Logistics strategy

Supply Chain Management 1

Merchandise distribution

In house receiving Centralized receiving

More space for merchandise on the selling floor Better control of goods Cost reduction

Regional receiving Individual store receiving

Supply Chain Management

Merchandise distribution technology

Electronic data interchange: inventory management, reduced expenses, improved accuracy, increased sales, minimization of paper work Vendor managed Inventory : use scanners at the retail operations, suppliers are able to gather information about the sale of their products
Supply Chain Management

Merchandise checking procedure

Quantity checking

Direct checks Blind checks Semi blind checks

Quality checking

Supply Chain Management

Marking merchandise

Vendor name, size, style no. price etc Marking procedure

Hand marking Handheld equipments Computerised tags

Remarking merchandise

Styles out of season Few size, colours disliked, few pieces

Supply Chain Management

Loss prevention
A.Shoplifting Deterrents and controls

Electronic Article Surveillance System (EAS)-RF Electromagnetic system Acousto- Magnetic system Video surveillance systems (closed circuit television system) Merchandise anchoring Magnifying mirrors Try-on room control Employee programs

Supply Chain Management

B. Internal theft Deterrents

Screening of applicants Checking references Testing for drugs Psychological testing Merchandise control shopping the sales associates Recognition programs Offender prosecution
Supply Chain Management

C. Internet theft Forms of fraud

Discarded cards Card no. that are not concealed carefully On-line programs that generate account no. Beware of the purchase made in night Orders that exceeds the average orders Shipped out of the country Order from remote address Orders from incomplete address, Post. Office box etc.

Fraud prevention

D. vendor theft E. In-transit theft

Supply Chain Management

Trends in merchandising distribution and loss prevention

Expanded use of technology Increased use of computerized tags Updating EAS system Applicant screening Fraud prevention

Supply Chain Management