Ultimate Objectives for participating in the

Microsoft internship programme

ƥ Become an logistics researcher

ƛ Get into research for

ƛ better Logistics systems
ƛ Better and more feasible energy-
energy-saving-
saving-solution

ƛ Consumer Behavior in Grocery shopping if incentives is given

ƛ Brand switching strategy for Grocery suppliers

ƛ Build a prototype of a marketable wrist-

wrist-watch that show more
than local time

c
 @
 
  
    


Better than the RFID system
Using the e-
e-wallet (HongKong widespread Octopus system ƛ but
I am proposing to take a FURTHER STEP) for
better Collaborative effort in FMCG forecasting
For promotional items in Grocery shopping experience

by


Vgenda :
ƥ 1.0 Introduction
ƥ 2.0 RFID / octopus card (payment card)
ƥ 4.0 Wal mart ƛ RFID inititative
ƥ 5.0 my proposed system ƛ O2W
ƥ 6.0 5 forces
ƥ 7.0 Comparison
ƥ 8.0 reduction on truck Gas Cost / PULL
>> Push grocery market strategy
O2W == we will call the new sys in this powerpoint
In essence, it is an e-
e-voucher supermarket system
to facilitate Vccurate Quantity Deliveries to every]POS
RFID is a Journey
Implementation - tuning of equipment / automation

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è

 



 ]  M 

Suppliers are reluctant to implement it as it incurs extra cost to them M
 RFID progress so far Ʀ. ..
ƥ Installed in
ƛ 104 Wal-
Wal-Mart Stores
ƛ 36 SVMƞs Clubs
ƛ 3 Distribution Centers
ƥ Installed already
ƛ Over 14,000 pieces of
hardware
ƛ 230 miles of cable
(data, cable & coax)

RFID Potential Benefits for Suppliers
that has not yet been realised
ƥ Total end to end supply
chain visibility
ƥ Improved in stock
ƥ Smart recalls
ƥ Improved cold chain
compliance
ƥ Product protection
(anti--counterfeiting)
(anti
ƥ Internal efficiencies   R


§
Realisable benefit on FMCG
Vndrew

Basic information about Octopus card in HONG KONG ƛ can be found in

http://tiny.cc/octopus8

Õ
Octopus easy payment system

ƥ Cashless payment system ƛ Octopus card

ƛ Cards/wristbands with RFID chips store
ƛ HK people can recharge the card or
wristband after the stored value has been
depleted.
ƛ i.e. it is a contactless money deduct card
for payment in transportation / supermarket

Ú
 Porterƞs 5 force analysis on the
benefits of my Proposed IT system
SUPPLIERS
ë    
- Brand Switching from  
customers -       
   
- Less money given to the
supermarket for shelves space
promotion

CUSTOMERS -         

      
- Good Bargain when they use  
the e-
e-voucher
- Interactive shopping
experience that they find out the
info of a product (expectation)
å
 Implementation of O2W system is more Feasible and Viable
with the Technology Vvailable Today

in this powerpoint, I am going to name it

O2W i.e. using octopus card to tell my own LOCVL branch of
supermarket
what I will BUY in my next shopping trip [ 2 weeks later]

by picking the Future Sales Items in the IN-

IN-STORE Touch
Screen Computer that show e- e-voucher that I could purchase

£ !"   # $$$

%
      &

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How the voucher sys. work?
1. Vn e-
e-voucher ticket-
ticket-machine (e-
(e-coupon) will be found
near the supermarket cashier
2. Grocery Customer must pay a Physical-
Physical-Visit to
the e-
e-voucher ticket issuing machine
3. Customer Octopus Card will get voucher price deducted
(say $2 in HongKong or US$1 in USV), However, they
could get a e.g. $10 discount at the end, say pack of milk
or bottle of wine [bigger discount than normal Sale price]
4. Data regarding the voucher could even be stored in
individual storeƞs computer only, this will relieve the
workload on existing octopus computer system ƛ short
implementation / low investment for this project
5. Period before exercising the voucher, the customer will
spend time to study the products that he/she never
bought before.
6. With the same token, the suppliers get their promotion
money well spent because
ƛ Unlike traditional system, this does not lead to over
over--production when product is
launched / promoted
ƛ Brand Recognition (rather then impulse-
impulse-buy) as there is a latent period cc
c
Hurdles in RFID vs Benefit of Octopus
Ôë
'
Tuning of equipment ƛ metal rack
and liquid can make RFID
Range 10 meter, but it does always
affected by a lot of environmental
factors
suppliers putting extra resources
on RFID research while
!"  
eliminate the PUSH process (i.e. make the
product occupies significant shelve space
Using non-
non-contact smart card but the
consumer have to put their Oct2pus
WOOD card within few centimeters of the
REVDER (in the supermarket)
The Consumer , the supermarket and
especially the Suppliers would
welcome it -- using existing UPC (bar
code) and octopus card
c]
ë " @() Ô 
ë
*   +
ƥ Supermarket store will know the customer
demand of each promotion item  ,
,
 
ƥ Ô   of a new
promotional item
ƥ  of bull-
bull-whip effect 

 (def :
fluctuation in seasonal demand)
ƥ NEGOTIVTE V LOWER FIXED PRICE with the
supplier (not a price according to scale ,
volume) cM