Management information systems--or MIS--involve the use of information technology to help a company better manage its data and provide internal control. Retail businesses have found ways to use MIS to their advantage to make better decisions. The information that retail establishments use could be generated internally or they could get external input too by hooking up with a larger network of computers. MIS helps retail businesses in making decisions relating to stocking and inventory, among others.
Other People Are Reading
Keeping track of how goods are moving across a store helps retail companies with stocking decisions. When the store notices that the stocks of a particular product are moving fast, it could ask the manufacturer to send replacement supplies in a timely manner. Similarly, when the retailer finds that a particular product is not moving fast, he could ask the manufacturer to slow down the replacement process.
There is a lot of information generated at the point a product is sold to a consumer. If a manufacturer wants to track whether a coupon offer is successful, the retailer could keep track of sales generated through coupon sales. Similarly, the retailer has input related to other information such as sales returns. This information helps the retailer better manage sales by keeping adequate stock when a manufacturer engages in promotional activity.
A retail business accumulates inventory. The question for a retailer is how much inventory to keep on hand. The retailer's MIS helps manage this aspect too. If the retailer keeps too much inventory on hand, he is tying up his money in the inventory. On the other hand, if the retailer does not hold enough inventory in an effort to minimise costs, she risks not being able to satisfy customer demand. By analysing sales patterns, information systems help a retailer manage inventories to keep the right amount on stock.
Managing Customer Relations
A retailer gets input about the shopping habits of specific customers. This sort of input helps the retailer get a better picture about his customer base. The retailer could mine such data for the business' benefit. For instance, when the retailer runs a promotion on a product that he knows a customer has purchased in the past, the retailer could inform the customer about this.
- 20 of the funniest online reviews ever
- 14 Biggest lies people tell in online dating sites
- Hilarious things Google thinks you're trying to search for