NRF Business Process Models

Retail Business

Retail is the process of selling consumer goods and/or services to customers through multiple channels of distribution to earn a profit. Demand is created through diverse target markets and promotional tactics, satisfying consumers' wants and needs through a lean supply chain.

Types of Products Food products — typically require cold storage facilities. Hard goods or durable goods ("hardline retailers") — automobiles, appliances,

electronics, furniture, sporting goods, lumber, etc., and parts for them. Goods that do not quickly wear out and provide utility over time.

Soft goods or consumables — clothing, other fabrics, footwear, cosmetics, medicines and stationery. Goods that are consumed after one use or have a limited period (typically under three years) in which you may use them.

Arts — Contemporary art galleries, Bookstores, Handicrafts, Musical instruments, Gift shops, and supplies for them.

Retail Introduction

Types of Marketing Strategy Department store Discount store Warehouse store Variety store Specialty store Hypermarket Supermarket

Retail Introduction

Business Process Models (BPM) are about how a retailer chooses to do business, and the models are a tool that can help you identify strengths and weaknesses in how you manage your business and your strategy.

Business processes commonly used to operate in retail.

Serve Customers Operate Channels & Shopping Experience Market Goods/Services Manage Merchandising Manage Supply Chain Source Goods/Services Support Enterprise

Business Process Models

Serve Customers

Manage Sales

Manage Orders

Provide Customer Care

Manage Sale POS (Point of Sales) Mobile (Order on Web, Pickup via courier) Buy on web (Order on Web) , Pick up on store Service(Customer Progress Reporting)

Manage Orders Store Fulfillment (Fulfilling a customer order placed in another channel) Manage Self service Orders (In-store Pickup) Manage Gift / Wish list Orders Full Service Orders (Walk-in Customers) Analyze Orders (Customer Order Progress) Payment Status Track

Serve Customers

Customer Care Manage Return and Exchanges

Returns & Exchanges for Listed Products Returns & Exchanges for Unknown Products

Customer Satisfaction Survey (Subcontractor / Sales Associate) Comment card Digital Survey

Propose Individualized Offers (Digital Channels / Sales Associate) Promotions or personalized product recommendations Warranty/Service Agreement/Extended Warranty Installation Services Complimentary Items Loyalty Promotion

Serve Customers

Provide Customer Care Manage Service Issues

Inside the transaction Issues during order / sale

Manage Customer Concerns Outside the transaction Digital / Verbal

Process Warranty / Non- Warranty Service in-store Call center Website Claim form (Warranty) Service Request form (Non-Warranty)

Serve Customers

Operate Channels & Shopping Experience

Manage Merchandising Plans

Manage Channel Selling Environment

Manage Channel Personnel

Manage Channel Banking and Cash

Office

Activities of stock and present items for sales. Execute Merchandising Plan

Common to all channels Execute product pricing (From head office to all stores) Execute Product Presentation (Multi media marketing) Execute Product Allocation (Assortment and Inventory Plan)

Physical Store Execute planogram Execute Vendor Planogram Execute Signage (Shelf Tags, Price, Promotional labels etc.,) Manufacture Goods For Sale

Operate Channels & Shopping Experience

Maintain Channel Infrastructure Manage and Monitor systems (IT)

POS Monitor Store Systems Channel Base Support Manage Selling Environment Loss Prevention

Manage Channel Personnel Recruit, Hire, and Manage Succession Time and Attendance Train Staff Terminate Staff Manage Channel compensation Manage Employee Relations

Operate Channels & Shopping Experience

Manage Channel banking and Cash office Manage store banking

Manage Petty cash (Paid Out Receipts; Paid In Receipts) Exchange cash denominations Manage Banking (Store settle report, Till settle report)

Manage Store Safe Settle safe Manage Floor Safe Manage Till Pickup and Safe Drops

Manage Tills Manage Till Settle Manage Till Repository

Operate Channels & Shopping Experience

Market Goods & Services

Track & Analyze

Message & Communicate

Develop Customer Loyalty

Track and Analyze Profile Customers / Shoppers

Segment Customers (Customer purchase history, surveys, focus groups) Analyze Customer Portfolio

Asses customer satisfaction Study Market/Competitors Analyze Marketing Effectiveness (Marketing Campaigns) Manage customer master data

Market Goods & Services

Message and Communicate Develop Retailer Brand Strategy Develop Marketing Strategy Define Programs and Campaigns Define Customer Communications Parameters Execute Campaigns

Plan Advertising Execute Advertising Plan

Market Goods & Services

Develop Customer Loyalty Marketing

Develop Customer Loyalty Strategy

Operations Manage Gift Registry Manage Gift Cards / Certificates / Vouchers Award Loyalty Evaluate Customer Loyalty Program Performance

Customers Register for Loyalty account Register for Loyalty program Redeem Loyalty

Market Goods & Services

Merchandising

Plan Merchandising

Manage Pricing

Plan Presentation of Merchandise & Services

Plan Goods and Services (Plan Merchandising) Marketing

Develop Merchandise Strategic Plan Create Channel Plan Manage In-Season Channel Plan

Merchandising Create Assortment Plan Create Key Item Plan Determine End-of-Life Disposition

Finance Create Demand Forecasts (Use analytics to better sense, shape, and respond to demand). Create Pre-Season Merchandise Financial Plan Manage Merchandise Financial Plan In-Season

Merchandising

Manage Pricing Merchandising & Finance

Manage Regular Pricing Manage Promotional Pricing Manage Markdowns / Markups

Plan Presentation of Merchandise & Services Create Macro Space Plan Create Planogram / Floor Set Create Online and Print Presentation Assess Visual Merchandising

Merchandising

Supply Chain

Manage Inventory

Manage Transportation

Manage Warehousing

Manage Inventory Head office

Develop Inventory Stock point & Distribution Strategy Analyze Inventory Movement & Control Manage Allocations Manage Inventory Adjustments Manage Returns Manage Vendor Recalls Manage DC Transfers Manage Out of Season Goods Manage Replenishment

Supply Chain

Manage Inventory Physical Store

Manage In-Store Receiving Receive Goods from Suppliers Receive Goods from another branch or warehouse Receive Vendor Managed Inventory

Execute In-Store Stock Count Execute Product Counts

Execute Store-to-Store Inventory Transfers Manage Non-Sellable Items Manufacture Goods For Sale Execute Stocking Product Protection Loss Prevention Manage Inventory Replenishment

Supply Chain

Manage Transportation Plan Distribution & Transportation Network Plan Warehouse Labor Manage Imports & Exports Manage Route Planning and Scheduling Manage Inbound Transportation Manage Reverse Logistics (Customer to Supplier / Distributor) Manage Fleet Manage 3PL Services

Supply Chain

Manage Warehousing DC / Store Room

Design Warehouse Process Plan Distribution Nodes Manage Warehouse Operations Manage Picking & Packing Manage Put-away Manage Labor Scheduling Manage Receiving Execute Product Counts Manage Inventory Replenishment Manage Inbound Processing Execute Cycle Counts Manage Shipping Manage Material Handling Controls & Analysis Manage Quality Assurance Execute Returns to Vendors Cross Docking Order Fulfillment

Supply Chain

Source Goods/Services

Develop Goods / Services

Purchase Goods / Services

Manage Vendors & Deals

Develop Goods and Services Create/Update Item and Service Master Data Design Product Concepts Develop Design Specs Develop Sourcing Strategy Manage Product and Service Sourcing

Purchase Goods and Services Create/Update Item and Service Master Data Determine, Manage Open to Buy Create Purchase Orders Negotiate Pricing, Delivery Manage Production

Source Goods/Services

Manage Vendors and Deals Merchandising and Finance

Qualify Vendors Manage Vendors Create and Manage Collaborative Plans Manage Trade Funds

Source Goods/Services

Support Enterprise

Manage Finances

Support and Manage Workforce

Manage Real Estate

Protect & Manage Assets

Deploy & Manage IT

Provide & Manage Corporate Services

Coordinate Plans & Operations

Manage Finances Controlling

Plan/Budget Finances Manage Operating Expenses Manage Working Capital Output Corporate Financing Strategy Forecast Revenue

Finance General Ledger Account Receivable Account Payable Travel and Expense Manage Treasury Manage Credit and Collections Manage Taxes

Support Enterprise

Support and Manage Workforce Manage Schedule and Time & Attendance Recruit, Hire and Manage Succession Onboard, Train and Measure Staff Performance Terminate Staff Human Resources

Plan Strategic Human Resource Needs Determine Required Competencies Identify Business Reorganization Needs Plan Compensation Develop Training Strategies/Programs

Support Enterprise

Manage Real Estate Plan Real Estate Management Execute Real Estate Acquisition & Disposition Manage Real Estate Information Oversee Construction Maintain Sites Manage Contracts and Insurance

Support Enterprise

Protect and Manage Assets Provide Security (Location, People & Assets) Procure and Manage Fixed Assets Dispose of Assets

Deploy and Manage Technology Assess Technology-Related Demand Align IT Strategy Architect IT Landscape and Services Manage Portfolios and Projects Develop and Deliver Solutions Operate and Maintain IT Systems

Support Enterprise

Protect and Manage Corporate Services Manage Environmental and Social Responsibilities Audit Organization Comply with Laws and Regulations Provide Legal Protection Insure Corporation Manage Facilities

Support Enterprise

Coordinate Plans and Operations Analyze Current Business and Trends Identify Business Capacity Gaps Set Enterprise Strategic Goals Plan Business Architecture Define Capital Project Requirements & Plan Engineer Business Processes Measure Corporate Performance Govern Processes Govern Data Management

Support Enterprise

Inventory Data Flow