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Marketing Communications

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Chapter 17 : Information Systems and Logistics

Retailing: The Role of Information

Information flow

Information Sources

Internal Information
External Information

Retail Information Systems

Data features of RIS
Subsystems in RIS
Advantages of Retail Databases of RIS

Information Systems in Retail Logistics

Logistics
The Distribution Center
Outsourcing
Store vs. Distribution Center Delivery
Pull vs. Push Logistics Strategies

Strategic Advantages of Information Systems in Logistics

Improved Product Availability
Improved Assortment
Improved Return on Investment

Quick Response Delivery Systems

Benefits of Quick Response Systems
Costs of Quick Response System

Data Mining

Data Warehousing

Data Warehousing and Business Intelligence

Chapter Summary

The value of information systems is being realized and appreciated by retailers throughout the world. Many large retailers have benefitted from the use of information systems. The systems approach has helped them perform efficiently, reduce costs, improve service levels, expand the customer base and manage their functional areas better.

Information systems have helped retailers meet customer demands concerning better product availability and better product assortments. Huge databases and sophisticated data mining systems are enabling retailers to reach many customers in a personalized way.

The use of information systems has led to major changes in merchandise distribution. Distribution centers are now being used for cross-docking instead of storage. The quick response delivery system has enabled the delivery of floor ready merchandise. The availability of timely and accurate information on daily customer demands has led to the development of new pull logistics strategies. In addition, the online sharing of information has strengthened vendor-retailer relationships. Retail information systems have enabled retailers to compete successfully in a complex and challenging environment.

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