The incredible expanding POS
Dhiraj Jain, business development head of retail products and IP for global IT services, consulting and business solutions organization Tata Consultancy Services (TCS), recently took some time to explain exactly how the POS is evolving into a full-fledged omnichannel commerce platform.
How has the role of the point of sale (POS) evolved over the years?
A traditional POS is no longer sufficient to fulfill demands of the modern retailer. The onslaught of technology disruption and ever-changing consumer behaviors are pushing the industry to re-imagine stores that coexist with digital channels. This, in turn, requires traditional POS platforms, which haven’t evolved significantly in past several years, to take a quantum leap in terms of technology and functionality to become the hub of omnichannel retailing.
The next-generation POS needs to become a “Universal Store Commerce Platform” to not only address today’s consumers’ needs, but also be future proof so that empowered associates can identify tomorrow’s customer’s digital footprint, suggest re-orders, offer multiple delivery options and save every sale.
What role does order management play in executing omnichannel transactions?
Order management systems play a crucial role in executing omnichannel transactions. By integrating with next-generation POS platforms that act as a Universal Store Commerce Platform, they enable mixed orders at the POS with flexible fulfillment options, including buy online and pick up in-store, buy online and ship from store, or even buy items online at the POS and have them delivered to the cus-tomer’s home, all in one single transaction.
Without such integration, this would have been accomplished in three different transactions. In addition, an associate can do better clienteling by easily gaining access to a customer’s order history across channels.
What advantages do retailers gain by linking their POS and e-commerce solutions?
The “universal shopping cart” is enabled by next-generation POS platforms that integrate with the leading e-commerce platforms. Having a universal cart that moves with customers from online interactions to in-store engagement helps save sales. This is especially true for specialty retailers where consumers may hold items in their online cart — or create a wish list — before making the final purchase.
Also, consumers can add to their cart, or list, through the store’s POS. These services can be enabled only through a single commerce platform featuring e-commerce integration.
How has the store retained its importance in the wake of omnichannel retailing?
While today’s shoppers utilize an evolving mix of in-store, mobile, online and social media interactions, often leveraging more than one channel simultaneously, more than 90% of sales still happen in physical stores. Consumers appreciate the opportunity to touch and feel merchandise. They enjoy personal face-to-face service. And there’s no beating the immediate gratification customers get when walking out of a store with their purchase.
However, in the era of omnichannel retail, modern shoppers expect more than a friendly smile and compelling environment. They want knowledgeable associates to offer real-time inventory information, personalized promotions and extended fulfilment services. For example, if a product is out of stock, customers would prefer to complete the purchase in-store and have it shipped to their home rather than go through the hassle of visiting another store.
To meet customers’ growing expectations, retailers are re-imagining stores to play a central role in their omnichannel retailing vision. Merchants are embarking on massive transformations to integrate their key systems, such as POS, e-commerce and order management.
TCS is known as a leading service provider. What led you to offer solutions?
Our products and solutions are a result of our deep experience in partnering with top retail brands and a unique vantage point that it offers us. We created TCS OmniStore, our next-generation POS software solution, after realizing a white space existed among traditional POS products.
The competencies required to develop an omnichannel services-based platform, integrated with order management and e-commerce systems, seem outside the current scope of many incumbent POS providers. We believe the integration expertise behind OmniStore provides unmatched value to specialty retailers.