Technical Review: Merchandising Systems Applications in Modern Retail Operations

Abstract

Retail operations have changed dramatically over the past few years. The modern merchandising system has evolved and provides both product data and the ability to manage supply chain logistics. Retailers can offer customers the ability to buy from multiple channels, including in stores, online, and via mobile devices. Retailers now work together through collaboration and data sharing to reduce product loss and create a seamless flow of products through the supply chain. Retailers use IoT technology to enable real-time inventory tracking, which assists retailers in maximizing their sales of fast-moving items. Pricing doesn't stay fixed anymore. Dynamic algorithms change prices based on what competitors are doing and how much demand there is. Machine learning looks at tons of data to predict what customers will buy next month or next season. Financial planning tools make sure merchandising decisions don't blow the budget. Retailers employ assortment optimization techniques to determine which products to stock in a given store. Order fulfillment software manages complex issues such as how customers want to receive orders after they purchase online, through carryout, or through home delivery, and will allow retailers to provide customers with a choice in how they want their orders fulfilled. Additionally, the supply chain is more efficient when retailers collaborate to determine how to best ship inventory from warehouses directly to a customer. All these systems working together create real benefits. Operations run more smoothly. Profits go up. Customers have better experiences. Organizations that have established themselves as dominant in their respective markets can evolve rapidly. The majority of retailers cannot effectively compete in today’s ecommerce environment without using several technologies that help them operate more efficiently through better merchandising systems, multi-channel retailing, inventory management, dynamic pricing, and supply chain optimizations. As technology continues to improve significantly, it enables retailers to continually evolve in response to changing technologies within the e-commerce sector.