12
COMMENT/LETTERS
ARE SOLUTIONS
SUPPLY CHAIN OPTIMISATION
X A lack of
visibility on the
PROVIDERS
KEY DURING DOWNTURN
future direction
of the economy
TRUSTED?
has made the
Dear Editor, three months from a 25% cut in vehicle
current downturn
I agree with the sentiment expressed mileage – leading to lower fuel costs and
more challenging
in your editorial from the January a reduction in the � eet size required to
than those of
2009 issue that retailers who already meet customer delivery commitments.
the 1980s and
understand the importance of IT to The need and desire to drive costs
1990s, according
to Ron Marshall,
their businesses will continue to optimise out of the supply chain as a means of
president and
their supply chain. running a more lean, agile and ultimately
chief executive
This is borne out by our experience pro� table business has only increased
of Borders. “The
at Optrak. Despite the economic during the recession. There remain many
challenge that
turmoil, Optrak has seen an increase in areas within a retail operation where the
every retailer faces
today and will
demand for vehicle routing and supply application of suitable technology could
Trust is everything when it comes to
face once we’ve
chain solutions since the beginning of yield signi� cant bene� ts. A key area to
decisions about investing in new retail
pulled out of this
technology. I’m even going to assert
January, with the food and drink sector focus on is where manual processes
recession is one of
that, especially in these challenging
particularly buoyant. are involved. Automation projects have
remaining relevant
economic times, trust becomes even
Initially, there was a short-term focus consistently proved over the years to
to customers,”
he said prior to
more important than conventional
on business survival. Having spoken to enable companies to cut costs and
attending the
measures like service, support and several directors at these companies, deliver higher levels of customer service. World Retail
price. Of course, it’s impossible to it is clear that many were holding back Any resources ‘saved’ can be redeployed
Congress this May.
be so black and white about such
on budgets and projects until the key to activity that enhances customer
fundamentally important, interwoven
Christmas period was completed. Now, satisfaction and value.
criteria, but trust is a much better
looking further ahead, many realise that Optrak would encourage retailers to
compound measure in areas where
maintaining or improving pro� tability take an objective look at all aspects of
the impact of purchasing decisions
will come from improved operational their operations. There are IT projects
have more far reaching and longer
performance and cost control. out there that can deliver the quick wins
term consequences.
This is revealed through the fairly
Optrak has recently run a and early return that justify the capital
well accepted formula that’s been
consultancy simulation for a food expenditure. Having identi� ed a project,
de� ned for trust:
wholesaler, which showed that the the next challenge is to secure � nancing,
Trust is the sum of Credibility,
savings to be made from implementing but that’s another challenge altogether!
Reliability and Intimacy, divided by self-
vehicle routing software could deliver Tim Pigden,
interest or T=(C+R+I)/S. a return on investment within the � rst Optrak managing director
That puts a lot of pressure on the
self-interest component in the quest
to establish trust! It’s an attribute
TAKING CONTACTLESS TO TASK
that has been all too readily sidelined
Dear Editor, Cash and cheques remain well used
in credit crunch business dynamics
I read with interest your “Improving by the British public. Around 60% of all
as long-term relationships and
payment systems” article in March’s retail purchases were made using cash
investment in mutual success are seen
as secondary to making a quick sale.
issue of Retail Technology. I have some last year and around 25 million of us
I’m not going to deny that staying alive
queries with the interpretation of the issued personal cheques. These facts
X “Only 43 per
is a crucial motivating factor in many
statistics quoted. may make unpleasant reading for card
cent of those
we questioned
of today’s purchasing decisions but we
The � rst point that I would like to issuers and the high-tech companies
currently archive
could surely be paying more attention
make is that if, as you report, “nearly half that supply their equipment but, hey,
inactive data
to the words we speak (credibility), our admitted they would rather pay by card,” the customer is king.
away from the
actions (reliability) and the empathy doesn’t that suggest that the majority So your comment that retailers
system – in the
and awareness (intimacy) that we
of people still prefer not to? This puts a are sticking to ‘antiquated payment
UK the � gures
demonstrate in our relationships.
rather different slant on things. methods’ is surely just sensible
was as low as
In the retailer/technology solutions-
Moreover, there is no evidence at all businesses meeting the needs of
36 per cent. This
provider relationship, the ability to
probably plays a
that contactless cards improve customer their customers. That is customer
survive and succeed through dif� cult
big part in why
service. Indeed, there is little evidence service.
upgrades are seen
times will depend on where your
that the public is remotely interested It is within the British Public’s
as so painful,”
interest lies – place it in the success of
commented
the other party and mutual success is
in the technology, beyond a feeling of power to tell issuers exactly what to
Lynda Kershaw
guaranteed!
suspicion that the card issuers have do with their contactless cards and to
from Macro 4 on
Paul Rodgers
suddenly dropped their insistence on “waive” the right to use them!
results of its SAP
Vendorcom chairman
secure PIN numbers as they desperately Ron Delnevo,
end-user upgrade
seek to popularise this marginal fad. Bank Machine managing director
survey.
RETAIL TECHNOLOGY APRIL/MAY 2009
005-013 News.indd 12 6/5/09 9:50:00 am
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