Analysis of Specific Processes - Order Fulfillment and related Processes
For the direction of our group research, we prioritized the different processes that occur within the operations of “Luck Brand” and determined that we wanted to center our research and eventual analysis and findings around “Order Fulfillment” and explored the processes within and how Information Systems can be utilized to improve this process.
“Order Fulfillment” was the main area of focus for the bulk of our work researching how Lucky Brand Utilizes Information Systems within their operations. The firm utilizes and relies on a system called “Lucky Direct,” which is an online order fulfilment and integrated inventory management system that connects inventory to instore and online sales.
We chose to focus on this system and how the brand utilized this Information System in their operations since adopting usage of the program in 2016. For employees in both the front and back houses of Lucky Brands operations depend on this system to keep track of Inventory throughout the distribution network. When an item is sold online or from one of Lucky's store locations, the system automatically makes a record of the sale and notifies and removes the appropriate item from the brands inventory.
The “Lucky Direct '' information system is accessible across the globe and information is contained and saved within online servers on the “cloud”, which allows for employees across different departments throughout the whole brand, to share the same accessibility to information about the sales and inventory activity of Lucky’s operations. The program also extends from sales into covering tracking and shipping progress for items that are requested through our online store. Lucky Direct streamlines the multiple facets of Lucky's structured Process such as: Sales, Shipping and Inventory Replenishment. Having the information from these different structured processes held in a shared central point, allows information to be transferred across departments.
As we dug deeper into learning about the structured processes that the “Lucky Direct” system manages and monitors, we learned how Lucky Brands system serves to aid them as a competitive advantage. In the process of synergistically monitoring and sharing sales and inventory information, dynamic processes that are constantly evolving such as Marketing and New Product Development, can also be strengthened from utilizing the data collected in our Lucky Direct program. Information collected from the sales movement of Lucky's offerings are easily tracked with Lucky Direct and this leads to real time financial monitoring of current and past performance, in addition to the other benefits mentioned previously.
Lucky Direct is more than just a benefit and asset to structured processes, we also learned as we performed our research that Lucky Brand has found further utility from their information system in the usage and enhancements for dynamic components within Lucky Brands procedures. Lucky Brand has three main areas of Dynamic process, where the method of service/engagement/outreach our specific function of a process is a non repeated event and often are constantly changing and adapting, We focused on Marketing, New Product Development and lastly Social Media engagements that all benefit from Lucky Direct.
For example, information about overall sales for a particular quarter may show that a certain item or segment line has been performing poorly and sales aren’t where expected. This may initiate our marketing department to adapt and create new marketing material that seeks to push awareness of this underperforming item. Our brand engagements often follow the items that we are trying to promote, such as new products that are finalized from our new product development department. Our firms marketers will often plan future marketing campaigns off of the direction that the development team decides to head - utilizing data gained from the “Lucky Direct” information system.
Overall summary - Lucky Brands Information System- “Lucky Direct” is a useful tool for supporting our firm's overall business strategy and strengths the services within our value chain of providing fashionable high quality denim wear.
Components
Data- Collected information from: Sales / marketing efforts / Financial Performance / Inventory Across Network. All in which is accessed in real time and is updated constantly.
Hardware Involvement- We utilize an internet connected POS system that contains our registers/tills and they are connected to our Cloud based information system. These registers are updated regularly every evening after the store closure procedures are completed.
Software - “Lucky Direct” mentioned above in detail - Powered by NetSuite. Tracking of employee clock in and out time is handled by ADP. This software is customizable for each store to form to the demands of that store’s business. The store is given access to turn the software on and off if they can not schedule time to accomplish the orders for Lucky Direct.
Process Types Within Lucky Brand
Structured - Consistent Process with high degrees of repeatability without variance of procedure/activity
Sales (online or in person)
Inventory Management
Inbound Logistics
Logistics
Dynamic - These consist of Processes and activities with a high degree of customization and little to no, repetition of performed processes.
Marketing
Social Media Engagement
New Product development
Critical Procedures- We choose to identify three procedures of top concern for meeting the expectations of our customers.
Online Order Fulfillment
Network Wide Inventory Tracking
Financial Performance
Performance in Use (for I.S. System Used)
From our conversion with our Manager from Lucky Brand, we asked questions related to the different facets of making sales with customers. Buyers either engage in their purchases through arriving in person at one of our 251 locations across the country, or one place their order online. The usage of "Lucky Direct" assists our store manager, through helping to stay informed on when new shipments will arrive, helps allocate the placing/restocking of specific items to arrive in store, if not carried in her stores location, as well as helps through giving the ability to track her stores performance. As a manager, she also has to stay aware and current to new marketing directions and sale promotions, and through the integration Lucky Direct provides this information is easily accessible.
Potential Problems;
NetSuite designed systems may offer an array of good solutions, but it also has its problems as well. User interface has problems and users often complain about the fact that it is an outdated interface that isn’t really engaging or easy to use. Problems like this can lead to an increase in costs of training plus the sales process that can be much less efficient than it could be. Another problem is the offline edition problems. Companies like Lucky Brand that use NetSuite often run into problems with the offline edition, and it is in desperate need of an upgrade. A final problem would be the high customer support costs. The system does run on high costs and NetSuite’s additional recurring fees can be much higher compared to others cloud-based competitors.
No comments:
Post a Comment