Information and Communications Technology and Supermarket Chains

The role of Information and Communications Technology (ICT) in modern supermarket chains is fundamental to management and performance of the business.  An example of such a chain would be Woolworths, Coles or the IGA chains.

Each supermarket chain is highly distributed across Australia, with multiple stores servicing medium to large townships, to many in cities.  Each neighbourhood has a varying degree of affluence, culture and social diversity that means that although there is many similarities, each locale can have different requirements.  Each store, stock level and need is independently managed, but then integrated into the supply chain management of the buying group as a whole.

From there, reorders, purchasing decisions, and other communications need to be committed in an effective, and timely manner.  Stocking systems, and information technology, with Point of Sale (POS) and other devices automate the purchase history for the location and govern reporting on the store level for ordering levels and stock management.

Simple communications like email, phone, and fax are also basics for management of distributed locations and for the buyers to talk to suppliers to the chains.

That is the tip of the iceberg, however, of what is seen of a chain – there is also a huge supply chain system underneath that uses systems like GS1’s barcode management to manage cartons, pallet and stock movement through high-frequency scanning Distribution Centres, for supply to the chain.  Automated picking of supply lines to fulfil a truck’s manifest for delivery to an area, pallet rack management of warehousing and high turnover, low expiry date goods management.

Then there is the requirement of reporting the financials and management of many hundreds of sites across a country – through multiple regions, areas, states, departments and companies.  There needs to be a cohesive, efficient base of a system of reporting, a system that allows reporting on a simple store level and then can wrap up reporting to each level up the management chain, and be correct, decisive, and communicated properly.

Information and communications are the backbone of business, and only a cohesive and effective system would continue to allow prosperous management for such an organisation.