POS and EDI in retailing: an examination of underlying benefits and barriers

During the past 20 years, US retailing has gone through a period of unprecedented change as consumer demands and competition have intensified. This change is being further stimulated by the development of e‐commerce. Study of successful retailers indicates that a retailer’s ability to successfully carve out and defend a competitive position in the marketplace depends, to a great extent, on its ability to make investments in and utilize information. The study described in this paper examined the use of technology in retailing. The purpose of this paper is to examine the underlying factors explaining why retailers adopt POS and EDI. The results indicate that retailers are adopting these technologies to achieve direct, indirect, and strategic benefits. These benefits take the form of improved inventory management, reductions in costs, and increased flexibility of response to customer demands.