| INFORMATION TECHNOLOGY IN RETAILING | | | | RFID |
| WITH INDIAN PERSPECTIVE | | | | Currently RFID is profitably being used in retail firms |
| By | | | | of developed countries primarily in two sections |
| Miss. P. PIRAKATHEESWARI, Lecturer in Commerce, | | | | namely in supply chain, warehouses and Retail front. |
| Sri Sarada College for Women (Autonomous), Salem | | | | It ensures individual articles tagged by RFID enable |
| – 16. | | | | quick billing and to ensure automated stock keeping. |
| | | | | B2B Software |
| Introduction | | | | B2B software is well suited |
| Information technology is the backbone of modern | | | | for multi-channel retail business consolidating sales via |
| retailing. The traditional retailing was easier to | | | | Internet, mail catalog, phone/fax and point-of-sale |
| manage because of its size, scope and uncompetitive | | | | (POS) terminals installed in physical shops. The |
| nature; and usually the shops were managed by the | | | | concept with multi-channel business is not new. |
| owner-manager. But the modern retail formats, | | | | However, the latest technological vehicles like Web |
| which are superstores and large chains owned by | | | | Internet, created a new possibilities for retailers |
| large organizations, are difficult to manage without an | | | | indeed. The brick-and-mortar business owners and |
| efficient and reliable IT system in place. | | | | mail catalog retailers now have much more |
| Technology proves beneficial in creating and | | | | opportunities to expand and reach wider clients |
| maintaining customer relationships. Analysis of data | | | | nationally and internationally using such tools as Web |
| collected at the retail point of sales helps understand | | | | stores and shopping portals. This has created new |
| preferences, buying habits, spending budgets, family | | | | challenges for efficient business management and |
| needs of an individual customer. Relationships are | | | | consolidation of all sales/marketing channels to save |
| maintained by utilizing IT for periodical e-mailing, SMS, | | | | the operational cost. That's why companies start |
| greetings, promotional letters and personal calling. | | | | looking for new multichannel retail software solutions |
| Retailing growth has demanded IT deployment to | | | | that could help manage the business and increase |
| broaden its arena and overcome challenges namely | | | | productivity. |
| Business Optimization, increasing SCM efficiency, | | | | Deployment B2B software |
| innovating shopping experience and other manual | | | | provides with powerful features to observe variety |
| limitations. | | | | of multi-channel retail operations in the centralized |
| Introducing Retailing in Current Scenario | | | | Web-based back office. Managers can review |
| Retailing is the most active and attractive sector of | | | | consolidated customer shopping activities from |
| last decade. While the retailing industry itself has been | | | | different sources like Internet, mail catalog, etc. This |
| present since ages in our country, it is only the | | | | creates additional cross-sell opportunities and helps to |
| recent past that it has witnessed so much dynamism. | | | | improve business performance. Such operational |
| The emergence of retailing in India has more to do | | | | environment improves client shopping experience too, |
| with the increased purchasing power of buyers, | | | | because customers can get real-time updates about |
| especially post-liberalization, increase in product | | | | products availability, special offers and active |
| variety, and increase in economies of scale, with the | | | | promotions. Optionally, B2B software also provides |
| aid of modern supply and distributions solution. | | | | companies with rich functionality to manage inventory |
| Indian retailing today is at an interesting crossroads. | | | | as well as sales/customer data across Web sites |
| The retail sales are at the highest point in history and | | | | from a single back office. The system has also in-built |
| new technologies are improving retail productivity. | | | | helpdesk (customer service) capabilities to provide |
| Though there are many opportunities to start a new | | | | managers with better visibility of current business |
| retail business, retailers are facing numerous | | | | activities across multi-channel retail operations on the |
| challenges. | | | | Web. Customer expectations for multi-channel retail |
| With time the Indian markets are becoming inundated | | | | are permanently growing, and companies must |
| with numerous dispersed firms, companies that | | | | respond with more capabilities in their solutions. And |
| demands to lead with an extra mile to gain a | | | | here, the most cost-effective solution is having the |
| competitive edge over their competitors for whom | | | | SLA from B2B to keep up-to-date the custom |
| Information Technology has become a critical | | | | multi-channel business solution and be able to get |
| medium. | | | | on-demand development services to meet individual |
| Classifications of IT investments in Retailing based on | | | | project requirements indeed. |
| the need / value | | | | Business to business solutions usually implemented |
| • Improving efficiency of Supply Chain | | | | either through existing packages like C-ME, SOA or |
| • Improving the Shopping experience | | | | custom made solutions are used by large retailers and |
| • Business Optimization | | | | manufacturer-retailers having a secure and stable |
| Improving Efficiency of Supply Chain | | | | network is a prerequisite for implementing B2B. This |
| Retail and CPG companies are facing a number of | | | | B2B site would entail confirming vendors, suppliers |
| challenges due to increasing complexity of supply | | | | and other channel partners to send the necessary |
| chains caused mainly by offshoring of manufacturing. | | | | information through the network that in turn ensures |
| Increased lead times, demand variability and supply | | | | reduced costs and availability of merchandise at the |
| disruptions are forcing companies to pile inventories | | | | stores. |
| thus leading to opportunity losses and higher cash | | | | Business Optimization Software |
| conversion cycles. Demand forecasting has assumed | | | | Product pricing software: Significant prospects of |
| critical significance in managing supply chains | | | | profitability can be achieved with the advent of |
| efficiently. Having an agile supply chain network that | | | | sophisticated price optimization / revenue |
| seamlessly connects demand, supply and product | | | | management techniques offer. Currently two |
| remains the top priority for retailer and consumer | | | | US-based software product vendors Demand Tech |
| companies. | | | | and Khimetrics have come up with products to |
| We enable our clients in the retailing and CPG industry | | | | optimize the prices of individual products. India will |
| to be more competitive by improving their time to | | | | introduce such products in the coming years as |
| execution. We offer solutions that help attain more | | | | retailers have started understanding the features of |
| efficient movement of goods and information across | | | | the products and their deployment in pricing |
| the supply chain. These include monitoring and | | | | decision-making. |
| analyzing real time inventory to forecast accurate | | | | Merchandise Optimization Software |
| sales, optimizing store and shelf replenishment to | | | | Merchandise planning is one of the biggest |
| reduce stock outs, improve ROI and finally optimizing | | | | challenges that any multi store retailer faces. Getting |
| utilization of labor, space and equipment handling in | | | | the right mix of product, which is store specific |
| real-time to improve productivity and profitability. | | | | across your organization, is a combination of |
| Supply chain improvement a critical Retailing | | | | customer insight, allocation, and assortment |
| investment comprises implementing ERP packages, | | | | techniques. |
| forecasting tools, and others. The leading | | | | Our domain experts understand this and help clients in |
| manufacturer-retailer Madura Garments in one of the | | | | making the right forecast by SKU and ensuring that |
| interactions, after the implementation of the SAP | | | | the consumer finds the right product, at the right |
| ERP package, company could easily measure the | | | | place, right time and right price. Working closely with |
| success of the implementation by certain related | | | | our technology partners, we guide our clients through |
| indicators. | | | | the entire merchandise planning lifecycle in a |
| Improving the Shopping Experience & Business | | | | systematic and integrated way. We support |
| Optimization | | | | end-to-end merchandising functions including optimizing |
| These investments comprises the value added | | | | merchandizing assortments, allocating products, |
| services being provided by disperse retailers like the | | | | providing planning and analytics capabilities and lastly, |
| CRM packages by firms to add value to their existing | | | | providing solutions to maximize value from |
| products. These types of investments may turn out | | | | promotions and price management. |
| most difficult to measure of all especially if the | | | | The benefits of Merchandise Planning accrued by our |
| company lacks experience in using customer data to | | | | clients include reduced unplanned discounts and |
| increase customer profitability. An instance that can | | | | promotions, properly utilized floor space, fewer store |
| be referred is Fabmall’s e-commerce website | | | | transfers, and increased turns throughout the chain |
| tracking customer preferences and built-in business | | | | helping the bottom line immensely. |
| intelligence also sending suggestions to customers | | | | Software applications though at nascent stages are |
| based on their earlier purchases. | | | | being developed to apply sophisticated data |
| Critical Avenues for IT Investment | | | | processing techniques to existing inventory and sales |
| Customer relationship management: Indian retailers | | | | data and thus accurately determine future patterns |
| are aggressively investing in Customer Relationship | | | | of supply and demand at each item and store level. |
| Management Solution for retaining; acquiring | | | | Mobile computing |
| customers, brand management, to analyze | | | | Mobile computing has facilitated employees in |
| consumer-buying behaviour, buying patterns of | | | | tracking the inventory and provided customers an |
| 'loyalty cardholders', integration of multi-channel sales | | | | innovative shopping experience through integration of |
| and others. Few feasible CRM solution packages are | | | | PDAs in individual shopping carts that would provide |
| namely Talisma, Siebel, SAP, Retek CRM and Sales | | | | information on the products. This use has optimized |
| Logix. Retailers like Pantaloon, Café Coffee Day, | | | | inefficiencies in inventory and supply chain sections |
| Barista and Shoppers Stop are some to deploy | | | | and lead to cost minimization. A similar WAP (Wireless |
| referred CRM packages. | | | | Application Protocol)-enabled mobile phones are |
| Business Intelligence tools | | | | catching attention today in Retailing sectors. |
| These comprises tools namely Data warehousing, | | | | Conclusion |
| data mining, Online Analytical Processing (OLAP) | | | | CRM solution, Business Intelligence Tools, B2B |
| facilitating a wealth of information in terms of sales | | | | software, RFID, Business Optimization software and |
| and behavioral analysis to retailers. Business | | | | ERP are some of the popular technological avenues |
| Intelligence tools are identified to be very versatile | | | | for explosive Retailing that has identified IT as critical |
| that analyze sales data from the POS, determines | | | | tool in its scenario. In India IT tools are being |
| trend of sales for the categories and sub-categories | | | | implemented in the supply chain that is commonly |
| of merchandise sold from disperse stores that enable | | | | fraught with inefficiencies like about 50% of the |
| the retailers to understand the frequency of sale, | | | | production is often lost before reaching the targeted |
| geographical spread of sales, types of sold | | | | consumers especially in perishable goods market. |
| merchandise and thus provide 'what if' analysis | | | | Unless these manual problems are solved no IT |
| specially for projected sales and price changes . This | | | | solution could prove to be much effective. |
| would lead to increase in sales. | | | | |