Harvey Norman

Harvey Norman noticed that, before visiting a store, its customers

regularly went online to check in$-$store product availability. Clearly,

no$-$one liked making a wasted journey. So the retailer decided it had

to make in$-$store product availability clearly visible to customers online.

To achieve near$-$real$-$time inventory visibility for all its stores, the company

had to integrate legacy systems and build a new and robust order

management system. This system incorporates fulfillment optimization

algorithms based on Harvey Norman products and its business model.

Online customers can now undertake real$-$time searches to find their closest store with the item in stock. They can

also select their preferred delivery options $-$ such as click$-$and$-$collect at a nominated store, or home delivery. The

online system distinguishes between smaller items that can be trucked all the way across Australia and larger items

$($for example, a refrigerator$)$ that can only be delivered within a defined radius of the store.

It also reflects online orders in the store's POS system, just as if the order had been taken in$-$store. Harvey Norman

sees further opportunity in a direct$-$ship model. With this, if the customer orders a fridge that is currently unavailable

in a Harvey Norman store but available from a nearby supplier, the item is dispatched directly from the supplier

to the customer as this reduces the turnaround time. This model requires visibility of supplier inventory and better

collaboration between the retailer, its suppliers, and its logistics provider. What was the main problem of Harvey Norman? $(7\mathrm{.}5$ pt$.)$

b$.$ How did Harvey Norman solve this problem? $(7\mathrm{.}5$ pt$.)$

c$.$ What are the advantages of this new system to the customers $?$ Please explain your

answer briefly.