Convenience store chain Spar has started a large-scale IP network project that will be the backbone of a new electronic point-of-sale (Epos) system to be used by 2,500 franchised stores nationwide.

A tendering process for the new system was launched last year, but the firm decided to remain with its existing supplier and retool its current platform, said Roy Ford, IT controller at Spar.

“We are working with our existing supplier to re-engineer what we have. We went to the wider marketplace, but the cost of getting a new system was almost three times the amount we would need to move the structure we already have,” he said.

The Epos system is scheduled to go live late in 2009, preceded by the rollout of broadband connections across the store network.

Spar’s policy is to provide Epos software to stores free of charge to encourage franchisee loyalty. It links to a centralised management information system, a supply chain management platform and other decision-making functions across the group.

The company is also making a significant investment in voice-based technology and hopes to reduce telecoms costs for stores and speed up transaction times for card payments.

In an unstable economic climate, retail sector IT departments will increasingly focus on systems related to supply chain management, as businesses will need better resource management.

“In the current situation, there is more pressure on IT to deliver efficiencies that can only be achieved by providing better information and distribution,” said Ford.
“We have experienced more development around information and supply chain rather than simply focusing on systems related to operation within stores,” he said.

Tim Payne, research director for supply chain management at analyst Gartner, said: “The flexibility of using different supply chain models allows retailers to analyse and understand where the total cost of ownership is.

“Supply chain management is not just about product delivery lead time and sourcing, but also about product performance and management, especially in times like these.”

Roy Ford will be speaking at Retail Solutions on 25 June. For details see www.retailsolutions2008.com.