contains a 13-digit code that indicates the manufacturer of the item, a description of the item, information about special packaging, and special promotions. In the future, RFID tags, discussed later in this chapter, may replace UPC tags.●Flow 2 (Store to Buyer): The point-of-sale (POS) terminal records the purchase information and electronically sends it to the buyer at Best Buy’s corporate office. The *sales information is incorporated into an *inventory management system and used to monitor and analyze sales and decide to reorder more HDTVs, change a price, or plan a promotion. Buyers also send information to stores about overall sales for the chain, ways to display the merchandise, upcoming promotions, and so on.●Flow 3 (Buyer to Manufacturer): The purchase information from each Best Buy store is typically aggregated by the retailer as awhole, which creates an order for new merchandise and sends it to Sony. The buyer at Best Buy may also communicate directly with Sony to get information and negotiate prices, shipping dates, promotional events, or other merchandise-related issues.●Flow 4 (Store to Manufacturer): In some situations, the sales transaction data are sent directly from the store to the manufacturer, and the manufacturer decides when to ship more merchandise to the distribution centers and the stores. In other situations, especially when merchandise is reordered frequently, the ordering process is done automatically, bypassing the buyers.By working together, the retailer and manufacturer can better satisfy customer needs.●Flow 5 (Store to Distribution Center): Stores also communicate with the Best Buy distribution center to coordinate deliveries and check inventory status. When the store inventory drops to a specified level, more HDTVs are shipped to the store, and the shipment information is sent to the Best Buy computer system.●Flow 6 (Manufacturer to Distribution Center and Buyer): When the manufacturer ships the HDTVs to the Best Buy distribution center, it sends an advanced shipping notice to the distribution centers. An advanced shipping notice (ASN) is an electronic document that the supplier sends the retailer in advance of a shipment to tell the retailer exactly what to expect in the shipment. The center then makes appointments for trucks to make the delivery at a specific time, date, and loading dock. When the shipment is received at the distribution center, the buyer is notified and authorizes payment to the vendor.
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- Spring '08