WALGREENS

Walgreens: Milestone 2



Walgreens

Introduction

The area that requires improvement in terms of the problem stated in the last paper is that of outdated machinery. The outdated machinery at Walgreens can be easily replaced in order to avoid long queues behind the cash registers and dissatisfied customers. Another benefit of implementing modern technology will result in improved operations, in the stores. There are a number of technology solutions that can be implemented; like an inventory management system, enterprise resource planning system and point of sale. Implementation of information technology through replacement of outdated machinery helps in reducing operational costs, and improves the processes of the business.

Discussion

Inventory Management System

An inventory management system can be placed to keep track of the items in the stores, automatically. The system will send alerts when an item is going out of stock and needs to be called in from the warehouse. Also, the system will provide an easy access to employees for tracking the place of the inventory. Sometimes customers request for a particular item, and employees do not know if that item is available or not. An inventory management system, available on various computers around the stores, will enable employees to identify such products. The inventory management system uses the ABC approach that bases on the Pareto Analysis. This analysis is known as the '80/20' rule, which states that 80 percent of the problem can be resolved by eliminating 20 percent. In retail store terms, about 20 percent of the entire inventory represents 80 percent of inventory costs. However, it must be noted that the 20 percent has been correctly identified. That 20 percent is termed as the 'A' products of the firm. Most of attention is given to the A products. The remaining products are termed as 'B' or 'C' according to their importance. This ...