Alliance Supermarkets

Alliance Supermarkets

Cost Reduction

Although the information gathered through the use of POS system includes the overall information of the stores. However, there is room to reduce the costs, using the POS system. This system helps to better manage the demand of the products as well as of individual customer's preferences. Moreover, analyzing effectively can help to ascertain the weather patterns of particular products. This ascertainment of weathers can help Alliance to manage inventory on a seasonal basis. As a matter of fact, different products have peak and off season, and super stores plan initially to have adequate inventory levels to cater particular season. However, the POS system delivers effective information in the way of identifying the different seasons and their peak and off periods, where the demand of particular products varies significantly.

Inventory levels incur huge costs to super markets in terms of historical costs as well as storage and warehousing costs. These terms sounds good but have a severe impact on the overall revenues of the super stores. The POS system employed by Alliance super market can help to reduce this cost head, in terms of sufficient inventory level to cater the seasonal demand. By doing so, the Alliance Supermarkets can reduce costs by lowering the warehouse costs as well as storage costs. In addition to that, it often happens that the products become obsolete when the particular season expires; however, this has further risk of additional storage, product expiry and more importantly the cost of inventory in hand. This system can help Alliance supermarkets better to curtail the cost associated with inventory holding and storing.

Moreover, Alliance Superstore can analyze the information of customers in terms of their preferences and allocate the products on which the profit margin is high, at the same time catering the needs of the customers. By ...