this is a group assignment where my part is to talk about the
1. Distribution Strategy (200 words) and 2. Supply chain(500 words) on
· Is your Company supplying: other manufacturers, retailers, wholesalers (B2B) or direct to customers (B2C)?
· How is the revenue generated? What is fee structure? (e.g. per item, per shipment, monthly charge, annual fee or one-off price plus maintenance contract)
· Describe your supply chain in the text and show a graphical representation of the supply chain as a figure
· Explain how you the RFID technology your company will use works
· Remember that your operational plan should reflect your distribution strategy (how will the Product be available to the customer in the places they will want or need it?)
So, basically we are doing it on RFID on next plc (home section) for example; furniture, kitchen, curtains and etc.
we will have a barcode for each sections for example the sofa section,
people can come scan the barcode/tag for the sofas by using their iPhones or if they don’t have one they can use the store iPad (the store will supply them with ipad). after scanning the barcode/tag which will be on the wall of each sections, all information about the product will show. if you scan the RFID, if you scan the code number of that product all information would show up like delivery, similar products, price etc.
supply chain is : suppliers– store–customers. we are not supplying to other suppliers only supplying to the customers of next. The revenue is generated; the app would cost 1.20 pounds hopefully this will increase revenue. its a free structure market. and im also attaching the financial plan so you can put that in reference.
Financial Summary
Anticipated Sales
The company’s expectations of sales concerning the Application is £526,982 for Year 1 and these is based on the number of customers of Next Home. The price for downloading the Application is £1.20 which include 50% half price reduction on the delivery cost on the first order and 15% reduction for the rest of the deliveries. However, the people using the ipads within the store will not have any delivery cost reductions.
Turnover
According to the estimated Profit and Loss account of Year 1 the turnover is —-. The expected sales for Year 2 are estimated to increase by —- and —– approximately —– in Year 3.
Costs
Cost of the Product/Service
1. The RFID tags supplied by Core-RFID Ltd will cost £1.98 which consist of 10 packs of 50 tags, having purchased 3 quantities.
2) The RFID readers supplied by Core-RFID Ltd will cost £1,621.20 each, having purchased 4 quantities.
3) The VAT-shipping costs of RFID tags and readers is 20%.
4) The Application Cost is £67,179 which consists of many useful options for the customers to use for the delivery process as well as scanning the products,receiving necessary information.
5) The Ipad air which is supplied by Groupon will cost £150, having purchased 10 quantities. There will be no shipping costs.
6)
Other Costs
The warehouse annual charge is £20,000 in which the products due for delivery of Next Home are held in. The Year 1 employee costs are based on full-time employees working 50 hours per week, 10 hours per day and 48 employees which are Sales assistants within the checkout line of the 8 stores will be diminished, thus leading to employee cost reductions of £16,080.
Finance costs
8 stores each 20 tags cost/unit
price charge per 50 tags £0.55
Total capacity 160 tags £1.76
RFID readers quantity:4 (each £1,470) £5,880
Application
10 iPADs £160 each £1600
Developing the app £30,000
Estimated profit and loss yr 1
Sales (439,152customers*£1.20app cost+1,540,600sales made 2015) 2,067,582
Cost of sales
opening stock 0
app cost 67,179
Ipad air costs(8*10*160) 12,800
RFID tags 1,76
RFID readers(8*4*1,470) 47,040 (127,021)
Gross profit 1,940,561
less expenses
warehouse 20,000
employees
3085 (8)store employees each 6 sales assistant(checkout line)
get a salary of £6.70 per hour?
insurance
delivery cost
light and heat
telephone
rates
adv
total expenses
net profit
http://howmuchtomakeanapp.com/estimates/results
http://www.rfidshop.com/atid-at870-hand-held-uhf-rfid-reader-421-p.asp
http://www.gmb.org.uk/newsroom/next-should-pay-living-wage
https://www.glassdoor.co.uk/Salary/Next-Retail-Salaries-E7749.htm
http://www.nextplc.co.uk/~/media/Files/N/Next-PLC-V2/documents/reports-and-presentations/2014/next-annual-report-2015-final-web.pdf
https://www.groupon.co.uk/deals/gg-gold-box-deals-1/confirmation?pledge_id=44861558
Year 1
Breakeven in units= Fixed CsotsSelling price-Variable cost
=FC£1.20-
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