Scansource, Inc. · NASDAQ:SCSC
Scansource — February Retail Webinar (February 2004)
21 slides from Scansource's conference presentation, Feb 19, 2004
Slide 1: Expect More, Deliver More to Your Retail Customers
Expect More, Deliver More to Your Retail Customers ScanSource and Intermec February 19, 2004
Slide 2: Retail in North America
Retail in North America 500 Companies over $100 Million Rev 200,000+ Store locations Over 1.5 million handhelds Upgrading In-Store Systems Investigating RFID
Slide 3: Your Retail Opportunity
Your Retail Opportunity Many Retailers are looking at a technology upgrade Old 900 Mhz & 2.4 FH systems lack security Legacy applications are weak on features to support competitive supply chain and customer needs Legacy handhelds are moving outside the maintenance window Intermec is a sol
Slide 4: Retail Product Line Up
Retail Product Line Up Product CK-1 CK-30 730 Applications Receiving Inventory Multi-function Ordering Pricing Competitive Shop Operating System Linux WinCE Pocket PC Communications Batch WLAN WLAN WWAN VoIP Cisco CCX No Yes Yes Management Wavelink/ICCU Wavelink/ICCU
Slide 5: Opportunities in Retail Store Applications
Opportunities in Retail Store Applications
Slide 6: Retail Applications
Retail Applications Convenience Pricing Inventory Drug Grocery Category Killer Mass Merchant Specialty Mobile Point of Service Emergent
Slide 7: Pricing
Pricing nds ps e p Tr A Convenience Price Verification Price Optimization Markdowns Drug Grocery Category Killer Mass Merchant es uct s u od Specialty Is Matching System to Shelf Pr Customer Goodwill Lost Sales & Margin Government Fines
Slide 8: Pricing - Verification
Pricing - Verification t w ha o H • Dedicated pricing specialists W • Segments with frequent price changes • Scan / lookup / verify / print Convenience • 5,000 price changes(+)/ wk • ~ 1 scan per 5-10 seconds Drug • Wrong prices typically 1-2 % • 55-110 hrs for 40K sku store Grocery • Avg cycle is 3
Slide 9: Pricing - Markdowns
Pricing - Markdowns t w ha Ho W • Flushing inventory through • Items are marked individually the stores • Markdowns are shown via Convenience • Apparel, seasonal, fashion pen or sticker or not Drug • Typically taken 3 to 4 times • Markdowns done via lookup Grocery per item • Alt: Signage + (opt) ver
Slide 10: Inventory Mgmt
Inventory Mgmt nds ps e p Tr A Real- time inventory tracking Cycle counting Convenience Automated replenishment Receiving Drug Market Pressure on Operating Ordering Grocery Costs Transfers/Returns Category Killer Mass Merchant es uct s u od Specialty Is Pr Large inventory carrying costs Out-of
Slide 11: Inventory – Cycle Counts
Inventory – Cycle Counts t w ha o H• W Scan item codes on the shelf • Counting physical inventory • Count inventory Convenience • Cycling through the store • Enter inventory count Drug • Frequency varies by chain • Update system values Grocery • 100(+/-) hrs for 40K sku store Category Killer Mass Me
Slide 12: Inventory – Receiving
Inventory – Receiving t w ha Ho W • Recording receipt of goods • Verifying receipt against • Scan received item upc’s Convenience manifest • Count item quantities Drug • Primarily for distributor • Compare to ASN Grocery supplied items Category Killer Mass Merchant uct Specialty hy r od W P • Discov
Slide 13: Inventory – Ordering
Inventory – Ordering t w ha Ho W • Survey shelf stock Convenience • Scan item code • Order goods for restocking • Enter re-order amount Drug Grocery Category Killer Mass Merchant uct hy r od Specialty W • Replace store stock P • System accuracy may be in question • Demand variability requires local
Slide 14: Inventory–Returns/Transfers
Inventory–Returns/Transfers t w ha Ho W • Defective items, overstock, • Scan items into return packs Convenience breakage, customer requests • Generate return documents • Returned / transferred for store • Return merchandise Drug credit Grocery Category Killer Mass Merchant uct Specialty hy r od W •
Slide 15: Mobile Point of Service
Mobile Point of Service nds ps e p Tr A Open Platform POS Line Busting Convenience 3rd Party Applications Mobile POS Drug Focus on improved service Mobile Layaway Shift to plastic payment Grocery Category Killer Mass Merchant es uct s u od Specialty Is Pr Long queues drive abandonment Check st
Slide 16: MPOS – Line Busting
MPOS – Line Busting t w • Employee scans items ha o H • Places items in separate W • Done in the check line • Pre-scan consumer items ‘cart’ Convenience • Uses loyalty card or plastic • Finalize transaction @ Drug the register tag Grocery • Card or tag scanned at Category Killer register Mass Mercha
Slide 17: MPOS – Point of Sale
MPOS – Point of Sale t w ha • Handheld acts as a mobile Ho W checkstand • Employee scans items Convenience • Operates only on debit and • Totals transaction Drug credit transactions • Bags items Grocery • Scans card • Prints receipt on portable printer Category Killer Mass Merchant uct Specialty hy
Slide 18: MPOS – Layaway
MPOS – Layaway t w ha Ho W • Scans items • Process a layaway Convenience • Records information transaction portably Drug • Takes payment • Prints contract Grocery Category Killer Mass Merchant uct Specialty hy r od W P • During major sales events layaway lines can become extreme * Connecticut, Rhode
Slide 19: Ancillary Applications
Ancillary Applications nds ps e p A Gift Registry Tr Open systems and new tools are Competitive Price Shopping Convenience Consumer Shopper making use of mobile computers Drug as multi-function devices more eLearning Grocery viable Product Info Lookup Category Killer Management Dashboard
Slide 20: Bottom Line
Bottom Line Installed retailers are needing to shift off old wireless for security reasons Virgin retailers are prime for wireless adoption Convenience Old store platforms are needing replacement and WinCE Drug and Cisco wireless are the IT platforms of choice Grocery Inventory and price man
Slide 21: Questions & Answers
Questions & Answers