A Presentation on

Retail Management Information Systems

Presented To: Dr. Alka Sharma
Presented By : Raghav Gandotra (27-MBA-10) Robin Ganjoo(31-MBA-10)

Manufacturer

Supplier

Customer Service

Warehouse

Customer
Transport

Store

How Information Flows in a Retail Distribution Channel

Information and the Supplier

Information and the Retailer

Information and the Consumer

Suppliers Need To Know

From the Retailer Estimates of category sales Inventory turnover rates Feedback on competitors Level of customer returns

From the Customer Attitudes toward styles and models Extent of brand loyalty Willingness to pay a premium for superior quality

Retailers Need To Know

From the Supplier Advance notice of new models and model changes Type of materials Sales forecasts Justifications for price changes

From the Customer Why people shop there What they like and dislike Where else people shop

Consumers Need To Know

From the Supplier Assembly and operating instructions Extent of warranty coverage Where to send a complaint

From the Retailer Where specific merchandise is stocked in the store Methods of payment acceptable Other policies

RETAIL MANAGEMENT INFORMATION SYSTEM

Retail Management Information System anticipates the information needs of retail managers. It collects, organizes and stores relevant data on a continuous basis; and directs the flow of information to the proper decision makers. Environment Retailers philosophy And objectives Strategic plans

a) Data collection, Analysis and Interpretation

Information control center

b) data storage and retrieval c) updating of files

Retail Operations

ADVANTAGES OF A GOOD RIS

1. Information collection is organised and is broad in scope
2. Data are regularly gathered and stored, thus opportunities can be foreseen and crisis avoided 3. Elements of strategy can be coordinated

4. New strategies can be devised more quickly

5. Quantitative results are obtainable and cost benefit analysis can be done

Database Management
A major element in an RIS System gathers, integrates, applies, and stores information in related subject areas Used for Frequent shopper programs Customer analysis Promotion evaluation Inventory planning Trading area analysis

Five Steps to Approach Database Management

Plan the particular database and its components and determine information needs Acquire the necessary information Retain the information in a usable and accessible format Update the database regularly to reflect changing demographics, recent purchases, etc. Analyze the database to determine strengths and weaknesses

2 Aspects of Database Management

1.

Data warehousing
A mechanism for storing and distributing information

2.

Data Mining and micromarketing

Are ways in which information can be utilized

Retail Database Management in Action

1

Data Warehousing

Collection of data that supports management decision making It is a central storage of all or significant parts of the data that a firms business systems collect Emphasizes the capture of data from diverse sources for useful analysis and access

Components of a Data Warehouse

1. 2.

3. 4.

Physical storage location for data the warehouse Software to copy original databases and transfer them to warehouse Interactive software to allow processing of inquiries A directory for the categories of information kept in the warehouse

Data Warehousing

Data Mining and Micromarketing

Data mining is the in-depth analysis of information to gain specific insights about customers, product categories, vendors, and so forth Micromarketing is an application of data mining, whereby retailers use differentiated marketing and develop focused retail strategy mixes for specific customer segments

Gathering through UPC and EDI

Universal Product Code (UPC)

o Products are marked with a series of thick and thin vertical lines o Retailers can record data instantly o Improves:
merchandizing data gathering inventory management faster transactions reduce errors

Gathering through UPC and EDI cont..

Electronic Data Interchange (EDI)

o Exchange of electronic information o Improves:
Enhance decision making capabilities Inventory Control Responsiveness in Demand

o Became even cheaper when the Internet was used as a means for EDI

EAN
European Article Number EAN India, is a non-profit organization affiliated to EAN International, is under the Ministry of Commerce, GOI. It is formed with the objective of assigning Indian trade in adopting EAN international system for identification and communication of information on products and services.

Organizations that perform one of the following functions: Produce products that are ultimately sold at retail outlets, Distribute or store goods on a large scale, Exporter, Repackaging goods for further selling.

FACTORS AFFECTING THE USE OF RIS

1.SCALE AND SCOPE OF OPERATIONS 2.FINANCIAL RESOURCES AVAILABLE TO THE ORGANISATIONS 3.NATURE OF THE BUSINESS 4.HUMAN EXPERTISE 5.TECHNOLOGY UPGRADATION 6.SERVICE ISSUES

Manufacturer

Supplier

Customer Service

Warehouse

Customer
Transport

Store

STORE

STORE

LOGISTICS

LOGISTICS

WAREHOUSE

SUPPLIER MANUFACTURER

WAREHOUSE

SUPPLY CHAIN may be defined as the series of companies that eventually make products and services available to consumers, including all of the functions enabling the production, delivery, and recycling of materials, components, end products and services

Supply Chain Management may be defined as the systematic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across business within supply chain for the purpose of improving the long term performance of the individual companies and the supply chain as a whole.

Purchasing Department Demand Forecasting Performance Evaluation Inventory Management Implementation of JIT ERP Systems

Electronic Data Interchange Material User initiates the purchase Connected suppliers get the order to bid upon Buyer can get in contact to number of suppliers This leads to better track ability

 Goal is to minimize the error in forecasting All the factors effecting demand are taken care Some of the software vendors are : 1. Business Forecast Sys. (Forecast System Pro) 2. Smart Software Inc.

 It is the use of statistical evidence to determine progress toward specific defined organizational objectives.
Data from Supply Chain Operations Reference

 Inventory is the raw materials, work-in-process goods and completely finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.
IS allows suppliers and buyers to share information

 Store management involves:

selling profitably satisfying customers motivating the store associate

Customers in store experience acts as the differentiator.

A lost customer can cost $ 200,000 (Walmart)

CRM
Definition: It is a process or methodology used to learn more about customers' needs and behaviours in order to develop stronger relationships with them.

Transaction Relationships Important Questions:

Who are the most valued customers (MVC)? What do they need? What motivates them to purchase? Beyond transactions, how can one interact with MVCs in a relevant and profitable manner? How can one customize aspects of the business to meet customers needs and drive impact?

Role of Technology

ERP
ERP systems refer to the software packages that integrate all the data and the related processes of an organization into a unified Information System. An ERP system uses a central database that holds all the data relating to the various system modules in order to achieve a seamless integration.

Components of Retail ERP

Supply Chain Planning Merchandise Management
Maintenance and Management of retail outlet Keeping track of price items Inventory management Key reporting functions

Retail Planning Store Management

CRM Corporate Administration

Compliance Report Accounts Receivables Accounts Payable General Ledger Asset Management Human Resource Management

Store Inventory Management Sales Audit Returns Management Perishables Management Labour Management

Erp packages used by Indian retailers

Shopper s Stop

Westside Pantaloons Reebok

Nike

Levis

Adidas

ERP Started in software

JDA

SAP

SAP

Logic Apparel

Logic Apparel

Logic Shopper Apparel Retail

1991

1998

1987

1895

1972

1853

1924

Information System of Big Bazaar

The Future is here..!!

Fujitsu inventions for Retail Self-checkout systems, new multimedia displays, electronic shelf labeling and fraud detection systems U-scan : Worlds most widely used self-checking systems Loss prevention software Corema : Helping retailers to create, deliver and track loyalty programs and targeted offers and promotions

The Future is here..!!

globalSTORE : a full featured software solution for grocery, liquor, fuel and general merchandise channels Retail Directions software : end-to-end POS and retail merchandising management platform for specialty retailers TeamPoS 2000 : an application software providing the most reliable and cost-effective point of sale solution available today. Zebra Technologies : Palm size mobile receipt printers An un-attended delivery service

THANK YOU