Sandro: Final Presentation

Sandro Final Presentation on Prezi

Sandro & Supply Chain Management

SCM (Supply Chain Management) is the most important component to e-commerce as it affects so many variables: CPFR, VMI, CRM, JIT, brand awareness, behavior, attitude, segmenting, targeting, and positioning. It ensures that merchandise arrives to the customer as efficiently as possible, and that inventory levels are balanced to keep stocking-costs down. With current technologies, SCM is accomplished via the Internet.

The goal of CPFR (Collaborative Planning, Forecasting, and Replenishment) is to set a guideline so that each of the employees in the manufacturing process understand the order in which tasks must be completed. It emphasizes the role in planning in successful retail selling. As seen above, the manufacturer (Sandro) is comprised of more than just a factory manufacturing the garments; employees of Sandro are also responsible for logistics, market data analysis, and production planning, among other jobs. It is important to note that in most companies, all of these tasks are not completed under one roof, which is why communication is so imperative to completion of manufacturing of merchandise. CPFR aims to support and assist each of these employees with their tasks, while also making it easy for them to communicate with the interior circle next to them: those employees who are charged with sales forecasting, order planning, and fulfilling orders, among other tasks. All of this planning eventually leads to the customer who is perfectly serviced because the merchandise she wanted is in the store at the right time, at the right price, in her size.

VMI (Vendor-managed Inventory) is the most pertinent to Sandro, as its goal is to create a symbiotic relationship between supplier and retailer. The supplier receives purchase orders from the retailer, who agrees to maintain a certain amount of inventory from the supplier. When inventory levels fall below a certain point, the supplier is notified and a replenishment order is shipped to the retailer. Because the two have a symbiotic relationship, employees of Sandro working in the store have a relationship with those working in the supplying office; each works for Sandro. This ensures that all Sandro employees are knowledgeable about the brand. However, an issue with this method of selling is that both parties run the risk of inventory not selling and being stuck with the inventory.

CRM (Customer Relationship Management) involves the use of technology to effectively organize, and simplify business processes; especially those in sales, marketing, and service. As with every initiative, the goal is to improve the amount of customers gained through sales, marketing, and service, retaining current clients, and ensuring that they come back to purchase again.

Sandro does not do enough to retain their current customer base now, let alone acquiring new customers. The website has acquired a great number of email addresses, yet has never sent an email about favorited items on sale, new merchandise, or a new lookbook.

Sandro needs to use their resources to segment and target their consumer base. By segmenting their target market, Sandro has a more clear focus of what the needs of their market are, and which products they will need going forward. For example, if their market is recent college graduates, Sandro can be their go-to for career development clothing with their classic skirts and silk blouses. More so than segmenting the market, Sandro needs to use all of the information that they have gathered to understand how to market to them effectively.

Also, as mentioned earlier, they do a poor job of utilizing behavior analytics to determine the wants of the customer. To improve this, Sandro needs to be more involved in social media by holding contests to gauge which products their client base is attracted to, and to pair with bloggers who have a great influence and can generate brand awareness. Depending on the blogger used, the blogger can help to solidify brand image in the eyes of the consumer. There is a girl wearing the clothes, giving the clothing a personality and a voice. See the evolution of CRM to SCRM (Social Customer Relationship Management) below.

(JIT) Just-in-Time Business

JIT (Just-in-Time [Business]) relies on certain signals or markers in order to communicate about production of merchandise. For example, there are triggers which signify when it is time to re-order merchandise (an empty shelf, or when inventory falls below a certain number in a product). Sandro does not have to worry about this so much because their inventory is relatively consistent throughout the season. The brand is too new and moves so little inventory in the United States to warrant having a JIT business.