Page 257 - DMGT550_RETAIL_MANAGEMENT

Retail Management

Notes RFID chips that contain details of origin, destination, and other details. Entry and exit gates,
vehicles, and cranes are fitted with an antenna that senses the RFID tags, and records and updates
the system to check for any deviation in the schedule. With precise tracking of the location of
pallets and containers within the warehouse, it is easy to pinpoint unscheduled movements. The
system also considerably helps reduce costs and time for check-in and check-out.

Did u know? Marketing Information system supplies three types of information - Recurrent,
Monitoring and Requested information.

14.4.4 Networking

In the world of computers, networking is the practice of linking two or more computing devices
together for the purpose of sharing data. Networks are built with a mix of computer hardware
and computer software.

Networks can be categorized in several different ways. One approach defines the type of network
according to the geographic area it spans. Local area networks (LANs), for example, typically
reach across a single home, whereas wide area networks (WANs), reach across cities, states, or
even across the world. The Internet is the world’s largest public WAN.

Self Assessment

Fill in the blanks:
1. In a retail store, ........................ assists in inventory management.

2. ........................ management information systems support distributed stores by linking
them.
3. ........................ is the inter-organisational exchange of business documents in structured,
machine process able form.

14.5 Electronic Data Interchange

Electronic Data Interchange (EDI) is the inter-organisational exchange of business documents in
structured, machine processable form. Electronic data Interchange can be used to electronically
transmit documents such as purchase orders, invoices, shipping bills, receiving advices and
other standard business correspondence between trading partners. EDI can also be used to
transmit financial information and payments in electronic form. Payments carried out over EDI
are usually referred to as Electronic Funds Transfer (EFT). EDI should not be viewed as simply
a way of replacing paper documents and traditional methods of transmission such as mail,
phone or in-person delivery with electronic transmission. But it should be seen not as an “end”
but as a means to streamline procedures and improving efficiency and productivity.
Use of EDI in retail business reduces costs. It also strengthen the relationship between the
retailer and the supplier. A supplier can spot trends in purchase and accordingly realign its
production if there is an EDI exchange between a retailer and the supplier.

Retail businesses have been exchanging documents electronically for over 30 years. The first
standards were laid out during the 1980’s with the formation of ANSI X12 and the VICS EDI
Retail Users Group. During the 1990’s, the major retail hubs encouraged participation throughout
the supply chain by supporting standards, offering education through trading partner conferences,
providing implementation assistance via the value added networks, and encouraging compliance
via chargebacks for non-compliance.

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