Friday, September 17, 2010

How Our Supply Chain Works

  1. A customer comes to your counter and purchases a drink and a bag of chips.
  2. Within seconds, the transactions are on their way to a leased data center located in Colorado, Wyoming and California, decrementing the quantities of each item in your store.
  3. The Re-order Level of each product is checked.
  4. At the data center, the instant the On-Hand quantity falls below the preset Re-order Level, a Purchase Order is generated equal to the minimum order mandated by the supplier(s).
  5. The Purchase Order is sent to the supplier.
  6. At the data center, the On-Order field is incremented to prevent new orders to inventory already ordered.
  7. On delivery day, the supplier picks the items needed and loads them on his truck.
  8. An Inventory In Transient record is logged at the data center, accessible by the supplier, the store's headquarters, and the store itself.
  9. The inventory arrives at the store where it is scanned upon arrival.
  10. The data center compares the inventory received to the Inventory In Transient notification and any discrepancies are logged and immediately reported to the supplier and to the store's headquarters.
  11. An invoice to the supplier is created and logged at the data center.
  12. The retail price is checked, the average cost at the store is recalculated, and the retail price is adjusted to compensate for the changes in cost. New items are priced according to a preset mark-up percentage by category.
  13. The data center sends the new retail prices and new items to the POS.
  14. The inventory is placed on the shelf.
  15. On the due date, the data center generates an ACH to your bank which results in an electronic payment to your supplier.


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