Shopko and Pamida: Systems Triumph or Tragedy?
CASE STUDY
ShopKo and Pamida: Systems Triumph or Tragedy?
I. Time Context
* November 2012
II. Viewpoint
* IT student.
III. Statement of the Problem
* What management, organization and technology actors prevented Pamida’s new distribution center from working successfully?
* What action plans are needed to overcome the challenges that will arise? How they will prevent it?
IV. Objectives
* The main objective is at providing the customer with merchandise which is always available as advertised.
* To make a decision and formulate action plan to solve organization problem.
* Getting rid of overstock items at highest possible price.
V. Areas of Consideration/SWOT Analysis
* Strengths
* Organization has structure that comprises in different level based on authority and responsibility.
* ShopKo information system enables company to price a product according to season, geography, local taste and past demand.
* Weaknesses
* The software made management difficult to layout and run a full service center in the most logical and efficient manner.
* The first few mark down buyer tend to take care are very conservative. So, ShopKo end up taking too many markdown
* Opportunities
* Pamida’s solution was to combine its 5 warehouse into 3. And modernize its inventory management system to increase store ability.
* ShopKo wanted to expand the number of Pamida store in small town.
* Threats
* The consolidation concept was to transfer the warehouse from a flow through facility to a full service distribution center.
* ShopKo also faces the stuff competition from GAP who rapidly changing product life cycle.
VI. Alternative Courses of Action
* Alternative A – Shopko need to empty its shelves in time for the arrival of the new cycle product and get rid of the overstock merchandise at highest possible price.
* Alternative B - Implement mark down optimizer from the spotlight to help
ShopKo and Pamida: Systems Triumph or Tragedy?
I. Time Context
* November 2012
II. Viewpoint
* IT student.
III. Statement of the Problem
* What management, organization and technology actors prevented Pamida’s new distribution center from working successfully?
* What action plans are needed to overcome the challenges that will arise? How they will prevent it?
IV. Objectives
* The main objective is at providing the customer with merchandise which is always available as advertised.
* To make a decision and formulate action plan to solve organization problem.
* Getting rid of overstock items at highest possible price.
V. Areas of Consideration/SWOT Analysis
* Strengths
* Organization has structure that comprises in different level based on authority and responsibility.
* ShopKo information system enables company to price a product according to season, geography, local taste and past demand.
* Weaknesses
* The software made management difficult to layout and run a full service center in the most logical and efficient manner.
* The first few mark down buyer tend to take care are very conservative. So, ShopKo end up taking too many markdown
* Opportunities
* Pamida’s solution was to combine its 5 warehouse into 3. And modernize its inventory management system to increase store ability.
* ShopKo wanted to expand the number of Pamida store in small town.
* Threats
* The consolidation concept was to transfer the warehouse from a flow through facility to a full service distribution center.
* ShopKo also faces the stuff competition from GAP who rapidly changing product life cycle.
VI. Alternative Courses of Action
* Alternative A – Shopko need to empty its shelves in time for the arrival of the new cycle product and get rid of the overstock merchandise at highest possible price.
* Alternative B - Implement mark down optimizer from the spotlight to help