Premium Essay

99 Cents Only

In: Business and Management

Submitted By pomueh
Words 4577
Pages 19
Case Study Report

Historical background of 99 Cents Only Store
- One of the leading retailers in the discount sales industry
- Opened in 1982
- 232 retail locations in 31-3-2006
- Mostly 164 in California, 36 in Texas, 21 in Arizona, 11 in Nevada
- Selling food and beverages, health and beauty aids, cleaning supplies, house wares, hardware, stationary, toys, gifts, pet products and clothing

Sources of suppliers
- Purchases from over a thousand suppliers
- E.g. General Electronic, Colgate-Palmolive, General Mills, Johnsons & Johnson, Protector & Gamble, Kraft, Nabisco, Unilever, etc.

Features and practices of the Store
- Majority of the products can be restocked regularly.
- Close out merchandise, not available for reorder
- Special opportunity: cost below wholesale

Strategies for keeping down costs of the Store
- By using information technology to be enable to grow
- Obviously require far more computing power
- IT budget : still low level ( not surpass USD 5 million)
- Using database management software licenses
- Family oriented and run company (Weakness)
- Actual cost vs. business value to the company
- Change Programming background: programming system as better option
- Close out items: 40 % of the product ( flow through the inventory only once)
Greatest challenges
- Launching the company's new distribution centre in Texas
- Tight time constraint
- revising the warehouse management system
- aggressive growth plans of the company by developing relevant and appropriate software
- Flexibility needed: inflexible rules would be hindrance to the business
- Using Highjump package: can address all the major concerns related to the operation of new distribution centre, best result: quick implementation, high functionality, adaptability, interoperability with advanced automation technology, one of the most attractive aspects of the…...

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