The industry has not adopted such an
approach because of the stigmatism associated with real-time environments.
Retailers are wary of a real-time infrastructure, citing communication
costs and security issues as concerns. However, communication costs
in recent years have decreased, while bandwidth has increased, making
it economically feasible for any company to create a real-time environment.
Furthermore, security concerns are being addressed within retail organizations.
With this community effort, any weaknesses can be punctually addressed
and resolved.
The benefits of a real-time system are substantial. Not only do vendors
and retailers see what is selling, they are able to increase inventory
turns, since the head office can run a daily report to observe transactions
and make better decisions. Better decisions mean that vendors and
retailers can reduce shrink and control inter-store inventory movement.
All this can occur wherever there is an Internet connection, giving
vendors and retailers information that is current, without the need
of syncing data from one application to another or remaining at one
workstation.
Real time environments are also beneficial
to the consumer as well. With faster credit card processing, and the
ability to add gift cards and promotions, vendors and consumers can
see what marketing tactics are effective. Buyers can also be entered
into a CRM (customer relationship management) system, which would
track the consumer’s history, optimize customer relations and prevent
fraud. A database of this nature will help correlate trends, demographics,
and physiographic information without waiting for each store to compile
data. Real-time data means your data is ready to be viewed for budgeting,
marketing, and future trends. Advantages such as these are the difference
between succeeding or failing in the marketplace. When the retail
industry at large begins to adopt this tactic we will see the gap
between vendors, retailers, and consumers finally filled.
-Ian Goldman