Role Of Information Technology On Retail Industry

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Role of IT in Retail Industry: Significance: Because of the increasing globalization of retail businesses, the use of information technology increased significantly. IT plays a major role in the management of retail operations and a crucial factor to be successful. Achieving operation effectiveness and maintain low cost would not be possible without information technology. Efficiency in Operations: To stay competitive, retailers use IT to share data among customers, vendors, store associates and financial institutes like banks and credit card providers. TJX has in-store Kiosks and bar code scanners for automatic check outs. These IT solutions speed up operation and decrease cost. IT systems enable companies to respond to ever changing marketplace by enhancing speed and flexibility. Inventory management: IT allows effective management of inventory. Things like RFID enable these retailers to track their merchandise stock in real time. This is way better than having an employee check the inventory manually; it saves time and reduces cost while improving customer experiences. A computerized system reduces error in inventory count. It provides timely data. It enables management to instantly check how many units have been sold, how many are in stock and which products are selling the fastest. If merchandise information is passed to manufacturers, it can decrease production time. Large retail chains like Wal-Mart and Target are already using these systems. Customer
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