Large equipment sales
If a customer in store wants to buy a large item of equipment then one of the members of staff at Go4It Sports will call the supplier to check if it is available. That staff member will then note down the customer’s details such as:-
- Name
- Address
- Telephone number
These are written on a 3 part order form together with the details of the item required and any delivery instructions. The complete order from is then given to the customer who takes it to one of the sales points and hands it to the member of staff.
The staff member locates the item’s barcode on a set of cards and is kept at the sales point and scans it in. The customer then pays for the item normally. Along with the printed receipts, the customer is also given the back copy of the 3 part order form for their own records. The other 2 copies are kept at the sales point for collection by a member of the administration staff.
At the end of each day, the administration staffs send the top copy of all large equipment orders to the supplier via post. The second copies are kept in a file. On receiving the orders, the supplier sends an email to the Administration Section detailing the likely delivery date for each item. A member of the administration staff then contacts each customer by telephone to inform them when the item will be delivered and confirm that this date is acceptable.
Functions on the Head Office site:
Mail Order
The warehouse
Finance
Human Resources:
Task 2
Go4It Sports uses a number of different systems and processes, both in Head Office and in the individual shops. Analyse these systems and processes and write a report which should include:
- Information flow diagrams to show important information flows within the company and with outsiders, in particular:
- when a customer purchases a large item of equipment from a shop
- when a team order non-standard colour strips by mail order
When a team orders non-standard colour strips by mail order
When a customer purchases a large item of equipment from a shop
- an analysis of the processes for recording sales in a shop and for mail order sales in Head Office. Each analysis should detail
- the information required
- from where this is obtained and how it is captured
- the processing and calculations required
- the form and content of any output.
Task 3
Produce a report for the Managing Director
- outlining the current ICT systems used by GO4IT Sports, in particular, Finance within Head Office and Administration within a shop
There are a number of workstations which are linked in a LAN with a single server.
At least one workstation in each department of Head Office.
There is a fast laser printer which acts as the network printer for large print runs and a slower laser printer as a local printer.
An ISDN line provides email facilities on all workstations.
All personnel data, sales and marketing data, accounts data and customer data is stored on the server. All data can be accessed from any workstation but only by staff who are authorised to do so. For example, only members of the HR department can access personnel data. Word processing, spreadsheet and database management software is stored on the server and can be accessed from all workstations. Stock control software and stock data is also stored on the warehouse workstation.
There is a stand-alone computer which has a scanner and a computer controlled embroidery machine attached to it. This is only used for embroidering logos onto the team strips and other merchandise.
In the administration sector of GO4IT Sports the administration staff keep account of the money taken through the EPOS terminals by comparing money received with EPOS records. They use emailing too via a computer because they have to email weekly goods to the warehouse. At the end of each week the Administration Section sends details of money taken, purchase orders raised and invoices received to Head Office. This information is emailed to the appropriate Head Office department.
GO4IT Sports also have to deal with mail order transactions. They keep records of all financial transactions on the Head Office server such as income from sales for each shop and from mail order, payments for goods purchased, payments for engraving contractors and staff wages.
- analysing the purpose and operation of the main ICT systems used for sales in each shop, and the ICT systems used within the warehouse
The functions and procedures in the shops are as follows:
Member of the general sales staff operate the EPOS terminals. This is convenient for the business and saves time for staff in the warehouse.
EPOS – Electronic Point Of Sale
All of the items sold at GO4IT Sports are bar-coded. This is so that the item being sold comes up on the screen and after the transaction has gone through then it is automatically deducted from the number in stock on the shop’s database. The barcode of each item is scanned and the product code it contains is used to look up the product description and price from the stock database. The EPOS system is very convenient because when it says on the shop’s database that an item is low in quantity then the Branch Manager uses the printed stock list (which shows the number of each item in stock) along with experience of seasonal trends, to decide which items need to be ordered and in what quantity. This is noted by hand on the stock list. The annotated stock list is passed to a member of the administration staff who types an order for the goods required into a word processed template and emails it to the warehouse. If the customer at the shop decides that they would like to pay by cash, the member of staff enter the amount tendered and the EPOS terminal calculates the change due. These details and the method of payment are printed on the goods receipt which is then given to the customer. If the customer wishes to pay by credit or debit card, the member of staff swipe the customer’s card through the card reader. This is convenient for the public as they don’t have to bring cash to purchase goods at the shop. The card details are check by the banking system and, if the transaction is approved, an authorisation code is transmitted to the EPOS terminal. The card details, the authorisation code and the amount to be debited are printed on two copies of a separate card receipt. One copy is for the customer and the other copy is for the staff member who puts it into the till. The staff member may only do this when he has checked that the customer’s signs one copy and the staff member must verify if the signature matches. After doing so he can put one copy of the receipt in the cash drawer of the EPOS terminal. The second copy of the card receipt and the goods receipt are given to the customer along with their card and the items purchased. This is good for the customers as they can use the receipt to return goods if they have to.
The stock control software on the warehouse computer has separate screens for incoming and outgoing goods. All goods have a product code which is contained in a barcode. When goods arrive in the warehouse the barcode of each product is read and the quantity is entered via the keyboard. This is convenient as they can keep track of what is coming in and going out and no one has to remember off the top of their heads. The data the warehouse staff obtains is used to update the stock database. The warehouse also received orders from mail order too alongside bulk orders from schools and each of the shops. The orders are then picked by the warehouse staff who use the barcode reader to input the product code and the keyboard to enter the quantity removed from stock. These items are deducted from the stock database. The disadvantage here is that warehouse staff need to be trained and must be familiar of how to use the stock control software because if not then there could be problems on the EPOS terminals at shops when customers are purchasing goods and also goods might not even be sent out to schools or even mail order.
The Warehouse Manager places an order once a month by fax but can place a special order by telephone if stocks of a particular item fall faster than expected. The Buying Manager negotiates contracts at the beginning of each season, either by telephone or visit, for the supply of a certain quantity of each item. The Buying Manager monitors the sales and renegotiates the quantity if necessary.
- evaluating how more extensive use of new communications technology could affect GO4IT Sports, in particular the use of EDI, and the use of e-commerce
EDI (electronic data exchange) Electronic Data Interchange (EDI) is the computer to computer exchange of business documents in standard format within an organization. For example, a buyer's computer electronically exchanges business documents with a seller's computer. Electronic Data Interchange (EDI) is known to be the transferring of business documents between businesses. Today, almost all businesses such as airlines, hotels, manufacturers, retailers, and grocery stores are EDI supporters. EDI is an advantage for a company because it safes a lot of time with paperwork, but most of all it improves customer service in all businesses. All in all, Electronic Dat Interchange (EDI) technology is on the go. Large volumes of paper accompany the transfer of goods between companies. In the grocery industry, each purchase order generates a considerable amount of paper. Today, the preparation of a business paper is taking up a lot of time from businesses because there are so many documents. For example, purchase order acknowledgements, bill of lading, change notice, payment advice, and invoice adjustment are just a few to name.
PROCESS OF EDI
- Prices are agreed between the supermarket and supplier
- The agreed prices are then entered into the computers of both the supermarket and the supplier.
- When the supermarket’s stock control system decides that it needs to place a new order, it does so automatically
- The supplier receives the order and packs it for delivery. Barcodes on the boxes are used to create an electronic delivery note.
- The electronic delivery note tells the supermarket’s systems what to expect in the next delivery & when it will arrive. This will allow them to plan warehouse storage space and will let them know how much their next bill from the supplier will be for.
- When the delivery arrives, the supermarket can scan the boxes to confirm they have received the correct order
- Once the physical delivery is confirmed, the rest is done by computer.
COMPATBILITY OF EDI WITH SUPPLIERS
If the ICT system used by GO4IT Sports is used by their supplier too then that means they are compatible. E.g. using the same item numbers and barcodes
ICT systems of organisation and supplier can communicate e.g. when stock low can automatically send order to supplier. Supplier’s system can arrange delivery, sending of invoice.
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Everything that can be moved electronically is moved electronically
- Orders
- Receipts
- Bills
- Money
- The only thing that is physically moved is the product.
Risks and barriers
Security concerns with sensitive information due to the large volume of information that is sent between customers and suppliers. Competitors or others that intend to do harm can hack into the Internet and Electronic Data Interchange (EDI) shared between companies. Therefore, it is vital that this information is secure enough to ensure that only the intended recipient receives this data. Encryption can be used to circumvent security breaches.
Reasons why to implement EDI?
Many companies choose Electronic Data Interchange as a fast, inexpensive, and safe method for transferring frequently used business documents. Electronic Data Interchange is different from sending messages or sharing files through a network or a modem. The straight transfer of computer files requires that the computer applications of both the sender and the receiver agree upon the format of the document. Implementing an EDI system requires for users to agree with their partners about which messages to use, create policies and procedures for handling the data being sent. The Electronic Data Interchange is facilitated through the use of a PC-based client server technology. Electronic trading requires organizations to co-operate, agreeing that form of electronic messages and collectively committing themselves to invest in the technical and organizational adjustments necessary. In order to implement Electronic Data Interchange there needs to be an establishment of "partnership" between trading organizations. EDI implementation have a symbolic value to user firms because they begin a closer relationship demonstrating their commitment to a long-term relationship.
Zain Sheikh
Beauchamp College