Mark the main flows of goods and money in the diagram (above) and employ a key or table of descriptive elements to explain your answer (i.e., more than just two words). [Note: you can complete the drawing in PowerPoint and then copy/paste if that is easier for you.]
Blue: Flow of Goods
| HQ sends orders to the supplier notifying them of the quantity of goods that needs to be sent to the warehouse. When the supplier receives these orders, they then send the goods to the warehouse. From there, the warehouse records and sends the appropriate amount of goods to the store. And from the store, the goods are sold to the customer.
| Red: Flow of Money
| From the store, the customer will buy the goods. The store will hold on to the money until a certain amount has been reached, at which point, it will be sent to HQ. HQ will place the money in banks or some sort of storage. HQ will use the money raised from the stores to pay the supplier for the goods that they need to fill its orders.
2. a) List the specific items of information that are usually gathered at the POS (Point of Sale terminal or cash register) and recorded when a customer checks out (excluding obtaining the identity of the customer which is covered in Q3)? [list of items] a. List of items
i. Type of good purchased (Clothing, equipment, etc.) ii. The price of individual good
iii. Number of items purchased
iv. Total amount spent during trip
v. Method of payment (Cash, debit, credit, etc.)
b) What are three important uses of this information at the store by the store manager and by headquarters management – a total of six uses? See the table below:
| Important Uses
| Can inform HQ on trending items and items that are not selling as well.
| Control over in-store inventory. Can tell HQ which items are running low in the inventory and which items there are still plenty of.
| Can keep track of what sport is most popular based on what the customers are buying and inform HQ to fill the shelves with more items related to that sport.
| Control of inventory. Buy more of necessary items and less of items that are not selling very well.
| Can tell which items to feature based on which sport or activity seems to be trending and put less items of less popular sports.
| Rotate inventory to feature and sell more of the popular items during that time (for example, different sports are popular with different seasons).
3. a) What are some ways to obtain the identity of the customer at the POS and to associate this “identity” with more detailed information about the customer? b) What business actions could FastFit then take based upon this additional information? b. See table:
Ways to Obtain Information
| Types of Information Obtained
| Credit Card
| Name, Address, Gender, Card Number
| Name, DOB (Age), Address, Gender, Card/Membership Number, Phone #, Email
| In-store/online customer survey
| Name, DOB (Age), Address, Gender, Phone #, Email, Customer’s opinion
| Business Card Raffles
| Name, Customer’s workplaces, Gender, Phone #, Email
c. Business actions based in information
Types of Information Obtained
| Business Actions
| Can send advertisements and coupons to customer’s homes and through email.
| Can tell the age and gender of the customers that visit individual stores as well as overall demographics of the customers that visit Fastfit. According to the data, can distribute products to stores accordingly (e.g. Distribute more male teen products to stores where more high school males visit).
| Customer Opinion
| Can find out what customers like and expand on that or can find what customers dislike and change it. Can also find out what customers most often look for.
| Membership/Credit Card...
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