Electonic Point of Sale (EPOS)

A fundamental system essential for SCM application is the Electronic Point-of-Sale (EPOS) System. EPOS is an integrated set of electronic devices and software used primarily to process sales transactions electronically. The most important purpose for using an EPOS is to scan and capture the information of products. After scanning the data, subsequent analysis of the information is carried out to facilitate decisions about product replenishment, forecasting and inventory control.

Source Marking

Source Marking refers to the numbering and barcoding of a product, using international standards, in the upstream / manufacturing stage. All trading partners throughout the supply chain can then adopt the same article number and the corresponding barcode symbol without any extra efforts and costs. This practice ensures that all supply chain processes are conducted both economically and efficiently.

Benefits:

• Improve communication between trading partners
• Track items easily throughout production and delivery
• Increase accuracy in ordering and stock taking processes
• Decrease lead times, improve ordering and receiving processes
• Facilitate "just-in-time" manufacturing

Sharing of Data

Tremendous amount of data such as product data, sales data, inventory data and promotion data is kept in the individual product databases of trading partners. The sharing of this data among trading partners is essential to operate a successful supply chain process. The data transferred across the supply chain forms the base for the processes such as Master data alignment (database synchronization), Continuous Replenishment Process (CRP) and Collaborative Planning, Forecasting and Replenishment (CPFR).

Benefits:

• Increase efficiency / improve time management
• Better planning, a result of being able to forecast the demand/ supply
• Key enabler of Computer Assisted Ordering and the effective use of sales data
• Reduce costs

Electronic Communications

Modern communication technologies have greatly increased the efficiency of the procurement and distribution processes, however, they all require manual interpretation. Today's most advanced electronic trade communications overcome this by adopting global communications standards such as EANCOM to allow an automatic, precise and accurate processing of data, thus minimizing the need for human interpretation and reducing the risk for human errors. Structured electronic communication such as EDI, using either the Value Added Network (VAN) or the Internet platform, has become the basis of all efficient SCM practices.

Benefits:

• Reduce total inventory & operation costs
• Reduce communication costs
• Reduce administration overheads
• Improve communication flows internally and with trading partners
• Facilitate "just-in-time" replenishment

Computer Assisted Ordering (CAO)

Computer Assisted Ordering (CAO) is a decision support tool used for calculating material reorder quantities based on a pre-determined inventory control policy. It is an integrated application whereby a computer automatically generates the replenishment orders.

Benefits:

• Increase the speed of the product replenishment cycle
• Decrease the likelihood of an out-of-stock occurrence
• Ability to deliver accurate information to trading partners
• Decrease the possibility of excess stock

Vendor Managed Inventory (VMI) / Continuous Replenishment Program (CRP)

The Continuous Replenishment Process (CRP) is a practice between trading partners whereby the replenishment of goods is based on actual and forecasted product demand. This concept applies to every point where a product is moved for example from raw material suppliers to manufacturers, to wholesalers / retailers and so on. Park'N Shop had adopted Vendor Managed Inventory (VMI), a form of CRP, with its manufacturer Johnson & Johnson.

Benefits:

• Reduce inventory and operating costs
• Improve forecast accuracy
• Better manage demand volatility
• Develop mutually beneficial partnerships along the supply chain

Collaborative Planning, Forecasting & Replenishment (CPFR)

Collaborative Planning, Forecasting and Replenishment is a concept that allows for combined processes across the supply chain through the use of a set of process and technology models. The CPFR initiative aims to help businesses achieve an environment for dynamic information sharing integrating both the demand and supply elements and effectively planning, forecasting and replenishing customer needs through the total supply chain.

Benefits:

• Improve communication
• Enable the collaboration of partners across the supply chain
• Improve planning, forecasting and replenishment of customer needs

Flow Through / Cross Docking

Flow Through / Cross Docking is a distribution system that eliminates all non-value adding activities such as storage in the Manufacturer, Wholesaler or Retailer distribution centres. On arrival at the distribution centres, products are delivered directly to the point of dispatch.

Benefits:

• Reduce distribution costs, storage space and stock levels
• Increase turnover, shelf-life and availability of the products
• Smooth distribution process and flow of goods
• Enable distributors to receive consolidated orders from retail outlets