Integrated Cash System Action: Implementation of an integrated cash register to increase efficiency for cashiers Prepared for: Brian Hill CEO, Aritzia Prepared by: Alex Chartier Instructor: Bill Van Luven CMNS 220 Table of Contents Memorandum of Transmittal ........................................................................ Error! Bookmark not defined. Introduction ................................................................................................... Error! Bookmark not defined. Breaking Down the Integrated Cash Sysytem ................................................ Error! Bookmark not defined. How will the system work? ........................................................................ Error! Bookmark not defined. What are the benefits? .............................................................................. Error! Bookmark not defined. What are the challenges? .......................................................................... Error! Bookmark not defined. What are the expected costs? ................................................................... Error! Bookmark not defined. Conclusion ...................................................................................................... Error! Bookmark not defined. Documentations/Persons Interviewed/Contact Information........................ Error! Bookmark not defined. Appendices..................................................................................................... Error! Bookmark not defined. Appendix A- Brief Summary of Interview .................................................. Error! Bookmark not defined. Appendix B- Survey .................................................................................... Error! Bookmark not defined. Appendix C- Results ................................................................................... Error! Bookmark not defined. Appendix D- Follow-up Survey ................................................................... Error! Bookmark not defined. Appendix E- 10 Suggestions for a Successful Report ................................. Error! Bookmark not defined. Appendix F- Report Analysis ...................................................................... Error! Bookmark not defined. MEMO Alex Chartier School of Business Student Capilano University 2721 Edgemont Blvd North Vancouver, B.C., V7R 2N3 February 8, 2012 Brian Hill CEO, Aritzia 611 Alexander Street Vancouver, B.C., V6A 1E1 Re: Business Report Assignment – Overview Dear Brian Hill, II am currently working part-time at Aritzia, a women’s apparel store located at Park Royal. I was originally hired as a sales associate where my duties included assisting customers and maintaining the cleanliness of the store. I have recently been promoted to cashier, where my job consists of hundreds of transactions a day and capturing customer’s information to track purchases. Capturing a customer’s personal information is done manually at the moment, starting with asking for their last name. This can take time due to duplicate last names and out of town shoppers. A cashier’s capture rate is extremely important; this is how the senior management rates our efficiency, monitors purchases and is able to avoid discrepancies with customers. I would like to introduce a computer system that enables us to capture customer’s information by starting the transaction with their telephone number. Currently, capturing information is done by starting with the customer’s last name – increasing the risk of duplicate names. Using their telephone number limits the amount of duplicate customer files. The second option will be to register a frequently used credit card to the customer file; when the credit card is used, the customer file appears automatically. This would increase efficiency profusely; therefore avoid a line up at the cash register and keep customers from becoming annoyed. A new computer system is underway but I would like to recommend a few changes to the software. The specific actions I would recommend to the head office are as follows: 1. A computer system that connects the debit and credit machine to the store computer used to capture customer’s information and ring through transactions. This machine will create an integrated system for Aritzia and provide more efficiency and effectiveness. 2. Currently, customer files are selective to each store. This software will include a panel on the right hand side of the screen including all the customer’s purchases, nationally. This will avoid tedious action taken to search and track purchases. 3. This new computer system will provide an option to customers for a paper receipt, or an automatic e-mail of the receipt sent to the e-mail address stored on file. Included, the cashier side will be paper-free. This will decrease the likelihood of misplacing important documents as well as reducing Aritzia’s carbon footprint. When a signature is required from the customer, an electronic tablet will be available to them. All three of these recommendations are to benefit the customers and the cashiers. My thoughts will be heard by my store manager, Frank Nyguen. From there I will be meeting with a group of people from the Software Department at head office to discuss the value and accessibility of these recommendations. Once completed, I will present my report to Brian Hill, the CEO of Aritzia. Sincerely, Alex Chartier Business Student Capilano University 2721 Edgemont Blvd North Vancouver, B.C., V7R 2N3 MEMORANDUM Introduction I have been an employee at Aritizia for 8 months now and work as a cashier. Aritzia is a women’s clothing store targeted at a range of different age groups. Aritzia is the leader in women’s fashion across Canada. As a cashier I ring through hundreds of transactions a day. I am determined to enforce an integrated cash system; involving the debit and credit machine to be connected to the store computer. New software is underway to make such changes. This change to the cash system will increase efficiency for cashiers, and provide faster service for customers. I have conducted primary research as well as surveys and interviews with managers and fellow cashiers. Through my report I will outline the following: How the implementation of an integrated cash system will work The benefits of an integrated cash system The challenges the company will face implementing the system Implementation costs This report will explain and show the research conducted in obtaining such thoughts and ideas, a breakdown of how the system will work, a look into the system itself, and a paper-free path for Aritzia. Customer satisfaction is one of the most important elements in a successful business; Aritzia has a high level of customer satisfaction but I believe there is potential for amazing growth and opportunities by implementing a new integrated cash system. Breaking Down the Integrated Cash System How will the system work? Essentially, the most important element to this system is to connect the debit and credit machine to the store computer. The store computer is a database full of customer files and inventory data. Instead of starting a transaction by acquiring the customer’s last name, we will start off with their phone number – this will avoid confusion for cashiers dealing with customers with common names. The second option to starting the transaction will commence with scanning all the clothing through, and the customer paying by credit card. The card is registered to the customer’s file and their information will automatically appear on the screen – this will increase the efficiency for cashiers and customers. This portion of the software will generally be used for our customers whom we call “super tier customers”; otherwise known as very frequent shoppers. With the current software, a customer sales history look up is a tedious task. To make matters worse, each location has its own database; therefore customer files are subjective to each store. Upon opening the customer’s file when they are making a purchase, a list will appear on the right hand side of the screen with all purchases, at any location. This will reduce discrepancies with customers when wanting to return an item without a receipt. In order to keep up with the ever changing world and to decrease our carbon footprint as a company, Aritzia will be going paperless, on the staff side. Customers will receive a paper receipt if requested, but will have the option to be e-mailed, to the e-mail address on file, an electric copy of their receipt instead. When returns are made and signatures are required, a signature will be obtained on an electric tablet – this eliminates the need to sort the receipts at the end of the night. What are the benefits? The main benefit I am striving for by introducing an integrated cash system is to increase efficiency for cashiers. Increasing efficiency will lead to less tedious work and less aggravated customers. Aritizia strives to be the leader in women’s fashion and by introducing new software we can become the leader in customer service as well. Starting a transaction with the customer’s phone number will exceptionally decrease discrepancies with customer files and purchase history and avoid confusion for cashier involving duplicate customer names. For “super tier” customers, having a credit card registered to their account will make it easier for cashiers to provide the best customer service available as well as track purchases at pristine accuracy. Introducing a panel on the right side of the screen will enforce a simple way for cashiers and managers to look up customer sales history nationally, instead of per store. This will make returns without receipts present much less complicated. It will be a big step economically for Aritiza to go paper-free. The benefit of the electronic receipt and the electronic tablet for signatures, from the staff perspective, is it eliminates the need to sort out receipts at the end of the night. Having all store copy receipts in electronic form will reduce Aritzia’s carbon footprint tremendously and avoid misplacing important documentations. What are the challenges? As with any new project, a large challenge is cost. Luckily, the cost of the actual software will be covered by the company, but the cost of implementing the system into each location will be covered by each location itself. Another big challenge will be retraining all the cashiers to use the new system. Formal training will be held at each location for all cashiers. The costs endured with retraining staff will also be a challenge. With the new software, a new inventory system will be in place, called Real Time Inventory Order Management System. Converting all inventory files from the current software to the new software will pose a major challenge. What are the expected costs? The cost of entering this software into all the computers, throughout the entire company, is a multimillion dollar project. This cost will be covered by the company. The current software is used in the retail stores, the warehouse and the support office – all of which would be needed to be updated. My report is targeted at the Park Royal location. A trial term, of 6 months, will be implemented at no cost to the location. I am seeking the cost to cover the permanent implementation of the software into the Park Royal location. This cost is estimated to be $9,500 – including labour costs and the cost of moving all customer files from the current software to the new software. Conclusion In conclusion, my recommendations will be extremely beneficial in the present and the future. Being able to provide the best women’s fashion is important, but ultimately if the customer does not endure excellent customer satisfaction, they will not come back. Providing effective and efficient service to every single customer is what Aritzia strives for – currently we are not meeting our full potential. I believe my recommendations are a large step in the right path to decreasing unnecessary, tedious work for cashiers and providing efficient service for customers. I realize this is a large investment, but in the long run less conflicts will be endured, less paper will be needed, less disorganization will take place and more happy customers will walk through the door. Documentation/Persons Interviewed “Best Practices in Cash Flow Management and Reporting” 2009-2011. Retrieved February 15-12 <http://www.qfinance.com/cash-flow-management-best-practice/best-practices-in-cash-flowmanagement-and-reporting?page=1#s2> Nyguen, Frank – Wednesday, February-15-12 Nyguen, Frank – Tuesday, February-28-12 Contact Information Frank Nyguen, Store Manager Aritzia cell: 604-349-3837 work: 604-913-1586 e-mail: franknyguen@aritzia.ca Appendix A Brief Summary of Interview with Frank Nyguen, Store Manager, Aritzia 1. How feasible is the idea of introducing the integrated cash system into the Park Royal location? This is a very realistic idea; extremely feasible. By asking for the telephone number to start off the transaction, this would reduce confusion for cashiers immensely. I believe the cashier will be extremely welcoming to such an idea. 2. What are the expected costs? This is a multi-million dollar project you have here. This is because the current Point of Sale system we currently use runs through the entire company. It runs through all the stores nation-wide, the support office and the warehouse. Fortunately, a new system is currently underway with the software team. The only costs we would be required to cover is to actually implement the system into our store. This is a very realistic and price efficient change I am willing to make to our location. The expected cost could be anywhere up to $9,500. 3. Would implementing an integrated cash system be proactive for the company? Absolutely. The Point of Sale system we currently use, Apropos, is very outdated- some call it archaic. It was made in the 1980’s; therefore we are due for an upgrade. This system would benefit the cashiers and managers more than the customers. Brian Hill invests a lot in this company and he wants to be the best of the best, to do this we need to be the most efficient and effective as our potential allows. Introducing this new system is a brilliant idea. 4. What are the disadvantages? The main disadvantage I can see is to do with the inventory system. The inventory system shows data for the stores nation-wide, including the warehouse. All this information would need to be transferred, with absolutely no errors. As usual, cost is always an issue – but I am sure Brian Hill would have no problem helping out with this. This issue of retraining is prominent as well. The company will have to hold many training sessions and seminars to not only train themselves, but their cashiers as well. This will be the most time consuming issue of all of them. A lot of the cashiers are set in their way and making them change to a totally new system which they are not comfortable with will definitely pose a challenge – or should I say a “learning opportunity”. 5. How do you feel about being able to provide a paper-free option? Excellent idea. Being able to provide a paper-free option to our guests would increase our customer service tremendously. Though it may not maximize their overall experience, for customers to have the option is important; people like choices. Becoming paper-free on the company end would be a great step. Introducing an electric tablet for signatures and keeping all documents electronic will decrease confusion and work for cashiers. Brilliant! Appendix B Survey This survey was presented to all cashiers and managers at the Park Royal Aritzia, on February 1512. As valued employees at Park Royal Aritzia, please take a few minutes to answer these simple questions regarding an integrated cash system. 1. Do you like the current Point of Sale system, Apropos? Yes No 2. Do you think the Point of Sale system requires an upgrade? Yes No 3. Do you know what an integrated cash system is? Yes No 4. Would you be willing to be retrained on a new Point of Sale system? Yes No 5. Do you think Aritzia should become a paper-free company? Yes No Appendix C Results Question# 1 YES NO 3 3 2 6 0 3 6 0 4 5 1 Result 50% of staff like using Apropos. 100% of staff believe Apropos requires an upgrade. 100% of staff are educated about what an integrated cash system is. 83% of staff are willing to be retained on a new cash system. 5 3 3 50% of staff are open to the idea of becoming a paper-free company. Appendix D Follow Up Survey This survey will be taken by staff member affected by the integrated cash system, 6 months after being put into action. 1. Do you prefer the integrated cash system over Apropos? Yes No 2. Is the new system for efficient for you? Yes No 3. Did becoming a paper-free company benefit you? Yes No 4. Is the new system easier to use? Yes No 5. Was introducing the new Point of Sale system a wise move for the company? Yes No 6. Do you have any further comments? Please explain. Appendix E 10 Suggestions for a Successful Report 1) Is your topic a “non-starter”? PROBLEM: Even the most brilliant, insightful, and well-minded report topic might have a fundamental problem: it’s just not “do-able”! There could be many reasons for this: there’s no money; they tried it last year and it didn’t work; the competition next door is already doing it; management is not open to innovation…the reasons go on and on. SUGGESTION: You need to make sure you do a little PRELIMINARY investigating to ensure your report has a shot…otherwise, why bother pouring hours and effort into it. Is your topic FEASIBLE? If not, ask me NOW about the deadline for topic change. 2) Consider the report's layout to be as important as its content. PROBLEM: Many reports are muddied by not using simple and effective layout techniques. SUGGESTION: Wide margins, clear, 12-14 point font, bulleted text, graphs and diagrams that are explained when you see them, page numbers, clear documentation techniques...all contribute to making your report persuasive and effective. 3) Give Me a Break. PROBLEM: Reports that have long, monolithic slabs of text. SUGGESTION: Make your report reader-friendly. Use lots of paragraph breaks, headings, and short sentences. (Sentences that average 10 to 16 words are easiest to comprehend. Take a look at a typical page of your report: How does your average compare?) Finally, use REPORT QUESTIONS (as discussed in class) to define headings throughout the document. 4) Make sure your interview really happened. PROBLEM: In lesser reports, there will be a reference to an interview that supposedly happened...but the report itself seems sketchy and vague on details surrounding this interview; there are no relevant insights or analysis of the interview…and often no CITATIONS. SUGGESTION: Do NOT include any details or talk about an interview that was either irrelevant or nonexistent. If you decide to include an interview component, make sure you a) discuss/analyze/interpret the interview in sufficient detail as to make it a worthwhile addition to your report. b) include at least ONE of the following: your interviewee's email address, current phone number or mailing address. (You may decide to put this info in your letter of transmittal or your sources cited...or both). If this info is NOT included, then the interview will not be counted towards your final mark. 5) Make sure your survey really happened. PROBLEM: Like the report interview, surveys are frequently mentioned in passing but not interpreted in any detail. SUGGESTION: Same as with the interview: if you choose not to discuss or interpret your survey results in any detailed or meaningful way, consider dropping it from your report altogether. 6) Something's Missing! PROBLEM: In addition to the major report components that have been discussed, there are also some pages that need to be attached to your report. Every term, there are those who omit required material from their reports. SUGGESTION: Make sure you're clear on what needs to be included. If in doubt, ASK. 7) Be realistic about the scope and limits of your report. PROBLEM: This is the most common reason that an otherwise excellent report slips into mediocrity: your limits are unrealistic; you take on a topic that, in order to do it justice, requires far more time and resources you have been given. SUGGESTION: Think of the scale of your report in these terms: rather than have your report be the tide that raises all ships, you should focus on the steps needed to unclog the sink in the bathroom. Remember that your report is about persuading a select audience to do something specific. 8) Ok, I've read it...now what am I supposed to do? PROBLEM: Perhaps the biggest report challenge of them all: despite the many times this subject has come up in class, there will still be reports submitted that are not clear as to what the audience is expected to do. SUGGESTION: So here it is one last time: In the context of this course, the purpose of your report is to motivate the reader to ACT in a very specific way. This is why you were encouraged to come up with the verb for your report; you must clearly articulate the specific action(s) you expect your reader to take. Think about the old marketing axiom: it is much easier to get a few people to buy a lot than a lot of people to buy a little. Try to avoid letting your report become an essay; you want to do more than simply showcase an opinion or merely inform the reader. Make sure the reader is very clear what it is that they are being motivated to do. If you come up with something “fuzzy” like "...to conclude, the government must be prepared to take a leadership role in this matter." you are simply missing the point of the exercise. Please be clear and specific with your recommendations; think of them as an easy-tofollow action plan for your audience. 9) Why not go out on a limb? PROBLEM: Many reports are short on “measurables, deliverables, and timelines”. SUGGESTION: The range of topic choices this assignment was very broad and from a galaxy of possibilities you chose the one you did. Hopefully, you chose it because you’re interested in it and/or you have some degree of experience or knowledge about it; your opinion counts and so should your conclusion(s)! Specifically, get into the practice of providing the reader with information that has a “realworld” meaning and application for them: if by following your report’s suggestion things should get better then say so. How much more revenue will be generated next year? How many person-hours of needless effort will be spared? By what percentage will productivity go up? Of course, no one ever knows these numbers precisely…but you of all people are in a good position to make and educated guess...so do it; make some clear, specific, quantifiable predictions. 10) Get behind your report. PROBLEM: There’s no accounting for your success. SUGGESTION: Here’s a suggestion to make readers feel more confident about your report: provide some mechanism to evaluate the effectiveness of your report’s suggestions/conclusions. For example, you might suggest that some form of review or study take place 3, 6, or even 12 months after your report’s ideas have been adopted by the reader(s). Maybe you’ll come by and do interviews to see if people realized the benefits presented in your report...or perhaps it’s more appropriate for you to arrange for an independent group to assess whether or not your report’s ideas worked. Whatever follow-up strategy you propose, the fact that you’ve done so will show your readers that you have confidence in your report and its conclusions. Appendix F Report Analysis Please Attach This Sheet to Your Report’s Appendices Name____________________________________ Topic____________________________________ Profile (including Oral Presentation of Report Topic and Draft): A+ 14.5 or over A 14 A- 13.5 B+ 13 B 12 B- 11.5 C+ 11 C 10.5 C- 10 D 9 Components 1) Letter of Transmittal acknowledgements audience identified brief report summary conclusion stated (1) 3) Introduction purpose clear report plan clear thesis statement (1) 4) Report Body (3) headings effective (Q/A?) report "verb" clear topic specific/focused active: author's voice used appropriate tone effective use of survey/interview "Challenges" section 5) Gram., Dict., Punct., Sp., Layout (1) 6) Conclusion/Recommendation(s) required action(s) clear (1) persuasive, confident style “MDT’s” showcased suggestions for follow-up 7) Appendices informative and relevant (2) 8) Documentation (1) sources cited page ideas well supported Oral Presentation of Report Topic (2) Report Topic Memo (3) _______ (5) Presented Report Draft? Y____ N____ Init______________ Assignment Total: _____________(15) END OF REPORT