Most retailers excel when it comes to getting merchandise to their store in the most efficient way possible. They are experts at optimizing the supply chain to get the right products to the right stores at the lowest possible cost. But when it comes to the procurement of retail IT, many retailers struggle to achieve the same level of efficiency.
Retailers tend to underestimate the value they can create by having the right strategy in place when purchasing new technology. In fact, law firm TLT found that only half of retailers even negotiated contracts when purchasing new technology. Partnering with a retail technology services company can improve the entire procurement process, from purchasing to configuration to eventual deployment.
Purchasing new technology often starts with the best of intentions. Gartner has shown that 60 percent of retailers intend to increase their IT budget from 2015, with the goals of introducing omnichannel capabilities, offering a better and more tailored customer experience and facilitating the buying process through mobile POS and other technologies. These strategic initiatives require significant investments in both front-end and back-end IT infrastructure.
When purchasing, many retailers may not have the resources required to deal with multiple vendors individually and often try to take advantage of volume discounts. The result is that they immediately purchase large quantities of equipment and store it in a warehouse until it is ready to be deployed across their network of stores.
By taking a strategic approach to retail IT procurement, retailers can avoid these costly expenses and ensure they are getting the best value for their investment. Because this strategic approach can be complex, many retailers turn to a third-party retail technology services expert who can handle all of the vendor relationships, purchasing, logistics, and the configuration and deployment involved in a store refresh or new store opening.
Perhaps the biggest factor for retailers is the ability to get the technology to each store just-in-time (JIT). Using a JIT approach maximizes the useful life of the technology and maintains all warranties because equipment gets purchased and delivered right when it’s needed. The entire solution can be configured, tested and kitted before being sent to the store. Trained and certified on-site technicians can then get the infrastructure installed right away, dramatically reducing the time and cost of getting stores up and running.
Though it is often overlooked during the planning stages, a strategic approach to procurement can save retailers time, money and effort and turn their retail IT into a competitive advantage. By partnering with an OEM-independent retail technology services company that knows retail, equipment can be fully utilized, projects can be managed more easily and stores can open on time, every time.