Point of Sale
In the retail industry, Point of Sale (POS) solutions have replaced the
PC or cash registers to a great extent. Many POS systems connect to in-store
computers that, in turn, link to computers at the company's headquarters. And,
POS today has come of age. "Now the POS is not only a billing machine, but
has also become more intelligent. Today, POS can display advertisements and do
data mining," says Sanat Rao, director of marketing, Emerging Markets,
Embedded Markets Division, Intel. Also, with well-designed software, POS can
provide a simple, easy-to-use mechanism for cashiers to handle just about any
transaction, reducing training time, while improving productivity and customer
service. Touch screens are popular in the hospitality and convenience store
industry, and are rapidly gaining acceptance in other retail markets. Some
businesses choose to combine other options with a touch screen POS.
Security Concerns
Fraud and theft, including employee pilferage, shoplifting, vendor frauds,
and inaccuracy in supervision and administration cost the Indian retail industry
about Rs 550-600 crore every year. This is despite the fact that most large
modern format retailers use standard security features such as CCTVs, POS
systems, and anti-shoplifting systems for greater control over fraud and theft.
In financial terms, cost of this fraud constitutes about 2% of the organized
retail sector's revenues.
With standalone networking systems, retailers run the risk of
not getting information quickly enough. According to Gupta, "We are using
LAN and WAN set-up connected by MPLS and VPN. All our stores are connected
through IP VPN."
Most retailers fail to provide communication between workers,
customers, managers, vendor partners, and stores due to lack of direct lines.
This shortage of real-time information exchange takes a toll on the quality of
service, inventory, policy changes, and management decision-making. Here a
converged solution that includes data, voice, and video communications becomes
essential. This can include mobile communications providing information access
to workers at every level, from stockroom to store to executive offices.
Other Technologies
HyperCITY have deployed I-Scan solution in all its stores. I-Scan allows
customers to scan merchandise as they pick products off the shelf. Once
customers finish shopping, they can hand over the device to the customer service
desk and cash-out quickly.
Wal-Mart plans to invest in tags that sense the temperature of
sensitive products, making sure products on the shelf are safe, rotated
correctly, and in the right place. Internet protocol (IP) surveillance is
picking up steam. With IP cameras going for as low as Rs 7,000, the technology
is ripe for deployment. CIOs can use it to monitor remote locations over a LAN
or the Internet.
Haryali Kisan Bazaar, one of the country's first retail
initiatives by DCM Shriram Consolidated, has created a retail solution in
partnership with SAP and Polaris. The initiative, e-STARR (Systems and
Technology in Agriculture and Rural Retail), offered a retail solution that
helps Haryali serve rural customers better, while creating a strong
infrastructure for operations spread over multiple locations. The SAP solutions,
IS-Retail and SAP Retail store, were implemented by Polaris, which integrated it
with Polaris POS and Agriculture Service modules.
The Unconventional Player
Except Indian Postal Department, all other players, who are in the
retail area, have prior experience in some kind of business. India Post was
serving people to a great extent. Now, they feel they can take up the retail
business in their own way. "We have got the best network, we have got
experience in servicing people, and above all we have got good relationships
with them," says S Samant, GM, India Post. India Post has got 835 head post
offices, 20,043 sub-post offices, and 145,975 delivery offices, thus becoming,
by default, the largest retail chain in India. Though India Post is not looking
at serving people with product portfolios that can match big names in the retail
sector, the postal department feels no one can match their reach. Though the
postal department is not very tech savvy, it has some big plans to computerize
its offices. As of now, 7,488 sub-post offices have been connected with LAN and
239 administrative branches are connected to the National Informatics Center.
Also, the public service department has plans to interconnect 1 lakh post
offices.
The Road Ahead
Today, the most important development in communications that will affect
retailers is the growing trend to converge voice, data, and Internet
communications in one integrated system. Convergence opens the door to a wide
range of benefits. For example, you can consolidate all of your communications
on one managed IP network connection and save money. If you have more than one
location, you can network your communications and computer systems, saving money
and streamlining operations. And, you can take advantage of the ability to make
calls over a managed Internet service, reducing your calling costs. A converged
system also reduces administration costs, and phones in IP-based systems can be
added and moved much more easily. Making the transition to an IP network is a
significant step. That's why it's important to invest in communications
solutions that allow you to take advantage of IP-based convergence. It's
valuable to look for solutions that meet your needs for voice communications and
allow you to add data capabilities gradually. Or start with traditional
circuit-switched networks and then add new digital facilities as your needs
dictate. As a result, retailers can control overhead and operating costs as well
as meet the customer expectations cost-effectively.
Gyana Ranjan Swain
gyanas@cybermedia.co.in
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