Emporos Systems Makes a Niche for Itself by
Utilizing on Demand and IBM Technology

The following article appeared in the recent edition of Executive Solutions on Demand , the company magazine for IBM.    BY Deena M. Amato-McCoy

QUESTIONS AND ANSWERS

Multichannel retailers recognize that they need a centralized operating platform that provides a “single version of the truth” for inventory status, product movement and even customer shopping patterns. Systems must be integrated, and they must control all replenishment, merchandising, and of course, order processing.

Emporos Systems’ MerchantSoft retail solution is one that features this very type of operating platform for the specialty retail marketplace. Based on scalable, low-cost, Web-based technology, all sales channels can instantly and seamlessly be managed from the home office. When combined with the IBM SurePOS 500, which features an intuitive touch screen, reduced employee training costs, and increased productivity, benefits result, which all translates into an accelerated return on investment (ROI).

This multi-channel retail infrastructure is delivered through a virtual private network, based on Internet protocol, which has standards that address security and keep a retailer’s infrastructure safe and secure.

Further, by becoming an IBM business partner and an ISV (independent software vendor), the company is being recognized as a developer of industry-specific software that can easily run on IBM hardware. This makes Emporos that much more attractive in the competitive retail marketplace.

Here's what Greg Phillips, Emporos Systems’ President, had to say about his company's innovative technology:

Accuvia: What do you see as the benefits to the retailer on the new IBM SurePOS 500?

Phillips: At Emporos, we are developing on the new IBM SurePOS 500. We expect it will command a variety of benefits to the merchant. It provides for enhanced communications that will allow for easy access to updates and exchange of other technical information. Having a universal capability, it avoids having to use software or hardware drivers. The IBM SurePOS 500 simply makes communications between hardware devices easier.

For those merchants who have limited countertop surface area or space, this lets them bring in a more powerful unit. The new IBM SurePOS 500 will carry a lower total cost of ownership since it is designed to have a 7-10 year life expectancy. Additionally, the new technology will have lower maintenance costs, which further lowers the overall cost of ownership to the merchant.

Accuvia: As the on demand standard requires, MerchantSoft integrates systems across the enterprise. Why is this important?

Phillips: We built our product to leverage IP and trickle transactions from the stores to the central office over the Web. This keeps all data, regardless of which channel a transaction is processed in, up-to-date, and all physical and non-traditional stores are backed up, in near real time.

Accuvia: Why do you think the on demand standard is important/significant in today's retail industry?

Phillips: Retailers need information to make the best decisions. The old brick-and-mortar retailer used to only care that product was on the shelf when the customer arrived. Within today’s multi-channel model, that isn’t good enough.
For example, if a customer wants to buy something through the Internet or from the catalog by calling the “800” order line, the customer service representative needs to be aware of items that are not available at specific locations.
Our infrastructure gives associates the ability to see what is available across the enterprise immediately, while they are communicating with the customer.

Accuvia: Describe how the retail technology solution(s) you have developed support on demand retailing.

Phillips: A merchant needs to be in the know all the time, and our platform helps them do that. By relying on an on-demand environment, retailers can know how much product is on hand, how many items are slated to replenish a store, and what is available to fulfill an online or catalog order.

For example, a merchant may fulfill e-commerce orders from the same warehouse that they replenish their stores. Retailers need to know what they are committing to, and what they are reserving for their physical stores. MerchantSoft helps retailers measure available inventory as they head into the fulfillment process.

Accuvia: What is the status of your on demand activities today?

Phillips: All of our modules are integrated on the platform through a VPN. We have customers who will start with a single POS module in their stores, and as they launch an e-commerce channel, order fulfillment may be seamlessly added onto the infrastructure.

MerchantSoft also allows smaller to medium-sized chains to leverage Web-based technology enterprise-wide by connecting them with a smaller amount of bandwidth and enabling them to efficiently send transactions back and forth and to process them in a near real-time environment.

We are also preparing for the next releases of our suite, which will enable retailers to handle special orders at the POS, as well as enable customers to place an order, set up shipping, and pay for the order directly at the store based POS.

Accuvia: Where is your solution currently deployed in the field?

Phillips: Our product’s flexibility allows us to work in office supply retailers, pharmacies, jewelry retailers, gourmet groceries, CD stores, and other specialty retailers. One of our newest retail partners, a 25store chain, just rolled out our solution before Thanksgiving.

We have a major vacuum cleaner chain with 11 stores, all connected to the home office via the Internet. Using our on demand structured technology, this retailer is paying one-tenth the cost as Target and WalMart would pay for similar technology. Now they can compete in the same retail world and deliver a unique shopping experience — all at a lower cost.

Accuvia: What are some of the benefits your customers have received by operating on demand technologies?

Phillips: Our customers report that they are satisfied with the results they are receiving. They all talk about how service levels across all channels are improving. Readily available data translates to improved sales due to better service levels. And the intuitive design of the SurePOS-based POS Touch screen has increased employee productivity while reducing training costs.

Accuvia: In summary, what else do you think our readers should know about your experience so far with IBM on demand technology?

Phillips: Our customers with e Commerce are seeing a larger percentage of their business come from the Web. MerchantSoft has allowed them to manage their multi-channel retail environment to accomplish growth.

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