Presentation on theme: "IMPLEMENTATION OF AUTOMATED PRICING SYSYTEM. Inception : 1911 Headquarters : Benton Harbour, Michigan, USA CEO : Jeff.M.Fettig Employees : 73000 Net income."— Presentation transcript:
IMPLEMENTATION OF AUTOMATED PRICING SYSYTEM
Inception : 1911 Headquarters : Benton Harbour, Michigan, USA CEO : Jeff.M.Fettig Employees : Net income : $433 million (USD) Revenue :$ billion (USD) –2006 Products : Refrigerators, air conditioners, microwave ovens, washing machines, hand blenders,freezers,mixers etc. INTRODUCTION
MEXICOC MICHIGAN INDIA CHINA SINGAPORE UNITED STATES OF AMERICA BRAZIL SWEDEN DENMARK POLAND ITALY FRANCEAUSTRIA HONKONG GERMANY MANUFACTURING HUBS
WHIRLPOOL MAYTAG KITCHEN AID JENN AIR AMANA ROOPER ESTATE INGLIS BAUKNECHT BRASTEMP GLADIATOR GARAGE WORKS 11 MAJOR BRANDS
LIVE CASE – STUDY Whirlpool had introduced the 'six sense' technology refrigerator ranging from Rs 10,600 to Rs At the same time LG introduced a refrigerator to target the rural population and middle aged women,price ranging from Rs 5000 to Rs Hence 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.
PROCESS DURING QUATERLY PRICING CALCULATING NEW PRICE REVIEWING PRICE PRINTING THE LIST REVIEWING THE PRICE AGAIN FEEDING INTO MAINFRAME COMPUTER MAIL OR FAX NEW PRICE LIST
Cumbersome pricing system. Slow communication. Error prone. Extra paper work. Dissatisfied customers. (ranging from mega retailers to little stores.) FAULTS IN THE EXISTING SYSTEM
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.
IMPLEMENTING AUTOMATED PRICING SYSTEMS RETAILER 1 RETAILER 2 RETAILER 3 PRICING OMS WARE HOUSE PURCHASE ORDER DATA AGGREGATION FORMATTING DATA REVIEW REPORTING ORDER MANAGEMENT SHIP NOTICE AND INVOICE WARE HOUSE BAR CODE AND RFIDITEM SHIPMENT LABEL AND RFID
Quick updating Streamline work process Centralized pricing database Reduce cycle time Increase productivity Reduce costs A 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. RESULT AFTER IMPLEMENTING SYSTEM
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. How are companies using I.T to improve services,lower costs and become more competitive? Q1. Ans. DISCUSSION QUESTIONS
HARDWARE AND SOFTWARE BACKUP, PATCHING SOFTWARE RAW FACTS SYSTEM ANALYST PROGRAMMER PEOPLE EQUIPMENT PROCEDURE DATA What are the components associated with a successful information system? Q2. Ans. DISCUSSION QUESTIONS
By leveraging SAP Net Weaver, we have overhauled our IT infrastructure to provide more functionality and capabilities, and, incredibly, weve done it with no additional cost to the company. Esat Sezer Corporate Vice President & CIO Whirlpool Corporation MR. ESAT SEAZER ( CIO ) WHIRLPOOL CORPORATION
WHAT DID WE LEARN?
BIBLIOGRAPHY I.T for Managers: Ralph Stair and George Reynolds
THANK YOU FATEMEH. HANIKA. MEGHALA. NEHA. PRIYADARSHINI. BY