Retail Business

NRF Business Process Models

Retail Introduction
Retail is the process of selling consumer goods and/or services to
customers through multiple channels of distribution to earn a profit.
Demand is created through diverse target markets and promotional tactics,
satisfying consumers' wants and needs through a lean supply chain.
Types of Products
Food products typically require cold storage facilities.
Hard goods or durable goods ("hardline retailers") automobiles, appliances,
electronics, furniture, sporting goods, lumber, etc., and parts for them. Goods that do
not quickly wear out and provide utility over time.
Soft goods or consumables clothing, other fabrics, footwear, cosmetics, medicines
and stationery. Goods that are consumed after one use or have a limited period
(typically under three years) in which you may use them.
Arts Contemporary art galleries, Bookstores, Handicrafts, Musical instruments, Gift
shops, and supplies for them.

Retail Introduction
Types of Marketing Strategy
Department store
Discount store
Warehouse store
Variety store
Specialty store
Hypermarket
Supermarket

Business Process Models

Business Process Models (BPM) are about how a retailer chooses to do
business, and the models are a tool that can help you identify strengths
and weaknesses in how you manage your business and your strategy.
Business processes commonly used to operate in retail.
Serve Customers
Operate Channels & Shopping Experience
Market Goods/Services
Manage Merchandising
Manage Supply Chain
Source Goods/Services
Support Enterprise

Serve Customers
Manage Sales
Manage Orders
Provide
Customer Care

Serve Customers
Manage Sale
POS (Point of Sales)
Mobile (Order on Web, Pickup via courier)
Buy on web (Order on Web) , Pick up on store
Service
(Customer Progress Reporting)

Manage Orders
Store Fulfillment (Fulfilling a customer order placed in another channel)
Manage Self service Orders (In-store Pickup)
Manage Gift / Wish list Orders
Full Service Orders (Walk-in Customers)
Analyze Orders (Customer Order Progress)
Payment Status Track

Serve Customers
Customer Care
Manage Return and Exchanges
Returns & Exchanges for Listed Products
Returns & Exchanges for Unknown Products

Customer Satisfaction Survey (Subcontractor / Sales Associate)

Comment card
Digital Survey

Propose Individualized Offers (Digital Channels / Sales Associate)

Promotions or personalized product recommendations

Warranty/Service Agreement/Extended Warranty

Installation Services
Complimentary Items
Loyalty Promotion

Serve Customers
Provide Customer Care
Manage Service Issues
Inside the transaction
Issues during order / sale

Manage Customer Concerns

Outside the transaction
Digital / Verbal

Process Warranty / Non- Warranty Service

in-store
Call center
Website
Claim form (Warranty)
Service Request form (Non-Warranty)

Operate Channels & Shopping

Experience
Manage Merchandising
Plans
Manage Channel Selling
Environment
Manage Channel
Personnel
Manage Channel
Banking and Cash
Office

Operate Channels & Shopping

Experience
Activities of stock and present items for sales.
Execute Merchandising Plan
Common to all channels
Execute product pricing (From head office to all stores)
Execute Product Presentation (Multi media marketing)
Execute Product Allocation (Assortment and Inventory Plan)

Physical Store
Execute planogram
Execute Vendor Planogram
Execute Signage (Shelf Tags, Price, Promotional labels etc.,)
Manufacture Goods For Sale

Operate Channels & Shopping

Experience
Maintain Channel Infrastructure
Manage and Monitor systems (IT)
POS
Monitor Store Systems
Channel Base Support
Manage Selling Environment Loss Prevention

Manage Channel Personnel

Recruit, Hire, and Manage Succession
Time and Attendance
Train Staf
Terminate Staf
Manage Channel compensation
Manage Employee Relations

Operate Channels & Shopping

Experience
Manage Channel banking and Cash office
Manage store banking
Manage Petty cash (Paid Out Receipts; Paid In Receipts)
Exchange cash denominations
Manage Banking (Store settle report, Till settle report)

Manage Store Safe

Settle safe
Manage Floor Safe
Manage Till Pickup and Safe Drops

Manage Tills
Manage Till Settle
Manage Till Repository

Market Goods & Services

Track & Analyze
Message &
Communicate
Develop
Customer
Loyalty

Market Goods & Services

Track and Analyze
Profile Customers / Shoppers
Segment Customers (Customer purchase history, surveys, focus groups)
Analyze Customer Portfolio

Asses customer satisfaction

Study Market/Competitors
Analyze Marketing Efectiveness (Marketing Campaigns)
Manage customer master data

Market Goods & Services

Message and Communicate
Develop Retailer Brand Strategy
Develop Marketing Strategy
Define Programs and Campaigns
Define Customer Communications Parameters
Execute Campaigns
Plan Advertising
Execute Advertising Plan

Market Goods & Services

Develop Customer Loyalty
Marketing
Develop Customer Loyalty Strategy

Operations
Manage Gift Registry
Manage Gift Cards / Certificates / Vouchers
Award Loyalty
Evaluate Customer Loyalty Program Performance

Customers
Register for Loyalty account
Register for Loyalty program
Redeem Loyalty

Merchandising

Merchandising
Plan Goods and Services (Plan Merchandising)
Marketing
Develop Merchandise Strategic Plan
Create Channel Plan
Manage In-Season Channel Plan

Merchandising
Create Assortment Plan
Create Key Item Plan
Determine End-of-Life Disposition

Finance
Create Demand Forecasts (Use analytics to better sense, shape, and respond to demand).
Create Pre-Season Merchandise Financial Plan
Manage Merchandise Financial Plan In-Season

Merchandising
Manage Pricing
Merchandising & Finance
Manage Regular Pricing
Manage Promotional Pricing
Manage Markdowns / Markups

Plan Presentation of Merchandise & Services

Create Macro Space Plan
Create Planogram / Floor Set
Create Online and Print Presentation
Assess Visual Merchandising

Supply Chain

Supply Chain
Manage Inventory
Head office
Develop Inventory Stock point & Distribution Strategy
Analyze Inventory Movement & Control
Manage Allocations
Manage Inventory Adjustments
Manage Returns
Manage Vendor Recalls
Manage DC Transfers
Manage Out of Season Goods
Manage Replenishment

Supply Chain
Manage Inventory
Physical Store
Manage In-Store Receiving
Receive Goods from Suppliers
Receive Goods from another branch or warehouse
Receive Vendor Managed Inventory

Execute In-Store Stock Count

Execute Product Counts

Execute Store-to-Store Inventory Transfers

Manage Non-Sellable Items
Manufacture Goods For Sale
Execute Stocking
Product Protection Loss Prevention
Manage Inventory Replenishment

Supply Chain
Manage Transportation
Plan Distribution & Transportation Network
Plan Warehouse Labor
Manage Imports & Exports
Manage Route Planning and Scheduling
Manage Inbound Transportation
Manage Reverse Logistics (Customer to Supplier / Distributor)
Manage Fleet
Manage 3PL Services

Supply Chain
Manage Warehousing
DC / Store Room
Design Warehouse Process
Plan Distribution Nodes
Manage Warehouse Operations
Manage Picking & Packing
Manage Put-away
Manage Labor Scheduling
Manage Receiving
Execute Product Counts
Manage Inventory Replenishment
Manage Inbound Processing
Execute Cycle Counts
Manage Shipping
Manage Material Handling Controls & Analysis
Manage Quality Assurance
Execute Returns to Vendors
Cross Docking
Order Fulfillment

Source Goods/Services

Source Goods/Services
Develop Goods and Services
Create/Update Item and Service Master Data
Design Product Concepts
Develop Design Specs
Develop Sourcing Strategy
Manage Product and Service Sourcing

Purchase Goods and Services

Create/Update Item and Service Master Data
Determine, Manage Open to Buy
Create Purchase Orders
Negotiate Pricing, Delivery
Manage Production

Source Goods/Services
Manage Vendors and Deals
Merchandising and Finance
Qualify Vendors
Manage Vendors
Create and Manage Collaborative Plans
Manage Trade Funds

Support Enterprise

Support Enterprise
Manage Finances
Controlling
Plan/Budget Finances
Manage Operating Expenses
Manage Working Capital
Output Corporate Financing Strategy
Forecast Revenue

Finance
General Ledger
Account Receivable
Account Payable
Travel and Expense
Manage Treasury
Manage Credit and Collections
Manage Taxes

Support Enterprise
Support and Manage Workforce
Manage Schedule and Time & Attendance
Recruit, Hire and Manage Succession
Onboard, Train and Measure Staf Performance
Terminate Staf
Human Resources
Plan Strategic Human Resource Needs
Determine Required Competencies
Identify Business Reorganization Needs
Plan Compensation
Develop Training Strategies/Programs

Support Enterprise
Manage Real Estate
Plan Real Estate Management
Execute Real Estate Acquisition & Disposition
Manage Real Estate Information
Oversee Construction
Maintain Sites
Manage Contracts and Insurance

Support Enterprise
Protect and Manage Assets
Provide Security (Location, People & Assets)
Procure and Manage Fixed Assets
Dispose of Assets

Deploy and Manage Technology

Assess Technology-Related Demand
Align IT Strategy
Architect IT Landscape and Services
Manage Portfolios and Projects
Develop and Deliver Solutions
Operate and Maintain IT Systems

Support Enterprise
Protect and Manage Corporate Services
Manage Environmental and Social Responsibilities
Audit Organization
Comply with Laws and Regulations
Provide Legal Protection
Insure Corporation
Manage Facilities

Support Enterprise
Coordinate Plans and Operations
Analyze Current Business and Trends
Identify Business Capacity Gaps
Set Enterprise Strategic Goals
Plan Business Architecture
Define Capital Project Requirements & Plan
Engineer Business Processes
Measure Corporate Performance
Govern Processes
Govern Data Management

Inventory Data Flow