Logistics Retail Sector
Logistics in the Retail Sector
For the project I will be looking at how Computing has aided in the management of logistics within the trade sector and how much if any this has improved in its general efficiency.
There are many ways that computers can aid in the management of logistics in a company such as Sainsbury's. From my preliminary research I have found that the main way Computers have helped improve efficiency and increase profits is through Automatic Stock Replenishment. This basically means that when a particular item sells enough the item will be automatically reordered. This ensures that shelves will not be left empty and therefore profits will not be decreased through customers not being able to purchase items they wanted because they have already all sold out.
You could argue that this process could be carried out by a person just as well as a computer but where manual automatic stock replenishment is in place at least 50% of out of stocks are the result of human error. ASR also results in lower man hours and saves a substantial amount of money, i.e. traditional ordering requires 5.0 % of total man-hours of a store.
ASR is probably the most important benefit that computers make to the logistics of the retail sector but there are others such as: -
Forecasting systems
This improves delivery times as it takes in account any shipments underway and turnover during lead time from order to delivery.
Sales Anticipation
This looks at sales trends such as what sells more and what sells less at certain times of the year and anticipates how much of a certain product needs to be ordered, i.e. Turkeys sell more during the Christmas period and stock needs to be high throughout that period.
I will look at these and all other aspects of Computing within the retail sector to draw upon a conclusion.
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