The Effect of Communication and Computer Technology Development Trend Of Retail Industry

Teller Machines

In 1980 are still many of us in Indonesia are not yet computer literate, so at that time we have been very proud if using electronic typewriters. In 1987, we began to recognize her computer processor 286, where to turn is still using a DOS floppy disk. Also the operating system at that time msih open system yet, so the PC system can not communicate with other systems, namely Mac.Untuk send files to someone different cities, we still need the postal or courier service. In 1990, Indonesian people proudly carrying an electronic organizer bermemori 2 MB to be called technological literacy.

One application of information technology in retailing

Today computer technology is developing so rapidly. At the computer market has now reached the fourth Pentium processor computer technology with speeds up to 2 Gz and 1.5 GB of memory. People can also easily communicate and exchange information, even though their computer operating system is different, because now the operating system is open system. To send files, as easy as clicking a program. Function post office to send letters began to decrease its role. Now where is replaced by an electronic organizer PDA (Personal Digital Assistenat), or Pocket PC with the memory to 64 MB and PalmOS operating system or Windows Pockect PC 2002, which was launched October 2001. With the presence of PDA mobility of people are now no longer be an obstacle to communicating and accessing information on the Internet, and even activities like typing or making calculations with a spread sheet.

 

One example of the application of high technology in the field of retail business

The same thing happened with the technology of communication (telephone). In 1977, still amounting to a mobile phone carry case. Now the size and capabilities of mobile phones has jumped far. The size of mobile phones are now very small and equipped with new technologies like Blue Tooth and GPRS. Phone like this coupled with a PDA, is able to bring their owners to the virtual world easily, without needing to plug-pair cable. Phone operator is also more and more, in 1975 we only know Telkom to call home and AMPS technologies for the mobile phone. We now have more options such as Telkom, Ratelindo, C4, AMPS, GMS 900, CDMA, GMS 1800, and PSN (satellite phone). For international connections were available much cheaper alternative VOIP via the internet.

Examples of integrated retail network configuration

above technology will inevitably impact on the development of the retail industry in the country. Retailers in Indonesia need to look at this trend, so that when the time comes to maximizing the opportunities that exist to take maximum benefit from the trend that occurred. Let's see what the trend will accompany the development of this technology.

e-Retailing
"The internet is like a weapon sitting on the table, ready to be picked Either by you or your competitors" according to advice provided by Michael Dell, founder of Dell Computer .. Currently the number of Internet users in Indonesia is only about 1% of the population or approximately two million people. Although such in the future this number will continue to increase. So it is not wrong to say the trend in the future blue chips is a non-store retailing via the Internet, known as e-retailing, e-tailing or e-Commerce B2C.

Looking at the experience in America, a survey from Boston Consulting Group (BCG), shows that in 2000, e-retailing grew at a rate of 120% and achieved sales worth 33 billion USD. In 2001, forecast to grow by 85% with sales reaching 61 billion USD (Retailernews.com, Feb. 2001).
What products are suitable for sale over the internet? Items penjualanya supported by impulse buying or not branded product characteristics are determined by evaluating the organoleptic (sensory evaluation of shape, texture, color, taste, and smell), will not be successful if sold via e-retailing. Products suitable to be marketed over the Internet is a rational product. This means that products sold must be easily described product, has a high brand loyalty or its brand is so well known by the target buyers, such as books, computers, cameras, appliances, office equipment, beauty products, health products and apparel. Research from BCG, suggesting that categories such as computers, books, cars, beauty products and health is the most rapidly growing category of sales on the internet. For food products and toiletries, only the famous brands most commonly consumed that may be successfully sold in the e-tailing. As for fresh products such as meat, fish and fruit is still difficult to be marketed through e-tailing because of consumer buying behavior is very typical for these products. To buy fresh products the buyer needs to see, touch and smell around first before making their purchase decision.

Barcoding Shopping

In addition to shopping via the internet, certainly in the future we are also still able to shop directly to supermarkets. But supermarkets future will be far different from the existing supermarkets. If we now choose the goods and ask cashier scans the barcode on it, then the future of our own scans the things we want with the provided handheld terminals or PDAs stores that we have. Then put the goods in a special trolley equipped with barcode reading technology, such as blue tooth. If the goods have not been scanned, the trolley will sound an alarm, alerting us to menscannya first. Total cost of goods has in-scan can be paid via an ATM or credit card on line via your PDA or mobile phone. Next we headed straight out the door to take the receipts and wrapped groceries

  Self-Checkout System Cashiers (Self Service)

The shops may no longer need a cashier or cash register. The cashier should start thinking to find a new job! With technology like this store will operate more efficiently, and better able to control shrinkage. Now this technology is being developed by Wal-Mart along with Symbol Technologies.

The above technology made possible by the existence of wireless LAN technology and barcoding technology developed by Barpoint.com in cooperation with the Palm Pilot, CueCat technology from CueCat.com and deBarcode.com. Currently this technology is being developed by the Radio Shack and the CueCat in the U.S.. For example, if we went to Radio Shack outlets, we will be given a free CueCat units to be connected to the PC unit at home. With this tool we can scan the barcodes of the products listed in magazine advertisements or catalogs Radio Shack, next to the Internet browser will load profile data via a PC product. If interested, we can directly order it on line. And goods would be immediately sent to our homes.

In the future function seller (store clerk) can be replaced by an animated character, which swiftly and tirelessly answered all the questions potential buyers through a computer station installed in the area of the store. So do not be surprised if in the future we are serviced by Lara Crox, while shopping at the supermarket.

e-Price Comparation

Technological development of e-retailing and e-barcoding, will encourage the growth of cyber services price survey. Through services like these, if you wish to know or compare prices in the market, consumers could easily access a particular site and obtain such information. The information provided can be Printed Name, Barcode Number, Manufacturer Name, Specification of Goods, and Price at retailers A, B or retailers in other retailers requested.

With technology like this would be more efficient market mechanism. Consumers will more easily determine which retailer is cheaper and which are more expensive. If you do not have a significant added value, do not expect retailers to attract the hearts of potential customers. Increasingly it is clear that the future must be extra hard mengeffisiensikan retailers operating system and supply system chainsnya if you want to succeed. Eliminate in-efficiency in supply chain, reduce the number of suppliers for one type of product the same 25% each year, give empowerment to the three best people are not members of the family to manage the business, keep a cousin of our efforts, recruited the people who have the integration, and give them satisfactory salaries and benefits. Without it ... goodbye! And congratulations to join in the world under dog!

Quick and Efficient Customer Response (QECR)

The next trend is going to happen with IT developments absorbed into Indonesia is implementing QECR in the process of logistics and distribution of goods by retailers. QECR main principle is to use technology to increase efficiency and speed of response from retailers to market demand, thus the development of computer technology and communications will have a major impact on QECR. Currently manufacturing systems, distributors and retailers are three separate and closed systems. In the future to the three systems will be the one, because the demands of higher efficiency.
Currently QECR practice growing rapidly in Europe, especially in England. Tesco through the application of QECR for example, can reduce stock levels in their chain of 46 days in 1978 to only around 17 days in 1997. If interested to apply QECR, then the following two runways QECR implementation must be met first, namely: Trust between the components of demand chain (demand chains).
Win-win relationships between retailers and suppliers. Without fulfillment of these two things above QECR do not expect the implementation will be successful. Furthermore, to ensure the successful implementation of QRCR the management focus should be directed to the following:

Application of micro-merchandising.

Application of multifunction interface in retailer-supplier relationship. There is a monitoring system PLC (Product Life Cycles). Application of category management.

Efficient product replenishment.

Maximize the application of technology.

Implemantasi QECR by retail will be a competitive advantage in the future, sepandan with the large investment that must be invested by the company. Wal-Mart as an investment worth 2.4 million USD in 1983 just to buy a satellite communications technology to improve the efficiency of distribution and logistics. In the beginning, Sam Walton, the founder, are reluctant to spend that much money just for computerization. But he eventually relented to pressure of the top manager like David Glass, Jack Shewmaker and Ron Mayer. Investasai first two years has not shown results. But the investment is finally recognized as a determining factor for the success of Wal-Mart today. So Wal-Mart able to incorporate their system with the system supplier. Thus they were able to buy at lower prices, plus the cost of logistics & distribution more efficient I wonder if they can prove that if shopping at Wal-Mart ... Every Day Low Price! Now Wal-Mart is the largest retailer in terms of turnover in the world. All the achievements that are not free, the total investment in Wal-Mart at that time to buy computer technology and satellite communications almost reached 700 million USD.

This good news is that awareness of the manufacture (supplier) to contribute to improved technology, computerization and communications. So with the efforts of two parties,. retailer-supplier, to both improve their technology, investment cost is expected to be less expensive. Example-retailer collaboration in the manufacturing supply chain integration programs, such as those between Wal-Mart and P & G. Another example Nestle Manufacture, supply chains to develop Internet-based system. Nestle invested U.S. $ 1.8 billion to develop the system. Previous Nestle has five e-mail system and 20 versions of accounting software, with this new system, Nestle began to shift towards the use of one software package. Nestle databases using one single product code, so that buyers Nestle products in one country can buy the same product from Nestle's division in another country. The entire database Nestle disentarlisasikan on 6 data centers, and accessible via the Internet. Nestle also can find out how many purchases made by one account, the negotiation process conducted tersentalisasi, thereby providing a greater volume per one purchase order, thus more efficient. Purchases made easier cross border co-ordinated.

Non-store retailing and QECR via the internet is a trend in the future blue chips in Indonesia. The progress of computer and communication technology will accelerate the growth of e-retailing and implementation QECR practices. Many saving opportunities that can be taken. The implication, if you want incorporated in the system, so retailers need to evaluate whether the systems and infrastructure that supports dimiliknya for it, if not, it's time to prepare themselves now, or too late altogether.