IT makes Cents- GROUP 6

1. Is 99 Cents Only the leading edge of IT? Is it on the bleeding edge?

99 Cents Only is clearly on the leading edge of IT in one-priced stores. Unlike many of the fixed price stores who are slow to adopt new technology, 99 Cents has used IT automate their warehouse management, restock inventory, and to manage the volumes of their various products.

2. What characteristics of the dollar store industry make it so important to increase efficiency? Dollar stores purchase their inventory by price rather than item.

It is often difficult for them to reorder the same merchandise at the same price. IT can help these stores find the best price by automatically searching for the best deal, or find other suitable merchandise. Also, to maximize profits, dollar stores must be able to quickly receive their products at their distribution centers and quickly redistribute them to their retail-outlets without over or under stocking.

3. The company has performed better than its competitors. In terms of the eight initiatives discussed in this chapter, which initiative or initiatives has gained it the competitive advantage?
Reduce Cost-, by automating many tasks, 99 Cents is able to save money(and time) otherwise spent on human employees.
Raise barriers to market entrants­- Any new dollar store will need IT to help close the gap since 99 Cents is 19,000 sq ft with annual revenue of $4.8 million compared to its competitors that are less than half of both figures.
Enhance products or services- 99 Cents appeals to a larger audience than the lower income, so it obviously stocks a broader range of items. Also, on the service side, 99 Cents has a higher restocking rate than other companies, so customers can find the items they want easier.

4. 99 Cents Only must modify its information systems frequently. Why? Forty percent of the inventory is purchased in one-time-only close-outs, so the system must accept new items quickly.

5. Often, CIOS are frustrated with the time it takes senior management to support their strategic initiatives and with the difficulty of earmarking funds for such initiatives. How is 99 Cents Only different in this respect?
99 Cents is a family owned business, so decisions are made much faster since there are no formal meetings. This makes the time of request to implementation much shorter.