IMPLEMENTATION OF AUTOMATED PRICING SYSYTEM

IMPLEMENTATION OF AUTOMATED PRICING SYSYTEM

INTRODUCTION • 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.

MANUFACTURING HUBS SWEDEN DENMARK GERMANY POLAND MICHIGAN FRANCE AUSTRIA ITALY UNITED STATES OF AMERICA CHINA HONKONG INDIA SINGAPORE BRAZIL MEXICOC

11 MAJOR BRANDS • WHIRLPOOL • MAYTAG • KITCHEN AID • JENN AIR • AMANA • ROOPER • ESTATE • INGLIS • BAUKNECHT • BRASTEMP • GLADIATOR GARAGE WORKS

Whirlpool had introduced the 'six sense' technology refrigerator ranging from Rs 10,600 to Rs 14750. At the same time LGintroduced 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. LIVE CASE – STUDY

CALCULATING NEW PRICE REVIEWING PRICE PRINTING THE LIST REVIEWING THE PRICE AGAIN FEEDING INTO MAINFRAME COMPUTER MAIL OR FAX NEW PRICE LIST PROCESS DURING QUATERLY PRICING

FAULTS IN THE EXISTING SYSTEM • Cumbersome pricing system. • Slow communication. • Error prone. • Extra paper work. • Dissatisfied customers. (ranging from mega retailers to little stores.)

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. IMPLEMENTATION OF AUTOMATED PRICING SYSTEM

IMPLEMENTING AUTOMATED PRICING SYSTEMS DATA AGGREGATION PRICING RETAILER 1 FORMATTING OMS RETAILER 2 WARE HOUSE RETAILER 3 DATA REVIEW ORDER MANAGEMENT PURCHASE ORDER REPORTING SHIP NOTICE AND INVOICE LABEL AND RFID WARE HOUSE BAR CODE AND RFID ITEM SHIPMENT

RESULT AFTER IMPLEMENTING SYSTEM • 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.

DISCUSSION QUESTIONS Q1. How are companies using I.T to improve services,lower costs and become more competitive? • 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. Ans.

DISCUSSION QUESTIONS Q2. What are the components associated with a successful information system? Ans. SYSTEM ANALYST PROGRAMMER • PEOPLE HARDWARE AND SOFTWARE • EQUIPMENT BACKUP, PATCHING SOFTWARE • PROCEDURE RAW FACTS • DATA

MR. ESAT SEAZER ( CIO ) WHIRLPOOL CORPORATION “By leveraging SAP Net Weaver, we have overhauled our IT infrastructure to provide more functionality and capabilities, and, incredibly, we’ve done it with no additional cost to the company.” Esat Sezer Corporate Vice President & CIO Whirlpool Corporation

WHAT DID WE LEARN?

www.google.com www.hindutimes.com www.whirlpool.com I.T for Managers: Ralph Stair and George Reynolds BIBLIOGRAPHY

THANK YOU BY FATEMEH. HANIKA. MEGHALA. NEHA. PRIYADARSHINI.

IMPLEMENTATION OF AUTOMATED PRICING SYSYTEM