Alliance Supermarkets

[Name of the Institute]Alliance Supermarkets

Cost Reduction

Several aspects of information collected from point-of-sale checkouts can help Alliance Supermarket to reduce costs while offering better service. The POS Sales Analysis offers the manufacturers of the products with rapid access to information about sales of its products. The supermarket makes use of the POS data for forecasting future demand for various products. This helps the market to decide selling of various products at promotional price or retail price. The supermarket utilizes a low/high promotional pricing strategy (Pepe & Pepe, 2012).

Individual Customer Information

Prices of products are reduced through special discounts, coupons or other such vehicles. Such promotions are central for retaining and attracting business. POS systems offer the immediacy and automation required for reconciling and maintaining such short-term specials. The POS system keeps a record of all such promotions and offers information regarding the success of the promotion campaign. In the absence of such a system, manufacturers of the products hesitate to go for promotions as they fear lack of accurate data and records regarding the promotional schemes. Instead of going through an enormous amount of receipts at the end of the day during the promotional period, the information from pos helps in calculating the markdowns automatically (Peavler, n.d.). Discounts, promotions, coupons can be recorded and tracked. Besides that, the impact of these promotions on the products is recorded on a daily basis. Without the pos system, tracking information regarding the impact of promotions of products is not possible. This motivates the suppliers to execute their promotional programs at regular intervals without the fear of any wrong information occurring in the record. In turn, this helps the consumers buy the products at a reduced cost. Points of sale systems make it easier to mark down prices and record those markdowns.

POS systems also offer ...