Copy of IT in Retail POS

8/8/2019 Copy of IT in Retail POS

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IT in Retail POSIT in Retail POSIT in Retail POSIT in Retail POS


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INFORMATION TECHNOLOGYS INCREASED ROLE IN THE

GLOBAL RETAIL INDUSTRY

Technology used in retail stores includes front-end andback-end solutions and technology that connects retailstores and chains to enterprise-wide business solutions.

Retail technology ideally improves the customerexperience with regard to service and efficiency.

New technologies evolved in retailing are RadioFrequency Identification (RFID), Smart OperatingSolution Smart Ops, and Point of Sale (POS), DigitalSignage etc.


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POS Evolution from ECR

The Electronic Cash Register simply gave a sales total for the day ormore sophisticated registers that provided sales by departmentreporting via a cash register tape at the end of the day.

ECR (Electronic Cash Register) was programmed in software whichwas /had

Proprietary in nature Limited in terms of functionality

No communication capabilities.

However in 1973, IBM came up with the 3650 and 3660 Store

Systems that were the first commercial use of client-server

technology, peer to peer communications, LAN simultaneousbackup and remote initialization.

This was the beginning of the modern day POS systems.


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Point of Sales

Point of Sale (sometimes also known as Point of Service) is the

actual location where the monetary transactions between the

buyer and the seller of goods take place. It is usually used to

indicate a retail shop or the check out counter in shops,

supermarkets, casinos, hotels, restaurants, stadiums, reservationcounters at airports and railways and all other types of retail

enterprises.

Point of sale (POS) systems is electronic systems that provide

businesses with the capability to retain and analyze a wide

variety of inventory and transaction data on a continuous basis.


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Importance of POS

POS is the primary gateway between a retailers information

systems and its customers and plays an important role in

effective customer interaction and service.

However, POS is also an area plagued by a battery of challengesimposed by functional as well as technical limitations.

Being a channel which handles more than 90% of the sales, it is

imperative that POS occupies high priority in the minds ofretailers and forms one of the most investigated and invested

area.


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Understanding POS Lifecycle


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Inception Stage

Initial pilot phase and has not be rolled out across all the operations.

The initial challenge here is to ensure that POS achieves a functionality fitment to

the business while incorporating the best processes and features into it.

It is likely at this stage to encounter difficulties during implementation and rollout

of new POS applications.

Consolidation Stage This is when the POS has already crossed the pilot stage but is still in the process

of enterprise-wise rollout and integration.

The day-to-day operational and maintenance processes around the new POS

application are still being worked out.



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M

aturation Stage

This is the stage where the POS has been around for years with the retailer and is

quite stable and meets all the staple requirements and effectively handles the

business requirement.

However the POS has got voluminous enhancement requests pending forimplementation.

Declination Stage

At this stage the POS starts showing sure signs of aging.

It is not able to scale up to the new set of business requirements and also failing to

live up to the performance level expected out of it.



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etirement Stage

Further investment in the same POS stops yielding credible ROI.

The maintenance costs of POS would have grown larger .

Vendors who developed the early POS applications have moved on to newtechnology.

Retailers start contemplating on exploring options for a new POS.



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The points shown in the spider chart are catalysts to the

primary drivers that lead to POS change.


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Point of Sales Hardware


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IT Technologies adopted in Retail Supply Chain


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Effect of POSImplementation

According to the field research report prepared by Microsoftthat interviewed over 580 retailers (who had deployed

POS systems), the findings were:

The application of technology leads to increment in sales

and reduction in expenses, thus causing a rise inprofitability.

Technology by itself does not cause salesincreases or expense reductions, but rather the waythe information that technology provides is usedcauses the increased sales and reductions in

expenses.

Expenses do not get reduced the moment the POS

system is installed. Rather, there is an initial rise in the

expenses due to the process of integration of the systems

and also the effort and the costs involved in the training

of staff employed.


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Expenses Reduce, Sales Increase: How?

Reduction in check out time

Faster check out of customers at the transaction or billing counter takes

place due to the scanning of the items that the customer purchases.

Faster approval of purchases from the inventory of the retailer

The POS system enables the PC at the billing counter to be always

connected either through LAN or some other networking technology to the

central database of the inventory. Thus, it enables faster purchase of the

goods and enhances the experience of the customer

Capturing the product detail

The out of stock problem that most retailers experience due to inaccurate

inventory management can be avoided by having a re-ordering software

which would facilitate in increasing the in stock position of merchandise.


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Capture of customer information

This feature enables after-marketing to individual customers based on purchase

habits and practices.Also particular customers due to their loyalty or high

spending inclination can be given further discount on products or additional perks

such as redemption of points they secure on purchases made in that store.

Reconciliation

At the end of the day, the owner can easily track the price of the products sold

with the cash generated in the cash register, hence the occurrence of theft by the

staff at the billing counter is greatly controlled.

Clocking In Period

Sales associates clock in on the cash register and hence their work hours can be

tracked. This saves time and money which was earlier employed for this process

and also reduce the payroll staff as this data can be directly transported to them.

Expenses Reduce, Sales Increase: How?


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Internal benefits

Use EPOS software to provide sales information - this can help you focus on

more profitable lines, improve your demand forecasting and minimize

inventory.

Add software modules to improve efficiency - addingElectronic Funds Transfer

(EFT) capability to your system means that every time a sales transaction isrecorded, the credit or debit card transaction is also processed, reducing the time

spent per transaction.

Link yourEPOS terminal to other systems - by connecting EPOS to back-office

systems such as your accounting package, you can increase control over your

business and improve profitability. Link yourEPOS system to your website - this provides online customers with

rapid, up-to-date stock information. If stock runs out, EPOS can update the site

to show that it is unavailable and warn potential customers that there will be a

delay in delivery or offer an alternative.


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Integrate EPOS with your stock control system - this allows you to keep stock

information up-to-date in real-time and streamline your supply chain processes.

YourEPOS system can automatically determine which products are fast-moving and when they need replenishing.

Provide suppliers with tracking sales and purchasing data - giving suppliers

information on your customer purchasing habits and your marketing helps them

factor your order demands into their plans.

Supply chain benefitsSupply chain benefits


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Integrating clean POS data within an array of cuttingedge, exception-based,

demand-sensing and planning tools and services now makes it possible for

manufacturers to stay in tune with changing consumer preferences and to

ensure that their supply chain is directly aligned with the market at all times

Integrate data from EPOS with data from handheld scanners - this means you

can track bar-coded products on the journey from your suppliers to the

warehouse to the store to the final point of sale. You can then identify where

goods are being held up, compare the performance of different suppliers andtheir delivery times - and improve on the results.

Supply chain benefitsSupply chain benefits


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Case StudyCase Study -- LiliputLiliput

Introduction:

Lilliput entered the domestic retail market with the launch of its first store in Delhi

inAugust 2002. Today it has a strong presence in the kids wear section, in both

Indian and international markets. It has more than 140 brand outlets, and over

150 large multi brand outlets like Shopper's Stop, Lifestyle, Pantaloon, etc.

Problem:

With growing number of stores and multiple transactions at the company, there

was a need to record various business processes in a single database. Thus,

Lilliput was in search of a solution to support the growth of its stores. The

company needed a solution, which would enable the employees to trackindividual orders, map inventory processes, and handle store operations more

effectively.


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Approach - Powerful POSApplication:

LS POS is the Point of Sale/Service (POS) part of LS Retail. LS POS is a fast,

dependable and powerful POS application, with a graphic user interface.

Choosing LS Retail provided Lilliput with advanced features required by the

store to effectively run promotions, loyalty schemes and periodic discounts.

The bills were faster to generate. Usability of the product reflect in the

immediate incorporation with Microsoft solutions such as MS Word,MS Excel

and Outlook; making it positively easier to comprehend.

Case StudyCase Study -- LiliputLiliput

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Copy of IT in Retail POS