Analysis

Business Processes

A structured process is standardized, indicating that it conforms to an already set standard. These structured processes are carried out on a day-to-day basis, while accepting a return, placing an order, purchasing raw materials, etc. This blog will examine Red Prairie, also known as Retek, a structured inventory management system employed in Best Buy Distribution Centers.

Red Prairie

Our team analyzed Red Prairie, also known as Retek, a warehouse management software system. Widely known for its functionality, Red Prairie provides managers with real-time visibility and inventory control across multiple warehouses and/or within a single location. Because Red Prairie is an Internet-based system, managers have the ability to retrieve inventory information on their iPhone, iPad, etc. Regarding features, some of those offered by Red Prairie include: inbound and outbound processing, inventory management, and inventory control. Consistent with the role of an information system, to create a competitive advantage, Red Prairie unifies inventory and warehouse management processes via one centralized location.

Information SILO

An information silo usually results from a lack of integration between other information systems within a business. Consequently, data may be duplicated, lost, and/or inaccurate. Red Prairie eliminates this issue because it centralizes inventory and warehouse management processes. When coupled with WS-I, integration related, architecture, Red Prairie essentially terminates any delay that would otherwise occur as result of an information silo.

Information System Components 

An information system is composed of five components: Hardware, Software, Data, Procedures, and People. These components ultimately exist to aid employees in carrying out Best Buy's business strategy.   

Hardware: The hardware used within Best Buy operations, in regards to Red Prairie (Retek), begins and ends with the computer needed to run all Red Prairie related operations inside the facility. These computers can also be in the form of RF Scanners, used to track, as well as transfer, products across the facility. Those products that are transferred across the warehouse and then to another location must carry identification in the form of labels, which are generated using Red Prairie. These labels are printed, via Zebra label printers, and attached to products for identification purposes.



Software:Red Prairie (Retek) cannot be run just anywhere; in order for the information system to function properly the computer must be connected to the Best Buy network. All Best Buy devices must be connected to this wireless network in order to run warehouse activities. This network allows these computers, laptops, and RF Scanners to be able to run the information system.



Data: Red Prairie (Retek) stores the entire facility’s crucial inventory data, which is the primary purpose of this information system. Red Prairie displays data such as: inventory counts, locations, stock keeping units, commonly known as SKU’s, and incoming, as well as outgoing, trailer information.


Procedures: Red Prairie, of course, requires a certain set of procedures in order for personnel to use the system both effectively and efficiently. First, the user must ensure he/she is securely operating within the Best Buy network in order to successfully run the information system. On the topic of procedures, the most common job, employing Red Prairie, is that of transferring units around the facility. The first step is to ensure the correct unit is being transferred. Scanning the SKU number with an RF scanner, which is connected to Red Prairie, does this. The SKU appearing on the RF scanner should match that of the label, printed from the Zebra printer. The user then tags the product, if it matches. Once scanned, the warehouse worker stages the product in the staging location generated by Red Prairie.



People: Red Prairie (Retek) is monitored by inventory control personnel, it is their job to ensure the systematic data provided by Red Prairie is on par with what is physically inside the facility. General warehouse workers, who are given the responsibility of using RF scanners to manually and systematically move product(s) around the facility, also use Red Prairie. Finally, technical support personnel are in charge of insuring that the WMS system is functional at all times, so that all Best Buy facilities operations can continue running smoothly.

Social Media 

Social media is the use of information technology to support the sharing of content among networks of users. Social media enables people to form communities, or people bound by a common interest. A social media information system supports the sharing of content between large networks of different users. Best Buy uses platforms such as blogs, where customers can discuss different products and services, Twitter, where customer service is provided and used to announce new releases, and Facebook where there is a wide-range of opportunity for sharing between customers. Word of mouth is very powerful and customers who receive positive feedback and good customer service, via these social media platforms, will be more inclined to write reviews and tell others of their experiences with the company.

Social Capital

Social capital is the focus on the investment in social relations with the expectation of returns in the market place. Social capital is about the value of social networking, as well as bringing diverse people together. Companies use social media as a way to not only make themselves known, but differentiate themselves from their competition. Best Buy also uses social media as a tool to aid in their economic growth. Among economic value, it also adds information, influence, social credentials, and personal reinforcement. Relationships within social networks can provide information about new opportunities, different alternatives, and other aspects that are important to professionals. Social relationships open up opportunities for influence. This could be something like influencing a decision made by an employer. Social credential is a benefit based upon the people whom you are connected with. Other people tend to be more inclined to work with those who are link to individuals whom they believe to be critical personnel. These individuals could also provide resources to enable success. Lastly, personal reinforcement is something that comes along with being linked to a strong social network. It helps to reinforce a professional’s identity, image, and position in an organization or industry. As mentioned above, Best Buy uses blogs and social media platforms, like Twitter and Facebook, to connect with customers. Their use of these platforms allows customers to have a voice and enables Best Buy to make any appropriate and/or necessary changes, thus increasing their social capital.