KMART

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K-MART

• The Impact of Information Technology in the
  Inventory division

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A Look at Kmarts Inventory
Over the years, Kmart has struggled with its
inventory management techniques. But since its
awareness of this poor inventory managing, it has
tried to reconfigure its inventory by
implementing new technological advances. Kmart
is the second largest retailer in the nation,
therefore, they must develop efficient ways to
solve their inventory problems in order to keep
up with the competition.
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Information Technology and Kmart
Inventory
Past
Present
Future
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Past
Inventory control was problematic
- Often running out of stock in popular items
Poor inventory management leads to constant empty
shelves
Inefficient Supply Chain - Merchandise planners
didnt receive appropriate information on what
what was selling at Kmart, therefore, Kmart was
left with too many unwanted items on shelves.
Inventory paperwork was extensive
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Present
210 Million spent on improvements for
installation of new sorting equipment machine and
on distribution centers
Blue Dot Program - Measure in stock position on
shelf. When item is missing, associate scans
the shelf label and the scanner indicates whether
the product is in the backroom or on order.
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Present Cont
Kmart began a 2 billion technological upgrade
for its legacy inventory management system
-gives BlueLight customers real-time access to
Kmarts inventory information
Replenishment reports available for each store,
department, and category - Helps Kmart stores an
d associates spot trouble areas so quick action
can be taken to improve product flow.
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Future Plans
New operating software to be implemented across
Kmarts supply chain.
Integrate in-store wireless and mobile computing
solutions in all 2100 stores.
Touchscreens for customer usage in stores and for
associates
New scanners and computer upgrades