TECHNOLOGY FOR FOOD STORE EFFICIENCY
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1 U.S. Department of Agriculture Agricultural Outlook Forum 2003 February 20 & 21, 2003 TECHNOLOGY FOR FOOD STORE EFFICIENCY Alan Couch Director Food Industry Marketing
2 Technology for Food Store Efficiency Alan Couch Director Food Industry Marketing February 21, 2003
3 NCR ConfidentialReal World 2 Development of Retail Food Technology Consumer Environment Shopping Trends Demographic Environment Industry Issues Business Strategies
4 NCR ConfidentialReal World 3 The Profit Wedge Improve customer service Grow revenue & market share Increase margins New channels & interaction Customer Satisfaction Revenue Margin Cost Profit Wedge Quantifying the value of technology investments using performance measures and metrics...
5 NCR ConfidentialReal World 4 In-Store Recent Technologies Self Checkout Electronic Shelf Labels Wireless Capability Self-serve Kiosks ATMs with expanded functionality Biometrics
6 Customer Perception of Service NCR ConfidentialReal World 5 Look at these lines! So many registers, none open! Cashiers these days I could do it better myself! Reasons for Using Self-Checkout 90 62% Agree that SCO makes shopping more convenient Source: Retailer Study 57% Agree that SCO demonstrates that retailers cares about their customers Source: Retailer Study Percentage Male Female 76% Agree that SCO retailer seem more technologically advanced than competition. Source: Retailer Study 0 Shorter Lines Speed Privacy Ease of Payment Source: Opinions Research, September 2001 No Cashier Intervention Self-Checkout Improves Customer Service
7 Self-Checkout Growth News News Line Line 19% 19% of of food food retailers, retailers, up up from from 6% 6% (1999) (1999) --FMI --FMI 50% 50% by by Estimated Estimated million million transactions transactions in in Segment Segment growth growth - - Drug, Drug, Do-It-Yourself Do-It-Yourself International International expansion expansion - - Europe, Europe, Australia Australia Market Market Dynamics Experimentation Experimentation to to widespread widespread deployment deployment Focus Focus on on operational operational efficiency efficiency Front-end Front-end throughput throughput enhanced enhanced Focus Focus on on Flexibility, Flexibility, Usage, Usage, Service, Service, Support Support and and Operational Operational Integration Integration Units Shipped 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - NCR Shipshare leader in 2001 TOTAL NCR OPMR PSI Shift from Market Acceptance to Market HAS Accepted NCR ConfidentialReal World 6
8 NCR ConfidentialReal World 7 Electronic Shelf Labels (ESL) A wireless technology that allows the retailer to change prices at the shelf electronically, resulting in: 100 % Price Accuracy Reduced Store Costs Enhanced Revenue Management
9 NCR ConfidentialReal World 8 Custom Kiosk Applications Lunds Deli Kiosk Stop-N-Shop Deli Kiosk Meeting your unique requirements
10 NCR ConfidentialReal World 9 What is Biometrics? Biometrics is the use of unique personal characteristics to identify a specific individual -Typically for controlled access Unique characteristics include: Anatomical -human structure (fingers, eyes, hand ) Physiological - human functions (voice) Behavioral - signature, typing, gait Identification takes two forms: Recognition Pick one person from a large population (very difficult) Verification Match a person against a single record or claimed identity
11 Coming Soon to a Store Near You... NCR ConfidentialReal World 10 Reduced Space Symbology (RSS) RSS14 (01) Personal Digital Assistants (PDAs) Cell Phones Radio Frequency Identification (RFID)
12 NCR ConfidentialReal World 11 Reduced Space Symbology Designed for the healthcare industry Ampoules, Syringes, Single Unit Doses Retail niche applications Primary need = perishables (produce, meat) Reduces add-on codes (periodicals, cards) RSS allows more data to be encoded Distributor, source Expiration date Weight and extended pricing RSS14 Stacked RSS14 Expanded (up to 74 characters) RSS will NOT replace UPC
13 NCR ConfidentialReal World 12 RFID What is it? - RFID tags, or smart labels, are tiny memory chips that can transmit electronic product codes (EPC s) with data about the items to which they are attached Possibilities - Currently being tested in warehouses, distribution centers and some stores eventual migration from conventional bar codes to RFID tags on all packaged goods
14 NCR ConfidentialReal World 13 NCR s RFID Outlook Pilot Tests Integrated Barcode/RFID Scanning Passive Checkout RFID Timeline Education Pilots Tagging of selected, highvalue goods Simultaneous Scanning More products tagged as cost of tags drop 100% of goods tagged Pervasive RFID Now 2-3 years years
15 Calendarized Tagging Forecast Source: Forrester Research 8/02 NCR ConfidentialReal World 14
16 NCR ConfidentialReal World 15 Summary Self-Checkout Electronic Shelf Labels Wireless Devices Kiosks ATMs Biometrics RSS bar codes RFID RSS14 (01) But the technology MUST benefit the retailer and the consumer via increased revenue, margin, satisfaction or reduced cost to be fully realized.
17 Questions NCR ConfidentialReal World 16
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