Business Case Fnac
To address the issue of increasing competition from pure players like Amazon, and a contraction in traditional markets (records, videos), Fnac operated a number of strategic strands : internationalisation, diversification, lowering costs, multichannel at all levels to offer customers maximum possible interaction between stores and strategic web-based operations.
In order to sustain constant cost cutting, Fnac needs to develop new ways of operating with its suppliers. It has chosen to introduce, in particular, a sales warehouse system, where inventory is no longer bought by Fnac as it is physically moved from the supplier to the Fnac warehouse, but only when a product is sold to an end customer. By this means, Fnac may avoid carrying stock and can lower its price.
Piloting of the transversal project enabling set-up of the sales warehouse process:
- Scoping and study of effects on Fnac IS architecture
- Solutions design in line with both business needs and exchanges in EDI information flow with suppliers
- Drafting of general functional specifications
- Coordination of the development and integration teams
- Presentation of the Information Systems Division to business teams and suppliers
- Monitoring post go-live
- Introduction of the process with 15 suppliers
- A 20 million euro drop in stocks