Chapter 10 examines systems used to control the flow of information and merchandise. This chapter presents the following content: Supply chain management, strategic importance of supply chain management, illustration of supply chain, information and merchandise flow, flow of merchandise,. | Chapter 10 Information Systems and Supply Chain Management Retailing Strategy Retail Market Strategy Financial Strategy Site Location Information Systems Retail Locations Customer Relationship Management Organizational Structure and HR Management 10- Supply Chain Management Supply chain management is the delivery of economic value to customers through management of the flow of physical goods and associated info from vendors to customers Ryan McVay/Getty Images 10- Strategic Importance of Supply Chain Management Opportunity to Reduce Costs Transportation Costs Inventory Holding Costs Provide Value to Customers by Making the Right Merchandise is in the Right Place at the Right Time Fewer Stockouts Greater Assortment with Less Inventory Improved ROI 10- Return on assets = Net profit margin x Asset turnover Net profit = Net profit x Net sales Total assets Net sales Total assets Improve Return on Investment Efficient Supply Chain Management Higher Asset Turnover Same Sales Using Less Inventory 10- Illustration of Supply Chain 10- Benefits of Efficient Supply Chain Management Fewer stockouts – merchandise will be available when the customer wants them Tailoring assortments – the right merchandise is available at the right store Customers respond to the convenience as evidenced by increased sales Ryan McVay/Getty Images 10- High Return on Investment An efficient supply chain can improve a retailer’s ROI Increases sales – customers are offered more attractive assortments Net profit is improved by increasing gross margin and lowering expenses Inventory levels are lower, lower investment and total assets are lower with asset turnover higher PhotoLink/Getty Images 10- Wal-Mart’s Sustainable Advantage Wal-Mart’s success is its information and supply chain management systems. Why are competitor’s lagging behind? Ryan McVay/Getty Images The software is unavailable elsewhere and is constantly updated and improved Wal-Mart made a substantial . | Chapter 10 Information Systems and Supply Chain Management Retailing Strategy Retail Market Strategy Financial Strategy Site Location Information Systems Retail Locations Customer Relationship Management Organizational Structure and HR Management 10- Supply Chain Management Supply chain management is the delivery of economic value to customers through management of the flow of physical goods and associated info from vendors to customers Ryan McVay/Getty Images 10- Strategic Importance of Supply Chain Management Opportunity to Reduce Costs Transportation Costs Inventory Holding Costs Provide Value to Customers by Making the Right Merchandise is in the Right Place at the Right Time Fewer Stockouts Greater Assortment with Less Inventory Improved ROI 10- Return on assets = Net profit margin x Asset turnover Net profit = Net profit x Net sales Total assets Net sales Total assets Improve Return on Investment Efficient Supply Chain Management Higher Asset Turnover Same .
