Chris Kiernan, Director of Operations Retail/Wholesale at ADD Systems, joins Brian Cohen, ADD Systems Multimedia Specialist and host of ADDcast, to discuss some of the ways that software and technology can help retailers take advantage of current industry trends, as well as key elements retailers should look for when considering new software.
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Brian: Welcome to ADDcast. I’m ADD Systems Multimedia Specialist Brian Cohen, and I’m joined today by Chris Kiernan, Director of Operations Retail/Wholesale at ADD Systems. Welcome, Chris.
Chris: Good afternoon, Brian.
Brian: Can you start by telling us a little bit about your role at the company?
Chris: Sure. As mentioned, I am the Director of Operations for Retail and Wholesale. So, that includes everything with the c-store side of the business, all the retailers with our eStore software, and then also our wholesale implementations. Then beyond that, I’m also responsible for the Atlas Business Intelligence Reporting software that many of our customers use.
Brian: What are some of the ways that software and technology can help retailers take advantage of any current industry trends?
Chris: Businesses and their systems are becoming more connected every day. That means they’re sharing data. Sharing that data has to be automated, hands-off, and the timing of that data is also critical. And oftentimes, it’s expected to be real-time. Within retail, there are a few areas to discuss. One might be sharing Pricebook data. That information has been shared for a long time and is probably the most common way retailers think about sharing data, with importing electronic invoices, and receiving Pricebook updates. Financials is another common area, making sure everything rolls up accurately, so they can quickly generate P&Ls. There are some other areas, too, like time-clock and payroll systems, making sure you can bring together the labor hours and tie that to your retail sales, giving you a picture where you stand with your sales per labor hour. That can really help the retailer adjust their scheduling as needed.
Another area that’s common in the industry right now and trending is with scan data. Many vendors and distributors are actually sharing all the actual item movement that occurs during a period of time. So right now, the most common use of scan data is with cigarette and tobacco rebates. We collect all the sales, and associated pricing, promotions, loyalty, any of the item classifications. We send all that information to companies like Altria, and RJR.
Another common use of sharing scan data is with distributors of fresh produce and dairy. With produce and dairy, it’s important to not only know what’s selling, but what’s getting wasted, what’s being thrown away. All that information is being scanned in our system, so you can then track it with reports, and then share that with the distributor. You can have more precise ordering, and better inventory management – all resulting in better margins.
Now, from a technical perspective, when data is shared, we’re not just talking about sending a piece of paper back and forth, or a report. We’re talking about sending a specific data set that’s formatted to meet the needs of the other system. One common format often referenced is EDI, but there are many other formats like CSV, XML, and JSON. That data also has to be consumed in a certain way. Usually, that’s through an API. Now, the technology we use behind the scenes on our servers or in the cloud, allow our customers to connect and get the most out of their systems.
Brian: I think it’s safe to say that there were indeed a lot of changes that have happened during and since the pandemic, like an emphasis on touchless technology. Are those technologies continuing to gain momentum in a post-COVID world?
Chris: The pandemic was a challenge, and there was a push for more services like curbside pickup, delivery, and self-checkout that really led to consumer behavior changes. We see that everywhere throughout retail now, and it’s expected that that level of service is provided everywhere, even at c-stores. We’ve seen an increased focus on the Pricebook, making sure that it is shared properly because you have other systems that need to talk to the Pricebook, delivery-type systems. We also see additional point-of-sale interfaces, particularly for online sales. You could have your mobile ordering going on. They need to be able to ring out that sale and transfer that information back and forth. You also have self-serve checkout. People want to get in and out – that refers back to that touchless technology, you’re talking about – frictionless, where they can check themselves out in the latest systems. The kiosks that are out there, and the camera systems allow you to do all that. All that has to interface back to our systems so they can properly maintain the inventory in the sales. Beyond that, let’s not forget about the challenge of staffing. All those services ultimately help the retailer provide ways to sell their products with less labor – and it’s new ways to sell product, too. The generation that’s out there, they’re looking for different, modern ways to go out, pick up a product or purchase the product.
Brian: Chris, can you share any examples of efficiency gains that you’ve seen implemented?
Chris: Yeah, so from a high-level perspective, when we implement our software, we often start with a discovery. It’s the first step in getting organized, getting a chance to review any processes and routines that are in place, and then ultimately walk away from that determining what the goals are. So, on the retail side, when we’re looking at the store, we ultimately want to help the store managers get more done. That means they’re going to be using our system to help import more data, and automate more of the processing. Then we also need to make sure that the paperwork is accurate. That means they want to utilize more scanning, more EDI, use a centralized Pricebook, and then use our exception reporting to point out anything that needs follow-up.
Now, beyond just the store manager processing, you also need to have an overall view of the performance of that store, which would mean that they really need to focus in on their margins. How do they do that? They need to easily monitor them with the proper recording, catching anything that falls outside of the boundaries. They need to identify shrink sooner, so an invoice could be coming in, and they need to be able to see that the cost doesn’t line up, and they’re losing money on that. They also need to manage the inventory better with better purchasing decisions. So, if we circle back to the original comment, when we review all this and put a process in place, these are the efficiencies they’re walking away with. So, they’re making better decisions on the inventory. They’re monitoring the margin. Hopefully, they’re making more as time goes on because they have a plan in place.
But that plan also requires some automated analytics. I want to talk about how they measure that. Our Atlas Reporting software allows them to configure scorecards and dashboards, and they can also customize them. They may only have one configured for inside sales, and that’s the area, the goal, that they’re focused in on – maybe it’s just food service, or maybe it’s just coffee sales. Whatever it is, they can configure it in such a way where they can set it as their homepage, so when they log in, they see where they stand for that day, or for that week, or that month. They can have it set up to automatically email them. Maybe before a weekly or monthly meeting, they’re getting their metrics sent right to them, so they know where they stand and where they need to make their changes.
Brian: Chris, you’ve been involved with software implementation for retailers that are also involved in other businesses like wholesale petroleum. Can you share some of the software benefits that they realized?
Chris: We have many clients that have diversified. We’re operating on both the wholesale side and the retail store side, and there’s definitely an overlap there when it comes to the daily processing, and the data that flows, on both sides. Our systems and modules can talk to each other. And there’s robust integrations there that reduce any of the manual processing. For instance, let’s think about the fuel process, and how we streamline that. We have to streamline the purchase of the fuel, and then all the way to the end when it’s sold or transferred. Think about all the factors and variables involved in that. It’s critical for both the inventory and the financial data to flow through with minimal user interaction. The process starts with being able to see the inventory at the store by tank and determining if an order is needed. On the wholesale side, you have to have that order, and you have to have that order created with the proper costs. That’s when we’re looking out to DTN and Access and we have an import routine behind the scenes, keeping all that accurate for them. When that order is in our E3 system, they can electronically dispatch those orders, whether it be to a hauler, or utilize our Raven truck software for that delivery. After that delivery takes place, the inventory and costs associated has all been captured electronically and processed for that store location. Depending on the client’s profile that may have been a transfer to the location, or it might have been sold to that location. Either way, those transactions were flowing right through the system, and they eliminated the need for any manual posting. Now, that’s a big picture from the fuel perspective.
Now think about a commissioned dealer. From a commissioned dealer, they’re operating the store side, we can import all the credit card settlements, we can pull in all the POS sales, we can reconcile all that, and calculate commissions on that fuel for the commission dealer. Again, the systems are all talking, the data is all flowing, and you’re using one overall reporting system to track all that as well.
Brian: Chris, you’re involved in the ADD Systems User Group. Can you share your experience there and some of the key benefits you’ve seen c-store operators gain from the group?
Chris: The ADD User Group is a really important part of ADD Systems. There are monthly calls where our clients get together and share their experiences. Often, someone will ask about a particular business process, and another client will speak up and share how they handle it. It may be on a recent POS update, or maybe a new rebate program. Sometimes, it’s just a discussion on a new feature, or how to use an existing system option. The community itself is diverse, which makes it really exciting. We have clients on there that range from large nationwide clients to small family shops. The collaboration is often a fun learning exchange.
I’m actually involved in three of the groups. There’s the eStore User Group, which focuses on retail c-store businesses. Then there’s the Reporting or Business Intelligence Group, where we often discuss the different reporting needs and challenges, and how to measure the different day-to-day reports and metrics that get emailed out – that often brings up our Atlas BI product. Last is the brand-new user group for our Lubricants and Warehouse Management. One of the topics I’m looking forward to there is our latest warehouse scanning app called ADD Energy Assist®.
Now some of these committees also vote on software improvements, which is exciting because they’ll pass around all the different suggestions to the users and let them vote on it, which gets turned in to us and helps us prioritize where we should be putting our programming efforts. Users who join the User Group, they don’t even have to speak up, they can just join and listen in. That’s ultimately what I like to do. I like to jump in, listen, get the feedback on what they’re doing on a day-to-day basis, how they use the software. I’ll take that back to the team often, share it, and go from there. It’s really exciting!
Brian: If a retailer is considering new software, what are some of the key elements they should look for?
Chris: New software can be difficult, trying to figure out where to start. Where does it end? I would always just start with reviewing your internal processes. The new software should ultimately make it easier to do your day-to-day and be more efficient. Look for areas where you’re wasting some time. What process takes too much time? Are there certain processes that involve a lot of manual steps, or too many touches? Items like this, any topic like that can be measured. So, if you review your processes, measure them out, how long do they take? How many steps are there? How can that be improved? Start building a list.
One of the popular questions we get or areas of focus would be on data integrations. There’s always a labor shortage, or they’re being asked to do more with less. So how can the system help them with that? One topic that comes back quite often is your invoicing. If you’re keying in an invoice, why not import it? Many of the vendors out there provide an electronic copy of the invoice, so allow that to flow right in. Another topic of integrations or data, in general, might be real-time sales data. That is coming into the system. How can you use that to make better decisions? That leads us right into inventory. We get a lot of inventory questions that ties up a lot of money in the day-to-day business. Can they do a better job scanning their inventory? Do they even scan it today, or do they use an outside scanning company to help them out? How often do you do your cycle counts? Just scanning the inventory might not be enough. You need to have the proper reporting in place, and exception reporting, to help you identify and tell you where the problems are. Try to identify any trends or patterns with the inventory shortages or the shrink. It could be internal with the employees, it could be external with vendors, it could be how the system is configured. The reporting is definitely going to help get all that accounted for.
Now when we’re talking about scanning inventory, that also goes beyond merchandise, that also accounts for lottery. Lottery is a very busy section for that cashier, all those tickets going out, so make sure those are getting scanned as well, and they can be reported on.
When bringing in new software, and going over all these different topics and areas to improve, it’s change. And change is not easy. It can be emotional, and people can get very uncomfortable. When we work with our clients, we often lay out a plan to help them take on this change step by step. It’s important to get the user buy-in early on in that process. Ultimately, we need to build a relationship with our clients, where they find us cooperative and responsive, because that cooperation has to happen before the implementation, during the implementation, and after the implementation.
Brian: Chris Kiernan, thank you so much for taking the time to speak with us today.
Chris: Thank you, Brian. Thank you very much.
Brian: To keep up with the latest happenings at ADD Systems, visit addsys.com/blog or connect with us on social media by following ADD Systems on LinkedIn, Facebook, Instagram, or Twitter. If you have any questions about ADDcast, feel free to reach out to us at addcast@addsys.com. Thanks for listening. Have a great day!
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