ICT in Retail and the advantages to the shop and the customer.

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A/S ICT Unit 1

Online shopping 22/11/11

When an item is scanned through the till, the price is received through a Local Area Network, from the database. The data received from the database is outputted with a screen, to show the customer what they’ve purchased. The information of what the customer has purchased is then sent to the companies HQ via a Wireless area network, to tell them what their customers are buying.

If the price needs to be altered, it can be done so easily. For example, with manual methods, if an item needs to be altered, you have to change the price of every single item. However, with automated methods you can change the database to the correct price, then, once it’s scanned through the till, the correct price is received from the database. You must also change the price on the shelf as customer’s can grow angry if it’s misleading to the customer. The benefit of this is that you can easily alter the price of one product on all items. However, if the system/database grows bugs/glitches then it may lead to the wrong prices being outputted. This means that you may be losing money as you’re selling goods for much cheaper than originally proposed.

Just-in-time stock is where you can re-order stock just before it has all been sold. This is good because it improves cash flow as you don’t have order large quantities of stock, and keep it in a store room. You are buying and selling with low risk, for example, you can order 15 new bottles of Coca Cola if there is low demand, however, if there has been a high demand for it recently as it has become hotter, then the company can quickly order 50 more bottles. If sales depreciate in Coca Cola over the next week then they won’t be at too much of a disadvantage as they bought it in low quantities, whilst if you order in high quantities you may loose profits considerably as you’re wasting store room space with bottles of Coca Cola know body is buying.

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However, there are disadvantages to Just-in-time stock control. The first method is that it may not come in time, so may be risky. For example, if you’re very close to selling out of Coca Cola, you will re-order a batch of say, 15 bottles. If by any chance these do not arrive on time, may it be due a car accident or by any other means, then the supermarket do not have this product in stock to sell. Therefore, this means reduced profits for the supermarket because they can’t sell the product. Also, true stock may differ because of ...

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