MKTG 343 : Test 3 - Chapter 10 Information Systems and Supply Chain Management

….. A set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers, manufacturers, warehouses, stores, and transportation intermediaries into a seamless value chain.

■Reduced stockouts –
■Tailoring assortments –

Merchandise will be available when the customer wants them

The right merchandise is available at the right store

These benefits ( Reduced stockout, Tailoring assortments ) translate into

NTimely information from store mangers with handheld devices to the corporate office nShorter cycle time from design to production to delivery to stores nShorter lead time – own production, small quantity production in close proximity, efficient logistics, premium transportation, frequent delivery nNo discounts necessary

Return on assets =

^{Efficient Supply Chain Management leads to >}

^{■Increased Sales from}

^{■Improved Net Profit Margins from}

^{■Lowered inventory from}

Higher Return on Investment:Same Sales Using

When a customer makes a
purchase (the toaster oven), sales associate scans UPC code on merchandise and customer credit card/loyalty card (1)

Sales transaction data are also sent to the

When the store inventory drops to a specified level,
more toaster ovens are shipped to the store, and the shipment
information sent to the corporate computer system so that the