5 How can Restoration Hardware improve its information systems to solve its problems?

Restoration Hardware must change the technology currently being used. It can no longer rely on systems that are not processing real-time requests for information. It needs access to this information in order to conduct demand forecasting. Upgrading to more powerful point-of-sale, merchandise and warehouse management systems would certainly improve the present situation. It should immediately take advantage of the upgrades for new software that is covered by Restoration's service agreement with NSB. It also needs to upgrade systems for restocking products once they have been distributed from the various warehouses.

CRM systems can assist Restoration Hardware in a number of areas; some of which include:

· Establishing relationships with vendors

· Reducing the long lead times required to submit a purchase ordering

· Reducing problems in the inventory system (insufficient inventory, miscalculation of popular products)

· Maximizing the efficiency of its supply chain by weighing the risks involved with important merchandise against the benefits

· Increasing inventory turnover rate

· Determining profitability of direct-to-consumer operations