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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