A Grocery Store
- The Business
A grocery store is a retail store that primarily sells food and other basic necessities. Grocery stores often offer non-perishable food that is packaged in bottles, boxes, and cans; some also have bakeries, butchers, delis, and fresh produce. Large grocery stores that stock significant amounts of non-food products, such as clothing and household items, are called supermarkets. Some large supermarkets also include a pharmacy, and customer service, redemption, and electronics sections.
The Supermarkets and Grocery Stores industry makes up the largest food retail channel in the world. Establishments in this industry retail general lines of food products, including fresh and prepared meats, poultry and seafood, canned and frozen foods, fresh fruits and vegetables and various dairy products.
Central Enterprises is a small medium enterprise located at North Poblacion, Maramag, Bukidnon near the Maramag Integrated Terminal. The entity started its operations in the year 1990 with the initial investment of Php100,000. The payback period of the initial investment is only 3.5 years. They are investing capital every now and then if there have available cash. Presently, the entity has a total net worth of around 200 million and there are total of 25 employees in the entity.
Organizations utilize various types of information systems to help run their daily operations. These systems are primarily transactional systems that concentrate on the management and flow of low-level data items pertaining to basic business processes such as purchasing and order delivery. This data is often rolled-up and summarized into higher-level decision support systems to help firms understand what is happening in their organizations and how best to respond. In order to achieve seamless handling of this data, organizations must ensure that their business information systems are tightly integrated across the enterprise. Doing so allows organizations to manage and process basic business processes as efficiently and effectively as possible and to make better informed decisions.
The entity uses a POS (Point of Sale) system in tracking down inventory movements. However, they do not conduct physical count at the year end, thus, they cannot identify loss on inventory due to theft internally or by the customer.
- The Problem and its Limitations
- The Problems
Owner of Central Enterprises are keen to build sales and profits. They constantly strive to offer quality products that customers demand at reasonable prices. However, many challenges hinder the chance of achieving these objectives.
- Frequent Inventory Loss
Inventory management and control is essential to survive the risky journey of grocery stores manufacturer to the store to the shelves to the hands of the consumer. All of which leave goods open to expiration, theft, loss and harm. In this instance, the business does not implement physical inventory count wherein they cannot trace the amount of inventory loss. This will be a great impact in keeping inventory safeguarded and financial reporting accurate. Inaccurate financial reporting results in poor decision-making as the owner relies on the information contained in the financial reports.