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Better than the RFID system
Using the e-
e-wallet (HongKong widespread Octopus system ƛ but
I am proposing to take a FURTHER STEP) for
better Collaborative effort in FMCG forecasting
For promotional items in Grocery shopping experience
by
Vgenda :
ƥ 1.0 Introduction
ƥ 2.0 RFID / octopus card (payment card)
ƥ 4.0 Wal mart ƛ RFID inititative
ƥ 5.0 my proposed system ƛ O2W
ƥ 6.0 5 forces
ƥ 7.0 Comparison
ƥ 8.0 reduction on truck Gas Cost / PULL
>> Push grocery market strategy
O2W == we will call the new sys in this powerpoint
In essence, it is an e-
e-voucher supermarket system
to facilitate Vccurate Quantity Deliveries to every]POS
RFID is a Journey
Implementation - tuning of equipment / automation
è
è
] M
Suppliers are reluctant to implement it as it incurs extra cost to them M
RFID progress so far Ʀ. ..
ƥ Installed in
ƛ 104 Wal-
Wal-Mart Stores
ƛ 36 SVMƞs Clubs
ƛ 3 Distribution Centers
ƥ Installed already
ƛ Over 14,000 pieces of
hardware
ƛ 230 miles of cable
(data, cable & coax)
RFID Potential Benefits for Suppliers
that has not yet been realised
ƥ Total end to end supply
chain visibility
ƥ Improved in stock
ƥ Smart recalls
ƥ Improved cold chain
compliance
ƥ Product protection
(anti--counterfeiting)
(anti
ƥ Internal efficiencies R
§
Realisable benefit on FMCG
Vndrew
Õ
Octopus easy payment system
Ú
Porterƞs 5 force analysis on the
benefits of my Proposed IT system
SUPPLIERS
ë
- Brand Switching from
customers -
- Less money given to the
supermarket for shelves space
promotion
c
How the voucher sys. work?
1. Vn e-
e-voucher ticket-
ticket-machine (e-
(e-coupon) will be found
near the supermarket cashier
2. Grocery Customer must pay a Physical-
Physical-Visit to
the e-
e-voucher ticket issuing machine
3. Customer Octopus Card will get voucher price deducted
(say $2 in HongKong or US$1 in USV), However, they
could get a e.g. $10 discount at the end, say pack of milk
or bottle of wine [bigger discount than normal Sale price]
4. Data regarding the voucher could even be stored in
individual storeƞs computer only, this will relieve the
workload on existing octopus computer system ƛ short
implementation / low investment for this project
5. Period before exercising the voucher, the customer will
spend time to study the products that he/she never
bought before.
6. With the same token, the suppliers get their promotion
money well spent because
ƛ Unlike traditional system, this does not lead to over
over--production when product is
launched / promoted
ƛ Brand Recognition (rather then impulse-
impulse-buy) as there is a latent period cc
c
Hurdles in RFID vs Benefit of Octopus
c]
ë " @() Ô ë* +
ƥ Supermarket store will know the customer
demand of each promotion item ,
,
ƥ Ô of a new
promotional item
ƥ of bull-
bull-whip effect
(def :
fluctuation in seasonal demand)
ƥ NEGOTIVTE V LOWER FIXED PRICE with the
supplier (not a price according to scale ,
volume) cM