Expanding retail chains are best advised to make the centralised model for data collection their first choice. "In a high-transaction, low-margin business like retailing, emerging technologies such as wireless technologies, the Internet, and even leased lines can be costly," warns Cameron McKenzie of infrastructure optimisation specialist .
McKenzie maintains that, with the correct software solutions, retailers can run a highly efficient daily transaction data collection system over an analog dial-up telephone line. Supported Software has successfully implemented retailing solutions to major retailers such as and .
A typical model for a retail chain would centre on a data collection point, which is linked to branches via a dial-up connection or, if the business can afford it, ISDN. During off-business hours, the retailer will run its distribution and collection batches, but the process, says Cameron, would be a "pull from the middle" rather than a "push from the branches".
"Essentially there is one collection and distribution point, from where updates and scheduling are executed, and the daily transaction data is drawn from the branches. Which means that there is one point of control, one point of failure, and therefore it is easier to manage and transmission errors can be corrected immediately." All activities are automated, eliminating human error.
Cameron says that some retail chains have given that responsibility for daily downloads to the branches, and the results are not as satisfactory. "In our experience, the central model has a 99% success rate, whereas the distributed model delivers only 70% of the time. In the retail environment this is not acceptable, as there is only a very small window for gathering daily information. When errors creep in, the integrity of the data is compromised and valuable time is consumed verifying data."
Apart from the cost benefits of the centralised model, its scalability is superior. "Connecting a new branch is a matter of installing the necessary software," says McKenzie. "Very little user training is needed, and with a simple telephone connection there is no need for complex and costly infrastructure."
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