Friday, May 13, 2011

Benefits of Technology In Retailing Industry

Retailing market is in a state of explosive growth and one of the key factor in achieving the efficient retailing operations is by use of technology. There are different types of technologies used in the retailing sector like RFID, JIT, Barcode technology etc. Here are the some of the benefits a retailer can get by using different technologies:

Improves Store Efficiency:
In a typical retailing, a business consists of multiple regional warehouses, offices and retail outlets. In such situations various technologies helps to have current information on a real time basis and analyzing that data for better forecasting and this also improves the efficiency of the store.

Enhances Customer Satisfaction:
Various technologies used in the retailing also enhances the customer satisfaction by providing them with the right product at the right time in a very convenient way.

More productive space:
Centralized and optimized infrastructure provides space for merchandise and at the same time secures the communications equipment.

Saves Costs:
Retailers believe that shrinkage due to inventory recording, handling and administrative errors costs retailer's millions but with the use of appropriate technology the retailers can save lot of costs through more accurate supply chain forecasting and better inventory management.

Customer Database:
Information technology also helps the retailers to maintain database of the customers and this database is used to send the mailers or promotional catalogs to the potential customers.

Reduces paperwork:
Use of the IT in the retailing also reduces the lot of paper work needed to register the movements of the goods from warehouse to the out let and with in the outlet.

Investing in technology appropriately can impact the business positively through improved operational efficiencies, increased profitability, happier customers and providing a competitive advantage.

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