Mis Musco Food Uses It to Improve Sales and Operations

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Musco Food Uses IT to Improve Sales and Operations 1. Identify the real-time activities.  Inventory availability.  Information about special offers, pricing changes, promotion, etc.  Customers´ accounts receivable balance 2. How is customer service improved? Now customers get exactly what they want, as inputting errors are eliminated. Also now customers have full information about price changes, special offers, promotions. Another important point is that now salesman has full information about inventory availability, so if customer ordered something, he can be sure that it is available and he will get it. 3. Which functional information systems need to be integrated to support the new system?  Transaction processing information system  Managing production/operations and logistics  Managing marketing and sales system 4. Which types of errors were eliminated?  Inputting errors  Errors, occurred when salesman forgot something while walking to his cart. BEFORE Print out sales binders. There are approximately 20 sales binders printed per month. Annual cost: $1,800. DAY ONE: Each salesman visits an average of five customers a day. Salesmen record order data on paper. Average order: $2,000. Salesmen either call in the orders between customer visits, or call or fax in all orders at the end of the day to a customer service rep. Time: 90 minutes a day. DAY TWO: Orders are processed and prepared for shipping. Deliverymen deliver orders—which may include incorrect items. DAY THREE: Returned inventory is processed, and the corrected order is sent out. AFTER Salesmen carry a smart phone, which can display product images and order entry forms. One-time cost for eight phones: $3,000. Product/catalog order entry software*: $10,000 to $25,000. DAY ONE: Each salesman visits at least six customers a day, or 30 a week. Average order: $2,000. Salesman

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