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ITM 330 (14)
Chapter 3

ITM330 Chapter 3 Notes.docx

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Ryerson University
Information Technology Management
ITM 330
Peter Pille

ITM 330 Chapter 3 Notes Overview of Fitter Snacker Fitter Snack FS is a company that makes healthy snack bars and does not have an integrated information system They produce two snack bars NRGA advanced energy bar and NRGB body building protein barEach bar contains o Vitamins and minerals o Dry base mixture oats wheat germ protein powder and spices o Wet base mixture honey and canola oil o NRGA contains carob chips and raisins o NRGB contains hazelnuts and dates The sales force is split into two groups 1 Wholesale Division a Seles to intermediaries who distribute the bars to small shops vending machine operators and health food stores b Charges customers a lower fixed price because the orders are usually large otherwise the orders would be handled by the Direct Sales Division 2 Direct Sales Division a Sells directly to large grocery stores sporting goods stores and other large chain stores b Offer sales volume discounts to encourage larger sales ordersThese two areas operate separately from each other breaking MS into two function areasBoth areas send invoices to customers requesting the total balance within 30 days and offering a 2 discount if they pay within 10 days 210net 30 Problems with Fitter Snackers Sales Process Many of their sales order have problems such as incorrect pricing excessive calls to the customer for information delays in processing orders missed delivery dates etc These occur because FS has separate information systems throughout the company for three functional areas sales order system the warehouse system and the accounting system In each sales division FS has 4 sales people 8 total who work on the road plus 2 sales clerks who work in the sales office Sales people work on commission and have some leeway in offering customers discretionary discounts to make a sale View sales process on page 50
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