Linking purchase ordering and warehouse management: Computer software packages point the way

In spite of an improved retail climate, multiple retailers are still confronted with low sales growth, small margins and continued competition. Many of them are solving these problems by computerising day‐to‐day operations and streamlining planning and control; and by using information intelligently, they are obtaining major qualifiable benefits. One such approach is the availability of computer software packages which aid the management of inventory by linking together the purchase ordering and warehouse management functions to yield major “bottom line” benefits, through improved purchasing and warehousing effectiveness and better customer service. Such software packages were pioneered by Worldwide Chain Store Systems Ltd (or “Chain Stores” as they call themselves), and are used by leading retailers in several countries. This article explains how the systems work and includes case studies from three user companies.