Not only does the point-of-sale contain the most technology per square inch in the supermarket, it's also the only in-store destination visited by every consumer who enters the store and purchases a product.
It's no wonder retailers are calling on front-end technology to perform an increasing variety of functions, from displaying frequent-shopper customers' names to providing on-the-job training and computerized help screens for cashiers.
Nor can the more basic issues of throughput levels and the ergonomics of scanning be ignored, according to participants in SN's Executive Roundtable. But even with increased efficiencies, some say more self-scanning stations will be needed to deal with the complex demands retailers are placing on the POS.
SN: What are some of the most important recent technology developments for the supermarket point of sale?
BOB SCHOENING: One key development is the movement toward true open systems. With the numerous additional offerings supermarkets are providing to their customers, especially at service counters -- things like lottery tickets and Western Union money orders -- there's a desire to tie them into the register technology. "Openness" will allow the supermarket industry to more easily adapt new technologies into a single, existing configuration in the store, without major programming requirements or significant additional wiring.
JACK SCOTT: The front end is becoming not just an accounting, mechanical, price-sensitive device, but part of the operation in telling the story of value to the customer. There are frequent-shopper programs moving in, a variety of tenders, electronic benefits transfer. Many retailers are sharing the transaction with the customer as it happens. That helps tell the story of value.
JOHN GRANGER: One system that comes to mind is retailers who flash the frequent-shopper customer's first name on the POS display when their card is scanned. That is definitely letting retailers address customers on an individual level.
MIKE HUBERT: Achieving on-line, real-time item movement is critical, because it allows [supermarkets'] trading partners to watch items selling, instantly. With item movement tied directly to the POS, sales data becomes available. This also aids in inventory management and production planning in perimeter departments, like the deli and bakery.
As far as customer relationships, we need to send and receive communications from customers. This could be through touch-screen monitors -- we might display one or two quick questions for customers to answer, based on their shopping patterns.
RON WALDBILLIG: POS technologies are helping retailers get closer to customers by gathering information through frequent-shopper programs and scanner data, but I think we still have a long way to go. Next we need to connect our frequent-shopper data with our decision-support systems to better understand our customers and to help in our customer-service efforts. We'd also like to get to the point that when a customer enters our store we know; when a customer enters a specific department we know; and even more, when one of our best customers completes the shopping experience and leaves the store we are aware of it. SN: What about some of the more operational features of front-end technologies? What can they do to make the checkout experience easier and quicker for cashiers and customers?
SCOTT: The technologies we have today -- integrated scan-scales, omnidirectional scanners -- help throughput, but they are also helping to address some of the ergonomics of the cashier sector, so that over time there are not so many carpal tunnel comp cases. HUBERT: I think a key productivity area is produce identification. I also envision a new POS with built-in computer-based training. Instead of having to train cashiers on a system that's similar to the front end, they can just go on a lane and let the computer do the training. We need a smart POS to virtually answer questions, through an intelligent "help" screen that walks the cashier through the procedure. In addition, I think we're going to see additional accuracy in labor scheduling, as we more definitely tie the POS to sales dollars and the productivity of individual cashiers. This could also help us better schedule more help during peak shopping times.
SCHOENING: Technologies like bioptic scanners and some of the more advanced algorithms have improved first-scan capacity, and that leads to throughput. WALDBILLIG: As we continue to add more square footage, depots and more services throughout our stores, we cannot continue to add more traditional cash registers. That's why I feel self-checkout will develop more rapidly in the future.
SN: Do you agree that self-scanning technology will be used to address some of these issues?
HUBERT: I think it will, though the handheld systems cause me some concern in the area of random audits of customers. If you pick the wrong customer on the wrong day, you can shoot yourself in the foot. Suppose they are in a crunch, they just spent $100 scanned through the handheld units and are late for an appointment. If you say "Today is the day you have been chosen for a random audit," you are going to take your best customers and make them your worst. However, the idea of using unassisted lanes -- maybe for credit card-only transactions -- that is absolutely going to happen.
