EPOS and stock control as SAAS

[chrisjowen]

Hi Guys,

I'm a software developer of 5+ years and I'm interested in looking at the challenges of small retail outlets i.e. stock control, electronic point of sale, e-commerce, order tracking, premises management etc.

After looking around I have found a few half backed solutions for retail management that operate under the SAAS (software as a service) model, i.e. they are online based with no installable and charged as a monthly subscription.

I wonder based on your experience, are the solutions I have found poor because the SAAS model doesn't fit for EPOS/retail software, or is it simply that there are a lot of bad implementations out there?

Thanks in advance, Chris.

[m8internet]

I have found a few half backed solutions for retail management that operate under the SAAS model
I assume you mean "half baked"?

SAAS works for some retailers, especially where they are busy or have large or large value stockholdings
Equally, the setup costs are relatively low, although the operational costs are high
Since the SAAS is external, support is available throughout the contract
Therefore the retailer need only worry about the equipment they have in the stores

Connection can normally be done via any broadband connection, so these costs can also be fixed

Therefore the retailer pretty much knows exactly what they will be spending, unlike a bespoke system where the costs can vary quite wildly
With a bespoke system they may be lucky and it could be fault free for several years, equally it could be a dog and continually breakdown after 12 months

I have looked at two SAAS models and they appear to work very well
In each case the website was designed either by the provider or by one of the store employees
In store the interface was almost identical, with all store sales and internet sales on the one screen
Equally, the stock levels were live and correct

The only issue I could see was if a customer was in the shop and an internet customer bought the last remaining item at the same time!
However, I was assured that as soon as an internet customer clicked on "ADD to basket" the item became locked for sale, and if not paid for within 10 minutes it was released again
Equally, the customer in store was advised of this and asked to wait for 10 minutes to see if the transaction completed
So far this had never happened!

[chrisjowen]

@m8internet thanks for the great reply, a yes I did mean "half baked" :-).

My concerns with the SAAS model were as follows:

1. Internet connection required - for small retailer (aka 1 store setup) would this be an issue, or is it expected that the sales will be recorded remotely?

2. SaaS based usually implies web based and non-installable, which would limit the amount of external devices that could be used i.e. bar code scanners, card readers etc. This could be negated by having some installable software or activex controls.

I'm not sure the issue of concurrent offline/online sales would really be an issue, as a certain percentage of stock could be held for off-line purchase only.

I wonder if you could point me in the diretion off a good off the shelf SaaS based retail solution.

Additionally, could I ask any of you guys that have been in retail for sometime, what the key features to a good all round retail solution for startup/small stores?

N.B. In case you haven't guessed this is research for a potential software development I am about to embark on.

Cheers, Chris.

[m8internet]

Internet connection for a small trader isn't normally an issue now
This can either by on ADSL through the existing BT land line, Cable Modem, or mobile broadband
The main issue may actually be the BT line or cable installation, but most retailers will pay the silly installation charge anyway

There are no real issues over product expansion on the system
The client advises the provider what they want and need, and if it isn't suitable they look for another
Equally, such systems are adapted fairly quickly, such as CHIP and PIN
EAN or SKU barcode reading would be fairly standard as well

The idea of SAAS is that it is the "store" stock, through a live file
Creating a separate store for the internet stock means duplication, and many small retailers will be reluctant to do this
The two I work for both prefer the shared stock setup
One of them has two shops, ie two stores
The advantage here is that the internet customers sees the TOTAL stock available and not necessarly from that store
The disadvantage is the retailer must either send two parcels or move the stock to the central location where orders are sent from

Startup businesses are looking simply for :
Groups by VAT / Low rate VAT / Non-VAT
Barcode scanning
Promotional / multibuy setup
Manager reports
Cashier reports

Larger businesses are looking for :
Invoices / credit note processing
Credit card processing
Online merchant account processing (secure server and ecommerce website)
Inventory control
Order processing (manual and/or CAO)
ASN processing

I work closely with several large companies that use ASN and CAO, from store level through to distributors

[chrisjowen]

m8internet, thank you for your input so far, it has been very informative. I think its obvious that my intentions are to find out what would be involved in building software for the retail industry.

You seem like your very knowledgeable in this area, and I wondered if your would mind me PMing your with more domain specific questions?

[m8internet]

Not at all