Retail and the Digital Revolution
The digital revolution has been in full swing for over thirty years. In that time, many industries have become accustomed to the speed, convenience, and accuracy that are hallmarks of the digital age.
Retailers generate a mountain of data through their own daily activity. Now that inventory, customer information, and sales data are recorded electronically, instead of tucked away in the attic, the data is more accessible than ever. By tapping into this information, retailers can uncover buying patterns and other valuable insights that can drive profits and growth.
Inventory management is a perfect example. A sophisticated point of sale system does more than take payment from customers. Some are smart enough to keep track of which items are selling well as well as items are not earning their keep.
The ability to find and eliminate “slow movers” from your inventory makes it possible to free up shelf space, reduce spoilage, and get rid of items before they become obsolete. The money recovered from the sale of underperforming items can be reinvested in products that are more desirable to customers, more profitable for the retailer, or used to make improvements to the store.
Some point of sale systems use sophisticated algorithms to analyze a store’s sales history and point out which products are going to be in demand in the upcoming weeks. The retailer can use this analysis to order merchandise ahead of demand. The right products are on the shelf when customers are ready to buy.
When it’s time to order, the process is faster and easier when the point of sale system uses EDI (Electronic Data Interchange). EDI gives the retailer a direct electronic connection to their major supplier through the point of sale system. Orders created and sent from within the software, reduce human error and eliminate the need to prepare an order to be printed, faxed, or emailed. The order is acknowledged by the supplier in minutes. When the order arrives, it can be received electronically, updating stock levels and retail pricing in seconds.
The right point of sale system increases efficiency in the ordering process and gives the retailer a variety of new tools to optimize inventory, improve cash flow, and increase profits.
The move to a modern system might sound like a daunting task, but it’s probably easier than you think.
Sponsored Content provided by Paladin Data Corp.