A universal product code (UPC) can be easily read by a laser system scanner, which then can be forecasted as a product as a point-of-sale (POS), thus then allowing for a better account of the businesses inventory. In this case, Alliance Supermarket using both these systems to be able to replenish their inventory when the system automatically detects whether a certain product item is in demand. A great plus that a Point-of-sale system can do is treat each store different, but then total their needed inventory for replenishment, then placing a one lump side order to fulfill all orders, then distributing them by stores demands.
In this paper, I will help the Chief information officer (CIO), which is in charge of Alliance to see what more can be done with the information that is compiled by the POS system. There will also be a comparison between the products being picked up by the POS system, the customer, and determining what other products, the customer potentially is being persuaded to buy. In addition, looking into the customers, buying habits to analyze a pattern in the each product’s sales or weather patterns.
POS System Uses & Customer Service
Furthermore, now that we understand the pure functioning of the POS system, we can then identify that POS system current purpose in Alliance, and how it can be used differently introspectively speaking. In addition, when a customer buys a product at the Alliance Supermarket, the UPC barcode is scanned through a laser system, which then updates the entire Alliance Supermarkets inventory. This allows the Alliance base their product orders through a historical pattern for record of their products that are running low, and are in need of replenishing. Now, Alliance Supermarket does not quite understand that due to its different store locations, there are customers purchasing different products per location basis. Therefore, instead of Alliance grouping all its information per product, Alliance can benefit from allocating the individuals stores product history, thus identifying different behavioral purchases for seasonal items or on purchasing habits.
In the efforts of Alliance, continuing the use of using the UPC code will enable Alliance not to ever reach their minimal reorder point of product inventory, because there would be a minimal product level of inventory in place that will be tracked through historical product demand patterns. In addition, when a product gets to a minimum inventory product set, then this is when the product will be reordered, allowing for stress to be relieved from the reordering pressures. “One way it does this is by using computers to monitor sales data and to order (or stop ordering) as point-of-sale (POS) demand information indicates. This information is transmitted each day to the company’s headquarters (Vonderembse, & White, pp 10.2, 2013).
Moving forward, the POS system will allow for the Alliance seasonal items to be reordered in accordance to their last season’s product performances. This is in comparison to Alliance’s current system in place, which is basing their products inventory total by combining all its stores inventory sold. Now, this is where the origination of the current systems problems in place is affecting its customers at different store locations. Thus, customers who are being affecting become customers that are irate due to not having their product on hand at their disposal. The use of this system allows for the demand of customer products not to be overstocked, which will results in having happier customers, and keeping the costs low. The different Alliance store locations can allow for a promotional use of new products by adapting to their customers buying patterns. Creating Reduction in Costs & Increasing Customer Service
In an effort to create higher profits, every business goal should be to reduce its costs. One of the ways Alliance can help in costs reduction; it must first decrease its overhead by adding more self-checkouts, in addition to controlling its inventory. The correct analysis in inventory will also allow for a reduction in costs, as it will reorder what it has needed versus producing overstocking in merchandise. In accordance, the self-checkout aisle will allow more customers to be checked-out in a faster process, thus saving more means on less employees causing customers to be self-checkout through multiple machines, thus allowing for a huge reduction in Alliance’s cost and cause a positive ripple effect in increasing customer service. “Thinking short-term and cutting hinders costs long-term growth. Practical implications – Leaders need to evaluate their practice, asking questions of themselves and look at making more long-term plans. They need to involve and engage key personnel now and the in future” (Denton, p 3, 2013). New Approach Methods/Individual Customers
The first new approach that Alliance can implement is by using the information purchased by their customers on an individual basis by learning from their habits in purchases been made at Alliance’s different store locations. This will enable Alliance to identify what items are been sought out more than others through this separation of store locations, product preference, and customer demand. For example, I shop at CVS Pharmacy here in Houston, TX, and the why they attract us back in the store is through coupons that can be used for items, we normally but, in other words, Alliance needs to be able to weather different products to continue to drive them to the stores new promotional avenues.
Therefore, if Alliance uses the same method CVS Pharmacy uses in order to attract more walk-in customers, Alliance needs to know what products their customers are accustomed to buying, thus identifying new sell opportunities by the use of coupons. Nevertheless, the individual product information can also be used to determine, what purchases are in need of replenishing Alliance’s inventory by identifying their customers buying patterns or habits. “The rapid proliferation in the use of technology through Point of Sale (POS) data by supermarket retailers has resulted in delivering value to consumers” Pepe, & Pepe, pp 69, 2012). Privacy & Ethics
Alliance Supermarket needs to adhere to its privacy and ethical considerations in order to gather information based off the purchased items using the POS system. Alliance needs to make sure they have all their ducks in a row before they start to analyze their customer’s personal and private buying habits. Therefore, every business needs to keep in mind their customers privacy or ethical concerns due to violating these laws can hinder a business success and customers trust. A business ethics counts for a lot in a customer’s point of view by determining whether an organization is ethical or not will be the decision a customer will have to make before conducting business with them.
However, if and when Alliance starts to track its customers personal purchasing habits, Alliance needs to make sure they only analyze those customers that are aware of Alliance objectives, then Alliance can move forward with their mission. In addition, one important thing Alliance needs to remember, is that the information obtained should only be used for business purposes, and not for personal reasons, because this can lead to illegal activity, and breaking a customer’s trust. “Considering the Internet advertising industry’s current actions, computer users and government regulators would be well advised, both practically and ethically, to move to a user control model in electronic monitoring” (Charters, p 243, 2002).
In conclusion, the universal product code (UPC) can be easily read by a laser system scanner, which then can be forecasted as a product as a point-of-sale (POS), thus then allowing for a better account of the businesses inventory. In this case, Alliance Supermarket using both these systems to be able to replenish their inventory when the system automatically detects whether a certain product item is in demand. A great plus that a Point-of-sale system can do is treat each store different, but then total their needed inventory for replenishment, then placing a one lump side order to fulfill all orders, then distributing them by stores demands. My findings have resulting in suggesting to the Chief information officer (CIO) of Alliance, based on the information compiled by the UPS & POS systems, that the individual buying habits of their customers buying patterns can lead to a positive approach in each of their product’s sales or weather patterns.
In essence, the POS system will allow for better control of Alliance’s inventory, thus reducing costs from a strategic point of view by fine-tuning their inventory based on individual customers/individual stores, which will accurately determine the appropriate inventory needed replenishing. In addition, adapting a coupon-based system, which will personalize their products in need of marketing base on individual customers buying habits, thus resulting in an increase in customer service. Of course, let us do keep in mind Alliance’s customers privacy, while keeping Alliances Supermarkets Ethical behavioral at an all-time high.
Charters, D. (2002). Electronic monitoring and privacy issues in business marketing: The ethics of the DoubleClick experience. Journal of Business Ethics, 35(4), 243-254. Retrieved from http://search.proquest.com/docview/198066766?accountid=32521 Denton, A. (2013). Why is productivity falling in 2013? the role of leadership in creating growth during the recession. Strategic Direction, 29(7), 3-5. doi:http://dx.doi.org/10.1108/SD-04-2013-0010 Pepe, M. R., & Pepe, M. S. (2012). Using point of sale (POS) data to deliver customer value in the supermarket industry through category management practices. Journal of Marketing Development and Competitiveness, 6(1), 69-73. Retrieved from http://search.proquest.com/docview/1019047228?accountid=32521 Vonderembse, M.A. & White, G.P. (2013). Operations Management . San Diego, CA: Bridgepoint Education, Inc.