Interoffice Memo

Memo
TO:
FROM:
DATE:
SUBJECT:
Problem
The business operates in a cutthroat industry, and its success will depend on how well it utilizes new technologies to ensure better results. Inventory tracking technology is therefore vital and should be included in the organization so that it can remain afloat, and marketable. Traditional retail capabilities of using papers are outdated and new forms of operation using technological innovations like software tools in tracking inventory will ensure better inventory assortment, track pricing and manage orders. The software tool will increase client satisfaction while promoting loyalty through enhanced experiences when shopping. On the management level, the new product will improve decision making, planning, inventory tracking, customer service, stocking, marketing decisions, pricing, and forecasting.
Potential Solutions
To ensure better results the organization will purchase products that will aid in their inventory tracking capabilities, and the three vital tools include:
Electronic Data Interchange (EDI)
Universal Product Code (UPC)
Virtual shelves
Criteria
A good system should track inventory through the supply chain process, from production, warehousing, shipping to the retail store. This will ensure better management decisions on the products to purchase and stock. The characteristics required for the best tool include:
A flexible and scalable system that will grow with the sales in the business.
A system with real-time customer support will be vital as inventory issues will be sorted on a timely basis.

A system that will engage retailers in the tracking process, while giving them information on their order deliveries.
One that will provide estimates of how many products are on the shelves, the time needed to perform new orders to avoid excess inventory, and lack of the same.
Should cost less than $250.
Evaluation of the Alternatives
Electronic Data Interchange (EDI) is used by business partners when exchanging documents that pertain to inventory, hence eliminating people or paper in the process (Han & Dong, 2017). Moving from the paper-based component ensures increased speed in processing orders, and this is usually real-time while ensuring minimal errors. It also enhances relationships between business people as they operate while using means that are formal. Using EDI allows ordering process and shipping to begin immediately, and this saves retailers from long wait times that lead to minimal inventories (Meyer et al., 2014).
The EDI management system can easily handle large and small orders without problems, hence flexible to an organization’s sales. While sending purchase orders, and receiving of invoices by retail business owners, the system engages both the suppliers and buyers, and they often receive inventory messages on through their computers (Han & Dong, 2017). This type of software is commonly used because it easily creates electronic purchase orders that are transmitted to the suppliers, who also use their entry system to acknowledge receipt. The system will cost the company $100 every month when used from other third parties and $250 when incorporated in-house. The EDI operations are indicated below:

A Universal Product Code (UPC), on the other hand, is a code which is usually printed on products after packaging for purposes of identification. The part with unique black bars usually provides information about the product when it is scanned at checkout points in a retail business. They are usually priced fairly at a margin of 1000 pieces for $100.
They, however, have become vital systems that track inventory and inform retailers of the total number of products they have sold, and what is remaining on the shelves. This information is vital for restocking or doing away with dead stock in the warehouse. The system can be used when sales are high or low, and often provides accurate information which is collected at the point of sales for purposes of making business decisions, and planning. The only problem with this system is that it never engages the suppliers so that they can supply products, but retailers for purposes of making orders (Bhogal et al., 2017).
Virtual shelves are becoming popular, and consumers are enabled by retailers to get information about the products they want while in the stores. This system allows clients to enter their personal information and search products from a large data-set. This information is later collected by the store owners who easily make orders after analyzing the requests, and also plan for the future (Bhogal et al., 2017). The system grows with the sales of an organization and offers vital information of the total number of products available on the shelves. The system costs $250, and this amount is charged monthly or quarterly.
A table indicating the alternatives with the criteria is shown below. The criteria correspond to different numbers from 1 to 5. In the table, 1 stands for a flexible and scalable system, while 2 denotes real-time support. Number 3 stands for engaging retailers and suppliers, while 4 stand for easy estimates. The last number in the line stands for costs less than $250 and this ideally means that the organization is only able to pay $250 for the system to be implemented and used in the organization (Han & Dong, 2017).
System 1
Flexibility 2
Real-time support 3
Inclusivity 4
Easy Estimates 5
Affordability
Electronic Data Interchange (EDI) Universal Product Code (UPC) Virtual shelves Recommendations
The best product that meets the criteria is the Electronic Data Interchange (EDI) system. This is because it allows for communication between the supplier and the retailers, and this is an important aspect because issues of delays in inventory can easily be avoided (Han & Dong, 2017). In addition, it has real-time support solutions where retailers can change their orders by their decisions without having to interrupt the shipping or delivery schedules of the suppliers. Pricing of the product is under the limits of the criteria, and a user can have the option of either using it in-house or adopting other third-party service providers (Bhogal et al., 2017).
A better system is that which can assist retailers to understand their inventory levels and provide an option of making quick orders to avoid empty shelves. It should also engage the retailers and suppliers while incorporating better customer services in the event of erroneous calculations. Lastly, with the IDE, the organization will be able to make informed decisions about their operations and inventory in the future without problems (Meyer et al., 2014).

References
Bhogal, K. S., Rick, A. H. I., Pickover, C. A., & Sand, A. R. (2017). U.S. Patent No. 9,754,234. Washington, DC: U.S. Patent and Trademark Office. Retrieved from: https://www.google.com/search?q=Bhogal%2C+K.+S.%2C+Rick%2C+A.+H.+I.%2C+Pickover%2C+C.+A.%2C+%26+Sand%2C+A.+R.+%282017%29.+U.S.+Patent+No.+9%2C754%2C234.+Washington%2C+DC%3A+U.S.+Patent+and+Trademark+Office.&ie=utf-8&oe=utf-8&client=firefox-b-abG. Meyer, G., Buijs, P., B. Szirbik, N., & Wortmann, J. C. (2014). Intelligent products for enhancing the utilization of tracking technology in transportation. International Journal of Operations & Production Management, 34(4), 422-446. Retrieved from: http://www.emeraldinsight.com/doi/abs/10.1108/IJOPM-11-2012-0530Han, G., & Dong, M. (2017). Sustainable regulation of information sharing with electronic data interchange by a trust-embedded contract. Sustainability, 9(6), 964. Retrieved from: https://www.google.com/search?q=Han%2C+G.%2C+%26+Dong%2C+M.+%282017%29.+Sustainable+regulation+of+information+sharing+with+electronic+data+interchange+by+a+trust-embedded+contract.+Sustainability%2C+9%286%29%2C+964.&ie=utf-8&oe=utf-8&client=firefox-b-ab