Strategic information system: Nicolas

Résumé du document

We chose to focus on Nicolas, which is an international wine and spirits chain of retailers. The first Nicolas stores were opened in Paris in 1822. It's now a renowned destination for expert advice and premier wines with a selection of over 1200 wines from around the world. This company is mainly based in France (428 units), but has an international presence, with 80 shops in England, 8 in Belgium, 1 in Russia and 1 in Morocco. Its turnover is 500 million euros. We can have more information on the company on www.nicolas.com. The option we chose is value creation with strategic information systems. We will focus on the company-owned shops in France, which represent most of the shops.

Since February 2007, Nicolas has a new information system, implemented with the company TXT. TXT is an international software products and solutions vendor, leader in "Strategic Enterprise Solutions" in the industrial and media sectors (management of demand and supply chain). The main goals of the TXTDEMAND program was to
- Improve product range optimization through more accurate replenishment planning for improved margins and on shelf availability.
- Improve demand forecasting at Nicola's central distribution center through the integration of point of sale, trends and seasonality data for a more demand driven process and streamlined procurement
- Make some replenishment proposals to the store managers (1 to 3 times per week)

Extraits

[...] He would have access to the names of every wine referenced in Nicolas, and would have to choose his 5 favorite wines and would have to fill in the name of the shop to which he goes most often. To encourage people to vote, a very good bottle could be won. This data will enable the company to know which wines are the customers' favorites. If these wines are the customers' favorites, the company can increase the price! 3. Try to have actions around the type of wine which yields a higher profit than others. [...]

[...] Since February 2007, Nicolas has a new information system, implemented with the company TXT. TXT is an international software products and solutions vendor, leader in “Strategic Enterprise Solutions” in the industrial and media sectors (management of demand and supply chain). The main goals of the TXTDEMAND program was to - Improve product range optimization through more accurate replenishment planning for improved margins and on shelf availability. - Improve demand forecasting at Nicola's central distribution centre through the integration of point of sale, trends and seasonality data for a more demand driven process and streamlined procurement - Make some replenishment proposals to the store managers to 3 times per week) Nicolas' new information system is efficient for those 3 initiatives, but it collects a lot of information which it does not use. [...]

[...] These actions would be more than just wine and advice, like organization of a Chateau visit, oenology classes, etc. The fact that Nicolas will do more in order to make his customers discover new wines will increase the customer willingness to pay. Conclusion: We have several initiatives that we need to prioritize. First we have to check where the initiatives lie concerning time sensitivity, impact immediacy, aggregation requirements, and trending requirements. Then we have to check the availability of the data: its accuracy and comprehensiveness . [...]

[...] The logistics department organizes the flows in order to satisfy the Nicolas' retailers' orders and to re-stock the same quantity of this specific wine in Thiais. The wine merchant can order once a week and will get the delivery within seven days maximum. The distribution channel is a very traditional one: from the warehouse all the trucks deliver every shop that has ordered something. (see Exhibit At the being time, Nicolas' HQ imposes a certain range of products to the shops to sell, and that is where we found the first malfunctioning. [...]

[...] It's a now renowned destination for expert advice and premier wines with a selection of over 1200 wines from around the world. This company is mainly based in France (428 units), but has an international presence, with80 shops in England in Belgium in Russia and 1 in Morocco. Its turnover is 500 million euro. You can have more information on the company on: www.nicolas.com. The option we chose is value creation with strategic information systems. We will focus on the company-owned shops in France, which represent most of the shops. [...]