Meaning and Definition of Retailer:
The word retailer has been derived from
the French word "Retail" which means to sell in small quantities,
rather than in gross. A retailer is a person who purchases a variety of goods
in small quantities from different wholesalers and sells them to the ultimate
consumer. He is the last link in the chain of distribution from the producer to
the consumer.
Characteristics
The followings are some of the essential
characteristics of a retailer:
· He
is regarded as the last link in the chain of distribution.
· He
purchases goods in large quantities from the wholesaler and sell in small
quantity to the consumer.
· He
deals in general products or a variety of merchandise.
· He
develops personal contact with the consumer.
Functions of Retailers:
Retailers perform a number of functions.
These are:
· The
retailer buys a variety of products from the wholesaler or a number of
wholesalers. He thus performs functions of buying goods and selling them.
· The
retailer performs storing function by stocking the goods for a consumer.
· He
makes arrangement for delivery of goods and supply valuable market information
to both wholesaler and the consumer.
Service of a Retailer
A retailer provides a number of services
to the customer and to the wholesaler.
To Customers:
· He
provides ready stock of goods and as such he sells and quantity of goods
desired by the customers.
· He
keeps a large variety of goods produced by different producers and thereby
ensures a wide variety of choice to the customers.
· He
relives the consumers of maintaining large quantity of goods for future period
because he himself holds large stock of goods.
· He
develops personal relationship with the customers by giving them credit.
· He
provides free-home delivery service to the customers.
· He
informs the new product to the customers.
· He
makes arrangement for replacement of goods when he receives complaints.
To Wholesaler:
· He
gives valuable market information with regard to taste, fashion and demand for
the goods to the wholesaler.
· He
helps the wholesaler in getting their goods distributed to the consumer.
· He
is regarded as an important link between the wholesaler and the consumer.
· He
creates demand for the products by displaying the goods to the consumers.
Major Retailers in Pakistan:
COSMO:
· Introductions:
Cosmo is a registered trademark
of SGM (Private) Limited (“Sohrab Group”). Sohrab Group is a rapidly growing
business group based in Pakistan with significant international operations. The
Group employs hundreds of dedicated staff members worldwide.
The
business operations of the Sohrab Group currently encompass four business
sectors: import, wholesale and retail distribution of consumer products, global
marketing, communications and information technology and construction and
development of properties, both inside and outside of Pakistan. The major
companies in the Group includes
·
Sohrab Global Marketing (Pvt)
Limited
·
Future Connect (Private) Limited
·
Euro-Mart, Dynoshells
·
Euro Gulf Trading
·
Cosmo Properties
Information
technology role in COSMO:
What
is Information Technology?
Information
technology, as defined by the Information Technology Association of America
(ITAA), is “the study, design, development, implementation, support or
management of computer-based information systems, particularly software
applications and computer hardware." Encompassing the computer and
information systems industries, information technology is the capability to
electronically input, process, store, output, transmit, and receive data and
information, including text, graphics, sound, and video, as well as the ability
to control machines of all kinds electronically.
Computers in COSMO
One
of the first and largest applications of computers is keeping and managing
business and financial records. COSMO keep the employment records of all their
workers in large databases that are managed by computer programs. Similar
programs and databases are used in such business functions as billing
customers, tracking payments received and payments to be made, and tracking
supplies needed and items produced, stored, shipped, and sold. In fact,
practically all the information companies need to do business involves the use
of computers and information technology.
1.
Forecasting
Forecasting
is the process of estimation in unknown situations. It's an essential and very
important process used by COSMO. COSMO leaders and IT specialists are
continually involved in the process of trying to forecast, or predict, the
future of business in the economy. Business leaders engage in this process
because much of what happens in businesses today depends on what is going to
happen in the future.
3.
Inventory
Management
Inventory can be either raw materials, finished items already available for sale, or goods in the process of being manufactured. Inventory is recorded as an asset on a company's balance sheet.
To optimize the deployment of inventory, retailers need to manage the uncertainties, constraints, and complexities across their global supply chain on continuous basis. This allows them to improve their inventory forecasting ability and accurately set inventory targets. An IT solution is a proven and market leading solution for determining optimal time-varying inventory targets for every item, at every location throughout supply chain. This allows retailers to significantly reduce inventory without adversely affecting service levels.
CSD (Canteen Store Department):
·
Introduction
anteen Stores Department (CSD) is
one of the most prestigious chain of retail stores in Pakistan committed in
serving the Armed Forces Personnel, civil employees, residents and their
dependents throughout the country. CSD was established by Britishers at 1913
and unto 1947 it served British army. It has also a big contribution in World
War 1 and 2. At 1947 after division of assets it started its working in a
independent Pakistan. CSD is known for its extra ordinary effort in the field
of social welfare, providing a quality retail service. It is one of the oldest
retail services in Pakistan.
Information technology role in CSD:
2.
Retail
Demand Forecasting
Modern
demand-forecasting systems provided new opportunities for CSD to improve its
retail performance. Large-scale systems are now capable of handling the mass of
retail transaction data – organizing it, mining it and projecting it into
future customer behavior. This new approach to demand forecasting in retail
will contribute to the accuracy of future plans, the satisfaction of future
customers and the overall efficiency and profitability of retail operations.
Meaning and Definitions of Wholesalers:
Wholesalers
means trader who purchases goods in huge quantities from manufacturers and
re-sales them in small quantities. In other words, the commodities which a
person or firm purchases and then it sells to retailers or consumers or to
commercial firms for industrial or commercial use, such firm or individual is
known as wholesalers.
Functions of Wholesalers
The primary functions performed by the
wholesalers are as follows:
·
He assembles varieties of goods
from different producers. In case of agricultural goods, he collects small
quantities of goods from numerous small-scale producers and stores it.
·
He stores the assembled goods in
proper warehouse till the goods are sold.
·
He distributes the assembled
goods to the retailer or to the consumer directly.
·
He provides financial assistance
to the retailers by supplying products on credit.
·
He helps in proper grading of
goods as per quality, size and color.
Major Wholesalers in Pakistan
MERTO:
·
Introduction
The METRO Cash & Carry success story
began in 1964 with the opening of the first wholesale outlet in Germany. Today
the company is represented in 30 countries with METRO and MAKRO Cash &
Carry stores at over 665 locations - and offers its commercial customers up to
50,000 different products from a single source.
METRO Cash & Carry announced its
operations in Pakistan in January
2006.METRO Cash & Carry Pakistan opened its first wholesale center in
Lahore in October 2007 and today it is successfully operating 5 wholesale centers, 2 in Lahore, 1 in Karachi, 1 in
Faisalabad &1 in Islamabad. The
Company’s country head office is based in Lahore at
Thokar Niaz Baig near motorway. The current Head count of employees is approx
1176 including Head Office & 5 wholesale centers.
Information technology role in
METRO:
We observed
following features of IT used in METRO Pakistan.
1.
Scanning Cards
Metro issue
identification cards to their customers in orders to maintain quality service.
The cards is made by highly advanced technologies and contain scanner readable
lines by putting Gama rays on then coded lines of the card. This card includes
customer personal data. Metro ensure by this card that the customer has a
regular relations with them.
2.
Accounting Software’s used
·
Fixed assets
software
The software which simplifies the process of registering assets, managing
assets, and depreciating assets. The fixed assets software offers easy to use
templates, allowing users to transfer and dispose of assets based on user
defined depreciation schedules. Each asset is assigned individual tracking
ensuring easy traceability
of expenditures incurred or income
derived from the asset.
·
Payroll software
This software provided the opportunity to metro to
handle their entire employee payroll within one simple module. Employers can
set up multiple
payroll rates, taxes, leave accruals,
and employee management such as follow ups and attachments.
·
Human Resources Software
Provides businesses with tools to efficiently manage
their human capital resources. From managing your payroll including employee
benefits to reducing your recruitment costs and streamline talent
acquisition, complete human resource
software solutions have it all.
Applications of IT Used by all (COSMO,
METRO, CSD):
1.
Communication
System and Data Transferring
Communication
system is a back bone of any organization. Without communication work cannot be
done effectively. Our analyzed retailers and wholesalers do not use any
traditional method for communicating other team members or top level
management. The most common communicating software we found in their offices
was the Evolution Mail and Calendar. With this software they not just even
communicating but can send work schedules and a bundle of mails delivered at
time to many clients.
3. Marketing
IT made marketing easy and quick. Metro
using radio channels for marketing and rarely TV channels and they said us that
according to our marketing survey we receive customers impressed by our
increased customer loyalty and reputations made by our huge marketing. CSD
approach cable operators for their marketing while COSMO just focus on Web
marketing.
4.
ATM
METRO, CSD, and COSMO provide the
opportunity to their customers to receive cash in hand by providing the ATM
facility. So that they can buy products without thinking about their empty
pockets.
5.
Security
Security became one of the most common problems
for organization as well as individuals in Pakistan. To provide secure
environment METRO, CSD, COSMO have taken some major steps to improve their
systems. They planted some CCTV cameras in their buildings so that the customer
may feel protected. METRO have taken another advantage of using CCTV cameras
they reduced their salesman and start monitoring their goods by these CCTV
cameras from their security room. This provides them the cost reductions
opportunity.
6. Digital Weighting Scales
They use digital scales to prevent fraud
and maintain strict control over management. We saw that METRO was using scales
which were all connected with a stand-alone computer-based system. All of the
weighted data of daily transactions became stored in a computer to prevent
fraud. So that the management can review at the end of one transaction period
by comparing with the total money earned.
7.
Database
(Employee Records)
Database is used for recording
information and updating them time to time by just posting the modified entry.
It provides you the easy and quick process of securing data in a categorized
format with specific departments. Metro, Csd, and Cosmo using data base for
maintaining employees record through specialized software’s. With the help of
this they can achieve information in a short span of time.
8.
Internet Surfing
The managers of all the three
organization use Internet on daily basis to keep themselves inform from their
competitors strategies, national economy, prices and forecasting of future
demands. We were told by the representatives of the organization that their 40%
work depends on Internet including market research.
9. The
WAN Network
Wide Area network provides connectivity between
cities to cities. We were told by the organization correspondents that they use
some of the software’s online which is only installed at their central servers
as they are not easy to use. They just transfer the data and transactions on a
daily routine basis. While the central software’s try to manage them they use
these type of systems for control over organization branches. So that the
headquarter may be able to know about their business activities.
10. Bar Code
reader
A barcode reader (or barcode scanner) is an
electronic device for reading printed barcodes to trace all the encoded data within the barcode
strip.
Many retailers and wholesalers using this feature of
IT. The purpose of this equipment is to protect the pricing tag and use
international prices.
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