it’ in retail chain

8/8/2019 IT’ IN RETAIL CHAIN

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µIT¶ IN RETAIL CHAIN

PRIYADHARSHINI.R

MOHAN KUMAR.G.V



With the increase in globalization of retailers both in terms of their points-of -sale, as well as their points-of -supply, the r ole of Information Technology (IT) in the retail sector has increased considerablyand plays an increasingly important r ole in

managing the complexity of retailoperations.

RETAIL CHAIN Vs µIT¶



RETAIL CHAIN

Chain of stores which sales goods on

merchandise f r om a f ixed location.

Distribution of goods to these chain of

stores are centralized.

Wall Mart is the leader in the retail chain

sector acr oss the globe.



CURRENT SCENARIO All over the wor ld, retailing is under going a

pr ocess of evolution and is poised to under godramatic transformation.

The top 200 retailers alone contribute for 30% of wor ldwide demand.

The average gr owth of the sector seems to be in an upward trend.

Retail sales are generally driven by people¶s ability and willingness to buy goods and ser vices.



FUNCTIONS/OPERATIONS IN A

RETAIL CHAIN

Buying goods f r om wholesalers.

Segregating and standardization of pr oducts,

followed by inventor y contr ol.

Selling the goods to meet customer ¶s needs.



DIFF

ICUTIESF

ACED Complexity of retail operations

Pr oduct complexity.

Supply chain management.

Scale complexity.

Pr ocess complexity.



NEED FOR IT IN RETAIL Aggregate and analyze the customer data to enhance

diff erentiation

Increase a company¶s ability to respond to a rapidly

changing market place thr ough enhanced flexibility and speed.

To operate eff ectively, retailers need to have one system acr oss stores sometimes acr oss national borders toensure the most eff ective use of stock and to support

optimized business pr ocess. Systematic implementation of Information Technology to

impr ove the inventor y management can make a ver y bigdiff erence in the present time



RETAILER¶S VIEW TOWARDS µIT¶ As the hype ar ound technology decreases,

retailers are seeing clear ly that

technology¶s r ole is one of an enabler for speeding up of pr ocess and deliveringcost savings.

IT has become a key business-driver in today's business and so retailers are tr yingto reap in the benef its of technology.



AREAS FOR µIT¶ IN RETAILING Inventory tracking and management:

Electr onic Cash Registers (EPoS)

With this system, a bar code on a pr oduct is scanned during its sale and the computer removes the scanned item f r om stock f igures.

Af ter which the bill is printed and the cash draw

opens for depositing the cash in it. (Used for Electr onic point of sale (EPoS) - for inventor ytracking and management).



AREAS FOR µIT¶ IN RETAILING Inventory and supply chain management

Radio Frequency Identif ication Device: RFID

is a system which converts the radio waves,

reflected back f r om the RFID tag, into digital

information which can be used for eff icient

inventor y management and impr oving supplychain management.



RFID TAG



Shopping experience with RFID Imagine a shopping cart equipped with a scanner and a

touch-screen computer that acts as a virtual personalshopper.

As you scan items and put them in your cart, the computer off ers information about each pr oduct and suggests complementar y items

The computer keeps a list of the items in your cart with a running total so you know exactly how much you're

spending. When f inished shopping, you head to a self -checkout

stand or to a cashier.

Because your items are already totaled and bagged, the wait time is minimal.

All you have to do is pay



Importance of RFID RFID is helping retailers ar ound the wor ld impr ove

customer satisf action and increase sales

It is transforming the retail industr y by off ering retailers

real-time visibility into inventor y and pr oduct movement to impr ove store pr oductivity and loss prevention.

Tracking capabilities also make it easier to predict pr oduct demand.

RFID-tagged items off er store-to-store visibility, so items

can be located immediately with the touch of a button. RFID can enable your marketing and customer ser vice

teams to identify customers, call up account histories, and pr ovide value-added ser vices to help create a personalized shopping experience



AREAS FOR µIT¶ IN RETAILING Inventory management at point of sale

Quick Response Deliver y System:

QRDS helps to commute the information

for quick (point of sale) replenishment. It

helps reduce the lead time for receiving

merchandise.



AREAS FOR µIT¶ IN RETAILING Purchasing and selling activities

Electr onic data Interchange:

EDI enables retailers to integrate their purchasing / selling activities with their

suppliers. It is the structured transmission

of data between or ganizations byelectr onic means.



Web EDI The internet uses its own communication

pr otocols to ensure that EDI documents

are transmitted securely.

Web EDI allows the company to interact

with its suppliers in diff erent regions

without the worr y of implementing a complex EDI inf rastructure.



AREAS FOR µIT¶ IN RETAILING Resource planning

Systems, Application and Pr oduct (SAP)

SAP application is an integrated resource

planning that tar gets the requirements of mid-

sized and lar ge retail chains. It allows open

communication within and between all company

f unctions.



FUTURE OF µIT¶ IN RETAILING The application of various techniques of IT is to become

f ull fledged in the near f uture due the ease in the operations of retailing.

Higher and upgraded version of the existing techniques are to be evolved thereby making retailing pr ocess easier.

Some of the new up-coming techniques of Information Technology.

Digital Signage Near Field Communication (NFC)

Self Ser vice Check Out



µIT¶ MANAGEMENT CHALLENGES

Transparency and tracking customer data.

Synchr onization of global data.

Integrating systems f r om manuf acture thr ough/to customers.

IT cost and per formance of retail chain

under pressure. High maintenance costs.



CONCLUSIONRetailing pr ocess can be made eff icient

and easy by involving eff ective techniques

of Information Technology by using the right method of their implementation and

maintenance.

it’ in retail chain

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