ICT IN SHOPPING ICT in business

Barcode Scanning

What is barcode scanning? A barcode is a series of light and dark bars of differing widths With a code number printed underneath / which can be used if there is a fault with the barcode Made up of country of origin code, manufacturer code, the product code, a check digit.

How does barcode scanning work? Barcode scanned at POS Code matched on stock database Price sent to POS One deducted from stock database Itemised bill produced

Advantages and disadvantages of Barcoding AdvantagesDisadvantages Faster to enter data as can read at any angleCan only be used for the input of numbers Low printing costsCorrupted barcodes can cause delays More accurate as eliminates typing errorsEquipment is expensive Frees staff to do other tasks

Automatic stock control Smaller storage / warehouses needed as not much stock held. Store is better able to respond to changing demand. Easier to cope with several small deliveries (less staff) than one big one. Do not run out of stock /fast selling items. Less risk of stock being out of date. Easier to monitor staff performance. Use of management statistics/monitoring stock levels is easier/ spotting trends. Less staff needed to count stock. Staff freed to do other jobs.

Just in time stock systems. ‘Just in time’ goods are delivered to the store as fast as they are being sold. Item sold decreases record by 1 checked against reorder level if below automatic level request sent to supplier stock delivered and table updated.

Advantages and disadvantages of JIT AdvantagesDisadvantages Less risk of stock being out of dateExpensive to introduce Do not run out of fast selling itemsMore admin staff as store responsible for own ordering Easier to cope with several small deliveries (less staff) than 1 big one True stock may differ because of theft, etc Store is better able to respond to changing demandCannot respond to unusual demand Smaller storage / warehouses needed as not much stock heldDisruption to transport.

Benefits and limitations of online shopping BenefitsLimitations Always accessible (both) / Available 24/7 (customer)Lack of consumer trust Low start up and running costs (company)Security of website Can be used by disabled customersLack of interaction with people Global marketplaceProblems when something goes wrong (wrong goods /transport breakdown) Saves on travel costs / shop from homeReplacement alternatives Price comparisonsExpensive initial set up costs

EFT – Electronic funds transfer is moving money (electronically) from one account to another e.g. from a customer account to pay for goods purchased

EPOS – Electronic point of sale is the hardware and software needed to automate the checkout process

EPOS 1. Barcode scanned 2. Code matched. Price returned to screen. 3. One deducted from stock. 4. Reorder level checked. 5. Automatic reordering. 6. Print itemised bill.

EPOS Advantages Allows ‘just in time’, better stock control, (less waste) Better management statistics / monitoring staff e.g. checkout performance Automatic re-ordering Less need for physical security as not have to carry as much cash. Less time spent waiting in queues so happier. Gives them additional services e.g. cashback, topping up your phone. Allows the customer a variety of payment methods. Allows more special offers – loyalty cards, BOGOF, vouchers. Allows self -scanning.

Loyalty cards Identifies the card holder as a member in a loyalty program

Loyalty cards advantages Allows the supermarket to find the shopping habits of customers and then allows them to target special offers. Keeps the customers coming back to the shop Allows customers to collect points from using the supermarket Gives the shop better statistics on trends. Improves planning as allows you to see what customers are buying and where they come from which helps decides location of new stores. Can sell the data on.