Session Homework student version

Session 7: FF and WGD Case Study Questions

The simple system diagram belowmay be used to answer the following questions. Apply your owncommon sense and knowledge of retail processes. Be specific aboutthe items of information, where they are captured, stored and used. How the information flows or is moved within FastFitmay be shown by the student adding labeled arrows tothe diagram below. See

  1. In the drawing above mark the main flows of goods and and employ a key or table of descriptive elements to explain your answer.

Key

Explanation

Supplier to HQ

Suppliers supply goods to the organization’s headquarters

HQ to warehouse

Headquarters stocks goods in their warehouses

Warehouse to store

Goods are stored in stores near customers

Store to customers

Customers get goods from the stores

add more rows as needed….

  1. 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?

    1. information gathered at the POS:

      1. personal demographics

      2. family demographics

      3. vacation plans

      4. Customers’ sports interests.

      5. add more lines as needed….

    2. complete the table:

Role

Information Uses

Store Manager

Maintaining mutual relationships with company’s suppliers

Exchanging industry and market intelligence with suppliers in the course of the regular business transactions.

Head Quarters (Executive Management)

Sales Department&nbspdeals with business’s customers directly

Operations Department&nbspis always committed to deliver orders on dates. They also fill and ship the customer orders. They also manage the inventory as well as ordering products

Accounting Department&nbspis committed to reviewing and&nbspapproving all orders submitted by the Sales, issue of invoices. They also make sure that customers pay for shipped goods according to available terms and conditions

  1. 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.

    1. draw the process:

3

2

1

    1. document the process:

Key

Document/Information

Purpose

1

Orders

Ordering for supply in accordance to customers’ requests.

2

Delivery notes and Invoices

Delivery notes for delivered goods

Requesting for payments on goods supplied

3

Stock

Storing goods waiting for collection by customers

  1. 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

Taking orders either manually of over phone

Misunderstanding especially when orders are being made over phone

Confirming with customers on every order and its date of delivery

There is a possibility of misplacing some orders

Receiving payments

Transferring funds to a wrong account and confusion on the right amount of goods especially whenever goods’ prices go up

Delivery of orders

Delivering unordered goods or goods that do not meet the right qualities

add more rows as needed….

  1. 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

Creation of website where all customers will be making their orders

No confusion since the orders will be in databases hence cannot be easily misplaced

A computerized system that will be updating customers on any changes made

All customers will stay updated hence minimize inconsistences a great margin

System that will be enabling customers to confirm their orders before delivery

Will enable customers acquire the right documents and hence help the suppliers not to incur losses as a result of return of goods.

add more rows as needed…..

WGD

Sales

The Fulfillment Process Before:

FastFit HQ

WGD

Accting

WGD

Ops

WGD

Sales

The FulfillmentProcess After:

WGD

Ops

WGD

Accting

FastFit HQ

prepared by rmk 050514 Page 5