Almost 50% of local retailers - including some large, well-known brand-name organisations - are in danger of missing the e-commerce business wave because their IT systems are still so backward, said Regan Atkins, sales and marketing manager at leading retail point of sale vendor, PC-POS.
PC-POS, part of the JSE-listed MB Technologies group, is the exclusive local distributor for Epson point of sale products. The company also manufactures its own range of DigiPos POS terminals, which are specifically designed for ultra-compatibility with the Epson printer range.
Atkins said recent research conducted on behalf of PC-POS reveals that a staggering 45% of retailers are still using cash registers.
This is alarming given the overwhelming evidence that the business methodology of the very near future will be Internet-based. Analysts expect South African businesses to conduct e-commerce transactions worth more than R3 billion during 2000, with Forrester Research predicting that business-to-business electronic trade in the United States alone will nudge $3 trillion by the end of 2004. "Whether you are an e-commerce protagonist or not, any enlightened businessman has to acknowledge that the future way of conducting business will be on-line. This includes the retailing industry - this sector will not be an exception."
Atkins said it is frightening to know that almost half of retailers are still using out-dated cash registers. He said besides giving the retailer absolutely no "pro-active or intelligent business control" over his business, cash registers are "definitely not going to assist in ushering in a workable e-commerce environment for a retailer".
Often retailers pick up anomalies, or even massive amounts of fraud, after their financial figures have been finalised. This proves that too many retailers don`t have the necessary controls in place, which Atkins puts down to an over-reliance on old technology, such as cash registers.
"If these companies had installed the latest PC-based POS solutions it is very likely that the rot would have been detected a lot earlier due to the sophistication features and checks and balances within these systems."
When using cash registers it is very difficult for a retailer to know what the latest stockholding is - even in a small organisation. "There can`t possible be any drill-down management information available so any business deductions made are going to be reactive or based on thumb-sucks, or a convoluted paper trail. Modern systems enable a retailer to optimise stock holdings because the system will automatically provide the user with detailed information on all stock levels at any given time, right down to how much was sold per item, and when. Some systems - especially those used in the hospitality industry - will even break down the ingredients used and sold in a milkshake."
But if you have no finger-tip knowledge of stock, how can any forward planning be conducted - and how can a retailer embrace the new on-line economy?
"It is very likely," said Atkins, "that some retailers are going to have to play catch-up by investing heavily in the short-term, or run the very real risk of being left behind in the old economy."
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