The use of point of sale (POS) data collected at retailers goes far beyond just determining the checkout bill. Information technology systems take this data, package it and distribute it up and down the supply chain to help product manufacturers and vendors make mission-critical operational decisions.

Identification
Information technology networks link retail outlets to product manufacturers, production facilities and vendors. Data and information from POS terminals are shared with manufacturers and vendors to help them predict product replenishment needs, forecast short- and long-term trends and even to predict the need for new products and services. This feeds back to retailers to ensure they keep the products people are buying on their shelves.

Function
Retailers play a critical role in lean production or just-in-time production IT trends. For example, companies use real-time sales information from retailers and information technology networks to trigger a just-in-time supply chain where supplies are delivered to the factory floor just in time for production. In turn, the final products are delivered just in time to retailers.

Significance
Lean production IT trends help retailers and companies carve out efficiencies up and down the supply chain. This includes eliminating costly overhead normally associated with warehousing supplies and postproduction inventory.