ICT in Business Flashcards
Define: Barcode
A barcode is a series of light and dark bars of differing widths, with a code number printed underneath.
Barcode Features
- Made up of country of origin code
- Manufacturer code
- Product code
- Check digit
Barcode Advantages
- –Faster to enter data / can read at any angle.
- –More accurate as eliminates typing errors.
- –Low printing costs.
- –Frees staff to do other tasks/staff don’t have to manually price goods.
Barcode Disdvantages
- –Can only be used for the input of numbers.
- –Equipment is expensive.
- –Corrupted barcodes can cause delays
JIT: Stages
- –Code matched on stock database.
- –One deducted from stock database / Item sold decreases record by 1.
- –Checked against reorder level.
- –if below automatic level request sent to supplier.
- –stock delivered.
- –stock database updated
JIT: Advantages
—Smaller storage / warehouses needed as not much stock held
—Store is better able to respond to changing demand
—Easier to cope with several small deliveries (less staff) than 1 big one.
—Do not run out of fast selling items
—Less risk of stock being out of date/waste
JIT: Disadvantages
- – Expensive to introduce/set up
- –More admin staff as store responsible for own ordering
- –True stock may differ because of theft, etc.
- –Cannot respond to unusual demand
- –Disruption to transport
- –Communication failure if qualified (not just ‘internet down / internet failure’)
E-Commerce Advantages to customers
—There is no travelling it can be done from home so saving in costs and time delivered to the door
—Allows disabled people to do more shopping
—Can be done 24/7*
—Can find obscure goods not available locally
—Much quicker to do a price comparison
—See other customer reviews
—Order tracking
—Better deals available online / much quicker to do price comparisons / find cheaper deals online
E-Commerce Disadvantages to customers
—Hidden charges (if qualified) e.g. import duty on goods being bought from abroad.
—Can’t fully assess the quality of the goods / can’t try it on
—Copycat websites to extract bank account info
—Fake websites - goods do not exist
—Credit card fraud
E-Commerce Advantages to company
—People can email them with enquiries, orders, requests
—Overheads cut / Large savings on shop, warehouse and office space / Less money tied up in stock / less stock wastage
—Wider customer base / Can reach an international audience
—More efficient customer targeting
—Can target sales because you can see rivals prices on their website and alter your prices#
–Can sell 24/7 (but not if given as an advantage for customers)*
E-Commerce Disadvantages to company
—Competitors can see your prices and target your company#
—Need for trained staff
—Cost of maintaining a company website/ need to maintain more secure network
—Increase in delivery vans (environmental issues)
Electronic Funds Transfer (EFT)
is moving money (electronically) from one account to another e.g. from a customer account to pay for goods purchased
Electronic Point Of Sale (EPOS)
Is the hardware and software needed to automate the checkout process
EPOS: Advantages
—Need for less staff as no need to put price on each item
—Money taken straight out of customer account so the company is
guaranteed it
—Less need for physical security as not have to carry as much cash
—Allows ‘just in time’, better stock control, (less waste)
—Less time in queues so happier customers and greater throughput
—Better management statistics / monitoring staff e.g. checkout performance
—Allows better targeting
—Automatic re-ordering
—Attract / retain customers by allowing additional services e.g. cashback, topping up your phone, allows a variety of payment methods, allows special offers – loyalty cards, BOGOF, vouchers
