Abstract
The scramble for space in the retail industry has forced most supermarkets into adopting alternative strategies that will enable them attract customers, reduce operational costs and gain competitive edge in the market. This study discusses the application of systems with integrated database that are able to create enabling environment for efficient retail management. Bar coding and Continuous Replenishment System are the key variables used to get more insight into the study. The study adopted a cross-sectional survey design. A stratified sampling method was used to select a sample from the total population. From each stratum, the study used a random sampling to select 30% of the respondents which made a sample of 42 respondents. Data was collected using questionnaires and analysis done using statistical package for social science to communicate research findings. The ANOVA findings as explained by the P-Value of 0.000 which is less than 0.05 (significance level of 5%) confirms the existence of correlation between the independent and dependent variables. From the study findings, the study concludes that the introduction of barcode and continuous replenishment systems at an early stage of supermarket operation will enable the business to create greater responsiveness to its customers and suppliers, understand its cash flow needs, protect its financial data and confidential executive decisions and reduce its operation expenses leading to higher profitability and financial performance.
Highlights
Arguments on the use of systems in management practices since the introduction of Internet have always been held with those supporting system integration arguing that it is efficient, has greater Accuracy and enables labor costs reduction through time saving
Where retail chains wants effective coordination with the suppliers, Vendor managed Inventory is recommended
This kind of arrangement is where retailer is in possession of stocks but the goods are still owned by the American Journal of Operations Management and Information Systems 2021; 6(3): 52-57 supplier
Summary
Arguments on the use of systems in management practices since the introduction of Internet have always been held with those supporting system integration arguing that it is efficient, has greater Accuracy and enables labor costs reduction through time saving. Where retail chains wants effective coordination with the suppliers, Vendor managed Inventory is recommended This kind of arrangement is where retailer is in possession of stocks but the goods are still owned by the American Journal of Operations Management and Information Systems 2021; 6(3): 52-57 supplier. In 1975, Uchumi supermarket became the first retail chain to operate in the country under the companies act (cap 486 of the 2 laws of Kenya) where it became a leader in offering lower prices for its products as a competitive edge and at the same time maintaining high standards in quality of goods and services they offered to their customers. Unlike Nakumatt, Tuskys was mainly found in strategic crowded places targeting middle and lower cadre of customers This made it to pick up and grow into a formidable competitor in the retail industry. In western part of the country which includes Nyanza and the former western province, many supermarkets (apart from Uchumi) opened several branches where they offered variety of products to their customers ranging from garments, furniture to food chains
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