Can A Better Bottom Line Benefit Customers Too?

Tuesday, March 1, 2005

gaye sm wow m I i gy 10 Wk wg WO Lam B ae gD we fh 51 B ' (H Samres mi Woe MS Notes': Can A Better Bottom Line Benefit Customers Too? (NAPSA—Often, changes meant to improvea retailer’s bottom line or back office can also result in changes that put a smile on the customer’sface. For example, installing infor- mation systems that improve inventory control, create a more efficient supply chain and reduce transaction times may result in savings for the retailer that can mean lower prices and better service for the customer. “Technology in the retail industry has cometo the forefront as a competitive tool,” said Jeff Roster, principal analyst at Gartner. “The rate of technology adoption is accelerating asretailers are transforming their operational systems, from supply chain and back-office applications to merchandising and in-store communications technologies.” In somecircles, a drop in prices and an increase in value resulting from implementing new IT technology is referred to as the “Dell Effect.” The company has been providing retail customers pointof-sale (POS solutions since 2003 that are said to blend high quality with low cost. Their products— many of which are designed with customer feedback in mind—are often priced at a fraction of the cost of competitive products. For instance, by responding to customer feedback and leveraging the company’s position as the leading supplier worldwide of flat-panel displays, Dell was able to design a stable touch screen that is easy to set up andservice. In the retail industry, new IT technologyis starting to be seen as a competitive tool. The low price point and high quality of their 15-inch, flatpanel, touch-screen monitor is intended to appeal to a broad range of retail and business customers seeking a reliable, costeffective touch screen to help reduce transaction times and simplify PC systems interface. In addition, the company’s systems are said to provide an alternative to proprietary technology, which typically costs more to acquire and support and can even lock customers into a singlevendor solution that limits future purchaseflexibility. “By implementing these affordable touch screens into new Pier 1 Kids locations as we grow, we will save a significant amount of money that we can use for other technology purchases,” said Ginny Carroll, director of information technology at Pier 1 Kids. To learn more about products and services available for retailers, visit www.dell.com/retail.

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