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. They operate five (5) upscale retail stores in the New England market that offer a high level of customer attention, with a headquarters (HQ) is in Burlington, Massachusetts, and a single warehouse, distribution, and eCommerce fulfillment center in Haverhill, Massachusetts. Most of their products are purchased from two suppliers, Winter Gear Distributers outside of Providence, Rhode Island, and Boston Fitness Supplies in Marlboro, Massachusetts. FastFit has expanded successfully in the New England area over the past five 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, to strengthen management controls, and to enable significant growth while maintaining the high touch customer experience. A diagram of their complete non-Web based operations follows. See figure 1.

The text in red reflect the grading rubric. Note that minimum requirements imply B grade. You have to do significantly more than that to have a A/A- grade. DO NOT INCLUDE THE RED CHECKLISTS/GUIDES IN YOUR SUBMISSION!

General Question

1. Mark the main flows of goods and money in the diagram (above) and employ a key or table of descriptive elements to explain your answer.

1

Figure 1: Starting Point for a System Diagram of FastFit Business Information Flows

NOTES

A. Create your own neat diagram. Use a computer software e.g. Microsoft Word program or Visio software, for the diagram NOT pen and pencil

B. The diagram should include arrows that show direction of each flow. Avoid two edged arrows

C. Avoid the use of same numbers on different arrows. Do not use double-edged arrows. Each arrow must be labeled.

D. Use the numbers on the arrows to indicate the sequence and chronological order of flows (do not write the text of flows on arrows)

E. Include a chronological list which indicates what the numbers on the arrows mean.

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 (excluding obtaining the identity of the customer which is covered in Q3)?
b) What are three important uses of this information at the store by the store manager and by management at the headquarters– a total of six uses? (use a table) (It is important that you give different responses/uses for store manager and the HQ)

A. You want to list a minimum of Four information elements here.

B. When you are answering this question, make sure that you include different information categories, e.g. Product information and so on. Make sure that the information elements that you list cover a wide scope of categories

C. Create at least one table with several columns for part b)

D. For your response to 2b, identify the specific information elements that you want the store manager (HQ management) to use in one column of the table. Use the next column to present arguments about how a manager will use the information.

E. Do not repeat same uses/arguments for store manager and headquarters

F. Separate the table and arguments for uses by store manager from the table and uses by headquarters

G. Your responses should not merely identify simplistic uses, e.g. we can use information to track products.

a) What are some ways to obtain the identity of the customer at the POS and to associate this identity with more detailed information about the customer? b) What business actions could FastFit then take based upon this additional information?

A. Please describe a minimum of TWO ways of obtaining identifying customer info.

B. Create at least one table with two columns for part b)

C. Identify the specific information elements that you recommend in one column of the table. Use the next column to present arguments about the business actions that are possible based on additional information.

D. Describe a minimum of TWO business actions ( at least one for each way of gathering customer information that you listed)

E. Do not repeat same business actions over and over again

F. Do not focus on simplistic business uses, e.g. we can use information to send information to customer, think about how a store manager/HQ management could use the information in a sophisticated manner for decision making, planning, etc.

Assume HQ is responsible (HQ issues orders to suppliers and determines what warehouse should deliver to stores) for replenishing inventory at the stores. a) What information (elements) are needed and how are these used to decide what (the warehouse) sends to each store? b) Where do the information elements come from? (use a table to combine the responses for a and b).
c) List two reasons why we didn’t have each store decide what (replenishments) to order from the warehouse?

When a store runs low on inventory it needs to order new products. This is called replenishment. The scenario in the question assumes that the HQ has access to information about inventory levels. HQ uses this information to decide how much it orders from suppliers. HQ also instructs the warehouse how to distribute the goods to the stores.

A. You want to list a minimum of FOUR information elements here

B. The question where the information comes from requires you to identify the business entity that would provide the relevant information, e.g. supplier, store, etc.

C. Make sure that you have a sufficient explanation about how HQ would use the information elements that you listed to make a decision. Tip: Imagine that you are an HQ manager who has to make the decision. Which information elements would you need and how would you use them.

D. In answering 4 c) of the question, one way of making a strong argument is to describe different things that could go wrong if stores determined their replenishment on their own.

Supplier Questions (focus on FastFit and Supplier boxes)

5. a) Draw a system diagram that shows the key information and product flows between FastFit (HQ and Warehouse) and a supplier, including the steps for ordering and invoicing and label each flow descriptively. This diagram will have three circles. b) Compare your drawing with the diagram showing the flows that occur when a customer buys something at a (physical) store and explain why the former is more complicated.

A. Create your own neat diagram. Use a computer software e.g. Microsoft Word program or Visio, for the diagram NOT pen and pencil.

B. The diagram should include arrows that show direction of each flow. Avoid two edged arrows.

C. Include only the required circles in the diagram.

D. Avoid use of same number on different arrows. Do not use double-edged arrows. Each arrow must be labeled.

E. Use numbers on the arrows to indicate the sequence of the flows (do not write the text of flows on arrows).

F. Create a chronological list of the flows (or steps) below the diagram. These steps should explain the number on each flow means.

G. make sure that you show that you understand the difference between ordering and invoicing activity.

H. For part 5 b) of the question, create a system diagram for the customer and store scenario with labeled flows. Include the chronological list of flows/steps.

I. Include at least TWO reasons why one of the system diagrams is more complex than the other. Make your arguments as effective as you can. Do NOT merely argue this has more arrows than the other . Tie the arguments to the business process issues, e.g. efficiency.

Assume that FastFit headquarters receives and pays invoices from suppliers. a) How do they decide whether (i.e. which information elements does the HQ use) to pay and how much to pay? b) From where do they get the information to make this decision? (use a table to combine responses to a and b).

Fastfit HQ needs to pay for the replenishment that it ordered for. The scenario in the question assumes that the HQ has access to relevant information. HQ uses this information to decide whether to pay and how much to pay suppliers.

A. You want to list a minimum of Four information elements here

B. The phrase where does the information comes from requires you to identify the entity that provided the information element, e.g. supplier, store, etc.

C. Make sure that your arguments include sufficient explanation of how the information elements that you listed are used to make the decision. Tip: Imagine that you are HQ manager who has to make the decision. Which information elements would you need and how would you use them?

NB: The following questions are due later in the semester

Web/E-Commerce Questions (assume customers order on the Web)

a) Assuming that Fastfit goes ahead with its plans to have an e-commerce site, identify two physical locations, from where customers can enter their orders to the ecommerce site and b) For each of the locations that you mentioned, identify the technologies (cover the areas of software, hardware and networks) that a customer would need (at the location) to accomplish this activity? (use a table);

A. Note that the focus of 7 a) is not on technology, but on places from where customers could use the web to order things, e.g. home etc.

B. For part 7 b), the idea is to show that you know the key technology components that are needed by a customer from one of the physical locations that you listed in 7 a)

C. You need to list a minimum of TWO components for each category. Use a table to present your responses. Set the table up, such that the relationship between each component and its category is clear.

D. Briefly describe within the table, what each listed technology component does.

a) What technology components (cover the categories of software, hardware and networks) do we need at FastFit to interact with our customers on the web? (use a table) b) At what location within FastFit would you place these technology components and why? (use a table)

A. Note that the focus of Q8 is on technologies that FastFit needs to operate its e-business.

B. For part 8 a), the idea is to show that you know the key technology components that are needed by FastFit in order for it to receive and process tens of thousands of orders for customers using the web.

C. You need to list a minimum of TWO components for each category. Use a table for your responses. Set the table up, such that the relationship between components listed and the category it belongs to is clear to a reader.

D. Briefly describe in the table what each technology component does.

E. For part 8 b), you need to decide which part of Fastfit (Store; HQ or Fulfillment Center) you would place the listed technology components.

F. Make sure that you have a minimum of ONE argument for the placement decisions made (in Store, HQ or Fulfillment Center). The argument should argue why you placed the technology components in the place you did and not in one of the other two places.

9. a) What does the order fulfillment center do? b) Why is it located at the warehouse? c) List what information is needed at the warehouse to provide fulfillment services. d) What information is created or changed during the course of the eCommerce business process? (use a table to describe the business process and the information that is changed)

A. Note that the focus of 9 a) is on different activities that this center does.

B. For 9 a), describe a minimum of THREE different activities of the fulfillment center

C. For 9 a), cover wide scope of activities not merely different aspects of customer support.

D. For 9 b), provide a minimum of TWO arguments why placing a fulfillment center in the warehouse makes sense.

E. In response to 9 c), you need to cover at least THREE of the fulfillment activities that you listed in 9 a). Use a table. Set the table up, such that the relationship between each information element and the fulfillment activities is clear.

F. For 9 c), include a minimum of TWO information elements per fulfillment activity.

G. For part 9 d), imagine different scenarios, e.g. what information changes occur when a a new customer buys an item from Fastfit’s web site.

H. For part 9 d), use a table. In the first column identify the business process actions, e.g. customer creates an account or customer places and order. In the second column identify created information. In the third column, identify changed information.

a) Why would we want to take customer returns at the stores? Where else within FastFit might we process customer returns, and why? b) List what information needs to be shared with what locations to support returns in both of these scenarios (use a table).

A. Provide a minimum of TWO different arguments why, we would want returns done at a store.

B. Identify a different location where returns could be taken/done.

C. Provide a minimum of TWO different arguments about why, one would want to process returns at the new location instead of at the store.

D. Use a table for 10 b). Use different rows of a table for each of the returns scenarios. List the scenarios in the first column. Use the second column to describe information that a participant in the process shares with returns location, e.g. stores. Use a third column and fourth if needed to identify sources of information that is needed by returns location.

What are some advantages and disadvantages of taking the FastFit business unto the web? (use a table)

A. Include at least three different advantages and three different disadvantages.