SAMSUNG Electronics

Retail Industry White Paper

Retail Industry

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Table of Contents

Retail Industry Point of View .......................................................... 3

Key Trends and Challenges ............................................................................. 3

Document Workflows ..................................................................................... 4

Document Requirements ................................................................................ 5

Samsung’s Value Proposition for Retail Industry ............................. 6

Productivity Enhancement .............................................................................. 7

Customer and Employee Satisfaction .............................................................. 7

Print Cost Reduction ....................................................................................... 8

Information Security and Regulatory Compliance ........................................... 8

Samsung Offerings for Retail Industry ............................................ 9

Productivity and Satisfaction Improvement .................................................... 9

Cost Optimization ......................................................................................... 11

Security and Privacy Protection .................................................................... 12

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Retail Industry Point of View

Key Trends and Challenges

Despite being sensitive to high prices, consumers are demanding better service and more customized products. Unfortunately, rapid global expansion by leading retailers has created head-to-head battles for the same customers. In 2005, the 10 largest retailers in the world captured 31 percent of total retail sales from the 200 largest retailers, compared with only a 27 percent share in 2001. Retailers and service providers are working to develop competitive advantage with improved customer service, more efficiency and communications tailored to consumer preference. As retailers strive to achieve competitive advantage through customization, technology innovation is also reshaping retail industry. New technologies, including bar-code-reading cell phones, social networks, and product-customization web sites, give retailers, consumers and suppliers unprecedented access to information—driving higher productivity, closer collaboration, improved decision-making and greater customer intimacy. Furthermore, new technology and continuous connectivity reduce storage costs as well as communications costs between supply-chain players, headquarters and retail outlets. Shoppers use online and mobile technology more frequently, and retailers need to stay abreast of these communications channels while ensuring consistency between online information and information in the field [Figure 1]. To enable this synchronization, retailers are digitizing sales materials and integrating them with back-end systems. [Figure 1] Preferred Consumer Services

Sources: comScore, Kellogg School, eMarketer, Accenture Digital Lifestyle Survey, 2009

Consumers are increasingly using multiple channels to share, get information and buy products. Especially with different generations,

retailers are challenged to cover various channels to tap into demand.

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Another cost burden arises from increased government regulations targeted at retailers. On average, government adds 150 new rules annually. Each of these rules cost retailers in aggregate $100 million to implement. High employee turnover rates and direct exposure to cash, credit card and debit card fraud mean that security is paramount in retail operations. Merchants are required to store transaction and credit information to be provided at the request of identity theft victims. Electronic signatures and records are held legally equivalent to written signatures and paper records, which can streamline purchasing process. As retailers work diligently to differentiate store environments, consumers are becoming more and more environmentally aware and expect retailers and service providers to exercise social responsibility incorporating green efficiencies into their operations. Among others, IKEA, Wal-Mart Stores, Whole Foods and Marks & Spencer are demonstrating a serious commitment to environmental sustainability by organizing their entire enterprises around green goals—and by making every attempt to maintain brand credibility with consumers, manufacturers and legislators.

Document Workflows

[Figure 2] Document Workflows in Retail Industry

Note: This workflow is based on SAP Industry-Specific Business Map (http://solutioncomposer.sap.com)

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Merchandise Lifecycle: Large retail operations often manage thousands of separate items. Retailers need to determine how and in which locations to display particular products, and should plan to optimize the use of retail and warehouse space. Additionally, they should be smart about location-based sales promotions. A major bottleneck in this crucial and challenging endeavor occurs when headquarters circulates detailed information about products and services, including brand-compliant plans for advertising, promotion, stores’ physical layout and the setup of retail displays. In some instances, it can take as long as three weeks for retailers to ensure a given store location conforms to instructions from headquarters.

Supply Chain Management: Vendor relationship management and the visibility of inventory across the supply chain are important in this retail workflow. If companies still rely on paper-based systems, the main challenge is long lead times associated with the manual processing of large numbers of paper invoices and order sheets.

Shopper Experience: This workflow includes point-of-sale management, customer-service call centers and post-sales management. Many retailers are struggling to respond to the needs of local markets because it is a challenge to quickly produce customized materials to market products and services locally.

Document Requirements

> Better Communication between the Head Office and Retail Outlets The central marketing department in a retail operation can use document management solutions to create sign templates, sales materials, posters and any other necessary in-store displays. Using on-site technology, retailers can create sales materials, labels, mailers and more. New in-store materials can be sent electronically directly to the local store for printing on a local multi-function printer. If updates are required, they can be initiated at the central or local office with pre-set authorization. Local managers, meanwhile, can reprint labels and merchandise, combining local data with an existing template to produce labels and signs consistent with the brand. Local printing devices should have the ability to support diverse communication channels, such as email, fax or file transfer to multiple destinations. > Improved Customer Relationships Retail demands customer focus and those who develop good customer experiences will foster higher customer satisfaction and loyalty. When customers regularly interact with a company, content personalization is an added touch that provides the customer with the assurance that a given retailer understands their needs and cares about who they are. Using high-quality point of sale printer systems, retailers can react immediately to customer demand, printing on-site various forms of marketing communications including brochures, and pre-designed, yet customizable signage for pricing and specials. This reduces the amount of time needed to promote products that are in high demand.

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> Reduced Costs and Increased Margins Retail outlets can benefit from quality multi-function printers that digitize sales materials and make it possible to send them out through a variety of communications channels, including email, fax and the web. In comparison with many industries, printing volumes at the in-store level are not high, which is why retailers need to select print devices that provide good value, the right features and functions, and low total operating costs. Other important factors: In retail, keeping track of receivables and payables is a critical part of the business. Whether relying on invoices, or accepting purchase orders and letters of credit, new print technology can help retailers to save significant costs and lead times by digitizing these documents. With distributed printing and server equipment infrastructure, it is important to consider the service plans for maintenance of this significant investment. A service provider should be able to offer optimum service requirements at a reasonable price. > Assured Business Information Security and Customer Privacy

To protect customer confidentiality including financial information, retail industry needs document systems that can securely transmit information to the appropriate staff for handling and approvals, and ensure that no transactions are lost. If the law requires that customer information not be divulged, then the system needs to ensure unauthorized personnel cannot access that portion of a customer record. Central monitoring of all printing activity enhances security to prevent internal fraud by logging and tracking document use.

Samsung’s Value Proposition for Retail Industry With our major industry footprint, Samsung has deep understanding and insight into the needs of retail industry for powerful, yet cost-effective, document management solutions. Our comprehensive document management solutions reduce document costs, improve customer relationships, improve communications between the head office and retail outlets, and improve privacy and confidentiality of customer information. Samsung focuses on improving productivity and customer satisfaction by reducing document-processing costs, enabling greater flexibility for retail operations. Samsung also understands the challenges that increasing regulation presents and designs document-management solutions that make compliance within the context of retail industry a priority. Samsung document management solutions for retail industry provided the following benefits:

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Productivity Enhancement

Samsung wants to partner with retailers to improve document-management productivity. Our solution offers cutting-edge laser technology that will allow retailers to upgrade from a manual process to an electronic document-management system.

Retail companies will benefit from reducing the time it takes to distribute documents from headquarters to store chains by reacting quickly to local market conditions with print-on-demand. As an example, most print signs, marketing directives, promotions and price tags are centrally designed in headquarters, but customized and printed at local retail stores just in time. This provides competitive advantage.

Between headquarters and stores, our electronic document-management solution can aid in faster communication. Our solution enables retail sales to be recognized because it enables digitized invoices to be issued, and accounts payable and accounts receivable to be shared.

Retailers can increase productivity by allowing quick access to relevant information supported by digitized and printed signs, directives, promotions and price tags. These high-resolution visual images are useful because they help employees to find products and efficiently manage inventory. What is more, better product visibility enables sales to increase because more customers can be attracted to key promotions among a variety of products.

Customer and Employee Satisfaction

Samsung supports retailers to improve customer and employee job satisfaction by reducing laborious manual documentation tasks. Combining the features of our product—easy installation, simplified maintenance and rapid responsiveness—with improved operations brings higher satisfaction to employees, enabling them to focus on providing quality service to customers rather than on routine and distracting printer maintenance.

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In addition, customer loyalty can be improved when customers receive personalized sales promotions and, as a result, choose to visit those stores where high-quality images help them easily find the products they want or need.

Print Cost Reduction

In retail industry, headquarters send stores printed materials, incurring additional distribution costs, such as mailing and delivering. Managing digitized formats for print displays in local stores, however, allows retailers to reduce print cost for marketing directives, signs and price tags.

Our cost-effective, document-processing solution combines the right cost-competitive hardware with high-yield supplies and flexible service options to help retailers reduce the total cost of ownership by cutting printing cost. With our centrally managed document solution, retailers can gain better visibility into costs and printing, thereby moderating printing investments and selecting appropriate device layouts that conform to business needs. Additionally, retailers can strategically minimize your overall maintenance costs of printing devices, helping to reduce total cost of ownership even further.

Information Security and Regulatory Compliance

Samsung provides legally compliant, highly secure document-management solutions for retailers. We include functionality that help to prevent the physical loss, misplacement or damage to key transactional records, eliminating information leaks by detecting and reporting printing and copying activities at all times and at all volume and capacities.

Through electronic documents, our solution supports retailers to secure customer and employee information as well as sales/transaction records within an ecosystem that includes supplies, headquarters, stores and customers, thus helping retailers to establish a strong reputation in the retail marketplace.

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Samsung Offerings for Retail Industry

Samsung engineers reliable, high-quality hardware and software solutions, designing

custom systems based on the needs of each organization. Our collaborative, responsive

service module delivers real value to customers.

Productivity and Satisfaction Improvement

Convenience and Ease of Use

Samsung helps retail companies to enhance productivity by managing large volumes of

paper documents in digitized form. A hardcopy scan can be transformed into various

formats, including .tif, .jpg, .pdf and delivered to any destination, using fax, printer, OCR, e-

mail or any enterprise application. Samsung’s “Scan to USB” enables stores and

headquarters to transmit scanned documents and receive e-mail directly to any USB device.

You can register an email address, scan a document, and then share hard copy reports by

emailing them to multiple recipients.

Employees can conveniently index, search, and categorize documents, and collaborate

across diverse information technology and communications platforms. The system allows

administration, accounting, and any other departments to securely access, update, share,

and store any document [Figure 3].

[Figure 3] SmarThru™ Workflow 2: Simplify document workflows - Capture paper and

electronic documents and distribute them to predefined destinations and processes

To preserve your current investment in print and communications infrastructure, Samsung’s

Universal Print Driver recognizes and works with any PDL printer or multi-function device. In

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addition, our solution allows you to remotely control monitor and troubleshoot multiple

devices from a single interface.

For small-to-mid size retailers seeking printing cost optimization, Samsung provides

convenient functions for self-operation. One way to illustrate this is to show that Samsung

copiers have numerous user-friendly functions (for example, easy-to-install drum/toner

cartridges; a simple pull in/pull out finisher; and a fax module).

Innovative, Durable Hardware

For years, Samsung’s multifunction printers have led the way in innovation and cost

reduction. They have received reviews that place them time and time in the “Best Quality in

terms of Performance and Innovation” for reliability, multi-tasking capabilities and

productivity and efficiency improvements. Samsung has been continuously awarded “Pick of

the Year” by BLI, and is consistently a “Better Buys for Business” Editor’s Choice [Figure 4].

[Figure 4] Solid Performance: Samsung 55ppm A4 copier outperformed in Reliability,

Productivity, Multitasking, and TCO with “Very Good” in Overall Rating

Compatibility and Flexibility

Samsung engineers compatibility with printing features using Citrix and SAP, as well as with

IPv6 / IPSEC. Our inter-changeable toner cartridges and other supplies let you manage

printers easily and effectively from single vendor.

Responsive Service Plans

The Samsung implementation team offers hardware and software customization and system

design as well as legacy system integration services. We minimize the cost of ongoing

maintenance services by setting a fixed fee for each, so you can phase in the service you

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require and plan cost in advance. Typical options include service-level agreement changes,

parts-only warranties, extended warranties, onsite or call center service; local provider

service, equipment pick-up and delivery, in-house escalation and next-business-day service.

Related Solutions with Software : Document Capture and Routing - SmarThru™ Office,

SmarThru™ Workflow2 / SyncThru™ Admin 5 Device Management Solution / Samsung

Universal Print Driver

Cost Optimization

In a comparative study performed by Buyers Laboratory Inc. (BLI), the leading source for

unbiased and reliable intelligence for the imaging industry, Samsung copiers and supplies

outperformed others in reliability, multi-tasking capability, and productivity and efficiency.

BLI confirmed Samsung as provider-of-choice for lowest-cost management options [Figure

5].

[Figure 5] Lowest Cost of Ownership: Both Samsung color and mono A4 copier proved

lowest total cost of ownership vs. industry leading vendor’s copier in BLI Test

Samsung’s Managed Print Service (MPS) consolidates on-site printers, MFPs, copiers and fax

fleet management with a variety of flexible options, from basic cost-per-page contracts to

comprehensive service engagements. A convenient, metrics dashboard provides complete

visibility into all network device usage so that printer, fax, scanning and copying can be

monitored and measured from anywhere. Using Samsung’s Managed Print Service (MPS)

programs, retail companies typically save 10 to 30 percent in total cost of ownership.

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In addition, real-time monitoring of toner outage or printer malfunctions enables device

maintenance management, while Samsung’s CounThru™ 2 Enterprise analysis report shows

usage and billing information by print type, paper size and color selection [Figure 6].

[Figure 6] CounThru™

2 Enterprise: Offer

total visibility of printer

and copier devices

Samsung's S.T.A.R. Program is a free service, created in partnership with FedEx, to

encourage companies to take responsibility for keeping the environment clean. Since 2005,

it has set a new industry benchmark for cartridge return plans. Under the program, Samsung

collects empty print cartridges, safely recycles them, converting them into useful materials

and thereby ensuring they are not incinerated or sent to landfills.

Related Solutions with Software : CounThru™ 2 Enterprise Managed Print Solution

Security and Privacy Protection

Samsung’s diverse product lines are engineered with privacy and security as a paramount

consideration.

Security Features for Keeping Key Customer Records

Samsung’s unique security features eliminate detect and eradicate malicious attacks and to

protect customer key records. Security features include user authentication and

authorization for document access; security logs for audit; and enhanced network security

for record transmission.

Common Criteria Certification for MFPs

“Common Criteria” (CC) certification makes it easier for IT professionals to identify the

products that meet their security requirements. Samsung’s CC-certified MultiXpress features

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include image overwrite, user authentication, security management, security audit log and

data-flow management.

Related Solutions with software : SyncThru™ Web Service UI (Device Management)