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