Session 11: FF and WGD Case Study Questions The simple system diagram below may be used to answer the following questions. Apply your own common sense and knowledge of retail processes. Be specific about the items of information, where they are captured, stored and used. How the information flows or is moved within FastFit may be shown by the student adding labeled arrows to the diagram below. See B C A E 1. In the drawing above mark the main flows of goods and money, and employ a key or table of descriptive elements to explain your answer. Key A B C D E D Explanation There is a flow of both money and goods between store and customer. Customer buys good and gives money to store. The store holds the money obtained in A and then sends it to HQ either daily or weekly for storage HQ contacts the supplier when warehouse is low on inventory, places and order and pays the supplier, sometimes receives goods when items ordered are office supplies The supplier sends goods (inventory) to either the warehouse if the goods final destination is the store, or HQ if office materials are needed The store contacts the warehouse when inventory levels are low and gets items send from centralized warehouse 2. a) List the specific items of information that are usually gathered at the POS (Point-of-Sale terminal or cash register) and recorded when a customer checks. b) What are three important uses of this information at the store by the store manager and by headquarters management - a total of six uses? a. information gathered at the POS: i. .Customer Name ii. Customer payment information (cash, debit, credit) iii. Item purchased prepared by rmk 050514 Page 1 Session 11: FF and WGD Case Study Questions iv. Number of items purchased v. Total revenue from transaction vi. If credit or debit is used then customer authentic signature vii. Taxes paid viii. Name of product(s) sold ix. If they code items with a barcode then product code b. complete the table: Role Store Manager Head Quarters (Executive Management) Information Uses Inventory Levels, what's available and what's running low Trends in sales, if an item is hot or cold Identify peak sales hours, make sure staffing levels are correct Use historical POS data to understand seasonal demand for various goods Use customer purchase data for marketing Decide what products to expand or discontinue. 3. a) Draw a system diagram that shows the key information and product flows between FastFit (HQ and Warehouse) and the supplier Winter Gear distributors, including the steps for ordering and invoicing and label each flow descriptively. This diagram will have three circles. b) Document the order of the steps in these exchanges, the documents/information required and their contributions (purposes) to the process. a. draw the process: 3,6 FastFit 1,2 HQ 5,7 WGD FastFit Warehouse 4 b. document the process: Key 1 2 3 4 Document/Information Low inventory levels are reported to HQ HQ looks at inventory management system and sees what items need to be ordered HQ orders products needed from WGD, creates internal purchase order (PO#) Bill of lading comes with items to prepared by rmk 050514 Page 2 Purpose HQ can place an order for new inventory with WGD Now they have an idea what needs to be in the order to be placed with WGD There is now a formal order placed with WGD to be filled and sent to warehouse This allows warehouse to double Session 11: FF and WGD Case Study Questions warehouse 5 check with the purchase order to make sure correct goods/amounts were received HQ now can WGD sends the invoice for good sent in 4 to HQ 6 7 4. What happens at WDG when Fastfit calls and places an order? Where are there likely to be problems or errors caused by this process? Be detailed in your response. Process Step Problems/Error Potential add more rows as needed.... 5. What changes to the information management processes and information technology systems (IT) would you make at WinterGear to address these problems? Create a before and after view of WGD's core business process to reflect the impact of your IM/IT investment. Changes in IM/IT Impacts on WGD's Core Processes add more rows as needed..... The Fulfillment Process Before: WGD Sales FastFit HQ WGD Accting WGD prepared by rmk 050514 Page 3 Ops Session 11: FF and WGD Case Study Questions The Fulfillment Process After: WGD Sales FastFit HQ WGD Accting WGD Ops prepared by rmk 050514 Page 4