POS Durability Supports Profit Durability
With all the attention being paid to mobile commerce, wearable technology and other cutting-edge developments in the world of retail IT, the in-store POS terminal is sometimes taken for granted. However, employing a rugged, durable POS terminal that can withstand the rigors of the modern retail environment can have a major impact on in-store customer experience and sales.
Chain Store Age recently spoke with Ron Chan, director of marketing, Posiflex USA, about the importance of durable POS terminals.
How can POS downtime negatively affect the customer experience?
Waiting to check out is a leading factor that customers use to gauge satisfaction levels: The longer the wait, the lower the approval. And this makes the difference between a repeat customer and one who never comes back. Business depends on word of mouth and social media reviews to drive new and repeat business.
Maximum uptime is critical especially to convenience stores or locations with 24/7, 365-day service where customers come around the clock. Your store is open for business, and your POS terminal must be ready as well.
How can POS downtime negatively affect the bottom line?
There are several ways in which POS downtime subtracts from a retailer’s bottom-line performance. First, there is lost revenue as customers just turn around and walk away when they cannot pay for their purchases. There is also the cost of maintenance, repair and labor. In addition, during downtime, each transaction takes much longer and more mistakes are made because sales associates have to manually calculate sales.
During the holiday season, when retailers earn the majority of their profits, downtime is especially damaging. Long lines and multi-item transactions become more cumbersome, and the holiday-specific purchases are irrevocably lost because they cannot be made up at any other time of year.
What are some of the major causes of POS downtime?
As time goes on, software patches, updates and upgrades demand more and more RAM and CPU resources, which slows a terminal to a crawl. Retailers should always buy more processing power than needed to future-proof their POS investment — not only as software continues to bloat, but also as databases keep getting bigger.
Other major causes include operator abuse, such as the use of pens, pencils, credit cards or other pointed objects on the touchscreens, high traffic and usage, spills, employees being rough with hardware, and dust. Heavy holiday store traffic and transaction volume also can put a particular strain on POS terminals.
What elements ensure POS uptime?
Quality parts, engineering and testing. All terminals generally work out of the box when they are new. The great differentiation between a good and bad choice of POS system is time, and Posiflex lasts for the long run. Initial cost is not the only consideration as repairs, downtime and maintenance can make a terminal, which is initially inexpensive, very costly down the line. Low long-term cost of ownership occurs when a terminal needs little to no maintenance, especially since POS terminal life spans four, five, six or even seven years of life.
What kinds of POS solutions is Posiflex offering retailers?
Posiflex provides best-of-breed hardware that can run virtually any software application utilizing touchscreen technology. From a POS perspective, which is the most common use, Posiflex can run off-the-shelf standard software like PC America, but also in-house custom software. The trend is that POS software and hardware companies have merged. Posiflex lets a retailer select the best-of-breed software, whether internally or externally designed, so the retailers can run it on best-of-breed hardware.
Posiflex goes beyond point-of-sale functionality, and is really a point-of-service provider as our terminals are used in kiosks to drive digital signage, bingo machines, ticketing, self-service checkout and healthcare patient check-in.
Effective Control Strategies
Retail facility directors continually look for ways to drive down operational costs, but are limited in their efforts without a strong control system. Installation of a facility control system can provide savings and improve operations of a small-format retail store if adhered to well.
Why is it important to use controls to ensure store policies are being enforced? Based on a secondary study concerning walk-in doors, it was found that store personnel or vendors sometimes prop open these doors for various reasons. An industry average shows that walk-in doors are open about 25% of the time. While the amount of refrigeration varies by store, this could equal about 19.8 kWh or $2 per day, which amounts to about $730 per year in energy-usage costs. Using a supervisory system for monitoring, an alarm can sound when a walk-in door is left open for too long, giving a store manager the insight to ensure it doesn’t happen again.
Refrigeration, lighting and HVAC are the three key areas included in a store-level control strategy. While each area of controls can be set up separately, a control system works best and is most cost effective when all three levels are combined under one platform. Below are recommendations for using system controls at all three levels.
Refrigeration Controls: An installation of electronic controls in a refrigeration system can help to not only monitor the opening and closing of walk-in doors, but can also reduce compressor run time. This is a result of applying electronic controls to what has traditionally been a mechanical control system. Once the controls are installed, leveraging alarm management in refrigeration systems can alert you to potential issues and prevent food loss. Using the monitoring data from your refrigeration system controls can allow you to be more proactive with your strategy and reduce overall maintenance expenses.
Lighting Controls: With lighting controls, a store can ensure that various lights are turned on and off at the times they should be based on ambient light and/ or store occupancy. Controls can be put in place for ambient light, dimming and modulation. Lighting schedules can be automated and maintained through a control system; ensuring store lighting procedures (e.g., making sure the canopy lights are not on during the day) are followed.
HVAC Controls: A key benefit to having HVAC system controls is the ability to program thermostat setpoints appropriately and ensure they are not changed. This will help to make sure policies are implemented correctly (and consistently) at each store — for example, restrictions on override capabilities can be set during specific times through the supervisory control system. Once a company has identified the need for a control system and is ready to implement the solution, successful engagement with the system is important.
Here are five keys to success for small-format stores using facility controls:
■ Who will have access to the system — facility directors, of course, but store personnel, on-site technicians, or maintenance and energy managers? Decide early on who will have the right to use to the controls and how they will access the systems.
■ Make configurations for HVAC and lighting schedules, refrigeration control settings and additional monitoring points similar throughout all stores. There will always be differences to account for, but standardization across an enterprise is helpful so everyone can understand the system capabilities and actions.
■ It’s important to plan the way alarms will be utilized and managed before startup. Review alarm thresholds and critical versus noncritical categorization to separate data that can be used for analytics from events that require immediate action. Think through alarm notifications, schedules for off hours versus peak hours, and the differences between HVAC and refrigeration alarms.
■ Analyze the information collected through the system to identify problem areas. Alarms and other relevant data can be used to target maintenance and equipment replacement.
■ Do not underestimate the need for a thorough, simple training program for all people who will interact with the system. Set up training before the systems are installed, and schedule ongoing training as needed. Small-format retailers need to become even more energy aware as stores are carrying more fresh-food products, frozen-food aisles are expanding, food-safety temperature requirements are tightening, and demand for prepared food is growing. The most cost-effective opportunities for energy saving is to improve system efficiency and reduce unnecessary energy use.
John Wallace is director of innovation at Emerson Climate Technologies, Retail Solutions.
Wal-Mart Making Switch to LED Ceiling Lights
Wal-Mart Stores is stepping up its use of solid-state lighting in a big way.
The discounter is installing LED ceiling lighting fixtures in new U.S. supercenters, Asda locations in the United Kingdom, and new and remodeled stores in Asia and Latin America — with 157 stores adopting the solution in 2014.
The new fixtures will use 40% less energy than lighting sources historically used in stores, which should help Wal-Mart meet its goal of reducing the kilowatt hour per square foot of energy required to power its buildings globally 20% by 2020.
The initiative includes a variety of technologies from GE Lighting, with its new Lumination IS Series LED Luminaire prominently used in the ceiling application. With main sales floor lighting accounting for about 90% of total lighting usage in each building, the move to LEDs will reduce Wal-Mart’s energy use per store by more than 5% in the U.S. alone. It will save an impressive 340,000 kilowatt hours annually per location — equating to more than $34,000 in savings per year in each store. The savings will vary by region across the globe, but all areas will benefit from reduced maintenance costs. (The suspended Lumination luminaires have a 65,000-hour rated life.) The expected total energy savings over the next 10 years is equal to eliminating 327,360 metric tons of carbon dioxide emissions.
The decision to install GE LED ceiling lighting follows a pilot program at Walmart’s first all-LED supercenter in South Euclid, Ohio, opened in October 2013.