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Probably the most important new use of database marketing and the Web is in supply chain management. There are many different inputs that manufacturers need in order to make their nished products. Keeping the warehouse full of parts entails high interest payments and requires lots of space and employee management. Now that everything in the world is bar-coded, it has been possible to introduce vendor-managed inventory. The system works as follows: A manufacturer keeps its inventory records on a computer that can be accessed by its suppliers through the Web. It works out arrangements with its suppliers so that they can use the Web to learn electronically

As an illustration of the appearance of performance summary reports, two have been prepared using the same moving-average crossover system employed to illustrate simulator programming. Both the TradeStation (Table 2-l) and C-Trader (Table 2-2) implementations of this system were run using their respective target software applications. In each instance, the length parameter (controls the period of the moving average) was set to 4.

every hour what parts have been used and which remain on the manufacturer s shelves. The manufacturer discloses its sales plan so that the suppliers can estimate how many of which items will be needed each day. Then they can arrange just-in-time shipments to keep the inventory to an absolute minimum, but always suf cient so that the production line is never halted for lack of a part. Before the Web, some manufacturers used a system called EDI (Electronic Data Interchange), which served some of the same functions as vendor-managed inventory. EDI, however, was much more dif cult to install and operate than the Web. Using the vendor-managed system allowed Dell to hold less than 8 days worth of inventory at any given time. Without the system, Compaq had to maintain 3 weeks worth during the same period. This gave Dell a tremendous cost advantage. Intel shipped products to Dell three times a week without Dell s having to process a single request Intel could forecast Dell s needs based on Dell s sales forecasts and current stock usage. Let s see how a supplier might pro t from using vendor-managed inventory and forward-deployed products for 400 of its 1000 best customers. These customers spend much more than other customers that is why they are the best. Figure 9-6 shows what the new system might look like if you were the supplier. Your products will be stored in the customer s warehouses and in your nearby warehouses, with title still remaining with you. Every time your customer takes your products from its shelves or from your warehouse, your vendor-managed inventory system will know this. Shipping Figure 9-6

Such style factors as the total number of trades, the number of winning trades, the number of losing trades, the percentage of profitable trades, the maximum numbers of consecutive winners and losers, and the average numbers of bars in winners and losers also appear in performance summary reports Reward, risk, and style are critical aspects of system performance that these reports address Although all address the issues of reward, risk and trading style, there are a number of differences between various performance summary reports Least significant are differences in formatting Some reports, in an effort to cram as much information as possible into a limited amount of space, round dollar values to the nearest whole integer, scale up certain values by some factor of 10 to avoid the need for decimals, and arrange their output in a tabular, spreadsheet-like format.

will be noti ed if it is necessary to replenish products in inventory Billing will be noti ed to bill the customer Using this system, the following things will happen: The customer will save money: It no longer has to manage its warehouses, nor does it have to pay for any inventory until that inventory is actually used This is a very large dollar saving to the customer The retention rate for customers using this system will approach 100 percent Customers spending on your products will also substantially increase, since, if they like the system, they may begin to shift to your company s products instead of competitors Your costs will not increase Of course, you have to maintain inventory at remote sites, but you were doing that anyway.