IMPLEMENTATION OF AUTOMATED PRICING SYSYTEM. Inception : 1911 Headquarters : Benton Harbour,...

IMPLEMENTATION OF AUTOMATED PRICING SYSYTEM

• Inception : 1911

• Headquarters : Benton Harbour, Michigan, USA

• CEO : Jeff.M.Fettig

• Employees : 73000

• Net income : $433 million (USD)- 2006• Revenue :$ 18.08 billion (USD) –2006• Products : Refrigerators, air conditioners,

microwave ovens, washing machines,

hand blenders,freezers,mixers etc.

INTRODUCTION

MEXICOC

MICHIGAN

INDIA

CHINA

SINGAPORE

UNITED STATES OF AMERICA

BRAZIL

SWEDEN

DENMARKPOLAND

ITALYFRANCE AUSTRIA

HONKONG

GERMANY

MANUFACTURING HUBS

• WHIRLPOOL• MAYTAG • KITCHEN AID• JENN AIR• AMANA• ROOPER• ESTATE• INGLIS• BAUKNECHT• BRASTEMP• GLADIATOR GARAGE

WORKS

11 MAJOR BRANDS

LIVE CASE – STUDY

• Whirlpool had introduced the 'six sense' technology refrigerator ranging from Rs 10,600 to Rs 14750.

• At the same time LG introduced a refrigerator to target the rural population and middle aged women,price ranging from Rs 5000 to Rs 12000.

• Hence whirlpool had to decrease their cost margins overnight to withhold their customers and to be competitive.It took weeks for whirlpool to adjust their pricing because they did not have a centralized pricing database.

• By that time LG had captured 10 per cent of the rural and semi-urban markets.

PROCESS DURING QUATERLY PRICING

CALCULATING NEW PRICE

REVIEWINGPRICE

PRINTINGTHE LIST

REVIEWINGTHE PRICE

AGAIN

FEEDING INTOMAINFRAMECOMPUTER

MAIL OR FAX NEW

PRICE LIST

• Cumbersome pricing system.• Slow communication.• Error prone.• Extra paper work.• Dissatisfied customers.

(ranging from mega retailers to little stores.)

FAULTS IN THE EXISTING SYSTEM

IMPLEMENTATION OF AUTOMATED PRICING

SYSTEM

• Application of a powerful ERP package called SAP.

• Centralized data pool which can be accessed both by the manufacturer and the retailer.

• Consolidation of the order entry systems and the pricing system.

IMPLEMENTING AUTOMATED PRICING SYSTEMS

RETAILER 1

RETAILER 2

RETAILER 3

PRICING

OMS

WAREHOUSE

PURCHASE ORDER

DATA AGGREGATION

FORMATTING

DATA REVIEW

REPORTING

ORDERMANAGEMENT

SHIP NOTICE AND INVOICE

WARE HOUSE

BAR CODE AND RFID ITEM SHIPMENT

LABELANDRFID

• Quick updating• Streamline work process• Centralized pricing database• Reduce cycle time• Increase productivity• Reduce costs• A step to global success.• In quarterly pricing, every three months the list for prices

were printed and sent to the traders where as by implementing SAP, the ERP calculates the demand and material prices and adjusts the prices constantly.

RESULT AFTER IMPLEMENTING SYSTEM

• Building brand equity.• Customer loyalty.• Unique marketing strategy.• Improve inventory management.• Enable accurate execution of orders.• Enhances supply chain management.• Enhances pricing and promotion strategy.

How are companies using I.T to improve services,lower costs and become more competitive?

Q1.

Ans.

DISCUSSION QUESTIONS

HARDWARE AND

SOFTWARE

BACKUP,PATCHING SOFTWARE

RAW FACTS

SYSTEM ANALYSTPROGRAMMER• PEOPLE

• EQUIPMENT

• PROCEDURE

• DATA

What are the components associated with a successful information system?

Q2.

Ans.

DISCUSSION QUESTIONS

“By leveragingSAP Net Weaver,we have overhauled our IT infrastructure to provide more functionality andcapabilities, and, incredibly, we’vedone it with no additional costto the company.” Esat Sezer

Corporate Vice President & CIOWhirlpool Corporation 

MR. ESAT SEAZER ( CIO ) WHIRLPOOL CORPORATION

WHAT DID WE LEARN?

BIBLIOGRAPHY

• www.google.com• www.hindutimes.com• www.whirlpool.com• I.T for Managers:

Ralph Stair and George Reynolds

THANK YOU

FATEMEH. HANIKA. MEGHALA. NEHA. PRIYADARSHINI.

BY