Customer Sales Data, Buying History And Pricing Information Essay

1083 Words Feb 8th, 2016 5 Pages
Inventory management is vital to the survival and success of the business. In order to keep track of inventory, retailers use a point-of-sale (POS) system that records each transaction as the items are read by a bar code scanner (Vonderembse & White, 2013). This information is used to analyze customer sales data, buying history and pricing information. Alliance Supermarkets has been using a point of sale (POS) system for some time to track its inventory. This paper will formulate new and innovative uses the information from the POS system can help Alliance better serve its customers by ensuring that adequate quantities of each item are available, that costs are kept low, and that customers are made aware of the new products that may interest them. Furthermore, this paper will describe any information that may help Alliance Supermarkets reduce costs while providing better service, as well as propose a new approach that could be used by Alliance by using the purchase information that can be obtained on individual customers and assess ethical and privacy consideration in regards to the information gathered from the POS system or purchase information.
There are several advantages associated with using the POS system information. One advantage is that the information can be utilized to generate accurate order forecasts to give companies a significant competitive advantage in demand planning and supply chain efficiency (Gallucci & McCarthy, 2008). This applies to Alliance…

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