Role of IT in
Retail Sector
The Importance of
Information Technology in The Retail Sector :
• With the increasing globalization of retailing, both in
terms of their points-of-sale and their points-of-supply; the information
technology (IT) spend in the retail sector has increased
Significantly. IT plays an increasingly important role in
the management of complex retail operations.
• Market knowledge, as well as control of data and
information, is key to obtaining a competitive advantage in the retail sector.
Markets are continuing to grow and become more complex;
the simple process of retailing has started to deploy
more advanced retail information systems to cope with all the transactions
involved.
IT involvement in
Retail:
·
To increase the company’s ability to respond
to the evolving marketplace through enhanced speed and flexibility.
·
To collect and analyze customer data while
enhancing differentiation.
·
To work effectively; retailers need one
system working across stores (or even across national borders) to make sure the
most effective use of stock and improve business processes.
·
Retailers are beginning to notice that
technology’s role is one of an enabler. Essentially, information technology can
speed up processes and deliver cost saving benefits to the company.
Challenges:
•
Customer data
Many retailers struggle with information overload because
they’re required to collect and sift through mass amounts of data, and then
convert it into useful information in a customer-centric industry.
•
Transparency and tracking
Retailers must increase transparency between
systems, as well as obtain better tracking to integrate systems from
manufacturer through to the consumer while obtaining customer and sales
information.
•
Global data synchronization
Due to radio frequency
identification/electronic product coding, the entire supply chain has become
more intelligent. Retailers must enable the use of real-time data to watch
inventory levels. In addition, radio frequency identification tagging positions
the company to be able to safeguard its shipments by allowing products to be
tracked from manufacturer through the entire supply chain.
Definition of POS:
Point Of Sale:
The physical location of a transaction but usually refers to any
device or system used to record
the transaction for the retailer.
CPOS:
A computer-based POS which employs software to implement the POS
functionality.
POS Software:
•
User Interface
•
Inventory
•
Reports
•
Invoicing
•
Receivables
•
Accounts Payable
•
Credit Card Payments
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