Inventory: POS System in Supermarket

Table of Content

It would be very useful for a chain of supermarket in this capacity like AS to access valuable information through the study of its POS system, in addition to everything; it is also used as a great tool for management purposes as well. The analysis also gives insightful information regarding the inventory management and ability to posses’ better customer service. The POS software also provides an advantage to the marketing team to in order for them to study the behaviors of the shoppers and their buying habits, thus, allowing them to know how to better advertise to them.

The ultimate goal of the CIO for the Alliance Supermarket is to make better usage of the data that is gathered with the use of POS software which as mentioned before tracks and documents each sales using a barded method. There are three main issues that the CIO wishes to address; first be able to respond to sudden, unanticipated inventory demand, 2nd be able to identify demand patterns that vary from store to store and last to assist the manufacturers to better target customers for special promotions and sales.

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This paper will set out to target the three main objectives of the CIO as well as any recommendations that can be made in order to better assist customers while following ethical and privacy standards that are placed by the company. Better usage of POS System With the use of POS, Alliance Supermarkets have the ability to track sales of reduces and reorder them automatically.

Think of a pharmacy, once a pill has been ordered, and the amount that is used is scanned in the system, so later on when the Pharmacist is ordering products that are needed, then it will be easier for them not having to go back and count each pill as would be in the case of the periodic inventory system. The current system is capable of scanning the PUC code that is on each item, and in that instant will updates the inventory. “With the POS system, you can maintain a sales history to help adjust your buying decisions for seasonal purchasing trends” (Ditz, 2014).

This current system groups every information together and that gives a history of the product. The problem with that is, different stores in different neighborhood have different products that they would buy as well as different clientele for different stores. Instead of grouping everything as a whole, it would be wise for the AS to individualize it more, that way they can track items based on the season as well as the location. POS allows management as well as the manufacturers to have up to date access to the inventory to know which item is already scanned and sold.

Each items have a specific barded known as the PUC, as each of the bar code is scanned, there is a signal that is sent informing the manufacturer that the item has been ordered, at the same time, it is also keeping track of the inventory. Knowing the buyers habits, will allow management to be able to know how much to set it for, so when inventory reaches that amount, then a message or signal is sent to the manufacturer requesting more of that item to be ordered.

Instead of it waiting to order once it get below that minimum, the stores can go based on previous seasonal sales and poorer everything that way. The current system makes it hard to satisfy customers, because imagine if the there are no longer any item, then the customer will leave off made that they did not receive their item, with this suggestion, since it focuses on the individual store, then the exact demands can be measured exactly therefore satisfying the customers.

Another advantage with the suggestion is that it will prevent items from going to waste, therefore keeping cost down. As mentioned, the customers are being tracked per stores, so the habits will be clearer for the store, which will let the store know exactly what the customers like. Cost Reduction No company goes into business hoping that they spent excess amount of money. The goal is to spend the least amount of money you can, while making the most profit as possible. In this situation, the more control the company have over inventory, the better for them in the long run.

One way can be to reduce overhead cost, for example, rely on great service, so the company can be advertised by words of mouth therefore cutting down on advertising cost. Another example would be to potentially adding self-checkouts, so then less cashiers are needed. One cashier can look over four self-checkouts instead of hiring four different people for each isle. Alternate Approach Having a mother that is a shop-a-holmic, it is apparent on the best way to get customers to come to shop.

First, AS should consider providing multiple coupons, not only in the Sunday paper but also online since mostly everything is done through technology. The great thing about coupons is, not only does it allow customer satisfaction, but it also provide AS a way to track the customer is spending habits, which will help AS with inventory control. Another advantage s that, even if customers have coupons for an exact item, they will be tempted to look more around the store, leading them to buy items at full price.

Finally yet importantly, there can be survey that is sent electronically via email, if they complete it then they would get additional coupons as well as discounts. The survey should have questions like: 1) How often do you visit AS? 2) What are your intentions when going to AS? 3) How do you decide which Supermarket to go to? Ethics and Privacy Standard The other day, while watching a prank show, there happen to be a camera in he dressing room, the first thing that came to mind was the fact that, it have to be violation of privacy. Respecting the customers privacy should be number one priority.

They must feel comfortable enough to visit the store constantly, the minute one customer feels violated, they will no longer visit the store. So the information that are gathered by POS system have to be within the ethical and privacy standards. “Ethics is a code of conduct based on established moral principles” (Baden, 2014). With using the POS system, it can be easy to gather the customers days in which they visit the store, which can make it easy for someone hat is a stalker to have; therefore the privacy of the customers personal information should be kept safe and private and only be intended for specific eyes.

Conclusion The Point-of-sale system is design in order for any company to be able to take advantage of controlling inventory. Once information is gathered based on what the customers buy, it can be used to design the habits of the shoppers which will better at being able to control inventory. Controlling inventory, ultimately reduce cost of the company which therefore increases profits. POS usages have advantages for both customers as well as company when used correctly.

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Inventory: POS System in Supermarket. (2018, May 26). Retrieved from

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