Information System in Retail Sector

Introduction

An important element of the supply chain is the retail. Retail is the place where the products and goods are sold to the end users. Retailer purchases goods and products from producers in large quantities and in turn sells them to consumers in smaller quantities.

Information Flow

It is very important for the retailer to communicate with the supplier as well as the consumer. From the producer, the retail should know the following:

• Retailer should know when a new product is getting launched or whether the producer is introducing a new variant for the existing product.

• Retailers should get a regular training from the manufacturer about brand new products and fresh technology.

• Retailer should have information well in advance about any impending pricing change.

• Retailer should also know about sales forecast from producer for given line of product.

Consumer is also as important for the retailer as the producer. From the consumer, the retailer should know the following:

• What attract the consumer to a particular retailer?

• What are good and bad points about a particular retailer?

• How did they hear about a particular retailer?

Retail Management Information System

If the retailer is on top of above information, then he would be able manage his business efficiently. In the current scenario, large retailers have their shop across physical geographies. For them, it becomes very important to centrally manage all shops. Retail management information system precisely does this with help of hardware, software, database and various modules.

Objective

The objective of the retail information systems is as follows:

• An information system should provide relevant information to retail manager regularly.

• An information system should anticipate needs and requirement of the retail manager.

• An information system should be flexible enough to incorporate constant evolving needs of the consumer market.

• An information system should be able to capture, store and organize all the relevant data on a regular and continuous basis.

• The retail Information systems should be aligned with strategic and business plans of the organization. Therefore, it should be able to provide information, which supports and drives this objective.

Characteristics of Retail Information System

The retail information system should have following characteristics:

• Retail Information systems Information systemsRetail Information systems should connect all the stores under the company's

• Retail information system should allow instant information exchange between stores and management.

• Retail information system should handle the various aspect of product management.

• Retail information system should handle customer analysis.

• Retail information system should allow the store manager flexible pricing over a financial year.

Role of Retail Information System

Retail information system should support basic retail function like material procurement, storage, dispatch, etc. It should allow the manager to monitor sales of product mix and daily sales volume. An information system should help in inventory management.

Variety of Retail Information System

Retail information system is applicable to different types industry within retail management. An information system can be developed to manage fashion store, pharmacy, a grocery store as well as a toy store.

Indian Retail Sector

Indian retail sector has been growing by leaps and bounds in last decade or so. One research suggests that it will grow to $1,407 Billion by 2026.

Technology is and will play an important role in the Indian retail sector. Various groups in organized as well as the unorganized sector has taken to IT for supporting this growth.