Description of FastFit's Operations
FastFit sporting goods is a successful New England regional supplier of sporting goods to the high end consumer market. They sell an exclusive selection of equipment and apparel to men and women who exercise and pursue outdoor activities on a regular basis. Their store employees are very knowledgeable and maintain a relationship with their customers. They operate in 5 upscale retail stores in the New England market, their headquarters (HQ) are in Burlington MA and they have a warehouse in Haverhill. Most of their products are purchased from two suppliers, Winter Gear Distributers outside Providence and Boston Fitness Supplies in Marlboro. FastFit has expanded successfully in the New England area over the past 5 years, however to expand nationally as a major retailer they need to improve the scalability of their operations (stores and warehouses). A key part of their strategy is to leverage information systems to automate and improve operations.
A diagram of their complete non-web based operations (called the complete diagram) follows:
The incomplete system diagram below may be used to answer the following questions. Take as many pages as you need, the page limits in the syllabus do not apply. The questions should be answered using your common sense and knowledge of retail because we have all bought things at a store. When you add arrows to the diagram below label each arrow. You may draw the diagrams by hand but use ink.
General Questions
1. Mark the main flows of goods and $ in the diagram with labeled arrows and explain. No less than 6 arrows and no more than 9 should be shown.
Customer Questions (focus on the customers and FastFit circles)
- a) List the specific items of information that are usually gathered at the POS (Point of Sale terminal or cash register) and recorded when a customer checks out (assume we do not know nor do we ask for any customer information)? b) Then list and briefly explain three important uses of this information at the store by the store manager and three at headquarters mentioning the specific information used (6 total uses some using two or more items of information)?
- Assume HQ is responsible for replenishing inventory at the stores. a) List what information is needed and how the decision is made. b) List where the information needed comes from (which circle). c) List the reasons why we didn't have each store decide what to order from the warehouse?
Supplier Questions (focus on FastFit and Supplier circles)
- a) Draw a system diagram that show the key flows between FastFit (HQ and Warehouse) and a supplier (HQ and Warehouse) including orders, supplier order confirmation and invoices and other flows that are important. The diagram will have 4 circles and at least 7 arrows but no more than 9. b) List the reasons the buying/selling process between FastFit and the supplier is more complicated than between FastFit and the Customer?
- Assume headquarters receives and pays invoices from suppliers using 30 days net terms. a) List the information needed and how it is used to decide if the supplier should be paid. b) List which circle(s) the information needed to make this decision comes from.
Web/E-Commerce Questions (assume customers can order on the Web)
a) Where can customers now do their shopping with FastFit? b) List the technologies required on the users client to do this?
- a) List the technology components needed at FastFit to support e-commerce with customers on the web? b) At what physical location would you place most of these technology components and list the reason(s) why?
8. a) What does the order fulfillment center do and why is it located at the warehouse? b) List what information is needed at the warehouse to do this and briefly explain how it is used. c) List what information is created or changed?
- a) Why would we want to take online customer returns at the stores? b) List what information needs to be shared with the store and list what information is created or changed?