One of the retail chain monopoly informatization Solutions

Today, the retail chain monopoly industry is not easy to operate, and companies in various fields are facing various pressures, especially in recent years, the domestic retail chain monopoly market has become increasingly fierce competition, and the average profit rate is decreasing year by year. However, with the change in consumer demand and cognition of products, retail chain monopoly enterprises have much room for improvement in both the scale of enterprises and the maturity of the industry. At the same time, the problems related to chain stores, consumer demand changes, channel sales capabilities, and many other aspects subsequently become a challenging and complex test for major retail chain stores.
In the future development, from a strategic perspective, the management of the retail chain monopoly industry seems to pay more attention to brand building and marketing, and then match the consumer's lifestyle and values, brand Expansion is no longer as simple as focusing on price reduction. In order to seek development, more and more enterprise management personnel hope to use stable and perfect technical solutions to help their enterprises strengthen brand building, Channel Expansion, quality management, and pricing strategies. Including: group Finance, fund management, store and POs, sales management, supply management, warehousing and distribution, manufacturing management, product data management, equipment management, quality management, human resource management, customer relationship management, collaborative office, business intelligence, and enterprise portal. The entire application system is a perfect unity, fully reflecting the ERPII management philosophy.

Chain StoresIt is a kind of modern business model integrating business flow, logistics and information flow. It refers to connecting many scattered and isolated business units through a certain link and following certain rules, commercial operations are carried out in accordance with the requirements of unified rules, with distinctive characteristics:
1. Standardized Management Process
The management of chain stores are job process management and job execution management. Many new management ideas and modern technologies will be adopted in the Standard and standardized operation process, which requires managers and workers of chain stores to change their operating concepts. In the course of operation, we should not rush for immediate success or profit. We must strengthen the standardized construction of each chain store to ensure its effective operation. At the same time, we should establish and improve various management systems, adhere to the scientific, standardized, and systematic operation of chain stores, and build a standardized management process for practical job operations.

2. Full integration of education and training
The standardized management mode set by the chain operator organizer should be displayed in detail and accurately copied and executed in each single store and each operation process, long-lasting and standardized education and training are essential. All the advantages of chain stores should be the pursuit of economies of scale and low-cost expansion. In fact, this kind of operating organization and its operation form also bring about an important feature in chain operation-full integration of education and training.

3. Modern Information System
Build a highly information-based distribution center and change its functions, transforming it from a profitable organization to a service department. Draw out from the profit chain and plan the procurement, transportation, storage, and distribution affairs of each distribution center in their respective regions in a unified manner. As a direct line service organization of subsidiaries, direct stores, and franchisees, in order to avoid management confusion caused by too long internal distribution channels.
In modern management, the interconnection between the head office, branch office, and direct stores and distribution centers of chain enterprises should be established on the electronic computer network system. Information is transmitted throughout the entire workflow. It can be said that the information system of the chain group is its nerve hub, which organically links the procurement, sorting, processing, packaging, storage, transportation, distribution and other operating systems of the chain group.

4. vertically integrated chain management system
The chain business model requires vertical and integrated chain management within the business organization, that is, the chain headquarters should be the axis, between the forward and the production enterprises, and between the center and the chain stores, the backward direction should form a supply chain with consumers. Each transaction subject in the vertical integration chain is a node, and each node is no longer a transaction relationship that is stored in the market alone. Instead, it is a cooperative relationship based on trust and mutual benefit, essentially, it forms a symbiotic relationship. This requires chain stores to closely connect up and down the two ends, and transfer the multi-tier transactions needed in the market to the internal integration of the supply chain, minimizing intermediate links and saving circulation costs, reduce transaction costs. In the organizational structure of a group company, the hierarchical structure of the group corporation-Distribution Center-branch-Direct store-franchise stores is adopted. Each organization entity is a profit organization. The direct consequence of this layered structure is that the goods uniformly purchased by the company must go through three links within the company before they can finally reach the sales terminal, resulting in a long internal distribution channel, this is not conducive to the cost reduction. In addition, the pursuit of interests by various business entities will also lead to the confusion of business management caused by the phenomenon of goods collection and rush among various distribution centers and branches, it is not conducive to the unified implementation of the company's business strategy.

 

The Information Application of retail chain stores is as follows:

 

The organizational structure and marketing management method of the retail chain monopoly enterprises determine that they need three levels of information: basic information, decision-making support information, and value-added service information.

Basic Information: Basic information is essential for the normal operation of retail chain stores. Retail Chain stores are generally composed of headquarters, distribution centers, and stores. To ensure smooth operation of the entire system, the company depends on the normal connection and cooperation of workflows between various departments to ensure smooth flow of business flow, logistics and capital flows. This smooth flow is based on the effective flow of information flows. According to the division of labor among the headquarters, distribution center and stores, the basic information required by retail chain stores is:

(1) Information exchanged between consumers and stores: Information about customers' needs and interests, sales and service information of stores, etc;

(2) Information exchanged between the store and the company headquarters: material type information, inventory and replenishment information, sales information, customer information, sales plans and assessment indicators information, organization and personnel information, and financial dynamic information;

(3) information exchanged between the company's headquarters and distribution center: procurement plan, sales plan and completion status dynamics, delivery goods instructions, inventory information;

(4) information exchanged between the company's headquarters and suppliers: goods supply information, procurement information, inventory information, sales information and customer requirements and appeals information.

Decision support information: Decision-making support information is the information required by managers (mainly middle-and high-level managers) of retail chain monopoly enterprises to make effective decisions. In the face of a complex and changing environment, the effect of Decision-Making depends largely on the quantity and quality of information they have. Decision-making support means to provide background information, clarify problems, provide feasible solutions, and conduct analysis and comparison. Based on the purpose of decision-making and the processing degree of basic management information, the content of decision-making support information needs can be divided into three aspects: information used to improve the service level, information used for feed-forward control, and information used for scale expansion decision-making.

(1) Information used to improve the service level. To survive and develop in the fierce market competition, retail chain monopoly enterprises must continuously improve their service levels. This information requirement mainly refers to the information of consumers. Such as statistical analysis of store and customer demands, to find out the best-selling varieties and unsalable varieties, customer types and procurement time. In addition, information such as supply capacity change, Product improvement, settlement, and refund of payment from suppliers is also available. By analyzing this information, you can find a way to improve the service level.

(2) Information used for feed-forward control. In the traditional feedback management mode, information lags behind, which greatly restricts and affects the timeliness of decision-making. Adopting the feed-forward control mode can improve the level of scientific management and reduce resource consumption, which is the development direction of enterprise management. The connotation of feed-forward control management of retail chain monopoly enterprises is: according to historical data, combined with the characteristics of the business area, relevant upstream and downstream enterprise resources, competitor information and industry development trends, make predictions on gross profit, inventory, and promotion policies, and use this as a means to achieve comprehensive single product management, active ordering, delivery of goods, and accelerate inventory turnover, and further improve the competitiveness and economic benefits of enterprises. The corresponding information includes internal management information, market information, competitor information, environment information, and predictions based on the above information.

(3) Information used for expansion decision-making. Scale Expansion decision-making is within the scope of investment decision-making and strategic decision-making. Most of the needs are macro environmental information. It mainly includes information such as the target market, population structure, income structure, consumption level, regional culture, and industry competition, as well as judgment on the overall social and economic and political situation.

Value-added Service Information: Value-added service information is generated after the retail chain monopoly enterprises process the information they have mastered and can provide paid information retrieval and consulting services for industrial and commercial users. This part of information is further processing of basic management information and decision-making support information. It can increase revenue for enterprises and reduce management costs. It is used to fully mine and use enterprise resources.

Including: group Finance, fund management, store and POs, sales management, supply management, warehousing and distribution, manufacturing management, product data management, equipment management, quality management, human resource management, customer relationship management, collaborative office, business intelligence, and enterprise portal. The entire application system is a perfect unity, fully reflecting the ERPII management philosophy.

 

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Petter Liu
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One of the retail chain monopoly informatization Solutions