Charitable Bingo Operations Business Plan - Texas Lottery

already begun to show promise as recent pilot programs have been initiated with non-traditional lottery
trade styles and discussions are underway with other businesses previously hesitant to embrace the lottery
category.
Supply Chain Management
Background
Effective supply chain management is critical to ensuring the success of any product at its point of
purchase. Product suppliers must ensure that product inventory is distributed timely and in appropriate
quantities to retailers and collected timely at the end of the product life cycle.
Implementation of an integrated supply chain system supports the development of stable product
distribution channels as well as the efficient management of product delivery. Through its lottery operator,
the Texas Lottery uses a predictive ordering software system that evaluates retailer inventory levels and
develops unique order quantities for each location based on the existing instant ticket pack inventories at
each location. This system allows the Texas Lottery to ship adequate reserve quantities of instant ticket
game inventory for the approximately 85 to 90 games introduced each year. The Texas Lottery warehouse
was responsible for the distribution of almost nine million packs of tickets to retailer locations in FY 2011.
Challenges and Opportunities
The Texas Lottery already uses an advanced supply chain distribution system based on the lottery
operator’s predictive ordering model. However, the challenge is to continue to improve service and
execution to retail in the delivery of products. Equally important in the supply chain equation is the
efficient collection of unsold inventory from retail to create space for new product and provide efficient
credit to retailers, limiting overhead associated with lottery.
Key Initiatives
Through its lottery operator, the Texas Lottery will be deploying a number of new and advanced
technologies and innovations focused on enhanced supply chain management.
Enhanced Predictive Ordering Software
The lottery operator deployed its first predictive ordering system for the Texas Lottery in the 1990s. While
the ordering algorithms have been modified for efficiency over time, the current predictive ordering system
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