Best practices in Supply Chain examinations for electronic retailers

1. Electronics and Appliance Industry
Industry Overview
AGENDA
Electronics &
Recent Developments
Appliance Industry
Data Analysis
Performance Metrics
Best Practices
 hhgregg
 Best Buy Co Inc
 Gamestop Corp
Top Companies
Conclusion
Thursday, April 23, 2009 Team 19 – Supply Chain Company Analysis 1

2. Data Analysis
20%
0%
ROA
-20%
AGENDA -40% 2006
2007
Electronics & -60%
Appliance Industry
-80%
Data Analysis -100%
-120%
Best Practices
 hhgregg
 Best Buy Co Inc 70
 Gamestop Corp 60
50
Gross Margin
40
Conclusion 30
20
10
2006
0
2007
Thursday, April 23, 2009 Team 19 – Supply Chain Company Analysis 2

3. Data Analysis
50
45
40
35
30
Inventory Turnover
25
20
15
AGENDA 10
5 2006
0
2007
Electronics &
Appliance Industry
Data Analysis
Best Practices
 hhgregg 250
 Best Buy Co Inc 200
 Gamestop Corp 150
Cash to Cash
100
Conclusion
50
2006
0
2007
-50
-100
Thursday, April 23, 2009 Team 19 – Supply Chain Company Analysis 3

4. AGENDA
Electronics &
Appliance Industry
Data Analysis
Best Practices
 hhgregg
 Best Buy Co Inc
 Gamestop Corp
Conclusion
Thursday, April 23, 2009 Team 19 – Supply Chain Company Analysis 4

5. Best Practices of hhgregg
Information Technology
AGENDA
Electronics &
Distribution and Warehousing
Appliance Industry
Data Analysis
Customer Service and Inventory
Best Practices
 hhgregg
 Best Buy Co Inc
 Gamestop Corp
Suppliers: Strength/Weakness
Conclusion
Thursday, April 23, 2009 Team 19 – Supply Chain Company Analysis 5

6. Best Practices of hhgregg
Information Technology
New system for demand management and forecasting
AGENDA  New inventory and supply chain management software
Electronics &
 WAN linking stores and DC to corporate offices
Appliance Industry
 Real time polling of sales
Data Analysis  Stock movement
 Order Filling
Best Practices
 hhgregg
 Best Buy Co Inc Distribution and Warehousing
 Gamestop Corp
Manuf Manuf Manuf Manuf
Conclusion
-1 -2 -3 -4
Optimize Inventory
Optimize Turnover
CDC - 1 CDC - 2
Optimize delivery efficiency
RDC - RDC - RDC - RDC - RDC - RDC - RDC - RDC - RDC -
1 2 3 4 5 6 7 8 9
Thursday, April 23, 2009 Team 19 – Supply Chain Company Analysis 6

7. Best Practices of hhgregg
Customer Service
 Offers same-day delivery for virtually all products
AGENDA
Inventory
Electronics &
Appliance Industry
 Local supply of inventory supports same-day delivery
Data Analysis
 Order Inventory through issuance of individual purchase orders
Best Practices
 hhgregg
 Distribution structure supports inventory strategy
 Best Buy Co Inc
 Gamestop Corp
Suppliers: Strength/Weakness
Conclusion
 GE, JVC, LG, Panasonic, Samsung, Sharp, Sony, Toshiba
 No contractual assurance of continued supply
 Top 10 suppliers represent 80.3 % of business
Thursday, April 23, 2009 Team 19 – Supply Chain Company Analysis 7

8. Best Practices of Best Buy
IT System Advantages
Right number of distribution centers
AGENDA
Right locations for distribution centers
Electronics &
Greater visibility with suppliers
Appliance Industry
Big savings
Flexibility
Data Analysis
Best Practices
 hhgregg
 Best Buy Co Inc
 Gamestop Corp
Customer Centricity
Conclusion
 Matching right products to customers by store
Right products
Right stores
Right times
 More than 25% of Best Buy stores
Thursday, April 23, 2009 Team 19 – Supply Chain Company Analysis 8

9. Best Practices of GameStop
AGENDA
Electronics &
Appliance Industry
Data Analysis
Best Practices
 hhgregg
 Best Buy Co Inc
 GameStop Corp
Conclusion
Wednesday, November 12, 2008 Team 19 – Best Company Practices 9

10. Best Practices of GameStop
Short Shelf Life
AGENDA
Electronics &
Difficult Forecasting
Appliance Industry
Data Analysis
Seasonality
Best Practices
 hhgregg
 Best Buy Co Inc
 GameStop Corp
Used Inventory
Conclusion
Wednesday, November 12, 2008 Team 19 – Best Company Practices 10

11. Best Practices of GameStop
Warehouses Suppliers
Offices
AGENDA
HQ
Electronics &
Appliance Industry
Data Analysis
Best Practices Stores
Used
 hhgregg
Product
 Best Buy Co Inc
 GameStop Corp
Conclusion
3rd Party DCs
Information:
Product:
Wednesday, November 12, 2008 Team 19 – Best Company Practices 11

12. Best Practices of GameStop
Systems Designed to Grow
AGENDA
Electronics &
Appliance Industry
Superior Communication
Data Analysis
Best Practices
 hhgregg
 Best Buy Co Inc
 GameStop Corp
Flexible Resources
Conclusion
Wednesday, November 12, 2008 Team 19 – Best Company Practices 12

13. Conclusion
Flexibility
AGENDA
Electronics &
Appliance Industry
Competitive Industry
Data Analysis
Best Practices
 hhgregg
 Best Buy Co Inc
 Gamestop Corp
Circuit City – efficiency
Conclusion
Thursday, April 23, 2009 Team 19 – Supply Chain Company Analysis 13