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IMPLEMENTATION OF AUTOMATED PRICING SYSYTEM

INTRODUCTION
Inception : 1911

Headquarters : Benton Harbour, Michigan, USA CEO Employees Net income Revenue Products : Jeff.M.Fettig : 73000 : $433 million (USD)- 2006 :$ 18.08 billion (USD) 2006 : Refrigerators, air conditioners, microwave ovens, washing machines, hand blenders,freezers,mixers etc.

MANUFACTURING HUBS

SWEDEN DENMARK GERMANY POLAND FRANCE AUSTRIA ITALY CHINA HONKONG INDIA SINGAPORE

MICHIGAN
UNITED STATES OF AMERICA

BRAZIL

MEXICOC

11 MAJOR BRANDS
WHIRLPOOL MAYTAG KITCHEN AID JENN AIR AMANA ROOPER ESTATE INGLIS BAUKNECHT BRASTEMP GLADIATOR GARAGE WORKS

LIVE CASE STUDY


Whirlpool had introduced the 'six sense' technology refrigerator ranging from Rs 10,600 to Rs 14750. At the same time LG introduced a refrigerator to target the rural population and middle aged women,price ranging from Rs 5000 to Rs 12000. Hence whirlpool had to decrease their cost margins overnight to withhold their customers and to be competitive.It took weeks for whirlpool to adjust their pricing because they did not have a centralized pricing database. By that time LG had captured 10 per cent of the rural and semi-urban markets.

PROCESS DURING QUATERLY PRICI


CALCULATING NEW PRICE

REVIEWING PRICE

PRINTING THE LIST

REVIEWING THE PRICE AGAIN

FEEDING INTO MAINFRAME COMPUTER

MAIL OR FAX NEW PRICE LIST

FAULTS IN THE EXISTING SYSTEM

Cumbersome pricing system. Slow communication. Error prone. Extra paper work. Dissatisfied customers. (ranging from mega retailers to little stores.)

IMPLEMENTATION OF AUTOMATED PRICING SYSTEM


Application of a powerful ERP package called SAP. Centralized data pool which can be accessed both by the manufacturer and the retailer. Consolidation of the order entry systems and the pricing system.

IMPLEMENTING AUTOMATED PRICIN SYSTEMS


PRICING OMS WARE HOUSE
DATA AGGREGATION

FORMATTING

RETAILER 1 RETAILER 2 RETAILER 3

DATA REVIEW

ORDER MANAGEMENT

PURCHASE ORDER

REPORTING

SHIP NOTICE AND INVOICE


WARE HOUSE LABEL AND RFID

BAR CODE AND RFID

ITEM SHIPMENT

RESULT AFTER IMPLEMENTING SYST


Quick updating Streamline work process Centralized pricing database Reduce cycle time Increase productivity Reduce costs A step to global success. In quarterly pricing, every three months the list for prices were printed and sent to the traders where as by implementing SAP, the ERP calculates the demand and material prices and adjusts the prices constantly.

DISCUSSION QUESTIONS
and become more competitive?

Q1. How are companies using I.T to improve services,lower costs Ans.
Building brand equity. Customer loyalty. Unique marketing strategy. Improve inventory management. Enable accurate execution of orders. Enhances supply chain management. Enhances pricing and promotion strategy.

DISCUSSION QUESTIONS
Q2. What are the components associated with a successful
information system? PEOPLE EQUIPMENT PROCEDURE

Ans.

SYSTEM ANALYST PROGRAMMER

HARDWARE AND SOFTWARE

BACKUP, PATCHING SOFTWARE

DATA

RAW FACTS

MR. ESAT SEAZER ( CIO )

WHIRLPOOL CORPOR

By leveraging SAP Net Weaver, we have overhauled our IT infrastructure to provide more functionality and capabilities, and, incredibly, weve done it with no additional cost to the company. Esat Sezer Corporate Vice President & CIO Whirlpool Corporation

WHAT DID WE LEARN?

BIBLIOGRAPHY

www.google.com www.hindutimes.com www.whirlpool.com I.T for Managers: Ralph Stair and George Reynolds

THANK YOU
BY
FATEMEH. HANIKA. MEGHALA. NEHA. PRIYADARSHINI.