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KPOS
Contents
1. Introduction
.
2. Understanding the Retail
Market 4
2.1. What is
Retail?.................................................................................................
........................
2.2. The Supply Chain
5
2.3. Retailors Stretch Their POS System Investment
4. Benefits of
POS
11
4.1. What is a retailer to do?
12
13
6. Features of KPOS
18
23
23
.
24
6.3. Inventory Control / Purchase Order
6.4. Invoicing
24
25
1
6.5. Reports
25
...
6.7. Security Features
25
.. 26
7. Cost for Developing KPOS
26
..
7.2. Post-launch Expenses (Monthly)
26
27
.. 27
8. Return of Investment
.
8.1. Software Subscription charges
28
29
30
9. Investment Distribution Plan
33
6
18
Tables
1. Table No. 1 Benefits of POS over mechanical cash registers
11
2. Table No. 2 Comparison of legacy and current POS
System..
13
3. Table No. 3 Pre-launch investment for
TQID.
4. Table No. 4 Pre-launch Investment for
26
business.
5. Table No. 5 Post-launch
27
Expenses.
6. Table No. 6 Total Investment..
.
7. Table No. 7 Cost table for different Hardware
27
27
devices.
30
8. Table No. 8 Monthly Revenue.
.
9. Table No.9 Investment Distribution
31
Plan.. 33
10.
Table No.10 Expenses VS Revenue Chart
.
35
Graphs
1. Graph No. 1 Investment Breakdown
28
2. Graph No. 2 Predicted New Customers per month
.
31
3. Graph No. 3 No. of Customers per month
.
32
32
1. Introduction:
Point-of-sale (POS) is the heart of any retail business. All aspects of
your operation, purchasing and inventory control, customer service, accounts
receivable, and so on come together at your point of sale.
To stay competitive in a fast-changing, cost-conscious marketplace,
retailers need solutions that maximize their business agility, and the legacy
POS systems that are still in use fall far short of that goal. These systems,
increasingly costly, are inflexible of giving retailers the information and
power they need to respond to market twists and turns. Retailers running the
legacy POS platform are very limited in their choice of hardware and
applications. Retailers are not able to take advantage of the cost savings
associated with competition that a Cloud based POS system provides. These
legacy POS systems were great systems of their time, but the platform
limitations have today become a serious hindrance. As a result, retailers are
not able to achieve their business objectives and are spending increasingly
more money to maintain their systems.
The primary function of point-of-sale is to make transactions, easy to
manage without sacrificing quick, efficient service or customer data. Point-ofsale also helps maintain inventory control. The point of-sale application
provides maximum efficiency, with all retail transactions conducted from a
single screen. The software will minimize the keystrokes required to ring up a
sale, handle items returned by a customer, or do a payout from the cash
drawer. Fewer keystrokes mean fewer input errors and less waiting for your
customers, which translates into a higher degree of customer satisfaction
and greater efficiency in your business operations.
A cloud based POS system has more benefit over the desktop based
POS system because it adds functionality that user can access their
information from anywhere connecting through internet. Most of the POS
system are developed targeting the huge retail stores, mega marts and big
shopping destinations. Unlike the traditional POS system, a cloud based POS
Confidential | Copyright 2013 TQID Nepal PVT LTD
system also provides the modules feasible for small as well as huge retail
houses.
Tim wanted to purchase a mobile handset. He went to the nearby store and
purchased one for himself.
In the above case, Tim is the buyer who went to a fixed location (in this case
the nearby store). He purchased a mobile handset (Quantity - One) to be
used by him. An example of retail.
The store from where Tim purchased the handset must have shown him
several options for him to select one according to his budget and need.
From where do you think the store owner (also called the retailer) purchased
all the handsets?
Here the manufacturers and the wholesalers come into the picture.
The retailers purchase goods in bulk quantities (huge numbers) to be sold to
the end-users either directly from the manufacturers or through a wholesaler.
the store. Wal-Mart transfers funds to the distributor after the replenishment.
The distributor also provides pricing information and sends delivery
schedules to Wal-Mart. Similar information, material, and fund flows take
place across the entire supply chain.
In another example, when a customer purchases online from Dell
Computer, the supply chain includes, among others, the customer, Dells
Web site that takes the customers order, the Dell assembly plant, and all of
Dells suppliers and their suppliers. The Web site provides the customer with
information regarding pricing, product variety, and product availability.
Having made a product choice, the customer enters the site to check the
status of the order. Stages further up the supply chain use customer order
information to fill the order. That process involves an additional flow of
information, product, and funds between various stages of the supply chain.
These examples illustrate that the customer is an integral part of the
supply chain. The primary purpose from the existence of any supply chain is
to satisfy customer needs, in the process generating profits for itself. Supply
chain activities begin with a customer order and end when a satisfied
customer has paid for his or her purchase. The term supply chain conjures up
images of product or supply moving from suppliers to manufacturers to
distributors to retailers to customers along a chain. It is important to
visualize information, funds, and product flows along both directions of this
chain. The term supply chain may also imply that only one player is involved
at each stage. In reality, a manufacturer may receive material from several
suppliers and then supply several distributors. Thus, most supply chains are
actually networks. It may be more accurate to use the term supply network
or supply web to describe the structure of most supply chains.
A typical supply chain may involve a variety of stages. These supply
chain stages include:
Customers
Retailers
Wholesalers/Distributors
Manufacturers
Component/Raw material suppliers
Each stage need not be presented in a supply chain. The appropriate
design of the supply chain will depend on both the customers needs and the
roles of the stages involved. In some cases, such as Dell, a manufacturer
may fill customer orders directly. Dell builds-to-order; that is, a customer
order initiates manufacturing at Dell. Dell does not have a retailer,
wholesaler, or distributor in its supply chain. In other cases, such as the mail
order company L.L. Bean, manufacturers do not respond to customer orders
directly. In this case, L.L. Bean maintains an inventory or product from which
they fill customer orders. Compared to the Dell supply chain, the L.L. Bean
Confidential | Copyright 2013 TQID Nepal PVT LTD
supply chain contains an extra stage (the retailer, L.L. Bean itself) between
the customer and the manufacturer. In the case of other retail stores, the
supply chain may also contain a wholesaler or distributor between the store
and the manufacturer.
The end user goes to the retailer to buy the goods (products) in small
quantities to satisfy his needs and demands. The complete process is also
called as Shopping.
Confidential | Copyright 2013 TQID Nepal PVT LTD
10
11
12
4. Benefits of POS
Here are just a few benefits of POS over mechanical cash
registers.
Inventory Control
Invoicing and
Receiving
Interface And GUI
Accounting Reports
Enforced accuracy
Integrated CC
handling
General Ledger
Accounts
Payable Accounts
POS
System
Cash
Registers
YES
NO
YES
YES
YES
YES
NO
NO
Limited
NO
YES
Limited
YES
YES
Limited
NO
13
Receivable
Tax consultants
Reporting
Analytics
Customer Data
YES
YES
YES
YES
YES
NO
NO
NO
NO
NO
14
Todays Constraints
multiple,
systems
The Vision
fragmented
proprietary data
data integrity
user isolation
inflexible to change
industry leverage
data management
interoperability assurances
highly
maneuverable
flexible,
15
Todays constraints with the other POS are prohibiting retailers from
achieving their future vision. Seamless communication across the enterprise
is difficult to achieve. With data stored in a proprietary file system on the
operating system, access to information is limited. The only way to read the
data is by using a proprietary API. This proprietary format limits the ability
for near real-time access to data and other business intelligence activities at
the store level.
User isolation is another constraint of the existing POS. The user
interfaces are typically text-based and more difficult to use. This makes the
employees job much more difficult than with graphical user interfaces. As a
result, a greater level of training is necessary. In an industry where
employee turnover is high to begin with, anything that can help reduce
training costs is critical.
Probably one of the biggest constraints is the inflexibility to change.
The operating system is tied to the hardware. You are limited to a single
vendors innovation and delivery.
The end result is that your retail
organization cannot quickly change with the marketplace.
Retailers have a vision for the future where these constraints are lifted.
That future vision, as shown from a technology perspective in the chart
above, can best be summarized into five business objectives:
Improve Business Agility
Improve Operational Efficiency
Have Better Access to Information
Control Hardware, Software, and Labor Costs
Improve Customer Service
16
17
availability, and so on) must be easily available to the managers that need it,
wherever they are.
This is where Cloud based POS systems shine. Business solutions
based on cloud allow retailers to make more informed, timely decisions to
quickly and profitably respond to changing customers needs.
By
empowering employees with this business intelligence at the store level,
they will have fast access to a whole new world of information that can be
leveraged to positively affect business operations in new and creative ways.
Global retailer Marks & Spencer has recognized the benefits of moving
data quickly through their enterprise. They implemented a solution based on
BizTalk Server 2000, XML, and the ActiveStore Sales Transaction RBI that
allows data to move to their data center in near real-time. By implementing
this system, Marks & Spencer is expected to realize a 4% increase in revenue
growth and a 10% reduction in accounting and inventory costs, for a total
business value of $17 million (U.S.).
Another important aspect of data analysis is reporting requirements.
With cloud based POS systems and relational databases, report generation is
much simpler. You can take advantage of powerful data analysis software to
quickly dissect the information needed to run your organization. A question
that sometimes comes up about relational databases is whether they will be
able to operate quickly at point-of-sale. The answer is yes. Not only can you
gain the benefits that relational databases offer, but you can do so without
having to sacrifice performance. The hardware and software available today
for POS systems are well equipped to provide timely responses at cash
registers that interact with relational databases.
18
Another reason that POS systems can potentially help you lower
operating costs is because of the streamlined operational efficiency
discussed earlier. With a common look and feel across various applications,
employees, such as the sales clerks, are more productive no matter what
department they are assigned to on any given day. This decreases training
costs and costs associated with lower productivity.
With user interfaces that are easier to work with for employees, they
are also likely to be happier because their work is easier to accomplish. In an
industry where employee turnover is high already, anything that can be done
to make the employees job more productive and manageable can only help
in lowering the high turnover rate. All of these have a positive impact in
controlling operating costs within the enterprise.
For example, NCRs popular DynaKey solution helps retailers reduce
training by as much as 60% and increase productivity by as much as 20%.
DynaKey provides retailers with an intuitive user interface. Touch screen
systems with graphical user interfaces have also been shown to reduce
training when compared to keyboard-only systems.
In our software we will come up with very unique GUI design, which will
be designed in such a way that even the novice user can adapt the system
very easily and in less time duration. This will allow us to reduce the
training cost by 75%.
By migrating to a POS systems environment, retailers can control their
hardware and software costs by having the freedom to choose from multiple
vendors. This allows their development staff to make use of powerful
development tools on open systems that allow quicker development and
implementation of new solutions. As a result, retailers can lower your labour
and training costs by implementing more intuitive interfaces for their
employees.
5. Improve Customer Service
Customers are more aware of their power and are not afraid to ask for
what they want. Retailers must earn their customers business over and
over by providing excellent service, competitive prices, and attractive
incentives. Retailers need to be able to anticipate merchandise trends, and
to make the shopping experience convenient for the customer. At the same
time, retailers have the opportunity to collect more kinds of information
about consumers and their spending habits. Retailers who have the ability to
mine the information they need and react to it quickly can offer targeted
promotions and enjoy increased revenue opportunities. POS systems can be
the solution to this problem that retailers have been looking for.
19
Leaf POS
Quickbook
Lightspee
Square
20
POS
POS
d POS
POS
Devices Used
iPad
iPhone
Cash Drawers
Recepit Printer
Barcode Reader
Card Processors
on iOS Devices
HandHeld Devices
Mac
Reporting
Sales
Cash
Labour/Employee
Use of Analytics
Cloud Based
Management
Encryption
Uses
Retail Stores
Resturaunts/Foodi
ng
Data
Syncronization
Price(1 user)
2.5% per
Swipe
$ 150/
month
$1,599.95
$1,899
$275 /
month
Highlighted
Features
Highlighted
Features
Highlighte
d Features
Highlighte
d Feature
Highlighte
d Feature
Interactive
Receipts
Mobile
Sync to
capture
mobile
payments
Integrated
Ecommerce
Wallet
Getcube
payment
system
Automatic
Bank
Deposits
Social Media
Integration
Easily
Available API
Register
21
22
23
24
25
6. Features of KPOS:
The point of sale screen has the following features:
Easy to learn - You do not have to send your staff out for
expensive training.
Secure - You control who can see the profit margins and stock
counts.
26
Attracting a new customer costs much more than keeping an old one.
Mailings can be targeted using any aspect of the customer's purchase history
which generates a much larger response than non-targeted mailings. There
are many ways you can use the system's customer data to increase sales
volume. In addition to the purchase history client database can also include
memos for recording of any key information about a customer.
27
6.4 Invoicing
The built-in invoicing system has:
Client oriented displays - its always easy to pull up all Jane Doe's
invoices.
28
6.5 Reports
Well-designed reports can reveal some surprises about the nature of
your business. Examples include:
29
All sales transactions are logged with the date, time and name of
the sales person.
2 - The ability to roll back (restore) your data to a previously saved version.
This is used to undo the results of serious errors. For example, say you delete
twenty invoices and then discover that they were the wrong twenty.
Everyone who works with computers has days like that (bar none). An easy
way
out
can
avoid
big
headaches.
The rollback features are:
30
Selective roll back - the user can choose sales, inventory, and
client or invoice data.
Amount
$2,000.00
$70,000.00
$3,000.00
$75,000.00
For business
Market Survey/Initial Lead collection
Business Registration & legal
formalities
Amount
$10,000.00
Total
$15,000.00
$5,000.00
Cloud hosting
Support & Development
Employment Expenses
(2
Employee)
Marketing Expenses
Misc. Expenses (Administrative)
$2,000.00
$1,000.00
$1,000.00
Total
Confidential | Copyright 2013 TQID Nepal PVT LTD
$5,250.00
31
$75,000.00
$15,000.00
$31,500.00
$121,500.00
32
Investment Breakdown
8. Return of Investment:
Most POS systems are sold by vendors who are able to implement the
complete system: software installation, programming, hardware setup,
maintenance, and even employee training and merchant services. Many
businesses experience sticker shock after learning that POS software,
compatible hardware, and programming costs can run upwards of $10,000.
It is important to remember that a POS system is an investment- in most
cases you really do get what you pay for.
A good POS system will make your employees more efficient (saving on
payroll), make record keeping easier (saving on administrative costs), and
make your customers happier (resulting in more sales). Conversely, a
cheaper but poorly implemented or poorly customized POS system will
actually cost your business money. Many businesses have made the mistake
Confidential | Copyright 2013 TQID Nepal PVT LTD
33
34
Devices
Credit Card Reader
Receipt Printer
Bar Code Scanner
PIN Pad with
Integrated Card
Pole Display
Electronic Cash
Register
Credit Card Reader for
iPhone and iPad
Current Market
Value
$50 - $75
$200 - $300
$200 - $300
$300 - $400
$ 200 - &400
$300 - $400
$200 - $300
All Data and Time Frame in the below Table Is Post Launch and will
depend on actual date of launch
35
Month
Predicted
New
Customers
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
7
13
20
8
15
7
20
19
15
14
9
14
11
17
10
16
20
9
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Custome
r
Attrition
Total
Customer
s
Net
Increase
In
Revenue
2
2
3
3
1
2
1
3
2
1
3
1
1
2
1
1
3
7
18
36
41
53
59
77
95
107
119
127
138
148
164
172
187
206
212
$1,050.00
$1,650.00
$2,700.00
$750.00
$1,800.00
$900.00
$2,700.00
$2,700.00
$1,800.00
$1,800.00
$1,200.00
$1,650.00
$1,500.00
$2,400.00
$1,200.00
$2,250.00
$2,850.00
$900.00
Cumulative
Monthly
Revenue
$1,050.00
$2,700.00
$5,400.00
$6,150.00
$7,950.00
$8,850.00
$11,550.00
$14,250.00
$16,050.00
$17,850.00
$19,050.00
$20,700.00
$22,200.00
$24,600.00
$25,800.00
$28,050.00
$30,900.00
$31,800.00
36
250
200
150
100
50
37
Chart Title
35000
30000
25000
20000
Monthly Revenue in USD
15000
10000
5000
0
Month
Month
Month
Month
Month
Month
Month
Month
Month
Month
1
2
3
4
5
6
7
8
9
10
Amount
$2,000.00
$20,000.00
$3,000.00
$8,750.00
Milestone 2
$8,750.00
38
Month 11
Month 12
Month 13
Month 14
Month 15
Month 16
Month 17
Month 18
Month 19
Milestone 3
Marketing
Legal Formalities and Incorporation
(Flexible)
Marketing
Marketing
Marketing
Milestone 4
Marketing
Post Launch Expenses Month1
Post Launch Expenses Month2
Remaining Amount of TQID
Post Launch Expenses Month3
Post Launch Expenses Month4
$8,750.00
$2,000.00
$5,000.00
$2,000.00
$2,000.00
$2,000.00
$8,750.00
$2,000.00
$5,250.00
$5,250.00
$15,000.00
$5,250.00
$5,250.00
Descriptio
n
Month 2
Month 3
Month 5
Month 6
Month 7
Month
Month
Month
Month
8
9
10
11
Cash Out
(Expenses Revenue
)
$
2,000.00
$
20,000.00
Month 1
Month 4
Cash Out
(Investme
nt)
$
System
3,000.00
Design and
$
Development 8,750.00
$
8,750.00
Incremental
Development
39
Month 12
Month 13
and Testing
System Beta
Launch
Month 14
Month 15
Month 16
Month 17
Testing /
Marketing
/Ramp Up
Period
Month 18
Month 19
Month 20
Month 21
Month 22
Month 23
Month 24
Month 25
Month 26
Month 27
Month 28
Month 29
Month 30
Month 31
Month 32
Month 33
System
starts
revenue
generation
10,750.00
$
2,000.00
$
2,000.00
$
7,000.00
$
10,750.00
$
5,250.00
$
5,250.00
$
20,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
5,250.00
$
1,050.00
$
2,700.00
$
5,400.00
$
6,150.00
$
7,950.00
$
8,850.00
$
11,550.00
$
14,250.00
$
16,050.00
$
17,850.00
$
19,050.00
$
20,700.00
$
22,200.00
$
24,600.00
$
25,800.00
40
Month 34
Month 35
Month 36
Total
$
111,000.00
$
5,250.00
$
5,250.00
$
5,250.00
$
89,250.00
$
28,050.00
$
30,900.00
$
31,800.00
$
294,900.00
$
$
200,250.00
294,900.00
26,550.00
41