inventory control in shopping malls

8/13/2019 Inventory Control in Shopping Malls

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APPLICATION OF INVENTORY CONTROL

TECHNIQUES IN SHOPPING MALLS

ABSTRACT

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In todays world, it is absolutely impossible to think of business operations without

proper processes designed for inventory control system management in any

organization. In most firms, inventory control system management refers to the

ways logistics are handled in the company. Inventory control system management

is nothing but management of logistics and the process of eliminating general

inefficiencies in the company. It refers to the processes of how the different

suppliers and the whole network thereof are managed. The overall aim of inventory

control system management is to produce effective and efficient operations. The

value of inventory control system management goes up all the even more in retail

chain organizations. This is due to the fact that every retail chain organization

works with a number of suppliers at any given point in time. ll retail firms have to

make a conscious effort to integrate the logistics, distribution activities with the

suppliers, and the manufacturers overall efforts. This study attempts to go through

and systematically review the comprehensive processes for inventory control

system management in any retail chain organization. lso, it tries to undermine

how the current technology and innovation techni!ues can be leveraged to improve

the inventory control system management processes and to make them more

consumer"centric and efficient. This study has used the e#ample of $hopping malls,

the leading global retail giant. This is a perfect e#ample used to illustrate how

inventory control system management processes should be handled in large retail

set ups as $hopping malls would be handling materials and supplies from hundreds

of suppliers at any given point in time.

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&ontents'$T( &T.................................................................................................................. 1

&ontents........................................................................................................... ......... )

Introduction..................................................................................................... .......... *

+iterature review.................................................................................. .............. .......

(esearch -ethodology................................................................................... ......... 1

indings nalysis............................................................................................. ........ %/

(ecommendations................................................................................................... %0

&onclusion...................................................................................................... ......... )/

(eferences............................................................................................................... )%

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Introduction

Introduction:

Inventory control system management or logistics management generally deals

with the management of materials and flow of information in a comprehensivenetwork which consists of suppliers, manufacturers, customers and distributors.

2agurney, %// 3 4fficient inventory control system processes and logistics would

mean that the company is able to manage a ready flow of goods and services and

is able to operate effectively in line with its current bandwidth. The firms which are

in the retail industry are all the more focused on efficient inventory control system

processes as they have to deal with a number of suppliers and distributors at all

times. 2agurney, %// 3

The last few years have been phenomenal for the retail industry all over the world

as there has been emergence of various new players in the market who are trying

to establish their foot hold in the retail market. 4ven big diversified companies like

(eliance have come up with their retail chains in order to take ma#imum

advantage of the huge consumption patterns which are prevalent in the country.

This study will basically focus on how $hopping malls handles its inventory control

system management and logistics processes. 5opp and $pearman, %// 3

6enerally, the logistics or inventory control system management is only limited to

the way transportation will work for the goods. 'y default, it still somehow does not

take into consideration things like warehousing, packaging, invoicing and entry

management etc. which should be accounted for within any good inventory control

system process. Tayur and 6aneshan, %//73

(etail industry is undoubtedly one of the hottest and mushrooming industries all

over the world contributing towards employment generation in a huge way. The

retail market all over the world is featured with different business models. These

shops do not have any defined logistics processes for them. 8liver and 9ebber,

%//%3 :ey retail players are ma;orly trying to capitalize on this shortcoming of the

street shops by becoming aggregators of goods and selling them at subsidized

costs. 8ne more advantage that they have is that because of being big brands,

they are able to negotiate the pricing for these products a lot more than any other

normal players. &hopra and -eindel, %//%3.

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&onsidering the fact that logistics play !uite a critical role for any firm, and more so

for the shopping malls, the research is !uite important. There is no doubt that

logistics and inventory control system within an organization enables the retail

chain operations to either move the products or store them in a more efficient

manner. If done properly, logistics management results in prevention of needless

movement of goods from one location to another and thus reduces transportation

cost and also frees up storage space for more productive use. 2agurney, %// 3.

The research is also important because generally retail stores maintain lower

inventories and do not place too much important on logistics and inventory control

system management. They hardly understand the fact that logistics management

can be beneficial for both the manufacturers as well as the retailers. &hen and

Paulra;, %//*3

s a firm conducting retail operation, it is really an important task to find the right

balance between investing in front end and back end operations. +ogistics, as an

industry has been evolving over the years and the channel dynamics are changing

!uite rapidly for the e#isting players in the retail industry. &hen and Paulra;, %//*3

This is due to the fact that the retail players are increasingly growing in size and

therefore their bargaining power is also increasing with each passing day. This

should ideally result in some mutual understanding between various manufacturers

and retailers so that they can develop a strong inventory control system network.

In that case, it would make sense that both the e#isting operators as well as the

new operators put collective efforts to eliminate inefficiencies in the inventory

control system network.

ll big retail players the world over are making big efforts to improve their overall

efficiency and effectiveness of inventory control system and logistics.

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Lit r!tur r "i #

Introduction

lmost all big retail firms across the world rely on good inventory control system

management policies and practices for their overall success. 8ne of the ma;or

factors behind their success is the right implementation and framework policy of

inventory control system and logistics management. =ohnson, %// the classic e#ample being 9almart trying to enter India and

having a ;oint venture with the 'harti 6roup. The overall strategy here was that

9almart will ;ust manage the back end operations whereas 'harti will manage the

front end operations. ?iswanadham, %// 3

'ig firms all across the world look forward to replicate their global inventory control

system model in emerging market countries as they know there is a lot of potential

in emerging markets and they can easily tap this market. -ost of the firms

emphasize on local sourcing of goods for cost efficiency reasons. ?iswanadham

and 2arahari, %//@3

'ig players like 9almart have already claimed that they aim to capture


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competitive in nature, the firms know that if they do not have an efficient inventory

control system model in place, then they are going to struggle a lot. $hapiro,

%//13

It means management of a network of interconnected businesses involved in

ultimately providing product packages which are re!uired by the end customers.

The logistics management encompasses all movement and storage of raw material,

inventory as well as finished goods the original point of manufacture to the final

point of consumption. &hen and Paulra;, %//*3

ll firms want to be successful and they know that they can only be successful if

they can get their logistics processes right. Fltimately, success in this dynamic

sector depends on achieving robust inventory control system processes and this

can only be done through logistics professionals. This is due to the fact that theseprofessionals have the capabilities to combine the best systems and e#pertise to

manage a ready"flow of goods and services. $hapiro, %//13

Fltimately, it is the shopping malls, which is all set to provide boost to a number of

allied sectors and as the logistics or inventory control system management industry

is considered as the back bone of the shopping malls, it stands to gain the most out

of this boom period.

The logistics sector does not mean merely transportation any more, it also focuseson activities like warehousing, packaging etc. It is estimated the logistics sector is

all set to grow at a rate of %/A or even more in the upcoming years.

It is also to be understood that as the retail chains e#tend, inventory control system

management will now take on an increasingly important role. This is because the

end consumers have become all the more demanding and also conscious about

their time. They are also spoilt for choices as there are so many brands in the

market, all vying for the consumers attention. The competition is indeed e#tremely

tense in the retail market all over the world and all firms are aiming for high

customer satisfaction. Cr. (amkishen. B, %/1/3

lso, things are not the same in the Indian retail industry as the country is in the

process of transformation and have been witnessing changing life styles, increased

per capita incomes and individual income levels. The global retail market is

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e#panding with each passing year and is e#pected to reach F$ 7


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There is no doubt about the fact that inventory control system management or

logistics play a pivotal role in the organized retail market in the emerging markets

and the growth of the organized shopping malls actually depends on logistics. The

Inventory control system &ouncil of emerging markets have been formed to e#plore

the different challenges that a new retail firm would face and to find possible

solutions for these firms operating in the shopping malls all over the world

Ideally, the actual role of inventory control system or logistics in the organized

shopping malls in the emerging markets should be a shelf" centric partnership

between the retail firm and the manufacturer as this should lead to creation of

inventory control systems that are loss free. This will also give rise to top and

bottom line growth for all these firms which are operating in the shopping malls inthe emerging markets. In the organized shopping malls in the emerging markets,

the presence of fresh produce vegetables and fruits3 is very small. 5owever, this is

slowly but surely picking up as retail firms have started dealing in these items

already. This is so for the nature of inventory control system is very fragmented.

This shows the important role of inventory control system in the organized

shopping malls in the emerging markets.

In the organized retail market in the emerging market countries, the value of

inventory control system is e#tremely important as the customer wants at a very

affordable price, a variety of product mi#. It is the inventory control system that

ensures to the customer in all the various offerings that an organization decide for

its customers, be it cost, service, or the !uickness in responding to ever changing

tastes of the customer.

The infrastructure in emerging markets in terms of road, rail, and air links are not

sufficient. nd so warehousing plays an e#tremely ma;or role as an aspect of

logistics or inventory control system operations. To overcome these problems, the

retailers is trying to reduce transportation costs and is investing in logistics through

partnership or directly. The organized shopping malls in the emerging markets is

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growing so the role of inventory control system becomes all the more important. It

should become all the more responsive and adaptive to customers demand. There

is also need for the inventory control system to be more cost efficient and

collaborative to win the immense competition in this sector.

The role of inventory control system in organized shopping malls in the emerging

markets has e#panded over the years with the boom in this industry. The growth of

the retail industry to a large e#tent depends on inventory control system, so efforts

must be made by the retailers to maintain it properly and ensuring that it results in

more and more growth for the firms operating in the sector and overall growth for

the entire industry.

S*o--in( M!%%&/ Lo(i&tic& Str!t ($

The success of $hopping malls is well known across the world. 8ne of the big

reasons why $hopping malls is such a big force to reckon with is the right

implementation of supply and logistics management. $hopping malls has in fact

started replicating its inventory control system model in a number of emerging

market countries and they are trying to implement this across all their stores in

these emerging market countries.

The firm has a very good network of suppliers and distributors across the country

who are willing to work with $hopping malls at virtually real time levels. Therefore,

whenever $hopping malls has urgent re!uirements to fulfill its orders, it raises a

flag to )"* suppliers concurrently and then picks up large volumes to satisfy those

re!uirements. 8ne more good thing that $hopping malls has done is that they have

a separate team which takes care of all logistics issues and pricing which deals real

time with all these suppliers and distributors at the back end, thereby ensuring that

their day to day operations run efficiently and smoothly at the front end.

RFI0 in R t!i%

In any industry, inventory control system would actually mean integration of the

supplier and retailers to provide goods at the right time and in the right place that

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should truly satisfy the needs of the customers. In todays scenario, the inventory

control system is the backbone of all the retail giants, be it 'enetton, Hara, 5ennes

K -auritz, $hopping malls, $pencer, $hoppers $top, ?ishal -egamartetc. 'ut due

to various problems like stock"outs, lost sales, delayed shipments, production

slowdowns, e#cess buffer inventory, shrinkage and billing delays, etc. the

management seems to be really missing from inventory control system or logistics

management.

5owever, of late, there has been one concept that is really creating a lot of buzz in

the retail market in the emerging market countries. There is a new concept called

( IC which is really causing a lot of interest to big retail players. (adio fre!uency

identification ( IC3 is a term that describes technologies that use radiofre!uencies to identify ob;ects. This is the latest technology that is making

headlines in the Inventory control system network. Though it has been in

e#istence since 170/s but it is only now that it has starting changing the way

people look at inventory control system or logistics, owing to companies who have

introduced cheaper ways of producing ( IC tags, (eaders, Tags, Portals and

accessories.

$hopping malls was the very first company to incorporate ( IC in its inventorycontrol system methods and re!uires its suppliers also to use ( IC. This technology

has helped $hopping malls in several functions like tracking inventory, locating

various goods, collecting payment, which in turn has helped speed up the

movement of goods in the warehouse and reduce cost of labour and errors in every

possible way. ( IC has helped $hopping malls save up to @.)< billion annually. It

has helped it in its aim to coordinate with its suppliers to serve its customers more

effectively and efficiently.

'ut ( IC does not come to the rescue of inventory control systems without a cost.

lot of planning and testing has to be done before implementing ( IC in any

organization successfully. The information encoding has to be standardised to help

( IC function in a smooth manner. ll the big firms in the shopping malls know

about ( IC and clearly know that they would not be able to succeed without this

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new technology that is really creating huge buzz amongst all retail players in the

emerging markets.

irms have not really started using it regularly but have reached a stage wherethey have been trying out a few things and are currently in the testing phase. It is

;ust a matter of time when the firms will understand the true value of ( IC

technology and would make ade!uate steps to have ( IC a part of their big

inventory control system and logistics plans. It might be a totally new concept in

some countries but it is bound to do well due to the clear cut advantages that it

offers to retail firms.

4 1Bu&in && !nd inno"!tion

8ne of the important aspects of e"business implementation is developing a link

between I&T companies and innovation. &onsidering such value the telecom

companies are placing a great emphasis on the critical role played by innovation in

their service delivery to the customers and remain competitive in the market place.

8n the other hand a strong competitive pressure is implied on companies to gain

incentives from their innovation and research K development activities. 4"business

implementation brings in the competition, competitiveness and innovation

intertwined 5aucap, %//)3.e"business in I&T industry is widely recognized as key

driver of innovation, specifically driving the process innovation within the company.

I&T have been identified and widely recognised as a ma;or enabler of innovation, in

particular for process innovation. 0


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6retton, 6ali and Parham, %//)3.. In some sectors, particularly in I&T

manufacturing, consumer electronics and telecommunications, I&T are also highly

relevant for product innovation. 5owever, as more companies strive to e#ploit the

innovation potential of I&T, it becomes more difficult for the individual company to

directly gain competitive advantage from this technology. e"'usiness is becoming a

necessity rather than a means to differentiate from competitors. In addition, the

introduction of innovation can cause substantial costs in the short and medium

term, as it may take time before the investments pay off Cenis, -c-orrow and

(Lger, %//*3.

E1Bu&in && in M!%%&

In %//), basic internet access and standard internet applications such as e"mail

and use of the 9orld 9ide 9eb had reached very high diffusion levels in the

electronics and electrical machinery sectors throughout 4urope. 2inety eight

percent of sector companies in the 4F"< had internet access and used email, 7


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R & !rc* M t*odo%o($

R & !rc* O23 cti" &

The overall ob;ective is to underline the great impact of technology on the current

logistics scenario in the market today. This is important to show how customers can

be managed in a better way.

R & !rc* P%!n

6enerally, for every piece of research, it is either a deductive approach or inductive

approach, which is used. This really depends on the e#act re!uirements of what

research is to be done. 9ork done in this study is more !ualitative in nature.

research design is arranging properly, the different conditions for collectionand analysis of data that aims for both fulfilling the purpose of research and that

too in the most cost effective manner.

The research has been conducted through a proper mi# of both detailed

secondary research as well as primary research to fill the data gaps for which

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similar keyword Dinventory control system managementE has been revealed most

of the times. round */ articles have been reviewed from 1/,/// articles which are

present in the database. term mentioned as control over !uality has been

achieved during the search of the articles and publications. (oberts, Cavid %//73

M t*odo%o($ Fr!' #or.

6rouping the important concepts and the frame works being carried out> four

important methods have been grouped together so that the methods and concepts

have been classified. Cescriptive features, concern on theoretical strategies, issues

related to both differential and methodological has been brought forward. In which,

distribution of time frame and different sectors of the industries has been covered

in the first part. &onceptual framing, theoretical perspectives and the research

methods have been provided in the later stages. bdinnour"5elm, $. %//13

Ti' Hori4on

The trends and the technology that has been carried out in the present research

have been chosen for a span of years from the period in between %//< and %/1/.

-ost of the traditional techni!ues for the automation of the inventory control

system management have been performed past a decade. 'ut as the present

research deals with the emerging technologies and the amendments carried out by

the latest products such as ( IC, this span has been considered as enough.

R & !rc* An!%$&i&

s the present research deals with a descriptive and inductive approach rather

than conducive or testing phases, similar statistical data and descriptive

methodologies have been considered. -ost of the analytical and descriptive data

has been provided in the form of tables and graphs. $cott, +ee %//


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s mentioned above, the data has been collected using both the primary sources

as well as the secondary sources. The researcher has also read a number of

published articles on the logistics and inventory control system management.

Pri'!r$ 0!t!:

-ost of the data in this research study has been collected with the help of a

structured !uestionnaire. The interviews were conducted with industry e#perts and

some key officials M personnel in the logistics sector who have had relevant

e#perience in conducting inventory control system management.

These e#perts have e#ceptional domain knowledge and best suited to answer

!uestions about their companies logistics strategies.

The first step was to prepare a structured !uestionnaire which could be used

to conduct interviews with the company employees to gather their views on types

of inventory control system strategies that their companies are using to engage

with potential customers.

The structured !uestionnaire which was prepared for this particular e#ercise

had a combination of both close ended !uestions and also some open ended

!uestions. The !uestionnaire basically comprised mostly of close ended !uestionsand couple of open"ended !uestions in order to administer the primary research.

R & !rc* In&tru' nt&:

&onducting primary research through structured !uestionnaires is one of the best

ways to collect data. The key is to have the !uestions in a proper se!uence while

conducting these interviews. The proper se!uence is re!uired and it should be

aligned in such a way that it absolutely meets the ob;ectives of the study. The!uestionnaire will mostly have close ended !uestions and a couple of open ended

!uestions with the total length of the survey being 0 to 1/ minutes focusing on key

inventory control system management strategies and technology related !uestions.

S!'-% Si4 :

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n appropriate sample size is really important for any market research or research

pro;ect. This leads to much better reliability and validity of the data and then

further analysis. 8nce the right respondents have been chosen, they should be able

to provide more realistic and appropriate data and information regarding the

ob;ectives of research. s the researcher has clearly mentioned in the data

collection section, the interviews have been conducted with the e#perts dealing

with logistics in organizations.

T!r( t R &-ond nt&:

In order to collect more in"depth information regarding the study ob;ective, the

researcher has emailed the !uestionnaire to the following respondentsN

+ogistics -anagers

$ales -anagers

Inventory control system -anagers

S!'-%in(:

6enerally, for such studies, there are different types of sampling techni!ues which

are used. These sampling techni!ues can be related to both probability sampling

techni!ues and non"probability sampling techni!ues. In probability sampling, every

single item within the population has a recognized non"zero probability of to be

chosen. These techni!ues generally comprise of random sampling, stratified

sampling and systematic sampling. 8n the other hand, in non"probability sampling,

the elements are chosen from a defined population in several non"random

behaviors. This type of sampling comprises of convenience sampling, snowball

sampling, ;udgment sampling and !uota sampling.

.

Findin(& An!%$&i&

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Gender

87%

13%

Male Female

The above figure shows the split of sample between the genders of the

respondents as @0A of the respondents were male and rest of them was females.

16%

12%

17%23%

9%

5%7%

11%

Supply !a"n #en$!mar "ng &lan s'ra'eg"$allye-pro$uremen' ()* supply+u'sour$"ng Fe, suppl"ersMany suppl"ers Su $on'ra$'"ng

The above figure represents the systems and application used by the companies

for managing their inventory control system. %)A of the respondents replied that

they use =ust in Time approach and 10A said that e"procurement is the most

prominent system used in their company for effectively managing the inventory

control system. 'oth these systems are very old in the field of inventory control

system and provide the greater benefits without incurring any additional cost to the

companies.

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419

5 915 18 17 13

23

25

15 43 4

9 17

16

12

17 23 9 57

113

5

2 1 17

4523 4

0102030

4050607080

S u p p

l y C h

a i n B

e n c h

m a r

P l a n s

t r a t e g

i c a l

e p r ! c

u r e m e

n

" # $ s u

p p l

% u t s !

u r c i n

g

& e '

s u p p

l i e r

( a n y

s u p p

l i e r

S u ) c

! n t r a

c t i n

#mpr!* ement Planning t! #mplement +lre a,y implemente, an, satis- ie, .!t at all /ele*ant

The above figure indicates the re!uirement of the companies for managing theirinventory control system. Inventory control system benchmarking and plan

strategically are the areas where the companies are seeking the improvement for

managing their inventory control system effectively.

21%

29%15%

18%

17%

.ery Su$$ess/ul Su$$ess/ul Some,!a' Su$$ess/ul

o' Su$$ess/ul o' a' all Su$$ess/ul

The above figure provides the agreement of the companies towards the success or

failure after implementing the various systemsMapplications for managing the

inventory control system. %7A of the respondents replied that the companies are

successful with their current systems since every application or system developed

for inventory control system gives separate and sure benefits to the company

however it depends on the nature of the business.

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43%

57%

es o

It is essential for the companies to develop strategic plan for managing any of thebusiness process. in this conte#t figure *. shows that


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ll the three applications are new to the system and include greater benefits for

effectively manage the inventory control system process within the organization.

34%

29%

15%

18%4%

uge ene/"'s A erage Some,!a' "''le o' a' all

The above figure provides the consent of the companies for having benefits by

implementing the above mentioned systems in the inventory control system

process. %7A of the respondents replied that their companies are having average

benefit however )*A said that their companies are having huge benefits by

implementing such system in place.

11

7 8

2119

15

9 10

0

5

10

15

20

25

)mpro3"ng '!e

5ual"'y o/ "n/orma'"on

)mpro3"ng '!e

$oord"na'"onamong '!e

depar'men's

6edu $"ng '!e

lead '"me

os' Sa3"ng )n$reas"ng '!e

sales

+p'"m"7"ng '!e

-us"nesspro$ess

Fo re $as '"ng Fle 8"-"l"' y

The above figure shows the primary goals of the companies for managing their

inventory control system. &ost saving is the most desired goal for the companies

looking at the current economic crisis and credit crunch. Increasing sales,

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improvement in the !uality of information, optimizing the business process and

forecasting are the second preferences of the companies to manage their inventory

control system.

19%

27%

15%

27%

12%

Me' su$$ess/ully A erage Some,!a' "''le o' a' all me'

The above figure shows the consensus of the companies for meeting the desired

goals by implementing the various systems and applications in their inventory

control system. There are more than )7A of the companies that have met their

desired goals however those which are still seeking the success re!uire the

consultant e#pertise for fully implement such systems in place in efficient

management of inventory control system process.

33%

20%

47%

)n es'ory op'"m" a '"onn!an$"ng $us'omer ser "$e

:e elp"ng $ompe'"' e ad an'age /pr '!e $!annel

The above figure shows the reason for developing the inventory control system

management within the company. *0A of the companies want to gain the

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competitive advantage and second preference is to optimize the inventory level

which leads the greater cost saving advantage to the companies.

.

R co'' nd!tion&

Today, retail businesses are in support of employing techni!ues to their trade

advantage. 9hereas controlling costs and increasing functional effectiveness

forever be crucial in the low profit retail business, retail businesses are currently

moving their concentration to inventory control system resolutions that improve

the essential client practice and force income all over the systems. This rebellion

has been concentrated on the shops in current situations, other than well"informed

retailers will currently want that all I2?42T8(B &82T(8+ $B$T4- techni!ues must

have a supportive effect on the consumer practice all over the channels $angani,

%//*3.

Ro% o+ IT in i'-ro"in( t* P r+or'!nc o+ In" ntor$ contro% &$&t ':

To answer of the above !uestion is unanimously that information is critical and

forces the whole system of inventory control system. ccording to ?astag and

-ontabon %//0, the idea that shifting information is as significant as shifting goods

is a necessary element of the development and enlargement in IT abilities.

Through, they varied on precisely how significant IT is to the I2?42T8(B &82T(8+

$B$T4- structure.

The main ob;ective of the IT techni!ue is to develop a corporationOs

interaction ability. The recent information methods have provided corporations

capabilities that corporations did not have before the blast of informationtechnology in their business. In the view of $waminathan and Tayur %//), in the

current business environment, changes have been continually catalyst through

information technology> other than a few e#perts think that there is a boundary to

information technology. This boundary might be locating the issues engaged with

information structures compatibility every time connected with the several

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methods. 8n the other side a few signified that a basic re!uirement for their retail

business is to increase their information technology systems.

This idea must be appeared like a competitive benefit concept. 'etter IT has thepower to decrease the manual hard work of data entry and wide paperwork. It is

identified that in retail business they are performing to efficiently apply information

technology, other that are discovering it hard because 0


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was no issue with harmonization between systems highlighted re!uire attaching to

essential 4lectronic Cata Interchange norms for it to perform. 4lectronic data

interchange must be set"upped for transferring the information to the -iddle

9holesaler. This will build the need e#tra noticeable and supple. Q(C$ will

moreover obtain a range to effort successfully for fast replenishment. The pour of

the data from the retailers be able to study through the -iddle 9holesaler

9illiams and 4sper, %//%3.

Lo(i&tic&:

The focus of ma;or retail e#pansions will be around the food and grocery segment,

with all ma;or &orporates entering retail through this segment. 9ith the ob;ective

to have better control over price, consistency in product supply as well as !uality,there will be huge investment in inventory control system infrastructure.

9orldwide, IT has been on the forefront in I2?42T8(B &82T(8+ $B$T4- initiatives

as it plays an integral role in automation and information sharing during the whole

chain 9ilson and &larke, %//


30/36

suppliers, and sales persons will be capable to seem on the similar data, on the

e!ual time. Therefore, shifting marketplace tendencies observation, pricing, and

vendor relative actions, distribution and warehousing operations may be managed

from only one middle place ?okurka, %// 3.

Econo'i & o+ Sc!% :

This approach will base on economies of sale while enormous buying decisions will

be taken through the middle wholesaler. The unenthusiastic operational capital

may be discussed to further add to the negotiating authority, the method $hopping

malls does with their complete volume. (etail +ink will permit leisurely increase

profits and stilling below"cost the rivalry, for the suppliers. Inferior costs will force

profits in share of marketplace and sales :etchen and 5ult, %// 3. dvanced sales

will in rotate interpret into e#tra profit achievement, which in revolve will provide

e#tra funds to spend in decreasing additional cost. Therefore the concept of

developing the lesser inventory control system visibility by the recommended

information technology instruments and applying &I&- with the recommended

planning for the pour of data and products, must be the a footstep in front for

consideration in building the retail trade process in India resourceful and successful

9ise and -orrison, %//03.

Conc%u&ionccording to $chwarz %//*, in many businesses I2?42T8(B &82T(8+ $B$T4- is a

very main issue because corporations understand the value of generating a mi#ed

correlation with their consumers and suppliers. business can increase their

competitiveness in current marketplace by use of better inventory control system

management and decrease all uncertainty and provide better service to their

customers. There is a one way for companies to effectively managing the

I2?42T8(B &82T(8+ $B$T4- needs through considerate their logistical practices

and plans. The effectiveness of Inventory control system management is a very

essential element for all organized retail business. 'ut on the other side some of

them think that inventory control system management is only a business practice

8llivier, %//


31/36

some other states that inventory control system management practice is also a

management of inventory. better inventory control system management

moreover has helped corporations make the change from a managerial system

based on operational silos to a procedure"orientated system. 'ut this action

becomes a cause of occurrence of conflict and confusion among corporations and

inventory control system management has supported to buffer these impacts. In

currents crucial conditions of retail business it a very difficult task for a business to

increase their competitive advantages and also sustain these competitive

advantages. nd also when every business survives under a great competitive

pressure it is too difficult for them to make their position efficient. $ome businesses

have seen the inventory control system management as a competitive advantage

because inventory control system management is fulfilling the need of resources

for implementing the process ?igilant, %//)3. It moreover provides to raise clout in

the channel because these corporations are established like Dleading edgeE and are

managed with immense heights of admiration. chieving competitive benefit in the

channel adds with peak administration help for reduced waste and costs, as well as

raised incomes. $everal corporations take action to push labor costs out of the

structure and draw costs back to their supplier. These types of tactics which can

reduce the cost tend to raise the competitive effectiveness of the whole process.

I2?42T8(B &82T(8+ $B$T4- assists industries superior appreciate the processes

that give element stage material for their completed goods. $uch as, in the retail

business, relationships with wholesaler are very important for any business and in

the vehicle sector, these types of relationships may influence the makers

capability to make a car on right time. Through concentrating on I2?42T8(B

&82T(8+ $B$T4-, retail business may significantly develop functional

effectiveness. I2?42T8(B &82T(8+ $B$T4- looks for to assist retail businesses

manage costs through uncovering the problems in their chief connections. The

basic problem is that there is a need that every retail business considerate the

demand of their customer and after that line up their supply side with these

demands. &ooper, +ambert and Pagh, %//0 suggests that by implementing these

efforts, corporations may decrease otherwise even stop e#pensive overruns

andMotherwise produce lacks. n effective inventory control system management

accomplishes these results in different routes and different e#ecutions. Principally,

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32/36

inventory control system management connects relation between suppliers and

their databases that present estimates, present stock, shipping, otherwise logistics

time structures inside the consumer firm. Through providing those suppliers true

entrance, suppliers may better gather their consumers needs. $uch as, the

supplier may settle shipping to make sure that their consumers have the stock

essential to gather their consumers demands.

R + r nc &

R e9eek %//*3, $uppliers, competitors balk at 9al"-arts ( IC lead ,

available atN www.eweek. comMarticle%M/,10


33/36

R oster, P.(. and 'urberry, (. . 17773, $cenario of 6lobal (etail

business , &omple#ity in $upply chain management, ?ol. ), pp. 1"

inventory control in shopping malls

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