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Supply Chain Company Analysis Version 2

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Best practices in Supply Chain examinations for electronic retailers

Best practices in Supply Chain examinations for electronic retailers

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  • 1. Electronics and Appliance Industry Industry Overview AGENDA Electronics & Recent Developments Appliance Industry Data Analysis Performance Metrics Best Practices  hhgregg  Best Buy Co Inc  Gamestop Corp Top Companies Conclusion Thursday, April 23, 2009 Team 19 – Supply Chain Company Analysis 1
  • 2. Data Analysis 20% 0% ROA -20% AGENDA -40% 2006 2007 Electronics & -60% Appliance Industry -80% Data Analysis -100% -120% Best Practices  hhgregg  Best Buy Co Inc 70  Gamestop Corp 60 50 Gross Margin 40 Conclusion 30 20 10 2006 0 2007 Thursday, April 23, 2009 Team 19 – Supply Chain Company Analysis 2
  • 3. Data Analysis 50 45 40 35 30 Inventory Turnover 25 20 15 AGENDA 10 5 2006 0 2007 Electronics & Appliance Industry Data Analysis Best Practices  hhgregg 250  Best Buy Co Inc 200  Gamestop Corp 150 Cash to Cash 100 Conclusion 50 2006 0 2007 -50 -100 Thursday, April 23, 2009 Team 19 – Supply Chain Company Analysis 3
  • 4. AGENDA Electronics & Appliance Industry Data Analysis Best Practices  hhgregg  Best Buy Co Inc  Gamestop Corp Conclusion Thursday, April 23, 2009 Team 19 – Supply Chain Company Analysis 4
  • 5. Best Practices of hhgregg Information Technology AGENDA Electronics & Distribution and Warehousing Appliance Industry Data Analysis Customer Service and Inventory Best Practices  hhgregg  Best Buy Co Inc  Gamestop Corp Suppliers: Strength/Weakness Conclusion Thursday, April 23, 2009 Team 19 – Supply Chain Company Analysis 5
  • 6. Best Practices of hhgregg Information Technology New system for demand management and forecasting AGENDA  New inventory and supply chain management software Electronics &  WAN linking stores and DC to corporate offices Appliance Industry  Real time polling of sales Data Analysis  Stock movement  Order Filling Best Practices  hhgregg  Best Buy Co Inc Distribution and Warehousing  Gamestop Corp Manuf Manuf Manuf Manuf Conclusion -1 -2 -3 -4 Optimize Inventory Optimize Turnover CDC - 1 CDC - 2 Optimize delivery efficiency RDC - RDC - RDC - RDC - RDC - RDC - RDC - RDC - RDC - 1 2 3 4 5 6 7 8 9 Thursday, April 23, 2009 Team 19 – Supply Chain Company Analysis 6
  • 7. Best Practices of hhgregg Customer Service  Offers same-day delivery for virtually all products AGENDA Inventory Electronics & Appliance Industry  Local supply of inventory supports same-day delivery Data Analysis  Order Inventory through issuance of individual purchase orders Best Practices  hhgregg  Distribution structure supports inventory strategy  Best Buy Co Inc  Gamestop Corp Suppliers: Strength/Weakness Conclusion  GE, JVC, LG, Panasonic, Samsung, Sharp, Sony, Toshiba  No contractual assurance of continued supply  Top 10 suppliers represent 80.3 % of business Thursday, April 23, 2009 Team 19 – Supply Chain Company Analysis 7
  • 8. Best Practices of Best Buy IT System Advantages Right number of distribution centers AGENDA Right locations for distribution centers Electronics & Greater visibility with suppliers Appliance Industry Big savings Flexibility Data Analysis Best Practices  hhgregg  Best Buy Co Inc  Gamestop Corp Customer Centricity Conclusion  Matching right products to customers by store Right products Right stores Right times  More than 25% of Best Buy stores Thursday, April 23, 2009 Team 19 – Supply Chain Company Analysis 8
  • 9. Best Practices of GameStop AGENDA Electronics & Appliance Industry Data Analysis Best Practices  hhgregg  Best Buy Co Inc  GameStop Corp Conclusion Wednesday, November 12, 2008 Team 19 – Best Company Practices 9
  • 10. Best Practices of GameStop Short Shelf Life AGENDA Electronics & Difficult Forecasting Appliance Industry Data Analysis Seasonality Best Practices  hhgregg  Best Buy Co Inc  GameStop Corp Used Inventory Conclusion Wednesday, November 12, 2008 Team 19 – Best Company Practices 10
  • 11. Best Practices of GameStop Warehouses Suppliers Offices AGENDA HQ Electronics & Appliance Industry Data Analysis Best Practices Stores Used  hhgregg Product  Best Buy Co Inc  GameStop Corp Conclusion 3rd Party DCs Information: Product: Wednesday, November 12, 2008 Team 19 – Best Company Practices 11
  • 12. Best Practices of GameStop Systems Designed to Grow AGENDA Electronics & Appliance Industry Superior Communication Data Analysis Best Practices  hhgregg  Best Buy Co Inc  GameStop Corp Flexible Resources Conclusion Wednesday, November 12, 2008 Team 19 – Best Company Practices 12
  • 13. Conclusion Flexibility AGENDA Electronics & Appliance Industry Competitive Industry Data Analysis Best Practices  hhgregg  Best Buy Co Inc  Gamestop Corp Circuit City – efficiency Conclusion Thursday, April 23, 2009 Team 19 – Supply Chain Company Analysis 13