Magazine Article | November 1, 1998

Computing The Benefits Of A New POS System

VAR brings a chain of computer stores up-to-date with a PC-based point of sale that also tracks inventory.

Business Solutions, November 1998

Even though Computer Plus of New York (city, state) specializes in selling the latest in personal computers, it was behind the times when it came to an up-to-date point of sale (POS) system. According to POS VAR Chuck Scariano of vice president of sales and marketing for PC America, Computer Plus was relying on Excel spreadsheets to run its six locations. "They needed a POS system that could control inventory as well as poll information from all the stores its headquarters," says Scariano. PC America (Congers, NY) has 18 employees and specializes in POS solutions for the retail and hospitality markets.

Tracking Inventory Of Changing Technology
Inventory was of special concern to Computer Plus. The store routinely "kits" products, bundling system components together for sale as one unit. A PC, monitor, keyboard and printer are commonly put together in one kit. The problem with Computer Plus' inventory was twofold, explains Scariano. "Because computer technology changes rapidly, Computer Plus did not want to maintain a large inventory of outdated PCs. Also, components put into a kit had to tracked by serial number for service by Computer Plus," he says. Scariano pointed out that it was important that Computer Plus did not run out of items to make kits. "They couldn't complete kits if there were no monitors for that particular kit in stock, for example," says Scariano.

System Components Scariano was able to pull together a system that met Computer Plus' needs. The system components included Logic Controls' customer pole displays; Star Micronics receipt printers, cash drawers from Indiana Cash Drawer; MicroTouch monitors with Elo touch technology; APC power protection and Metrologic scanners. Scariano installed Cash Register Express 2000 software, developed by PC America. He purchased most of the components through his distributor, ScanSource. The cost of installing POS systems at all six Computer Plus stores was $77,000.

"We chose the Logic Control's customer pole display because of its flexibility. It has an adjustable pole for varying height displays. Computer Plus wanted scrolling message capabilities to advertise in-store specials to its customers. The Logic Control display does that," says Scariano. He adds that Computer Plus wanted to include displays so customers can see their charges.

Installation And Training
According to Scariano, the most challenging aspect of the installation was the wiring. "That's not unusual. You have to run wires through walls and under counters," he says. It took approximately two hours to outfit each store with the new system. Training Computer Plus employees also only took about two hours. Scariano credits the software and use of touch screen technology for this. "The software is Windows-based and walks employees through a sale using on-screen menus and prompts," he says.

System Benefits
Scariano says the biggest benefit from the new system has been inventory control. "Items are entered into the system using a bar code scanner as they come in. PCs, for example, are taken out of inventory when they are rung up," he says. Computer Plus sets re-order points for each item. When inventory runs too low, the system automatically generates a purchase order. And, because store information is polled daily, inventory can be shifted from store to store as needed.

Another benefit of the system is its portability. "Using a PalmPilot (handheld computer) with a built-in Symbol scanner, store clerks can begin ringing up sales on the floor," says Scariano. This portable invoicing, as he calls it, has improved customer service (customers get attention while they shop) and eased traffic at the check out lines. "The items have already been selected, questions have been answered, and the customers are ready to check out," explains Scariano.