Retail Information system21/08/2022 1 By indiafreenotes
The advent of information technology has significantly impacted the way retailers do their business. POS informs retailers of the details of sales transactions: what item was sold, where the transaction occurred, at what price, what employee performed the sale, and information about the customer making the purchase. Supply chain management systems (SCM) track the origin of the product even before it arrives at store or warehouse (and will be discussed in more detail in the next section). Financial data systems provide management with data concerning the organizations profit and loss factors. Human resource systems (HRS) keep track of employees: status, title, employment type, salary, address, etc. Customer relation management systems (CRM) track customer information and will be discussed in a later section.
Retail information systems:
For any retail strategy, gathering and reviewing information is valuable. For this, retailers use the RIS (Retail information systems) which anticipates the information needs of retail managers; collects, organizes, and stores relevant data on a continuous basis; and directs flow of information to the proper decision makers.
As computer technology has become more sophisticated and less expensive, more retailers are developing comprehensive information systems. 2 very popular systems are:
- UPC- Universal product code, and
- EDI-Electronic Data Interchange.
Also, to improve inventory planning and forecasting, a new program is now in place. It is called CPFR- collaborative planning, forecasting and replenishment. Also gaining importance is the concept of Database Management, which is used to gather, integrate and apply information related to specific areas.
Database Management consists of:
Data warehousing: Here, the copies of all databases in the company are stored in 1 location and are accessible to any employee anywhere.
Data Mining & Micromarketing: Data Mining involves the in-depth analysis of information to gain specific insights about customers, products, vendors etc. Micromarketing is an emerging application of data mining whereby the retailer uses differentiated marketing and develops focused retail strategy mixes for specific customer segments.
Non-traditional retailing: The various new forms of non-traditional retailing are as follows:
The World Wide Web:
The Web is a useful tool for retailers as it projects a retail presence, helps to generate sales, and most importantly, provides information to customers.
Following are examples of e-tailing:
- Shopping robots, called ‘bots’ are computerized comparison programs that enable online shoppers to search 100s of sites and obtain the best price. They have resulted in a shift of power to the consumer.
- Electronic banking is the hottest thing in service retailing. It helps customers to transact 24 hours a day, 7 days a week at a variety of locations. It includes modern facilities like ATMs, electronic debit payments and smart cards.
- Besides, things like electronic gift certificates and interactive electronic kiosks are modernizing the shopping experience of customers.
- Retailers like Amazon.com, Wal-mart & Fabmart.com are leaders in web-based retailing.
Other emerging, fast-growing nontraditional retail institutions are:
The video kiosk is a freestanding, interactive, electronic terminal that displays product related information on a video screen. Although some video kiosks are located in stores to enhance customer service, others enable customers to place orders, complete transactions and arrange for products to be shipped.
One of the fastest growing sectors in retailing. Today, at virtually every airport, there are full blown shopping areas. Some of its features are as follows:
- The group of prospective shoppers is rather large.
- Air travellers are a temporarily captive audience, looking for a way to fill their time.
- Sales per square foot of retail space at airports are usually 3-4 times higher than at regional malls.
Objective of Retail Information System
- An information system should provide relevant information to retail manager regularly.
- An information system should anticipate needs and requirement of the retail manager.
- An information system should be flexible enough to incorporate constant evolving needs of the consumer market.
- An information system should be able to capture, store and organize all the relevant data on a regular and continuous basis.
- The retail Information systems should be aligned with strategic and business plans of the organization. Therefore, it should be able to provide information, which supports and drives this objective.
Characteristics of Retail Information System
- Retail Information systems Information systems. Retail Information systems should connect all the stores under the company’s
- Retail information system should allow instant information exchange between stores and management.
- Retail information system should handle the various aspect of product management.
- Retail information system should handle customer analysis.
- Retail information system should allow the store manager flexible pricing over a financial year.