Business Analysis: Target's ERP System

Target’s ERP system includes the point-of-sales (POS) system. Target uses Target Technology services (TTS), its own point of sales system. With the implementation of technology, Target has installed two servers per store to run POS system. These, in turn, run 30 cash registers as well as inventory, stock control, and their pharmacy database. The pharmacy runs on a Linux system while most of the POS software runs on Microsoft. Target has been using the electronic signature pad to speed up the purchasing process. Currently, Target is using an electronic signature pad which is an efficient and customized version of the electronic signature pad from Hypercom Optimum L4150 High-Performance Multi-Lane Payment and Advertising Terminal. The L4150 is

The inception of new technology by the company made it easier and cheaper to keep track of the exact location, current price and other related and useful data about most items in a store or en-route to a store. Target uses scanners to avoid errors and delays while accurately creating a record of what has been sold and what remains in stock. To send data from the scanners to computers, radio transmitters are used. The floor clerks can scan the barcode of any item to tell them the number of that particular item that should be on the sales floor and the number in the storeroom. It helps to locate the item on a particular shelf and can also indicate if the item is in transit from the distribution center. The employee can also check to see if the item is available at another Target store and if so suggest the customer about the availability of an item in the store. Additionally, the storeroom clerk scans products into the inventory system on arrival and checks periodically to make it sure that the product has not been moved. This makes the storeroom personnel’s job more effective. According to Jim Bermal, "In the old days, our storeroom people spent 80 percent of their time looking for things that weren't there (Feder, 1992).” Target has also been able to cut the percent of the store’s payroll that goes to the stockroom staff from forty percent to twenty

We will need a point of sale system that works with the inventory system. Target’s ability to manage inventory is a huge part of their success helping them keep turn over high without having money tied up in products that are sitting in stock rooms. Handheld devices for floor associates are another incredibly useful idea that gives Target an advantage. Our inventory system will need to be accessible from handheld devices. This will give floor associates the information they need to help customers find the items they want and keep their money in our store. These devices will also need to be able to manipulate the inventory system so they can update it when needed. Theft and broken merchandise is an unavoidable reality that we need to be ready to