Retail logistics

infrastructure was its fast and responsive

transportation system.

` The distribution centers were serviced by

company owned trucks.

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` believe that it needed drivers who were committed

and dedicated to customer service.

` Hire only experienced drivers accident-free miles,with no major traffic violation.

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` To make its distribution process more efficient,

also make use of a logistics technique called

cross-docking.

` In this system, the finished goods were directly

picked up from the manufacturing plant, sorted

out and then directly supplied to the customers.

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` The system reduced the handling and storage offinished goods, virtually eliminating the role ofthe distribution centers and stores.

` The manufacturer directly forwarded the goodsto a place called the staging area.

` The goods were packed here according to the

orders received from different stores and thendirectly sent to the respective customers.

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` Retail invested heavily in IT and communicationsystems to effectively track sales andmerchandise inventories in stores across thecountry.

` With the rapid expansion, it was essential tohave a good communication system.

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` Retail was able to reduce unproductiveinventory by allowing stores to manage theirown stocks, reducing pack sizes across manyproduct categories, and timely price markdowns.

` Instead of cutting the inventory across theboard, Retail made full use of its IT capabilitiesto make more inventories available in the caseof items that customers wanted most, while

reducing the overall inventory levels.

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` Employees at the stores had the Magic Wand,

a hand-held computerwhich was linked to in-

store terminals through a radio frequency

network.

` These helped them to keep track of the

inventory in stores, deliveries, and backup

merchandise in stock at the distribution centers.

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` The order management and store replenishment

of goods were entirely executed with the help of

computers through the Point-of-Sales (POS)

system.

` Through this system, it was possible to monitor

and track the sales and merchandise stock

levels on the store shelves.

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` install a voice-based order filling (VOF) systemin all its grocery distribution centers.

` Each person responsible for order picking was

provided with a microphone/speaker headset,connected to the portable (VOF) system thatcould be worn on waist belt.

` They were guided by the voice to item locationsin the distribution centers.

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` The VOF system also verified quantities picked,and could respond to a variety of requests suchas providing product detail (type, price, barcodenumber, etc.)

` By installing the VOF system, Wal-Marteliminated mispicks and product labeling costssince the system did not require paper lists and

labels to be affixed on the goods.

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` Since the floor area of any retail store varied

between 40,000 to 200,000 square feet,

movement of goods within the store was an

important part of logistics operations.

` Retail should make significant investments in IT

to quickly locate and replenish goods at the

stores.

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` ask its suppliers to ship goods in store-readydisplays called pretty darn quick (PDQ) displays.

` Goods were packed in PDQ displays that arrived

at the stores ready to be boarded on the racks.

` Retail employees could directly replace theempty racks at the stores with fully packedracks, instead of refilling each and every item atthe racks.

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` By the mid 1990s, Retail Link had emerged into an

Internet-enabled SCM system whose functions

were not confined to inventory managementalone, but also covered collaborative planning,

forecasting and replenishment (CPFR).

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` In CPFR, retail should work together with its keysuppliers on a real-time basis by using theInternet to jointly determine product-wisedemand forecast.

` CPFR is defined as a business practice forbusiness partners to share forecasts and resultsdata through the Internet, in order to reduce

inventory costs while at the same time,enhancing product availability across the supplychain.

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` Though CPFR was a promising supply chaininitiative aimed at a mutually beneficialcollaboration between Wal-Mart and itssuppliers, its actual implementation required

huge investments in time and money.

` A few suppliers with whom Wal-Mart tried toimplement CPFR complained that a significantamount of time had to be spent on developing

forecasts and analyzing sales data.

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` Because of the implementation of RFID,

employees were no longer required to physically

scan the bar codes of goods entering the stores

and distribution centers, saving labor cost andtime.

` RFID would reduce the instances of stock-outs

at the stores.

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as#2,scm retail,Tousief Ahmed

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