The Missing Link in Retail Operations
نویسندگان
چکیده
R etailers have invested, and continue to invest, suhstantial amounts of money in information technology (fT). By some estimates,' U.S. retailers now spend close to $30 billion a year on fT, mostly to track merchandise and operations, automate transactions, and optimize inventory levels and other supply chain decisions. However, operational execution—a vital complement to planning and automation, and a key ingredient to exploiting these fT investments fully—is woefully inadequate even at leading, financially successful retailers. Drawing on suhstantial interaction with multiple leading retailers (and extensive operational data from two leading retailers), we show that two particular execution problems—inaccurate inventory records and misplaced SKUs (Stock Keeping Units) in stores—are significant and expensive, and they pose a serious barrier to the effective use of fT in retail operations. At the two retailers we studied in-depth, these problems reduce profits by more than 10%. More surprisingly, however, there were substantial and systematic differences in performance among stores within the same retail chain. Why is it that retail stores with the same products, similar demand profile, identical monetary incentives, and the same corporate management and IT systems perform so differently on these measures?
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تاریخ انتشار 2007