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17/01/2012

Top and Flop Trends at the NRF in New York

I am currently on my way back from the National Retail Federation (NRF) show in New York. There are two trends to follow in the checkout area....

I am currently on my way back from the National Retail Federation (NRF) show in New York. There are two trends to follow in the checkout area. The first one is not really new anymore, but tablet PCs (like the iPad or Galaxy) will increasingly serve as the "checkout of the future". Hey, the solutions partly look really funny, plus there are more tablet cradles to see at the show. The question is, do you really need to take your stationary checkout with you "occasionaly"? What happens to it if you drop it? The argument they announced was: with an iPad or a Galaxy, users can simply use the service organisations of the giant companies Apple or Samsung if they experience a problem. But everyone would consider it twice, if he would really want to make an appointment at the Apple store once the checkout has been set up.

Secondly, everything is "Cloud". In the future cashiers will only have scanners and printers. Prices and article descriptions come up to date from the Cloud, plus the tally is taken there. Meaning, no more need for a PC at the checkout. It sounds great when you first hear it: 90% electricity savings and no PC maintenance. But, taking a second look at it: what happens when the Internet freezes? In a store with 20 checkouts it might be possible to invest into more secure connections, and to have fallback lines with various providers. However, if there are only one or two checkouts then these alternatives cost more than the checkouts themselves. Solution: there must be a back-up computer in each store with the latest data. This means the PC is still physically there, even if in the back office of the store. I don't see the breatkthrough here.

We are all looking for new "killer hardware", which every shop owner wants to have in his store. Hardware whose advantages are easily recognisable and also which processes so quickly that everyone instantly wants to throw his old hardware out the window. But I fear for 2012 too: nothing to report.

11/01/2012

Planning horizon :)

Can one understand that all of our manufacturers - and even some of our key accounts - want to "plan" the new business year with us? But why?...

Can one understand that all of our manufacturers - and even some of our key accounts - want to "plan" the new business year with us? But why? The only way I can make sense of this is that manufacturers need to plan their resources: for production, possibly necessary assets, personnel, etc. These all have long lead times. The funny thing is that not one plan for 2012 with any partner is ready yet. The first meetings will take place in January. Wouldn't it make more sense to plan for the coming year before it starts? Last year, we received the last plan for the year in April from our manufacturers. Assuming that personnel and production changes have an average lead time of four to five months, we could have saved ourselves the trouble in the first place. Let us be honest, this is how things work: Nobody really wants a "plan". A manufacturer sets his goals for 2012 at some distant headquarters. This is then split between sales areas, and only when those sales departments actually achieve the goal will they receive their bonus. In fact, at some point, they only need to decide which distributor must achieve which turnover. This is not so much active planning as it is planned economy :) From a distributor's point of view, this is pointless and it doesn't matter when the plan is announced. Simply adjourn the meetings until December, and we will be able to make the plans in such way that we achieve them by a close margin - everyone gets their bonus and there are no more surprises!