More accurate sales forecasts it enables retailers to carry less merchandise in

More accurate sales forecasts it enables retailers to

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More accurate sales forecasts, it enables retailers to carry less merchandise in store, easier to avoid running out of stock or having too much because order as needed, retail store space is expensive and distribution centers are better for prepping merchandise for sale, and cost effective. Distribution center performs: manage inbound transportation, receiving and checking, storing and cross-docking, getting merchandise floor ready, ticketing and marking, preparing for shipping, and shipping merchandise to stores. Planners: employees responsible for financial planning and analysis of merchandise and its allocation to stores
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Dispatcher: person who coordinates deliveries to distribution centerReceiving: recording receipt of merchandise as it arrives; Checking: going through goods upon receipt to make sure they are good condition, accurateoRFID (radio frequency identification tags) tiny computer chips that automatically transmit to a special scanner all info about containers contents or individual products. Passive tracking devices. Used in highway toll systems and security identification badges.Cross docking distribution center: Merchandise cartons are prepackaged by the vendor for specific store. UPC or RFID indicate which store to send to. Floor ready: Merchandise ready to be placed on selling floor; ticketing, marking and some cases putting on hangersTicketing and marking: affixing price and identification labels to merchandisePick ticket: document or display on screen in forklift to indicate how much of each item to get from storage areasJust in Time (JIT) Inventory System/Quick Response Inventory System: deliver less merchandise on a more frequent basis than traditional inventory system. Reduce lead time (amount of time between recognition that an order needs to be placed and arrival of merchandise at seller’s store) oIncreased product availability and lower inventory investment; costly and complicatedCHAPTER 16—Retailing and Omnichannel MarketingRetailing:the set of business activities that add value to products and services sold to consumers for their personal or family use.Omnichannel or multi-channel strategy-selling in more than one channel; 1. choose retailing partners (how likely a retailer is to carry a brand, where customer expects product) 2. Identify types of retailers 3. Developing a retail strategy (implement four P’s) 4. Manage an omnichannel strategy (examinewhen sellers may prefer certain strategy)-Choosing retail partner: look at channel member characteristics (structure and customer expectations-where they expect product)Vertically integrated: degree to which manufacturer has strong brand and desirable and relative power of manufacturer and retailerLarger and more sophisticated channel member, less likely it will use supply chain intermediaries; can gain more control/efficiency/control on ownDistribution intensity- # of channel members to use at each level of marketing channel. (intensive, exclusive, selective)oIntensive
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