8/14/2019 Kiranas to Super Markets

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Kiranas to Super Markets

Mr. Lalu Prasad Yadav rightly justifies the growth of the retail sector in India, by saying that theshoes we wear on our feet are sold in air-conditioned show-rooms these days, but what we eat,consume, are sold on dusty streets. India has rightly caught the

nerve with the growing purchasing power of Indian middle-class, as retail markets are givingthem a new experience.

Statistics show that its the retail sector which is the largest industry these days, contributing 10%to GDP, 8% of employment, and the market size of Indian retail industry (organized andunorganized) is about US $ 312 Billion, in which 2.8% (US $ 8.7 Billion) is shared by organizedsector and expected to grow to US $ 70 Billion by 2010. The Government is also encouraging theglobal integration by allowing 49% in FDI.

But the question that comes to mind is how our retail sector will grow in experience? The answer 

lies in the boom of Information Technology.

With growing areas of retail space, increasing shelves, more varieties, retail business becomesmore complex. It is a challenge to handle thousands of square feet of floor space, inventory,supply, and more importantly, manage the cost. So super-markets should give their customers anexperience of huge market, posh ambience in one space, but at the same time, everything shouldbe easily accessible.

How IT Enhances Retailing?

a) Retail Demand Forecasting: All customer transactions throughout the day, all details of their purchases, are stored as database, and then the patterns are analysed to forecast the futuretrends of the consumers' behaviour.

b) Inventory Management: The use of stock should be regulated. There should be optimal useof store space and maximum for selling. The varying time for replenishment of different productshelps them to save space and avoid blockage of money.

c) Store Management: A place for safe-keeping of retail and whole-sale commodities are kept.IT helps sending alerts regarding out-of-place or stock-out items.

Technologies Used

RFID Radio Frequency Identification: It's a technology used to locate and check the availabilityof a product. It's a data collection technology that uses electronic

tags for storing data. The tag, also known as an "electronic label", "transponder" or "code plate",is made up of an RFID chip attached to an antenna. The reader sends the wave, which can read

the chip. Unlike bar code system, which needs a scanner closely held to the product to read, theRFID chip tag can be read from distance.

Smart Operating Systems: Smart Operating Systems enterprise software are providing solutionfor manufacturing and distribution from Lean Manufacturing, Just-In-Time (JIT), and Six Sigmainitiatives, to postponement strategies to Collaborative Planning, Forecasting, and Replenishment

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(CPFR), and Sales & Operations Planning (S&OP) activities. It calculates the uncertainties evenof the minute form and gives safety stock levels to keep the inventory stable. Studies the supplychain and points out where it can be improved.

Point of Sale: It records the location, date, time of the transaction taken place. There arecomputers or specialized terminals that are combined with cash registers, bar-code readers,

optical scanners, and magnetic-strip readers for accurately and instantly capturing thetransaction.

IT has really made grocery markets advanced which has given great advantage to the customers,such as: -

  Saves Time

  Saves Labour 

  Customer Satisfaction

But, at the same time, it very important to know the technology know-how without which the sametechnology can be a bane for you.

But for now... Happy Shopping!!!