South African retailers live in Third World country with First World aspirations

By Keith Fenner for Sage Enterprise
Johannesburg, 11 Apr 2007

Keith Fenner, strategic sales director, Softline ACCPAC, says South Africa remains a Third World country with infrastructure challenges that inhibit retailers` technology aspirations.

"We are nowhere near a First World country when it comes to the retail sector. This is as a result of the country`s infrastructure and also in some cases the understanding of what technology is needed to assist retailers," says Fenner.

He says the two biggest headaches for any retailer are stock management and speed to shelf of stock. The answer, according to Fenner, does not lie in a debate about information flow, or the very clever use of hot technologies such as RFID and SOA, but instead, he says, it is time to go back to what people now see as the basics: end-to-end retail management solutions.

"The time for SOA and RFID in South African retailing will come, but for now, we believe that retailers need to address their basic needs first and ensure they have a solid end-to-end solution in place before moving forward," comments Fenner.

Key ingredients of a successful end-to-end solution include a fully integrated back office ERP solution and a front office point of sale solution, which is tailored to the needs of the business. "This can be connected seamlessly to a CRM solution, loyalty scheme and dynamic permission-based marketing," says Fenner.

A key criterion in terms of point of sale solutions, or as it is now known, a retail management solution, is the ability to work on and offline. Fenner says that this is where South Africa`s infrastructure challenges come into play. Retailers need a system that can operate both on and offline without compromising the controls and quality of data fed to and received from stores.

"This is vital as things become more complex as soon as retail stores start doing inter-branch transfers, price management and address purchase projections. Of course, once you add in complexities of loyalty, customer service, call centres, customer profiling, merchandising and marketing campaign measurement, the need for an end-to-end retail management solution is no longer a good idea, it is a necessity," says Fenner.

Softline ACCPAC

Softline ACCPAC is a global provider of business management applications including accounting, CRM, warehouse management and HR to the mid-range market. Its solutions are delivered to 130 countries exclusively through its network of over 5 500 solution providers worldwide and 130 throughout Africa. Softline ACCPAC`s product line includes ACCPAC CRM, ACCPAC Advantage Series, ACCPAC Business Analysis Suite, ACCPAC Warehouse Management System, ACCPAC ePOS, ACCPAC Insight and Simply Accounting.

Softline

Softline is a leading provider of accounting, payroll and CRM software solutions to small, medium and large companies. Founded in 1988 by Ivan Epstein, Alan Osrin and Steven Cohen, Softline was established during the formative years of the software industry and listed on the JSE Securities Exchange South Africa in February 1997. Softline expanded to establish a strong position within its area of focus in South Africa and Australia.

Focused on the development of accounting, payroll and CRM software solutions, Softline has a 16-year track record as a market leader. The group has a broad range of products offering users a variety of software solutions to run their businesses efficiently. Softline`s leading brands include Softline ACCPAC, Softline Enterprise, Softline Pastel (Accounting and Payroll) and Softline VIP. The combination of the group`s product offerings, provide Softline customers with comprehensive, well-branded accounting, payroll and CRM software solutions.

In November 2003, Softline was acquired by Sage Group plc, an established FTSE 100 company. The group includes market-leading businesses throughout the United Kingdom, Europe, North America, South Africa and Australia, supplying business software to the small, medium and large business community.

Softline has a solid track record of profitability and cash generation. The group delivers quality accounting, payroll and CRM software solutions that improve the efficiencies of businesses around the world.

Sage

The Sage Group plc, an established FTSE 100 company, is a leading supplier of accounting and business management software solutions and services to 5.2 million small and medium-sized clients worldwide. With over 13 000 employees, the Sage Group comprises market-leading businesses throughout Europe, United Kingdom, North America, South Africa and Australia. Its products and services are sold through a global network of 23 000 reseller partners, 40 000 accountants as well as directly to clients from Sage companies throughout the world. For the financial year ending 30 September 2006, the group`s revenue grew by 22% to lb935.6 million and the operating profit rose by 18% to lb235.8 million.

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