1. Managing your checkout zone:
Evaluating different technologies in the market and maximizing
productivity
Andrius Kalašinskas
Store Business Consultant, New Vision Inco
November 16th 2011 Tallinn
NCR SelfServ ™ Checkout Partner
2. Agenda
• Introduction
• Checkout zone management: today’s challenges
• Evaluating of technological solutions
• Store capacity modeling: what it is?
• Summary
NCR SelfServ ™ Checkout Partner
3. New Vision Inco as a joint venture founded in 2010 between:
New Vision
Established in 1993
Provides technologies, system integrations and services
exclusive for retail industry
24/7 basis service network with multilanguage helpdesk
190+ employees
Revenue 9 mln EUR 2010 (11 mln EUR 2008)
Alessandro Santalucia
• 20 years experience in NCR Corporation at various top
management positions, recently Europe Channel Sales
AVP
• Driven many of most successful Self-checkout projects
in Europe
NCR SelfServ ™ Checkout Partner
4. New Vision is #1 in Retail IT and #12 among Baltic IT&T
companies
Reference clients of New Vision
NCR SelfServ ™ Checkout Partner
5. New Vision Inco - overview
Quick facts
• 100% dedicated for self-service in retail
• Strategic partnership with NCR in Finland, Russia and Baltics
• Local consulting and technical resources
• Integration and development in Vilnius
• Office locations
– Finland: Hyvinkää
– Russia: St. Petersburg
– Estonia: Tallinn
– Latvia: Riga
– Lithuania: Vilnius
• Part of New Vision group
NCR SelfServ ™ Checkout Partner
7. Strategic partnership with NCR in Finland, Russia and
Baltics
NCR Corporation
3,000+ Locations
At a Glance 110 Countries – NCR Direct
NYSE: NCR 90 Countries – Distributors & Service Partners
Number of Employees:
22,400 13,000+ NCR Services People
78,000+ Repair Parts SKU’s Managed
Revenue: 712 Field Parts Stocking Locations
$4.6 billion
126 years of retail technology innovation
40 years of global self-service leadership
More than $400 billion in annual commerce and 23 billion consumer self-service
transactions are processed globally using NCR products and services
NCR SelfServ ™ Checkout Partner
8. Delivering focused practical experience
Consulting part
• A business transformational project Revenue
• Ensuring that project meets or exceeds business results expected
(utilization, customer satisfaction, ROI, …) Margin
• Methodologies and tools
• Cross-Europe Industry best practice Cost
• Digital Pilot
Store observations
Store capacity modeling
Business impact evaluation
• Implementation: make it work
Getting maximum from the Investment
NCR SelfServ ™ Checkout Partner
9. Delivering focused practical experience
Consulting part
Self-service project - a business Revenue
transformational project
Implementation: make it work Margin
Getting maximum from the Asset
NCR Methodologies and tools Cost
Cross-Europe Industry best practice
Ensuring that project meets or exceeds business results expected (utilization,
customer satisfaction, ROI, …)
NCR SelfServ ™ Checkout Partner
10. Checkout zone - Point of Costs in the store
• Infrastructure
POS hardware 7 tills supermarket
Software
Scales
~8000 EUR ~56000 EUR
Mounting
Checkout desk
Other infrastructure
• Running annual maintenance
• Shrinkage
• Valuable store space
• Administration
• Labour cost
NCR SelfServ ™ Checkout Partner
11. Checkout labor challenge in Baltics
In Vilnius alone biggest retail
Troubles finding personnel to handle checkouts
chains has shortage of
around 300 store staff.
• Second wave of emigration
– 2010 highest emigration during recent years IQ Economist, November 5th
2011
– In 2010 almost 90 000 people in Lithuania alone
– Part of people prefer minimal income from government
– Working age population part is getting lower
• Cost of finding new cashier increases
– People with no experience
– High costs of trainings
– Salaries expectations grows
– Impacts on service levels in the stores
– Some retailers increased salaries or wage structure
• Cashiers is the largest payroll position in the organization
Focus on productivity and automation of simple tasks is a way to successfully
meet the challenge and even increase customer service in the same time.
NCR SelfServ ™ Checkout Partner
12. Good news that technology is here and mature
Self Checkout Market update
• NCR SelfServ Checkout continutes to growth
EMEA NCR SSCO Install Growth
22000
20000
18000
16000
14000 Stores
12000 Lanes
10000
8000
6000
4000
2000
0
D
04
06
08
20 010
05
07
09
YT
20
20
20
20
20
20
2
11
• 15%+ annual growth up to 2016 (Greg Buzek)
• Approximately 35% of transactions are completed
using self-checkout in Europe
NCR SelfServ ™ Checkout Partner
13. Adoption of self-service expands
Latest patterns
• In September TESCO announced
massive NCR SelfServ checkout
rollout in Eastern and Central
Europe countries
– More self checkouts in more stores
than any other supermarket in
Poland
– First self-checkout arrival to Czech
Republik, Slovakia and Hungary
Different approaches continues to
be trialing and researched
– Tunnel, transformational checkout,
Mobile phone self scanning,
Internet and store shopping mix, …
NCR SelfServ ™ Checkout Partner
14. Retailers Decision Dilemma
Shall we do self-checkout?
Maybe better to buy
stores Lets Give it a Try
We don’t know the
Will customers use ROI
it? How many?
Which Stores?
How Many?
Will it pay for itself?
Retailers need objective and measurable way to evaluate alternatives, know business
What about
There are different
impacts to make a decision and maximize the results.
shrinkage?
NCR SelfServ ™ Checkout Partner technologies..
15. Owning business results of the IT investment from the
beginning
Digital Pilot
• Process that helps you determinate:
– Optimum technology and number of units
– Best Configuration(s)
– Likely utilization
– Likely labor impact
– Best approach to trade-offs
– Expected ROI(s)
• By Modeling stores using actual data :
– Comparisons to extensive stores data base
– Varying possible scenarios to avoid
ineffective solutions Digital Pilot
– Identify the scenarios most likely to - Store observations
produce optimum results - Store capacity modeling
– Accurately Predicted Outcomes – - Business impact evaluation
Benchmark for Managing
NCR SelfServ ™ Checkout Partner
16. Owning business results of the IT investment
One way ot another?
The Other Way – the Hard Way
??????
See Do A
Pilot Adjust More
What Few
Store the Pilot Iteration
Happens More
s
The “Digital pilot” Way – Faster, Easier, Better
Digital Validation Full
Pilot Store Roll-Out
NCR SelfServ ™ Checkout Partner
17. It is all about the results.. for Business!
Some real life examples
• Tesco
• Marks and Spencer
• Sainsburies
• Asda
• Dansk Supermarkets
• Spar Slovenia
• IKI Lithuania
Learning from the experience in different retail self-service environments
NCR SelfServ ™ Checkout Partner
18. What is value of Doing it Right from the First Time
NCR SelfServ ™ Checkout Partner
19. Summary
• In contrast to a POS, Succesfull self-service project is a
“business driven” project
• Mature proven technology is here to help meet market
challenges
• Self checjout can positively impact productivity in a traditional
lanes as welll
• Knowing what will be a success in a measurable figures and
impact to operational and financial results eliminates costly
erroros, enables effective management and maximizes
benefits.
NCR SelfServ ™ Checkout Partner