7 essential steps
TRANSCRIPT
Intelligent Solutions to Drive Your Retail Operations to the Next Level 7 Essential
Steps to Buying an EPOS System
Intelligent Solutions to Drive Your Retail Operations to the Next Level
Intelligent Solutions to Drive Your Retail Operations to the Next Level
When evaluating any new purchase for your retail business, having a structured
approach results in a more successful outcome. At TRC, we have developed a 7 step
process to help you make the right EPOS system purchase for your business.
You should view each step as a Go/No-Go point. If you get to a step and cannot see
the real value and return-on-investment for your retail business, stop the process
immediately and then:
1. Reach out to a retail solutions expert and internal resources to help clarify the step
and find the answers you need to proceed to the next step, and if you can’t….
2. Put the evaluation on-hold.
7 Essential Steps to Buying an EPOS System
2 Intelligent Solutions to Drive Your Retail Operations to the Next Level
Intelligent Solutions to Drive Your Retail Operations to the Next Level
Preparation for Buying an EPOS System
In order to prepare for an EPOS system purchase, you will need to set a budget. Decide what your budget is and put a range on it. You may not know how much an EPOS is going to cost at this stage, unless you have purchased an EPOS system before. For now, it is important to have an upper range in mind. Through frank discussions with reputable EPOS suppliers, you will gain a general idea of the spend necessary for the EPOS system best suited to your business.
Discuss with all the stakeholders what a new EPOS system should deliver for all areas in your retail business. Whether your retail organisation is a new retail concept with aspirations to grow, or an eighty branch retail chain, get input from all your relevant staff and advisors.
You will also need to delegate responsibility for delivering the project to someone in the organization, unless you are going to lead the charge. Make sure that they are present at the demonstrations so they have the opportunity to have input into the process.
You will also need to consider who in your organisation is going to be responsible for the implementation. If you haven’t had an EPOS system before, there is an administration overhead that you will need to plan for. If you have an existing system and are going to replace it, you might consider running the new system in parallel for a time. So, you will need to factor in this extra administration overhead.
Step
EPOS Budget, Buy-in and Ownership
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EPOS Needs Analysis
You will need to assess how your retail business handles the five retail fundamentals:
Controlling Retail Stock
Managing Retail Staff
Controlling Retail Cash
Managing Retail Customers
Managing Retail Suppliers
In each category, list areas which need improvement in your retail business. You don’t have to make this list exhaustive, just ensure that you cover the top pain points for your business.
TRC has developed a Why Do I Need an EPOS System? Scorecard which walks you through a thorough assessment of these five key areas. Download it now.
Also, when you get to Step 4, 5 and 6 of this process, the EPOS suppliers you are talking to should be able to help you to dig deeper into your EPOS needs.
Step
What Do You Need Your New EPOS System to Do in Five Key Areas?
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EPOS Success Criteria
In Step 3, the EPOS success criteria is what actually needs to occur in your retail business as a direct or indirect result of your EPOS system purchase for the EPOS investment to qualify as a success. Some examples of success criteria could be:
• An increase in GMROI (Gross Margin Return on Inventory) • Increase in footfall due to more targeted promotions • A 15% reduction of stockholding across the branches with no effects on sales • 3,000 loyalty cards issued and being used in the first three months of go live • 25% reduction in dubious cashier behaviour (e.g. frequency of voids, returns, and price overrides) • 40% increase in opt-in email addresses database
As with all goals, the success criteria needs to be challenging but achievable, specific, measurable and must have a designated timeline to hit the target. Again, your selected EPOS supplier will be able to assist you determining what success criteria you should expect and strive for.
It may also be helpful if you divide the success criteria into milestones. For instance: at go-live: 100% scanning and all key reports delivered automatically to key stakeholders, three months from go-live: all purchases going through the EPOS system’s purchase order module and being received through the EPOS system’s goods in module.
Step
What Needs to Happen for this EPOS System Purchase to be a Success?
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EPOS Supplier Selection
Overturn every rock to find the most suitable EPOS supplier for your retail business. Sources can include the internet (including industry-related social media discussions in which experts can really shine), magazines, industry trade shows and, of course, recommendations from trusted business peers.
You will want to make sure you are dealing with a specialist company that understands retailers’ needs deeply – more specifically, it would be ideal if they have experience and understanding in your specific retail market. Thoroughly inspect the CVs of the retail consultants to see what experience and value they have added to other companies similar to yours. How long has the company been in business and what other retailers similar to you do they deal with?
The right EPOS supplier for you will give you a ballpark figure on an EPOS system before tying you down for a time-consuming and untargeted presentation. If the vendor won’t reveal the costs without taking up your time in a lengthy demonstration, then walk away. There are plenty of open and transparent EPOS vendors out there.
Today the choice of EPOS systems is wide. On one end of the spectrum are large, multi-national electronic point of sale companies. These companies typically target 100+ store retailers and their software is typically installed in thousands of lanes worldwide and is well-suited to a wide range of retailers. Alternatively, there are customised local EPOS systems which may be a good option to consider for retailers who want a customized solution which will achieve all their success criteria. There are also a small number of EPOS vendors who supply multiple EPOS products. These suppliers may be able to take a more detailed look at your business and, due to their diversified product knowledge and offerings, recommend the optimal product. Each route has benefits and needs to be explored.
Step
EPOS Supplier Checklist: Expert ! Recommended ! Industry Knowledge ! Transparent !
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EPOS System Demonstration
The next step in the process is the dreaded demonstrations by selected
suppliers. It shouldn’t be a lose/lose situation. Be firm and refuse to sit through
a two-hour presentation much of which may be not applicable to you. Send
your needs analysis (Step 2) and success criteria (Step 3) documents in
advance and be clear to the EPOS supplier that you expect the demonstration
to be specific as to how this company and product will deliver the success
criteria to your retail business.
Step
Only Sit Through a Customized Demonstration
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EPOS Company Shortlist
Now that the EPOS suppliers have walked you through customized demonstrations, you should be able to
shortlist two or three companies that you feel will best help you deliver on your success criteria. To bring that
shortlist down to the best one, plan a visit to one of each of their site installations and, if possible, speak to
the person at that retailer who led the project and installation.
Did they meet their success criteria through implementing the EPOS system? The other option is to speak to
a couple of references, preferably in your line of business, that have been using the EPOS supplier for some
time. Ask them the hard questions about whether they felt the EPOS system installation was a success and
why or why not?
Step
Site Visits and References Can Bring Your Shortlist Down to the One
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EPOS Contract Negotiation and Signing
Most EPOS suppliers (and companies in general) put a lot of resources into winning new business.
Therefore, the professionalism and efficiency of the EPOS supplier as demonstrated throughout the
sales evaluation will give you a good idea of what the company is like to deal with.
Pay specific attention to the negotiation of the contract. If the contract is all about the EPOS supplier
or does not incorporate your success criteria, you may want to think about how that will translate into
service delivery after the ink is dry. You will probably be in a relationship with this EPOS supplier for
the next five years or more, so ensure that your contract reflects your needs.
Step
How Will They Treat You After the Ink has Dried?
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TRC’s retail experts have the experience across the five retail fundamentals (stock, customers, cash, staff and suppliers). They understand needs analysis and success criteria and know how to help you reach your retail EPOS goals. If you downloaded and completed you Do I Need an EPOS System? Scorecard in Step 2, TRC experts can take the time to review your results and walk you through best practices and options available to you. To speak to an expert no matter which of the 7 Steps you are currently at, please contact us at [email protected]
Steps
TRC Retail Experts Can Help Guide You through the 7 Steps
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