e-doc supplier sends retailer in advance of shipment to tell retailer what to expect in shipment EDI: electronic data interchange; computer to computer exchange of bus docs from retailer to vendor & back o Cycle time: time b/w decision to place order & merch arrival; decreases when using EDI VMI: manufacturer responsible for maintaining retailer’s inventory levels in each store Push strategy: merchandise allocated to stores based on sales forecasts; increase demand by motivating sellers to highlight prod/push onto consumers (steady/predictable demand prods: milk/eggs) Pull strategy: amt of merchandise sent to store based on data captured by POS terminals; get consumers to pull prod into supply chain by demanding it Receiving: recording receipt of merchandise as it arrives at distribution center RFID tag: tiny computer chip, auto transmits all info about container’s content/indiv prods to special scanner Ticketing & marking: getting floor ready, creating price & ID labels & place on merchandise Pick ticket: doc/display on screen in forklift indicating how much of each item to get from specific storage areas JIT/quick response sys: less merchandise on more frequent basis, firm gets “just in time” to use/sell Lead time: time b/w recognition order needs to be placed & arrival of needed merch Dispatcher: coordinates deliveries to distribution centers Cross-docking: unload incoming prods straight into outbound trucks w/ little to no storage in-between; prepackaged by vendor for specific store
Information Flow – flow 1: customer to store with upc code info at checkout. Flow 2: store to buyer with POS system which records data and sends it electronically to the buyer at the corporate office. Buyer also sends trend data and things to come or change in the future to the store. Flow 3: Buyer to Manufacturer with reorder amount for all stores & they communicate about prices, promotions, and shipping dates. Flow 4: Store to manufacturer, sometimes info is sent directly to the manufacturer, so it can decide when and how much to ship to stores or distribution centers. The buyer can be cut out completely with electronic info that is sent automatically from retailer to manufacturer. Flow 5: Store to Distr. Center, stores can also communicate with distribution centers about inventory needed to be restocked. Flow 6: Manufacturer to Distribution Center and Buyer: ASN is sent to buyer and distribution center when products are shipped to distr. center. When shipment arrives, buyer is notified and payment is authorized to manufacturer. Chapter 16: Retail & Multichannel Marketing Retailing: set of bus acts that add value to prods/svcs sold to consumers for personal/family use Choose retail partners > identify types of retailers > develop retail strategy > manage multichannel strategy A ssess how likely it is for certain retailers to carry their products , consider where their target customers expect to find the products , overall size and level of sophistication
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- Spring '08