4 11 MAJOR BRANDS WHIRLPOOL MAYTAG KITCHEN AID JENN AIR AMANA ROOPER ESTATEINGLISBAUKNECHTBRASTEMPGLADIATOR GARAGE WORKS
5 LIVE CASE – STUDYWhirlpool had introduced the 'six sense' technology refrigerator ranging from Rs 10,600 to RsAt the same time LG introduced a refrigerator to target the rural population and middle aged women,price ranging from Rs 5000 to RsHence whirlpool had to decrease their cost margins overnight to withhold their customers and to be competitive.It took weeks for whirlpool to adjust their pricing because they did not have a centralized pricing database.By that time LG had captured 10 per cent of the rural and semi-urban markets.
6 PROCESS DURING QUATERLY PRICING CALCULATINGNEW PRICEREVIEWINGPRICEPRINTINGTHE LISTREVIEWINGTHE PRICEAGAINFEEDING INTOMAINFRAMECOMPUTERMAIL OR FAXNEWPRICE LIST
7 FAULTS IN THE EXISTING SYSTEM Cumbersome pricing system.Slow communication.Error prone.Extra paper work.Dissatisfied customers.(ranging from mega retailers to little stores.)
8 IMPLEMENTATION OF AUTOMATED PRICING SYSTEM Application of a powerful ERP package called SAP.Centralized data pool which can be accessed both by the manufacturer and the retailer.Consolidation of the order entry systems and the pricing system.
9 IMPLEMENTING AUTOMATED PRICING SHIP NOTICE AND INVOICE SYSTEMSDATAAGGREGATIONPRICINGRETAILER 1FORMATTINGOMSRETAILER 2WAREHOUSERETAILER 3DATAREVIEWORDERMANAGEMENTPURCHASE ORDERREPORTINGSHIP NOTICE AND INVOICELABELANDRFIDWARE HOUSEBAR CODE AND RFIDITEM SHIPMENT
10 RESULT AFTER IMPLEMENTING SYSTEM Quick updatingStreamline work processCentralized pricing databaseReduce cycle timeIncrease productivityReduce costsA step to global success.In quarterly pricing, every three months the list for prices were printed and sent to the traders where as by implementing SAP, the ERP calculates the demand and material prices and adjusts the prices constantly.
11 DISCUSSION QUESTIONS Q1. Ans. How are companies using I.T to improve services,lower costs and become more competitive?Ans.Building brand equity.Customer loyalty.Unique marketing strategy.Improve inventory management.Enable accurate execution of orders.Enhances supply chain management.Enhances pricing and promotion strategy.
12 DISCUSSION QUESTIONS Q2. Ans. What are the components associated with a successful information system?Ans.SYSTEM ANALYSTPROGRAMMERPEOPLEHARDWAREANDSOFTWAREEQUIPMENTBACKUP,PATCHING SOFTWAREPROCEDURERAW FACTSDATA
13 MR. ESAT SEAZER ( CIO ) WHIRLPOOL CORPORATION “By leveragingSAP Net Weaver,we have overhauled our IT infrastructureto provide more functionality andcapabilities, and, incredibly, we’vedone it with no additional costto the company.” Esat SezerCorporate Vice President & CIOWhirlpool Corporation