Marketing For The Future November 2016 - Page 31

are two accurate solutions in order to correctly assess inventory levels: RFID (Radio Frequency Identification) and POS systems. The first option is RFID (Radio Frequency Identification), which uses an inexpensive chip that is present on each product/pallet in order to establish its location. It’s a technology that has been used by major package delivery companies such as UPS, FedEx, and DHL in order to know where each of their packages is at any time. Using this system in retail stores provides them with the necessary information to know when a shelf should be restocked. The stores who have implemented this system have seen great improvement in their overall OSA (Hardgrave, Sangford, Waller, & Miller, 2008). Despite the accuracy and great successes of the chip, sadly many stores haven’t implemented this yet due to the investment barrier related to this tool. The outlets who have introduced this tool have only gone so far as to using it for pooled packages (pallets and cases) because the scale resulting from full implementation. RFID has been unpopular in the industry despite its promising results. (Gruen & Corsten, 2007) As an alternative to RFID many retailers opt for the POS system. Studies show that these systems provide correct results 85% of the time. This is often a better solution than manual reviews where human inaccuracy is a main cause of false inventory data. A significant innovation pertaining to the maintenance of PI data is the improvement of POS systems (which are now fully electronic) making them able to recognize clear patterns of OOS and thus detect potential sources for the problem. (Gruen & Corsten, 2007) A research done by TIBCO (2011) confirms this by stating that POS monitoring is the most up-and-coming answer to the OOS problem. One of the eyecatching advantages of the POS would be the option to use of the Rule-Based System. This system utilizes data gained from the different electronic systems throughout the store by using Machine Learning algorithms (use of A.I.) to derive rules for the supermarket determining the best times, amounts, products etc. to order. The Rule-Based System has proven its efficiency and usefulness in daily practice. (Papakiriakopoulos, 2010) 31