Shop Technology

Shop Technology

1. Barcodes

   • Every item in a shop has a barcode on it which is a series of black and white lines
     • The barcode is scanned using a barcode reader
       • Once the barcode has been recognised by the database and the price has been found
         • The data is sent from the central computer to the till
   • A barcode will have different information about a product such as...
     • Price
       • The barcode doesn't contain the price
         • The price is held in a database instead
           • This makes it easy to change the price of a product
             • For special offers
     • Country of origin
     • Manufacturers details
   • Customer
     • Advantages
       • Allows items to be paid for quickly
       • Smaller queues at the checkout
       • Price is more likely to be correct
         • Because it comes from computer database
     • Disadvanatges
       • Barcode can be damaged so there is delay at till
       • If the price has been wrongly entered into the database you may pay more than you should
       • The barcode has to be found on every item to be scanned
   • Shop
     • Advantages
       • Customers pass through till quickly
         • Increased sales and turnover
       • No need to relabel goods when prices change
       • Reduction of mistakes of staff putting in wrong price for goods
     • Disadvantages
       • Sales can be difficult if computer system breaks down
       • Goods must be individually marked
         • Increasing cost of packaging
       • Unreadable barcodes slow down sales and annoy customers

2. Stock Control

   • After an item's barcode has been scanned it is referred to the stock control database
     • Each time a good is scanned the computer reduces the level of stock by one
       • When the stock reaches a certain level an order is automatically sent to the warehouse
         • The items will be delivered by a lorry the next day
         • (Reorder Level)
   • Gives the manager an accurate up to date record of stock levels at anytime
     • It allows a shop to keep a close eye on what isn't selling
     • However it isn't always accurate
       • If a product is stolen it will not be reduced in the database
       • Or an item might be scanned twice by a cashier by acident
       • Therefore businesses still carry out occasional physical store checks

3. EPOS

   • Computerised stock control system
     • Uses a laser at the checkout scanning to scan a barcode
       • The computer database then links the barcode to the correct item
         • And reduces the stock level by one
           • Once a mininum stock level is reached a message is sent to suppliers
             • To request for more stock
   • EFTPOS
     • Allows customers to pay for goods using credit/debit cards
       • The money has to be taken electronically from the customers bank accounts
         • Imbedded in the credit cards is a electronic chip
           • Holds card details and PIN number details
         • The card is inserted into a chip and pin machine and the PIN number is inputted to authorise the payment
           • The bank is then sent a electronic message
             • The bank checks that there is enough money in the persons account before authorising the payment
               • The bank will also check if the card has been reported as stolen
               • The money gets sent from the customers account to the merchants account
     • (Electric Funds Transfer at the Electronic Point of Sales)

4. Self Scanning Tills

   • Customers scan the barcodes on the items themselves before paying for the goods
     • Advantages
       • Don't have to wait in long queues
       • Do things at your own pace
       • Keep the items purchased private from the cashier
     • Disadvanatges
       • Can be annoying because tills may break
       • Queues can be even longer if a slow person is in front of you

5. Loyalty Cards

   • The card is swiped when a product is bought
     • And the customer is rewarded with a discount
       • This benefits the customer because they can get stuff for free
         • It also benefits the store because...
           • It encourages customers to spend more money
             • To build up loyalty points
           • Build up a typical customer profile
             • Age, average spend ect
           • Track customer spending habits

6. RFID Tags

   • (Radio Frequency ID Tags)
   • Used on expensive and highly desirable products
     • Such as Blu-Ray disks
   • Used to track a product anywhere in a supermarket

7. Internet Shopping

   • Customers log into the company website
     • Browse for the items they through a category system
       • They then choose the products they require and put them into an electronic trolley
         • The electronic trolley also often includes a running total of all the items
         • The trolley is the moved to the pay for goods area
           • The equivilant of a till in a shop
           • Two services are offered when internet shopping
             • Click and Collect
               • When the packed trolley is waiting for you to collect in store
             • Home delivery
               • When the goods are delivered to your door
                 • A customer pays a delivery charge and then chooses a time slot to accept the delivery
                   • I.e. Between 9-10am
                   • The order information is then transferred to the warehouse or the store
                     • And it is packed and sent out for delivery within the time slot requested

8. ICT in Supermarkets

   • ICT in supermarkets can impact everyone involved in the store
     • Customers
       • Don't need to carry cash because everything can be paid for electronically
         • Less chance of being wrongly charged because the till calculates the price automatically
           • Queue times are reduced because of the introduction of self service checkouts and other technologies
     • Staff
       • Less cashier staff were required when technology was introduced
         • Remaining staff needed to be trained to use the new technology
           • Cashiers at tills became 15% more efficient
     • The supermarket
       • Reduction in frequency of errors
       • Trends can be analysed
   • The future
     • New technology is always being developed to change how we shop
     • Click and collect and home delivery are the biggest shopping trends at the moment
       • And this trend has only been achieved because of the use of modern technology
         • Such as complex databases and the development of the internet and the world wide web