Target Erp : Competitive Advantage Over Companies

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Target ERP consists of may components which give it the competitive advantage over companies. A number of factors contribute to it. A few of them are such as the use of networking, a point of sale computers, supply chain management, Customer Relationship Management (CRM), demand forecasting etc. All the above utilize Information Technology in different ways. The functioning of the supply chain, internal network and Point of Sale systems work point to the fact that Target’s Information System (IS) is working smoothly. Remember that a good IS system helped Target not only to gain a competitive advantage over its competitors but able to sustain for so long by maintaining as well as increasing customer retention rates along with increasing…show more content…
The L4150 is connected to the POS system usually and IBM SurePOS 500 or 700 and routed through custom software that is connected to the Payment Card Authorization systems. All of this tech has been optimized by and for Target. This makes the system efficient and customer friendly which makes the customer trip to Target pleasant. The backend of the system uses Hyper-V virtualization which is all located at Data Center and not locally. Basically, Target creates very effective POS system which makes optimum customer experience. The POS is a great indicator of items in stock and knows when to order more stocks of the items. Every time any item is sold, POS updates the server and the inventory amount changes. Remember that POS system is the location where a transaction or checkout takes place. POS systems are able to track the internal stock and automatically schedule the replenishment stock from external sources. This inventory management is an important part of Information Systems. Inventory management is mainly about specifying the size and placement of stocked goods. Inventory management is also required at different locations of the supply chain; this encompasses everything from replenishment lead time, carrying the cost of inventory, inventory and demand forecasting, inventory valuation, inventory visibility, price forecasting, quality management, and returns of defective goods. The inventory management needs to be handled in the efficient manner as it is
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