Western Province Cellars (WPC), with the help of two Cape-based IT companies, has almost completed an overhaul of its retail and point of sale systems in a bid to stay ahead in the highly competitive liquor sector.
The contract between WPC and IT distributor Light Edge Technologies and systems integrator Virtual Systems Technologies (VST) includes the installation of a new IT infrastructure through all of the merchant`s 35 branches, including the upgrade and replacement of around 204 point of sale systems that process about one million transactions per month.
The liquor industry is reported to be one of the most highly competitive in the country, with about 7 000 new entrants in the past 10 years, while the overall size of the market has remained constant. It is a margin-driven business, implying that all operations have to be highly efficient in order to pass on best prices to customers.
"Of course, the size of the market has remained more or less unchanged, forcing us to become smarter in our efforts to engage our customers and protect our bottom line," says WPC financial director Hans Pelser.
According to Pelser, VST`s strategic counsel - underpinned by Light Edge`s hardware solutions - has seen the introduction of a centralised merchandising system that is already delivering speed and accuracy benefits.
"At the same time, customers are enjoying higher convenience levels and a distinct financial advantage. Discounts and special offers received from our suppliers can now be passed onto customers with immediate effect and we can respond to competitors` promotions by pressing a button. Our new-found agility is delivering a distinct competitive advantage and is allowing us to raise our game significantly - a rare occurrence in an industry as competitive as ours," he says.
"With the majority of stores still running on cash registers, the upgrade includes the introduction of Light Edge`s Emerald PCs and all other peripherals at store level," says VST technical director Darryl Buckby. "All points of sale will eventually feed into the centralised merchandise system which is already up and running on VST`s retail software, Retailman."
Buckby says nine WPC stores have been fully migrated so far and the project will be completed by the end of August.
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