ASPECTS OF TOTAL QUALITY MANAGEMENT APPLIED IN ...

Annals of the University “Constantin Brâncuşi”of Tg-Jiu, No. 1/2008, Volume 2,
ISSN: 1842-4856
• Strategic elements are controllable;
• Making new strategies is faster;
• Quantitative results are obtained and cost-benefit analysis are possible;
• Information is directed towards the right addressee;
RIS initially requires a lot of effort and time, and setting the basis of such a system takes
complex decisions.
Building an RIS requires taking the following decisions:
1. What active role should it have? The RIS ought to be pro-active and supply any relevant data,
and answer any possible question.
2. Should the RIS be managed from the inside, or by an external source? Any way is convenient
as long as the RIS is guided by the information required by the retailer.
3. How much should it cost? Usually, retailers spend between 0.5% up to 1.5% of the income on
such a system.
4. What kind of technology should the RIS be managed with? Many companies rely lately on
technologies meant to lead the informational process (PC, low cost networks, low cost software,
etc.).
5. How much data is required? The purpose of the informational system is to supply enough
quantity of information to allow the retailer to build proper strategies. There must be a balance
between few information and information overload.
6. How should information be stored for future use? Storing the information must allow a fast
search and finding.
Most retailers hire a CIO – Chief Informational Officer, to supervise the system. Informational
System Departments often have annual planning. Computers are used by most companies that have
data analysis systems, as well as the Internet for certain functions of the system.
25 years ago most computerized systems in retail trade were used only to decrease errors from
the pay desks, or to improve, fasten and ease inventory. Nowadays, they set the bases for informational
systems and are used for monitoring, ordering, and merchandise transfer between shops. Such activities
can be managed by all retailers.
4.2. Data Base Management
Data base management allows retailer to: collect, integrate, apply and store data referring to
certain interest areas. It represents a major element in RIS and can be used together with the
consumer’s data base, with the data base of product ranges, and with the seller’s data base.
Building the data base has 5 stages:
1. Private data base planning and aggregate planning, establishing the required
information;
2. Finding necessary data;
3. Storing the information so that it allows fast usage;
4. Updating the data base regularly, to emphasize demographical changes, recent
acquisitions, etc.;
5. Data analysis, that leads to finding strengths and weaks of the company.