50 Tech Suppliers
Modern retail is occupying 7 per cent of the entire retail pie. As per “Indian eRetail Report 2012” by Franchise India, e-retail is going to touch `7,000 crore by the mid of this year. With rapid evolution of India’s retail scenario comes expenditure on technology. Ideally, it should be something around 1-2 per cent of total revenue for the physical retail chain and 15-20 per cent of e-retail start-ups, which comes down with business maturity, but always remain about 5-6 per cent for a mature e-retailer like Amazon. Today, cloud computing market is pegged at $ 400 million, and 30-40% of e-commerce business uses this platform that has made using technology easier for small and mid-sized retailers, incurring minimal impact on capital expenditure.
Retailer carried out a survey to understand the latest trends in technology applications in retail. By presenting case studies of Top 50 Retail Technology Suppliers, we intend to capture the areas that retailers are addressing through technology, and what are their technology demands. The coverage has enabled us to map the applications’ popularity chart.
INSIGHTS
TECHNOLOGY AT THE STORE LEVEL
Enterprise Resource Planning
For front end operations of stores, mid-sized retailers today are mostly using integrated software package, Enterprise
Resource Planning (ERP), instead of simple POS. An ERP solution covers following areas:
• POS
• Accounting & Finance
• Customer Relationship Management (CRM)
• Inventory
• Procurement & Purchase
• Manufacturing & Planning
• Pricing & Margin Management
• Reporting & Data Consolidation
Loyalty Programme & Security
The technology for loyalty programme and security come after in terms of preferred applications amongst retailers. Loyalty
programme and security are concerns of both the physical and virtual retailers are employing applications for loyalty
programme and security.
Digital Signage
Among in-store technology, digital signage has an impactful power to influence customers’ purchasing decisions. It is a key tool for in-store promotions. More and more retailers are realising its potential for creating
engaging shopping experience.
BACK-END TECH SUPPORT
The applications for back-end operations are on high demand. The areas it covers include:
• Stock tracking and verification
• Procurement
• Warehouse Management
• Inventory Management
Business Intelligence
Business Intelligence is one application which the mid-sized to big-box retailers are deploying for ramping up the business scale. It can be considered a higher version of ERP, which produced more analytical reports. It helps in analysing the KPIs (Key Performance Indicators) and view them in multiple dimensions, and can be best utilised for complicated
data analysis and as a dashboard.
Data Management
The growth of business volumes leads to a huge accumulation of database. Big box retailers find this area critical. The situation demands the effective deployment of data base management. Many IT companies
are specialised in tackling such problems. With expanding footprints, retailers require robust network structure. IT services are provided for network capabilities enhancement.
Mobile Devices
Mobility, as a next step development of technology, brings in feasibility in operations, and the demand is generated in the market gradually with the introduction of mobile label printer, mobile stock verification and paperless
digital coupon for promotion on mobile phones.
Applications for HR
The scope of technology is ever widening over time. Even for cost cutting exercises, retailers are implementing adept
technology for long time benefits. Technology is evolving to address as diverse needs as slashing down phone bills
through Local Voice Services or coping with extreme power situations. Fast evolving modern retail in India requires skill enhancement. A few software companies are developing programmes for HR training and employee management. The application can be as advanced as conducting remote training, centralised monitoring of training progress and
optimal staffing schedule based on trading history.
Product Lifecycle Management
A comparatively new area for application is Product Lifecycle Management, which cuts down cycle time, improves sourcing process, adopts a go green approach, and the model’s best feature is involving customers for product development.
Technology for E-retailers
E-retailers need technology for website hosting, enhancement of web performance, increasing traffic, content update,
easy search, search engine optimisation and website maintenance.Technology for payment gateway is a key application.
Boost sales, reduce delivery time
Microsoft Dynamics AX is a line of integrated, adaptable business management solutions that enables you and your people to make business decisions with greater confidence.
Microsoft Dynamics AX works like familiar Microsoft software such as Microsoft Office, which means less of a learning
curve, so employees can get up and running quickly and focus on what’s most important.
TVC Sky Shop is a pioneer of sky shopping (also known as electronic retailing and Direct Response Television (DRTV)
in India. TVC was using three key applications, a legacy, custom developed customer relationship management (CRM)
solution; Tally, an accounting package, and a bespoke solution for Delivery Partners (DP) operations. Lack of integration
between these three applications led to account reconciliation, debit notes, credit notes, etc. Thus, manual involvements
were necessary, making every process time-intensive. At the same time, TVC relied on a solitary IBM server for database as
well as for hosting application. Data was batch uploaded twice a day for distribution partners and back office operations on
the live server maintained at a data centre.
CUSTOMISING THE ERP SOLUTIONS
The company needed to revamp its operations to build in greater transparency, automation, and scalability. Besides, TVC
wanted to check the return on investment (ROI) from its advertising campaigns. To meet the demand generated by a 24-
hour channel and the e-commerce web site, an efficient call centre, an end-to-end ERP solution within the budget was
needed that could make a big impact on the business. With growing recognition of the complexity and cost to customise the
administrative ERP solutions, TVC shortlisted Microsoft Dynamics AX.
Dynamics AX was tailored by Godrej Infotech to support unique business requirements, eg, integrating contact centre
process with ERP. Secondary sales module has been created to track business and inventory with the delivery partners and
outlets to ensure quick delivery. The solution is further customised to tap the media source, whether television, print or
web, from where the orders are procured. Thus the accuracy and effectiveness of media sources is measured by checking
ROI, which helps in future decision making.
INCREASING MANAGEMENT CONFIDENCE
Microsoft Dynamics AX supports sales analyses, manages ROI and thus increases the management confidence in the
business operation. It provides the ability to respond quickly to fast changing business needs. With the use of Microsoft
Dynamics AX, the delivery time has been reduced by 75 per cent; customer services and sales have improved; accounting
controls have improved and inventory carrying cost has been reduced.
“TVC HAS BEEN ABLE TO DEVELOP FORMIDABLE IN-HOUSE STRENGTH WITH MICROSOFT AXAPTA TO
DEVELOP, CUSTOMISE, AND MAINTAIN THE APPLICATIONS TO SUIT OUR SPECIALISED NEEDS.”
NITIN PATKI
VP-Operations, TVC Sky Shop
“WE HAVE WORKED ON MICROSOFT DYNAMICS AXAPTA ERP FOR THE LAST 3 YEARS TO ENSURE THAT
THERE ARE MINIMUM PROCESS GAPS, ESPECIALLY IN THE AREAS OF MEDIA AND DISTRIBUTION. THANKS
TO THE TECHNOLOGY UPGRADATION, TVC IS NOW READY TO SCALE UP THE BUSINESS MULTIFOLD,
PROFITABLY.”
VINOD AGARWAL
Owner, TVC Sky Shop
TVC SKY SHOP’S OBJECTIVES
An efficient call centre, an end-to-end ERP solution within the budget to make a big impact on the business
MICROSOFT’S RESOLUTIONS
Microsoft Dynamics AX to support unique business requirements
Secondary sales module to track business and inventory with the delivery partners and outlets
KEY BENEFITS
Delivery time reduced by 75 per cent
Improved customer services and sales
Improved accounting controls
Reduced inventory carrying cost
Cutting down logistics cost
Since PepsiCo Inc. entered the Indian beverage market over two decades ago, Varun Beverages Ltd has been with the global consumer products company as the bottler of Pepsi. Varun Beverages runs a fleet of over 1,000trucks to get its beverages to market.
ASSEMBLING A DIVERSE PROJECT TEAM
Varun Beverages assembled a diverse project team to determine and implement the most effective fleet management
solution. The team included consultants from implementation partner Wipro Limited, along with internal supply chain
experts and functional consultants of the in-house group that manages the bottler’s deployed SAP ERP application. The
team determined that the best solution was to integrate the plant maintenance and transportation functionality of SAP
ERP with GPS-enabled devices installed on each truck. The GPS devices would then transmit critical vehicle data to SAP
ERP for analysis. This approach could fully corroborate actual truck mileage versus mileage reported to Varun Beverages
by contract drivers. It could also automate the highly manual process of truck maintenance billing by outside vendors
to improve accuracy and better track work performed and parts used. Equally important, the solution could help fleet
managers establish a complete and up-to-date maintenance history of each truck, so they could better understand each
vehicle’s current and projected cost effectiveness. The project team’s close collaboration paid off with the successful on-
budget deployment of the solution in just five months.
TOTAL VEHICLE INSIGHT
The application went live in January 2009, and today, real-time vehicle data made available through SAP software is helping
Varun Beverages find more ways to save money in its fleet operations. For the first time, the supply chain team knows
the exact distances travelled by each truck’s delivery run, which has eliminated the overpaying of contract drivers. And
by monitoring key vehicle parameters like tyre life, critical parts, and per-vehicle maintenance costs, Varun Beverages is
reining in excess repair spending. The fleet management solution also gives the bottler the reliable and timely reporting
that fleet managers need to make the right decisions about reducing costs. For example, they know which trucks should be
retyred and when to acquire new ones.
“RETAIL TECHNOLOGY IS EVOLVING LIKE ANYTHING. WITH PROLIFERATION OF MOBILE COMPUTING,
BAR CODE AND RFID TECHNOLOGY, THE END CONSUMERS ARE BENEFITTED. THE NEXT REVOLUTION
IN RETAILING DOESN’T REQUIRE THE BIRTH OF NEW TECHNOLOGY, BUT THE APPLICATION OF TODAY’S
TECHNOLOGY IN NEW WAYS.”
KAMAL KARNATAK
“THE VOLATILITY OF FUEL COSTS HAS HAD A SIGNIFICANT IMPACT ON RETAILERS IN INDIA AND THE ABILITY
TO OPTIMISE FLEET MANAGEMENT IS BECOMING MISSION-CRITICAL. VARUN BEVERAGE IS A CLASSIC
EXAMPLE OF HOW GOOD TECHNOLOGICAL ACUMEN HAS ENABLED A BUSINESS TO STRENGTHEN SUPPLY
CHAIN AND IMPROVE BOTTOM LINE.”
PRIYADARSHI MOHAPATRA
VARUN BEVERAGES’S OBJECTIVES
• Reduce cost of fleet operations and maintenance
• Improve visibility of fleet operations
• Make fleet decisions based on reliable data and metrics
SAP’S RESOLUTIONS
• Integrate the standard plant maintenance and transportation functionality of the SAP ERP application with GPS devices on trucks
• Team up in-house software and supply chain experts with implementation partner
• Create comprehensive fleet reports including trip sheet, mileage, tyre life, critical parts status, and per vehicle operating cost
KEY BENEFITS
• Completion in five months and on budget
• Accurate fuel consumption monitoring
• Reduced cost of freight and vehicle repair
• Improved fleet performance
• Centralised monitoring of fleet
Tailored for better experience
Oracle ATG Web Commerce boosts cross-channel business growth. Through its advanced features, customers quickly find desired products, learn about new offerings, compare shops, register for gifts, preorder products and redeem coupons.
Oracle ATG WEB COMMERCE helps in delivering a personalised online buying experience to each customer by presenting
relevant content and merchandising, personalised search, customised marketing programmes and tailored websites. Web
commerce capabilities allow to merchandise more quickly, easily, and effectively, rapidly launch commerce sites for new
brands, markets, and even single-purpose campaigns, easily create and manage both simple and complex promotions, use
mobile devices and social media to drive sales, and quickly expand internationally and target new countries and segments
more effectively.
ATG Web Commerce boosts cross-channel business growth. Through its advanced features, customers quickly find desired
products, learn about new offerings, compare shops, register for gifts, preorder products, redeem coupons, and easily
complete their purchases.
ALL FOR PERSONALISED CUSTOMER EXPERIENCE
American Apparel, a manufacturer, distributor and retailer of branded fashion apparel, has chosen Oracle ATG Web
Commerce and Oracle ATG Web Commerce Customer Service applications to help grow its global, multi-channel retail
business. American Apparel will use the Oracle applications to deliver a personalised customer experience across all
channels and touchpoints, including the web, contact centre, mobile devices, social media and in stores. American Apparel
selected Oracle because it required a scalable, reliable platform with the ability to personalise offers, cross-sell merchandise
and extend the commerce environment to meet specific requirements. To achieve its business goals, American Apparel has
implemented Oracle ATG Web Commerce, Oracle ATG Web Commerce Merchandising, Oracle ATG Web Commerce Search,
Oracle ATG Web Commerce Service Centre. The implementation is part of a larger business strategy in which the retailer
will grow revenue, reduce inventory costs and extend its commerce and merchandising operations worldwide. American
Apparel has chosen Object Edge as its implementation and integration partner. Object Edge is a gold level member in
Oracle Partner Network (OPN). Object Edge draws on its expertise in delivering flexible, highly scalable, multi-channel
solutions around the globe for both enterprise and high-growth clients.
“ORACLE SOLUTIONS WILL ENABLE AMERICAN APPAREL TO CREATE A STRATEGIC ADVANTAGE ACROSS CHANNELS AND INTERNATIONAL MARKETS. THE ORACLE ATG COMMERCE PLATFORM IS IDEALLY SUITED TO OPTIMISING OPERATIONS AND PERSONALISING THE CUSTOMER EXPERIENCE AT EVERY TOUCHPOINT.”
Senior Vice President & General Manager, Oracle Retail
“AMERICAN APPAREL HAS A LARGE, TALENTED E-COMMERCE TEAM AND WE NEEDED A PLATFORM AND TOOLS TO FIT OUR GROWTH AND CUSTOMER SERVICE NEEDS. ATG COMMERCE SOLUTIONS PROVIDE US A SCALABLE PLATFORM WITH THE FLEXIBILITY AND INTELLIGENCE TO PERSONALISE OUR OFFERINGS AND DRIVE OUR ONLINE GROWTH.”
STACEY SHULMAN
CIO, American Apparel
ORACLE’S RESOLUTION
• Oracle ATG Web Commerce and Oracle ATG Web Commerce Customer Service applications to multiply multi-channel retail
business worldwide
KEY OBJECTIVES OF AMERICAN APPAREL
• To deliver a personalised customer experience across all channels and touchpoints, including the web, contact centre, mobile devices, social media and in stores
• Cross-sell merchandise
• Grow revenue, reduce inventory costs and extend its commerce and merchandising operations worldwide
Centralised service for a facelift
Tata Consultancy Services is an IT services, business solutions and outsourcing organisation that delivers real results to global businesses, ensuring a level of certainty no other firm can match.
Tata Consultancy Services offers a consulting-led, integrated portfolio of IT and IT-enabled services delivered through its
unique Global Network Delivery Model, recognised as the benchmark of excellence in software development.
HANDLING CLIENTS AND CLINICS
Kaya Skin Clinic, a prominent brand of wellness clinic chain, was facing several business issues. These included maintaining standards of its growing number of clinics, effective handling of choosy clients, managing clients with a busy schedule and fulfilling expectations of those who sought personalised services. Kaya also needed a solution to manage its merchandise and in-house product inventory. The IT system at Kaya Skin Clinic was decentralised and the administrative system was not connected with appointments. Replenishing inventory by offline coordination was also an issue. The brand needed common standards and a centralised system for over 100 of its stores.
MANAGING PROCESSES CENTRALLY
For businesses running many outlets, maintaining quality becomes the main concern. To achieve this, Kaya had to first
deploy a common system, which would centralise clients servicing processes directly. This would include training to the
clinic staff and use of common apparatus for treatment. Kaya chose TCS for such a system to manage all its stores.
A centralised requisition system was deployed by TCS, which enabled clinics to log in their requirement. The system provided the head office a dashboard giving details of status of daily deployment activities.
With inventory in order, the focus shifted to client relationships, wherein Kaya started sharing new schemes and programmes with its clients. Irrespective of the clinic location, Kaya is now able to track the preferences of each client and share information on new schemes and programmes with them.
NO MORE QUEUES
The system has helped Kaya Skin Clinic to centrally plan inventory and availability of therapists in a better way, without clinics having to do so in isolation.
With a growing customer base, congestion in some of the clinics had become a deterrent for busy clients who would like to
make appointments in advance and easily reschedule them without putting up with a long queue, which could now be managed centrally through the appointment scheduling module.
Furthermore, the solution was extended to mobile services, wherein clients could share their feedback on service consumed
and products bought from Kaya.
“THE NEED FOR IT IN SMALL AND MEDIUM BUSINESSES (SMB) IS GROWING. SMB IS A SEGMENT THAT IS CHARACTERISTICALLY DIFFERENT FROM LARGE ENTERPRISES. TCS SMALL AND MEDIUM BUSINESS SOLUTIONS BUILT A UNIQUE BUSINESS MODEL THAT MAKES IT AVAILABLE IN AN INTEGRATED FASHION ON THE CLOUD. TCS, WITH ITS RICH EXPERIENCE IN IT SOLUTIONS AND EXPERTISE IN VARIOUS INDUSTRY SEGMENTS, IS MAKING THIS HAPPEN BY BRINGING THE BUSINESS SOLUTIONS IN AN INNOVATIVE UTILITY MODEL CATERING TO THE SPECIFIC NEEDS OF AN SMB.”
VENGUSWAMY RAMASWAMY
Global Head – Small and Medium Business, TCS
KAYA SKIN CLINIC’S OBJECTIVES
• Maintaining the standard of growing number of clinics
• Effectively handling choosy clients
• Managing clients with a busy schedule
• Fulfilling expectations of those who sought personalised services
• Managing its merchandise and in-house product inventory
TCS’ RESOLUTIONS
• The centralised requisition system deployed by TCS enabled clinics to log in their requirement
• Provided the head office a dashboard giving details of status of daily deployment activities
• Kaya started sharing new schemes and programmes with its clients
• Kaya is now able to track the preferences of each client and share information on new schemes and programmes with them
KEY BENEFITS
• Centralisation for common quality
• Local processes tracked centrally
• Client treated in personalised way using CRM
• Clients could provide quick feedback on the products and services through their mobile
Robust POS for SMEs
Posiflex is one of the pioneers in designing fan-free POS hardware technology for the retail segment. As a specialised Point of Sale manufacturer, Posiflex has a policy of providing quality hardware at affordable prices with superior after-support. Posiflex is one of the leading global POS manufacturers with a well established presence in India. The revenue that Posiflex earns from India is approximately 5 per cent of the Posiflex International’s global revenue.
For Posiflex, India is one of the long term growth markets, where it foresees a large amount of retail opportunity being
created every year. Posiflex’s India business is growing steadily at 40-50 per cent year-on-year.
REQUIRED AFFORDABLE AUTOMATION
Coffee Day Xpress is a division of India’s largest coffee conglomerate, Amalgamated Bean Coffee Trading Company Limited
(ABCTCL), popularly known for Cafe Coffee Day, India’s favourite coffee shop. Coffee Day Xpress’s mission is “To be the
best convenience cafe chain by offering a world class coffee experience at affordable prices.”
Coffee Day required automation for all the Xpress outlets, which are spread across geographical length and breadth of India
(highways to malls to IT companies) with small to medium turnover per month per store, having footprints of 100 to 250 sq
ft per store size.
It is a challenge for Coffee day to decide on low cost PC versus professional touch POS hardware due to space constraints
and operations limitations.
After much research and analysis, Coffee Day approached Posiflex hardware for high quality, rugged, and yet affordable
touch POS hardware for the Xpress café business. After 10 months of field trial, and satisfied with the ruggedness and ease
of operation of the hardware, in January 2011, Coffee Day implemented Posiflex Fortis XP2000 series hardware, fine tuned
with Linux operating system for their needs.
MORE ECONOMICAL THAN PC
The ROI for Coffee Day has been worked out for 3-5 year operating cost basis, which proved Posiflex POS hardware is more
economical than using PC, where the initial capex is low but operating expense with absoluteness within 6 months is very
high.
At present, 350 stores have switched over to Posiflex POS hardware and another 300 are in the process of implementation
to make the largest coffee chain POS automated in the country.
“WITH THE SUCCESS WE HAVE ACHIEVED IN THE LAST 10 YEARS IN INDIA, WE ARE ENCOURAGED TO DEVELOP MORE INDIA FOCUSED PRODUCTS THAT WILL ALSO CATER TO SMALL AND MEDIUM RETAILERS WHERE ECONOMIC PRICING WITH QUALITY IS THE MAJOR CONCERN. WE HAVE ALREADY LAUNCHED A SERIES OF SUCH HEAVY DUTY CYCLE POS FOR SMALL AND MEDIUM RETAILERS AND A FEW ARE ALREADY IN THE PRODUCT ROAD MAP TO BE LAUNCHED IN THE LATER PART OF THIS YEAR.”
BASKARAMOORTHY D
VP-Sales, Posiflex
“OUR FOCUS HAS ALWAYS BEEN ON QUALITY PRODUCTS, CUSTOMISATION AND SMOOTH SERVICE LEVELS. POSIFLEX IS DESIGNED IN A MANNER THAT IT FITS WELL IN OUR ENVIRONMENT ENABLING BETTER PERFORMANCES AT THE KIOSKS, MOREOVER, ON THE SPACE CONSTRAINTS WE WORK WITH.”
VENKATESH BABU S
Head MIS – Coffee Day
COFFEE DAY’S OBJECTIVE
• Deciding on low cost PC vs professional touch POS hardware for automating all the Xpress café outlets
POSIFLEX’S RESOLUTION
• High quality, rugged, and yet affordable Posiflex Fortis XP2000 series hardware, fine tuned with Linux operating system for the Xpress café business
KEY BENEFITS
• More economical than using PC, where the initial capex is low but operating expense with absoluteness is very high
Support for expansion
NEC India Pvt Ltd, a wholly-owned subsidiary of NEC Asia Pacific Pte Ltd and NEC Corporation, customises solutions to construct large-scale, highly reliable, scalable and flexible IT and network systems, including security and surveillance systems, carrier network, IP telephony solutions and retail solutions.
7Eleven, Japan’s largest C store retailer, has grown from a neighbourhood mom-n-pop store to one of the largest C stores
in the world with over 24,000 outlets worldwide. This level of expansion in a format, which boasts of a 24/7/365 day
operations, was possible only with a robust and efficient IT platform and strategy while maintaining a healthy operating
profit. In choosing its IT partner, 7Eleven Japan turned to NEC. NEC fitted very well into 7Eleven’s domestic and global
plans. NEC managed to roll-out solutions to meet 7Eleven needs not only in Japan but also catered to its global expansion
plans.
NEC deployed domain engineers in retail solutions to develop robust software to handle operations right from 7Eleven’s HQ
to its stores with its unique Tanpin Kanri (Demand Management) tool to assist the stores in catering to customer needs at
the local store level.
FULLY INTEGRATED PLATFORM
To match up with 7Eleven’s expansion plan, NEC quickly got into the act. It analysed the situation and found out that the
only way forward was to offer a solution platform that would increase the efficiency of the 7Eleven processes that are similar to ones deployed by NEC in Japan and offer a fully integrated platform to roll-out the solution. After streamlining the processes, NEC turned to the deployment of its time tested retail ERP solutio
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