Recommendations

Harbor Freight Tools has taken several steps into implement changes to their business so they can function more efficiently. Their information system is good however it does have potential to be better. There are a couple of things that Harbor Freight Tools can do to make it better such as coupon distribution, using the cloud, and having a secure place to keep data.

Coupon Software

         Harbor Freight Tools can implement a couponing software for costumers. Currently they physically print coupons and send to consumers to use. They can implement a new system such as the one Shop Rite uses where once you scan a membership card you get the disccount autmatically taken off. The "loyalty" club card would allow customers to obtain coupons and disccounts by just scanning their card with all their information. Harbor Freight already has a membership card that costumer can use and when they are scanned at the register they let the register know that they are part of the member and therefore get special disccounts. However, it does not take the disccount off automatically so they can implement a software along with that membership card that costumers would be able to get disccounts without having to look for them and print and cut them out.

Inventory System Update

        Secondly, when it comes to inventory scanning. The system seems to not recognized different Sub-SKUs  as the same item. For example: If a drill has 3 Sub-SKUs and you trying to see how many drills we have, when you type in one Sub-SKU it might say we have none but you have to type the other two to make sure we really don't or just that the scanner didn't know it was the same item. Updating Cameloeon would get rid of this problem. Them upgrading their software would cost them couple of thousands of dollar according to the manager however, long runs it would benefit them. In order to upgrade their system they would have to do it over night and have people come in so payroll would also be another cost.