Blockbuster stores are constantly receiving boxes with product for sale. Distribution center sends a report to each store via email to let them know how much product they will be receiving so that the manager will know how much room they will have to make to accommodate for the new movies. This list called the open ASN report also lists what new games and sell-thru merchandise the store will be getting. This helps the manager to see what kind of new merchandise the store will be receiving and where this product can be displayed to help sell better. Blockbuster is not only a rental store anymore they are now trying to target a broader region of people, they don’t want to be thought of as a place you go just to rent they want people to also make purchases. They have started to introduce new products in the stores not only movies and games, they now have ipod accessories, flip camcorders, and soon they will be selling video game hardware systems.
Blockbusters products come to the stores in this order; products ship from the suppliers to the Blockbuster Distribution Center, once it is there rental product is transferred into Blockbuster rental cases and then labeled with each stores specific code. Then the product is boxed up and put on the trucks to be sent out the all the stores around the country. They also keep track of these boxes with an ASN number which is like a UPS tracking id so that Blockbuster knows where there product is at all time. These ASN numbers get tracked in a computer system and then sent to the stores so they know what product they are getting, These ASN numbers also keep track of not only the boxes but also what product is in the box and how many of it should be in there, this helps to control inventory because managers can see how much of something they are getting and report any missing product to the Distribution Center. Once the product leaves the Distribution Center it is shipped to the stores most stores will receive the product on either Tuesday or Wednesday depending on their region. Then once the product arrives at the stores the product is then received into the stores inventory.
When it comes to ensuring that Blockbuster stores get their product on time they have nailed it. Every store receives their intended products on their scheduled delivery date. Sometimes there is a mix up and product arrives a week late but that doesn’t happen to often. The Distribution Center works hard to try and prevent that from happening, they have made many improvements in making sure everything arrives on time. If they have forgotten to ship something with the Tuesday shipment they send it out later in the week to ensure that it arrives there as soon as possible, as long as the product gets there before Tuesday of the following week they are fine. Blockbuster also has its online service that they pride on there ability to delivery movies to customers in 1-2 business days. Usually they are really good with making sure that movies are sent to the Online customers in a timely fashion and they do receive there movies on time, but as with anything sometimes movies received to the customers come later then expected.
Quality is measured by customer complaints on the product. This is also true with the online program, if customers don’t receive the movies on time or the movies are damaged they can go online and file a complaint with the online program. Blockbuster will do anything that they have to ensure that they customers issue is resolve and that the customer is always happy.
Blockbusters replenishment time on there sell-thru products is very fast. Since their computer systems keep track of all the inventory numbers the company always knows what is being sold and how quickly. If a new movie comes out and it sells out the first day that store will have a shipment to replenish that movie in about 3-4 days. With their candy products stores receive shipments to replenish any sold candy once every week to ensure that they never sell out of a specific candy. The candy inventory isn’t run so well though, you do run out of product a lot because there is an inventory issue in the computer. When stores receive the candy many times they don’t do it properly, managers must ensure that the right barcode number is listed for the candy. Many times when employees scan in a candy for sale it will say no product in inventory, instead of telling managers to fix it they just let it go. Since that issue is never fixed in most stores inventory numbers get messed up and stores wind up stocking out of something because the computer says they have plenty in stock but in actuality they have none.
Blockbuster uses innovative supply chain management this helps them to ensure that they don’t run out of product. Blockbuster is constantly replenishing stores when they sell something, their computer systems keep track of what is being sold and make sure that the store is receiving more of that product that same week. This helps Blockbuster to continue making money because they have the product in stock. Blockbuster could benefit from making some infrastructure changes; a lot of Blockbusters loses come from inventory. Most stores have high shrink which means that their inventory numbers are very off, this means that the computer systems says they have 10 items in inventory when they only have 6. This happens a lot and it costs the company a lot of money.
They have introduced inventory teams to come to the stores to perform inventory because they believed that the issue was that product wasn’t being scanned properly when store associates where performing the quarterly inventories. This helped with some of the numbers but not really, the issue is with how stores receive, they don’t really train new management how to properly receive the product and this causes a lot of the issues. When receiving movies and video games there is only one way to receive it, by scanning the ASN barcode, this brings the product into the inventory system. If someone tries to receive the product again the computer won’t allow them to because the box has already been received so that doesn’t cause any inventory issues. What causes most of the inventory issues is the candy and soda inventory numbers, when receiving them you have to make sure you type in everything properly, unlike the product received from Distribution there isn’t a barcode that you scan. Sometimes after the candy and soda has been received the manager will just leave the slip upfront and not tell anyone that it has been taken care of, so the next manager comes on for his/her shift and sees the slip and receives the product again. Sometimes managers will also see the slip and not know if the product has been received or not so they don’t receive it and the product never gets added into inventory and then the following week you get a shipment of the same products and now you have to much in inventory and nowhere to put it. Blockbuster should find a way to make is so the candy and soda can only be received once, this can help in cutting inventory costs.
Blockbusters products come to the stores in this order; products ship from the suppliers to the Blockbuster Distribution Center, once it is there rental product is transferred into Blockbuster rental cases and then labeled with each stores specific code. Then the product is boxed up and put on the trucks to be sent out the all the stores around the country. They also keep track of these boxes with an ASN number which is like a UPS tracking id so that Blockbuster knows where there product is at all time. These ASN numbers get tracked in a computer system and then sent to the stores so they know what product they are getting, These ASN numbers also keep track of not only the boxes but also what product is in the box and how many of it should be in there, this helps to control inventory because managers can see how much of something they are getting and report any missing product to the Distribution Center. Once the product leaves the Distribution Center it is shipped to the stores most stores will receive the product on either Tuesday or Wednesday depending on their region. Then once the product arrives at the stores the product is then received into the stores inventory.
When it comes to ensuring that Blockbuster stores get their product on time they have nailed it. Every store receives their intended products on their scheduled delivery date. Sometimes there is a mix up and product arrives a week late but that doesn’t happen to often. The Distribution Center works hard to try and prevent that from happening, they have made many improvements in making sure everything arrives on time. If they have forgotten to ship something with the Tuesday shipment they send it out later in the week to ensure that it arrives there as soon as possible, as long as the product gets there before Tuesday of the following week they are fine. Blockbuster also has its online service that they pride on there ability to delivery movies to customers in 1-2 business days. Usually they are really good with making sure that movies are sent to the Online customers in a timely fashion and they do receive there movies on time, but as with anything sometimes movies received to the customers come later then expected.Quality is measured by customer complaints on the product. This is also true with the online program, if customers don’t receive the movies on time or the movies are damaged they can go online and file a complaint with the online program. Blockbuster will do anything that they have to ensure that they customers issue is resolve and that the customer is always happy.
Blockbusters replenishment time on there sell-thru products is very fast. Since their computer systems keep track of all the inventory numbers the company always knows what is being sold and how quickly. If a new movie comes out and it sells out the first day that store will have a shipment to replenish that movie in about 3-4 days. With their candy products stores receive shipments to replenish any sold candy once every week to ensure that they never sell out of a specific candy. The candy inventory isn’t run so well though, you do run out of product a lot because there is an inventory issue in the computer. When stores receive the candy many times they don’t do it properly, managers must ensure that the right barcode number is listed for the candy. Many times when employees scan in a candy for sale it will say no product in inventory, instead of telling managers to fix it they just let it go. Since that issue is never fixed in most stores inventory numbers get messed up and stores wind up stocking out of something because the computer says they have plenty in stock but in actuality they have none.Blockbuster uses innovative supply chain management this helps them to ensure that they don’t run out of product. Blockbuster is constantly replenishing stores when they sell something, their computer systems keep track of what is being sold and make sure that the store is receiving more of that product that same week. This helps Blockbuster to continue making money because they have the product in stock. Blockbuster could benefit from making some infrastructure changes; a lot of Blockbusters loses come from inventory. Most stores have high shrink which means that their inventory numbers are very off, this means that the computer systems says they have 10 items in inventory when they only have 6. This happens a lot and it costs the company a lot of money.
They have introduced inventory teams to come to the stores to perform inventory because they believed that the issue was that product wasn’t being scanned properly when store associates where performing the quarterly inventories. This helped with some of the numbers but not really, the issue is with how stores receive, they don’t really train new management how to properly receive the product and this causes a lot of the issues. When receiving movies and video games there is only one way to receive it, by scanning the ASN barcode, this brings the product into the inventory system. If someone tries to receive the product again the computer won’t allow them to because the box has already been received so that doesn’t cause any inventory issues. What causes most of the inventory issues is the candy and soda inventory numbers, when receiving them you have to make sure you type in everything properly, unlike the product received from Distribution there isn’t a barcode that you scan. Sometimes after the candy and soda has been received the manager will just leave the slip upfront and not tell anyone that it has been taken care of, so the next manager comes on for his/her shift and sees the slip and receives the product again. Sometimes managers will also see the slip and not know if the product has been received or not so they don’t receive it and the product never gets added into inventory and then the following week you get a shipment of the same products and now you have to much in inventory and nowhere to put it. Blockbuster should find a way to make is so the candy and soda can only be received once, this can help in cutting inventory costs.
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