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Information System in Supermarket Industry

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connie ng

on 4 December 2013

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Transcript of Information System in Supermarket Industry

SPD 4124 MIS for Marketing & Public Relations Decisions
Information System in Supermarket Industry

Database Management System (DBMS)
Database Management System (DBMS) (cont'd)
Additional View
Crossing the database foreign key to generate a new table
e.g. Tracking the product suppliers of specific products

Point-of-Sales Systems
Make payment to merchant in exchange for goods
Calculate the amount owed by customers and provide different payment options for customers
Main function : statistical the products sales, inventory and customer buying behavior

Point-of-Sales Systems (cont'd)
Common & useful in supermarkets to transmit the data company through network
Should aware the stability to reduce the rick of overly centralized database

MIS in Supermarket Industry
Shop managers can get the management report in the back office daily/weekly/monthly
e.g. sales report, inventory of the stores, expenses

The Influence of IS on Porters’ Competitive Forces
Overview of TPS, MIS & ESS
Use of Hardware & Software in supermarkets
Database Management
Customer Relationship Management (CRM)
Supply Chain Management (SCM)
Use of E-commerce

TPS in Supermarket Industry
POS System in Supermarkets:

The Influence of IS on Porters’ Competitive Forces
1. Influence on Traditional Competitors (cont'd)
Example : Park’N’Shop – Moneyback Programe
Points-based loyalty card
Direct mail, tailored promotions
Purchase -> Redeem
Available in sub-brands
2. Influence on New Entrants
New entrants required
capital investment

Traditional supermarkets have the power on:
Supply chain
Sufficient knowledge on managing daily operation

3. Influence on Customers
Customers have

bargaining power
Increase the transparency of the products’ price
e.g. Price comparison in Consumer Council, price-cream.com, c9web.com
Reduce switching cost

4. Influence on Suppliers
Supermarkets have

bargaining power
Many suppliers sell the products in same categories for supermarkets
Supermarkets have greater bargaining power of the price

NOW suppliers have

bargaining power
Promotion and sale transaction
Internet and social media
Facebook: Fan Page

MIS in Supermarket Industry (cont'd)
The management report can help the shop managers to
Monitor and forecast the sales performance of the store
Monitor the employees’ performance
e.g. attendance, day of sick leave etc.
Manage the flow of the stock
e.g. have special discount for the food nearly expired

ESS in Supermarkets
Used in the senior management
Analyze & predict the performance of the company in the future

Data are extracted from MIS,DSS and external sources

ESS in Supermarkets (cont'd)
e.g. Which kind of product perform the best?
Example of Using IS in Supermarkets - TPS
Example : PARKnSHOP Vegetable Barcode ID Card Tracing System

Example of using IS in supermarkets - MIS
Example : PARKnSHOP Vegetable Barcode ID Card Tracing System

Example of using IS in supermarkets - ESS
Senior Management can evaluate the products quality & sales performance of a farm

Make decision:
Continue/terminate the partnership with the farm
Find more sources to provide the vegetables to fulfill the demand

Object Recognition System
Derive the features of an object to be recognized by using its shape and size
Object Recognition System (cont'd)
Saving time of inputting the barcodes & the management process
Save time and reduce the over packaging of the fruits & vegetables

Que-vision System
Use for checking the temperature of the customers
Uses infrared cameras to determine how many customers are in a store

Logical View
Querying different tables & generate reports
Create the reports based on their needs
e.g. Order report of Kinder Inc. Products

Database Management System (DBMS) (cont'd)
Database Warehouse
Store & copy the data from all the databases in different business functions
be altered but accessed

Database Warehouse (cont'd)
Example : Wm Morrison Supermarkets
Using the Database warehouse of ORACLE
More effective on getting the data from the database
e.g ORACLE Database 12c (Enterprise Edition)

Data Mining Software
Discover the buying pattern of the customers & likelihood on purchasing different products together

Data Mining Software (cont'd)
Recognize the purchase patterns across time
Track down the preference of customers accurately

CRM - Loyalty Programme
1. Membership Card
Example : Aeon Jusco HK - J-Card
Membership Fee $50/person annually
Point-saving System -> Redeem Cash Coupon

CRM - Loyalty Programme (cont'd)
2. Direct Mail – E-mail
Inform J-Card Customers about the Discounts
e.g. Group-buying, Special Food Fair

CRM - Loyalty Program (cont'd)
3. Self Check-Out System
Fast check-out
Minimize long queue
Rduce Labor cost
Reduce Waiting time
Improve Customers shopping experience

SCM of Supermarkets
Including upstream and downstream flow
Coordinate the activities involved in buying, making, and moving a product

SCM – Push-Based Model
Customers’ orders trigger events in supply chain
Decrease cost caused by Bullwhip Effect
Increase competence of supermarkets
Supply Chain Management (SCM)
Example 1 : Woolworths
Woolworths’ legacy Adabas system
Handle multiple distribution centers & pricing
Price Discrimination
Price goods differently at different supermarket
depending on the level of competition in that area
e.g. Price of the cereal
Supply Chain Management (SCM) (cont'd)
Example 2: Walmart
Logistic Management System -
“Cross Docking”
1. Deliver goods to Distribution centers

WITHOUT accumulating in inventory
2. Cross from one loading dock to another WITHIN 24 hours
3. Use Satellite Network to communicate between chains of Walmart
4. Forecast supplier demands to the supplier network by Retail Link
5. Displays real-time sales data from cash registers and to Walmart’s distribution centers

1. Website (cont'd)
1. Website
Click & Collect, ASDA (B2C)
Current trends in the supermarket or grocery industry
Allow customers to shop online & collect it at an ASDA store near them at a time that suits

1. Website (cont'd)
ASDA Business (B2B)
A website specially designed for business corporations

2. Mobile App
ASDA Home Shopping App (iOS & Android mobile Device)
Allow customers to do their shopping at home/work, they can make/amend orders wherever they are with the ASDA app

2. Mobile Apps (cont'd)
2. Mobile Apps (cont'd)
Example : Tesco Mobile App
Smart phone-friendly online shopping system
Enable holidaymakers to place an order before they fly through the “Come home to a full fridge” campaign

2. Mobile Apps (cont'd)
Example : Aisle411
Empowers anyone with a mobile phone to find products within retail stores
Easily find the in-store aisle location of a single item or route user’s entire shopping list on a mobile map of their store

3. Smart Cart
A tablet PC-equipped shopping cart
Synchs with customers’ smart phone app
Revenue Model
1. Advertising
Example: PARKnSHOP.com
Provide a forum for advertisements & receives fee from advertisers
e.g. S8-Kamplex place
their advertisements on PARKnSHOP.com to attract & retain their target customer’s attention (housewives/mothers)

2. Subscription
Example: Tesco Subscription Scheme
For online grocery business
Gives customers unlimited home deliveries for an upfront charge

3. Affiliate (B2B)
Example: Tesco
Direct visitors to other affiliated
e.g. Hong Kong Noise
Receive a referral fee or percentage of the revenue from any resulting sales

Law Wai In, Felicia Louie Ka Yan,Heidi Ng Huen Ting, Connie Tong Kwui Wah, Cherry Wong Lai Shan, Lisa
12600271S 12608055S 12611613S 12613380S 12600198S

Overview of TPS, MIS & ESS
Use of Hardware & Software in Supermarkets

Database Management
Customer Relationship Management (CRM)

Supply Chain Management

Use of E-commerce
Use of E-commerce - Revenue Model
1. Influence on Traditional Competitors
POS System
Manage the sales of retail goods
Connect to ERP system

Better Inventory Management

e.g. Inventory Control
Distribution Management
Marketing Decision Making

Better Competitor Advantages
Increase Purchase Frequency


Scan the Barcode on the products

The computer comes up with:
(1) Product name (2) Product price (3)Discount

Record the payment (by cash, credit card or octopus)
& total price of purchase

Store the record in the operational database

Obtain & record the sales of the vegetables from TPS

Stores Managers can get the reports of the sales of vegetables daily
Can modify order volumes
Can order the vegetables that customers usually buy in a specific period

Example : PARKnSHOP Vegetable Barcode ID Card Tracing System
Physical View
Many different tables in the DBMS
See how the data are structured and organized

Effectiveness of Loyalty Program
Loyalty Programme – Membership Card System
Most effective -> Free
3. Affiliate (B2C)
Example: Ocado Affiliate Programme
Customers can make money by advertise supermarket on their sites & earn commission when people follow the link & place their first shop
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