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Chapter 10
Information Systems and Supply Chain Management
McGrawHill/Irwin Retailing Management, 6/e
Copyright © 2007 by The McGrawHill Companies, Inc. All rights reserved.
10-2
Retailing Strategy
Retail Market Strategy
Financial Strategy Site Location
Information Systems
Retail Locations
Organizational Structure and HR Management
Customer Relationship Management
10-3 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
Strategic Importance of 10-4 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
10-5 Improve Return on Investment
Return on assets = Net profit margin x Asset turnover
Net profit = Net profit x Net sales Total assets Net sales Total assets
Efficient Supply Chain Management Higher Asset Turnover
Same Sales Using Less Inventory
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