Writeimage CEP Award Winning Software Improves Retailer S Operations and Increases Income

Situation

The Co-operative Group is the largest consumer-owned retailer in the United Kingdom (U.K.). It employs 85,000 people, has three million active trading members and more than 4,300 retail outlets, including food and pharmacy. Other areas of business include funeral services, travel, banking, and insurance.

Data management is an important element of the retail business. Sales transactions are a vital part of this data, providing managers with information on sales, inventory control, finance, customer service, and marketing. To track this information accurately, it is necessary to collect all the data possible from tills. The Co-operative Group needed to ensure that its database could serve current needs and keep up with future trends in retail.

For the past five years, The Co-operative Group had been managing its data with a relational database called Progress. In addition to Progress, The Co-operative Group used Microsoft® SQL Server® 2000 Desktop Engine to manage multiple databases. Lawrence Freeman, Development Manager, software development for store systems at The Co-operative Group, says: “Operationally the Progress database was stable however, strategically, it wasn’t a technology we could use in the future.”

Freeman wanted to streamline all of the data systems by focusing on one technology. “We considered MySQL,” he says. “Commercially, it was very attractive, but we dismissed it because of supportability issues. I had far more confidence that we could effectively build a production system around a more supported environment such as Microsoft SQL Server 2005. Server scalability is a big issue for us. We support approximately 950 million transactions a year so every minute we’re logging a lot of information into the data warehouse.”

Solution

It made sense to move to SQL Server 2005 on the Microsoft .NET Framework development system, a software technology that includes a large library of pre-coded solutions to common programming problems. The .NET Framework is intended to be used by most new applications created for the Windows® operating system and integrates seamlessly with SQL Server. “The whole of the development toolset within my team moved towards the .NET Framework. I wanted to standardise on that,” says Freeman.

The development team built a customised electronic point of sale (EPOS) system called InControl that specifically addressed the needs of the retail environment. Using SQL Server, the team built a product that makes sure all prices and product information, such as promotions, are up-to-date, and that transactions are immediately recorded. The stores and tills receive all the information they need to trade, including price and product feeds. Transactions such as sales and reporting services are fed back from the tills and recorded immediately into SQL Server. “With InControl, we can now provide managers with real-time sales reporting on sales trends and stock levels, so they can be more proactive about ordering,” says Freeman.

The project started in January 2007. During the first 12 months, development focused on reengineering the network and database. Next, customer-facing technologies were addressed. “Deploying SQL Server was a straightforward task,” says Freeman. “As with most Microsoft products, it can be deployed out-of-the-box. The biggest challenge was that we have 2,300 food stores and more than 10,000 SQL Server devices, which range from the mobile devices used by managers in stores to the tills, so although the products were easy to install it took some time to make sure all devices and servers were set up properly.”

To make sure the tills were working at all times without any loss of vital data, IT administrators installed SQL Server along with Progress. Functionality was migrated in five increments across into the new database. “Deployment is running smoothly. We’re still migrating the data—we’re rolling out all the time. The timeline is as we expected and it’s within budget,” says Freeman.

Benefits

InControl EPOS fits the needs of retail data management so well that in addition to using it in its retail operations, The Co-operative Group was able to sell it to other retailers and add another stream of income to the business. “InControl is developed by retailers for retailers,” says Freeman. “Every till and every manager’s handheld device can be used to access any information employees need. This system has solved a major problem in retail today. Managers don’t need to be in the office to run reports and know what’s going on. They can spend more time on the sales floor where customers need them.”

Developers Rewarded for Innovative Software

“In many ways, how we interact with customers through survey mechanisms at the point of sale is second to none,” says Freeman. This was proven in June 2008, when the developers at The Co-operative Group won the European Retail Solutions award for Best Customer Facing Technology.

Streamlined Data Management increases Efficiency

With all data managed and accessed at the till, store staff can see the same information at the same time as central office. Managers can run in-store reports and see immediately what products are selling fast. If a product is out of stock, managers can quickly and easily order more. If a product is not moving, managers can hold an in-store promotion. “SQL Server is highly scalable and robust. It really adds value to the business with reporting service add-ins. Our sales have increased, we’ve saved time, and increased profit by reducing leakage,” says Freeman.

Ordering Mechanisms Improve Customer Service

Automated ordering systems improve customer service by ensuring that products are available when customers want them. “We’ve fine-tuned our ordering mechanisms to perfection to provide great on-shelf availability,” says Freeman. “This means customers can walk into a shop, find what they want and buy it.” The solution takes into account events in the local areas and seasonal patterns.

From a marketing perspective, the solution helps shops interact with customers with sophisticated loyalty-based functionality, including integrated coupon printing at the till that gives customers special offers based on their purchasing history. “For example, if a customer is spending £28 a week, we can offer a deal saying, ‘Spend £30, save £3’. InControl is one of the first systems to be truly service oriented,” says Freeman.

Stores Save Six Hours per Week Cashing Up Tills and Safes

Systems that used to be done manually, such as counting cash at the end of the day, are now automated with the SQL Server implementation. According to Freeman, each store saves about six hours a week, as employees spend less time on non-customer-facing tasks and cash counting systems. This also eliminates opportunities for human error.

Stable Environment Keeps Business Running

Microsoft technology is stable and easily supported. In a retail environment where tills are running all the time, the system managing the data needs to be reliable, or business ceases. “We need a robust, resilient supportable system,” says Freeman. “Because the food division of The Co-operative Group is so large, if the tills go down due to a database error, the cost adds up very quickly. A stable environment is one of the best assets we have.”

Premier Support Saves Money and Adds an Extra Layer of Stability

An integral part of the service offering provided by Microsoft is Microsoft Premier Support, which helps customers to improve IT functions to better achieve business goals. Premier Support maximises the return on customer investments byproviding personalised service management, and delivering prioritised problem resolution support, 24 hours a day, seven days a week.

As part of the Premier Support consultancy service, Microsoft Application Development Consultants worked side-by-side with developers at The Co-operative Group to help ensure that InControl was built on a stable foundation right from the start. “We can now pass this technology on to our clients, safe in the knowledge that they are purchasing a trustworthy product they can rely on, that makes the most effective use of Microsoft technology,” says Freeman.

Should any operational problems occur with the in-house system, Premier Support provides rapid response on all Microsoft products. ““It’s nice to know that, in the unlikely event of something going wrong with our system, a Microsoft engineer can come out and fix it immediately,” says Freeman. “One of the reasons I’ve stayed clear of open source technologies is that they don’t provide the type of assurance that we get with Microsoft. If I used MySQL I could only get coverage on the database, and it would cost me up to 10 times as much.”

The Co-operative Group Saves £120,000 a Year with Green IT

Green credentials are an important part of The Co-operative Group’s business practices. Sustainability and social responsibility are part of the core practices of The Co-operative Group that also make good business sense. “From a system point of view, we are the first to implement green tills. We’ve implemented a solution called Wake on LAN, which turns the tills off automatically when they’re not in use. The system also shuts the tills off at the end of the day and turns them on and updates them just before the shop opens. It reduces tons of carbon dioxide and makes £120,000 worth of savings,” says Freeman.”

Product for Other Retailers Adds Another Income Stream

Development of the EPOS system InControl not only gave The Co-operative Group the customised retail solution it needed, it also created an additional line of business. The application provides solutions to many of the challenges retailers face, by linking warehousing and ordering systems, sales data, employee management, customer service, and marketing functions. Better customer satisfaction and precise targeted marketing improves sales, while better ordering and management systems improve profit margins. “The modular and fully scalable system can be adapted to any business, and it’s a stable environment. When a company uses InControl, it is, by default, using SQL Server too,” says Freeman.

Microsoft Server Product Portfolio

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Microsoft SQL Server 2005

Microsoft SQL Server 2005 is comprehensive, integrated data management and analysis software that enables organizations to reliably manage mission-critical information and confidently run today’s increasingly complex business applications. By providing high availability, security enhancements, and embedded reporting and data analysis tools, SQL Server 2005 helps companies gain greater insight from their business information and achieve faster results for a competitive advantage. And, because it’s part of Windows Server System, SQL Server 2005 is designed to integrate seamlessly with your other server infrastructure investments.

For more information about SQL Server 2005, go to: