Case Study Mobile Printing ◆ Wireless Go Wireless With Mobile Printing Shopko generates $100,000 savings and cuts equipment downtime 75% with a new label printing solution. by Vicki Amendola Kathy Loch, manager of store operations support at Shopko, says that O'Neil mobile printers have played a key role in improving both productivity and pricing integrity. Mobile Printing ◆ Wireless Case Study “Shopko’s dual platform mobile printing solution is an innovation in retail, and I believe we will see task-driven, mobile printing emerge as a solid trend in 2008.” Photos by Tom Fr tz Stud os, Inc. Troy Stelzer, Storeworks It’s no secret that keeping your employ ees out on the selling floor is an impor tant step in increasing customer satis faction. What is less obvious, however, is the impact of price label availability and accuracy. Very rarely are prices printed directly on products anymore, making customers rely on the accuracy of the shelf tag when making purchase decisions based on cost. Inaccurate tags not only frustrate customers, they can also impact your store’s profit by forcing one time price reductions or, worse yet, a lost sale. Shopko is a $2.2 billion retailer with 135 stores across the Midwest, Mountain, and Pacific Northwest regions of the United States. Like most large retailers, the com pany’s stores go through numerous price changes and department resets each year, printing and reprinting thousands of shelf labels so customers will know the correct prices. The company was using a tethered (wired) system for mobile print ing needs. Label printers relied on a cabled connection to a handheld com puter, and this connection was prone to failure. Even with six printers in each store, Shopko soon found itself strapped by the restrictions of its tethered print ers. During times of high volume print ing, such as seasonal planogram resets, the restrictive one employee to one printer ratio, and the dependence on a cable connected handheld limited pro ductivity. “The problems with our portable printers had become the most visible technology problem in our stores and needed to be addressed,” says Don Intile, director of application integration services for Shopko. December 2007 Different Applications Call For Different Printers Discussion with store employees revealed a need for two distinct printer models. The first would be a small, wearable printer for minor print jobs. The second would be more robust with a larger media capacity and extended battery life to handle volume print jobs. Due to the company’s disappointment in the performance and reliability of its tethered printing system, Shopko want ed to go wireless. Storeworks, the com pany’s systems integrator, identified O’Neil as the printer manufacturer best suited to the project. Shopko worked with Storeworks to integrate O’Neil OC3 and LP3 wireless printers to satisfy Shopko’s portability and high volume print requirements. “The combination of the O’Neil LP3 and OC3 allowed us to outfit Shopko associates with the right mobile printer for the task at hand,” says Troy Stelzer, VP of sales at Storeworks. “Shopko’s dual platform mobile printing solution is an innovation in retail, and I believe we will see task driven, mobile printing emerge as a solid trend in 2008.” The printers operate on Shopko’s secure 802.11 b/g wireless platform in conjunction with Symbol PDT handheld scanners. Both printers use the same media, batteries, and more importantly, operate using the same print stream information. Store employees now have the capability to send print jobs to either printer on demand by simply scanning the printer’s serial number bar code. One of the features Shopko is most excited about is the ability to activate price changes at the time of label print ing. Before, all price change labels were printed at once, and the price changes would be active before the labels were put on the shelves. “When you’re looking at customer satisfaction and pricing integrity, that is key mak ing sure that the customer knows what the price of a given item is based on the label on the shelf,” says Kathy Loch, manager of store operations sup port at Shopko. “You have to have the correct label on the shelf to be able to do that, and that’s been a huge win for us.” Shopko’s mobile printer applica tion holds the downloaded price change information until the Shopko chose O’Neil OC3 (inset) and LP3 wireless mobile employee actually prints the new printers to satisfy both its ad hoc and volume label printing needs. shelf label on the store floor. www.ISMRetail.com 31 Case Study Mobile Printing ◆ Wireless In addition to holding price changes in queue, the custom software also priori tizes labels in planogram order. In the case of price changes, it actually walks the employee logically through each department from left to right, rather than sending them from department to department. “It has absolutely improved our productivity and efficiency at the store level,” says Loch. “Now we can have different teammates working on different tasks, and the wireless printer provides them the opportunity to get their jobs done more quickly.” Going Wireless Cuts Maintenance Costs Although gains in employee productiv ity and efficiency are a positive benefit, the project’s success can best be mea sured in terms of maintenance savings. Equipment downtime had been a major problem for Shopko, and aver 32 www.ISMRetail.com age annual cost to replace failed printer cables alone was nearly $80,000. Damaged or malfunctioning printers were handled through the company’s in house repair depot. This required stores to send the printer in prior to receiving a replacement. It wasn’t uncommon for turnaround time to be seven days or more. Along with the new printing solution, Shopko took advantage of the O’Neil Printer Express maintenance program. Rather than going through the in house depot, O’Neil picks up the calls coming into Shopko’s help desk, and, if the call is made prior to 4 p.m., a new printer will arrive at the store the next morning. Based on what he has seen since the new printers went online, Ray Petersen, CTO and VP of e commerce at Shopko, esti mates that equipment downtime will be reduced by at least 75%. “We’ve eliminated the entire cable Wireless mobile printers help Shopko maintain pricing integrity by activating price changes at the time of label printing. replacement effort,” says Petersen, “and we are maintaining our printers with an advance ship program for less than it cost to support our own five to seven day depot program.” Overall estimated savings are expected to average $100,000, and the company has not even begun to quantify the savings based on increased employee productivity. ❏ For More Information On O’Neil Go To www.oneilprinters.com December 2007