INFORMATION SYSTEM FOR BUSINESS :MIS FOR FOODWORLD

Food World is a division of Spencer’s which was a venture of RPG Company launched with a strategic intent of entering the mass market in the organised food retailing industry.

Value proposition of Food World include: value for price and quality, large choice, better shopping environment.

Critical Success Factors for the Operations: Improving the distribution strategy and inventory management Better Merchandising Function Provide an enjoyable shopping experience Pricing and Promotions in terms discounts and vouchers

Improving the Distribution Strategy :

Distribution strategy is instrumental in deciding logistics of supply to the stores to ensure more efficiency and lesser non availability of products.

i) Using the stock out and replenishment frequency measures for every SKU , an optimum indent pattern can be established. This can be dynamic in order to include seasonal and trend variations or customer preferences.

ii) Minimize the difference between picked quantity and indented quantity in order to main the MBU levels per SKU at every store

iii) Using the POS data to auto enable the inventory replenishment by intimating the warehouse.

Better Merchandising Function :

Merchandising function encompasses the following :a) Specific products/brands to offerb) Suppliers and whom to source product from

POS Data :Store numberProduct CodeQuantity MBU

Regional hub warehouse

Indented quantity> 0

Supply to the store and update picked quantity.

INFORMATION SYSTEM FOR BUSINESS :MIS FOR FOODWORLD

i) Revenue and margin per SKU can be used to determine the 3000 SKUs to be kept in each store .

ii) Customers purchasing basket and planogram along with floor layout can be used to determine the displaying of SKUs in each bay

iii) Use the local prices by store locality and assign suppliers locally for stores within a region rather than common regional hubs and suppliers for perishables to include lower prices, higher quality, freshness and more variety

Pricing and Promotions :

Food World aims at providing value to price and quality to every customer purchase and also baseits popularity on its customer traffic which would be dependent on the pricing and promotions in every store.

i) Use the customer purchasing basket measure to decide the SKUs for pricing below MRPinstead of top 15 SKUs only

ii) Clustering and promotions based on customer purchasing basket and customer bill valueiii) Using the bill value per customer at different times of the dayand consumer week of purchase,

include extra promotional offers/discounts to increase sales and customer traffic at low customer visit times.

iv) Based on purchasing budget per customer percentage for FoodWorld , provide discounts or more royalty card points for purchases above R.2500

Provide an enjoyable shopping experience to customer :

Food World wants to be set apart from other similar retail stores by providing an enjoyable customer environment. This is not very tangible by means of quantitative measures and metrics but more in terms of customer feedback and satisfaction surveys.

i) Reduce waiting lines at billing counters : Increase the number of billing counters or facilitate quicker billing from 12PM to 9PM on weekends since the mean bill value as bill count is very high compared to weekdays and other times of the day. Current billing time rating is very low.

ii) Provide more number of staff assigned to bays in rush hours based on the bill count to facilitate quicker hopping for the high number of customers.

iii) Include a royalty card scheme for frequent customers as well customers with high bill value. This will increase the number of customers visiting for the adhoc purchases as well.

iv) Tie up with small food joint chains like Coffee Day Express, Ice cream etc to allow customers the choice of quick snacks when waiting in queues or during shopping