Flexible, Innovative POS and Store Inventory Management Solution
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1 SOLUTION BLUEPRINT RETAIL Flexible, Innovative POS and Store Inventory Management Solution Industry Retail Business Challenge Improving retail services while reducing operations expenses Technology Solution Retek Integrated Store Operations Enterprise Hardware Platform Scalable Intel Xeon processor-based and Itanium 2 processor-based servers, Intel Pentium 4 processor-based PCs and workstations, handheld devices equipped with processors based on Intel XScale technology SOLUTION ARCHITECTS
2 MEETING NEW MARKET DEMANDS Retek Integrated Store Operations (ISO) can improve point-of-sale (POS) systems as well as cash, store labor, and store inventory management. Based on open-technology standards and native Web architecture, the Retek ISO applications are entirely Java*- based and are optimized for deployment on Intel processor-based systems, to deliver high-performance, flexibility, and reliability to meet a wide range of retail business requirements. Solution Blueprint: Flexible, Innovative POS and Store Inventory Management Solution Solution Provider: Retek Inc. Retek ISO applications are built on an open architecture that is independent of the operating system, application server, database application, and hardware. This flexible architecture enables retailers to improve the service provided to their customers while significantly improving the economics of the store. The flexibility of the architecture, combined with the use of configurable design rules, allows a retail business to very quickly initiate a standard protocol for dealing with discrepancies. THE BUSINESS CHALLENGE Retailers are challenged to reduce operations expenses throughout their stores while improving their customer s shopping experience and they are expected to achieve this in an environment where management is asking the store to do more with less. Over the last few years, many retailers have applied new technologies developed for corporate home offices to their businesses, including applications such as merchandise management, planning, and supply chain execution and the benefits have been significant. However, store operations, payroll, and accounting support continue to comprise the largest expense for retailers. Systems originally installed years ago to bring efficiency to stores in these areas have either outlived their expected life or have become too costly to keep pace with the demands of retail in the 21st century. Retailers are now seeking new technology that can help them more aggressively pursue cost savings and efficiency in point-of-sale capabilities, cash management, labor management, and store inventory management. THE SOLUTION OVERVIEW The Retek ISO solution provides two applications: Retek Point-of-Sale (POS) Provides the basic capabilities for handling customer transactions expected from a POS system. The Retek POS application also provides in-store transaction processing and labor management functions. Retek Store Inventory Management (SIM) Provides instantaneous data communications between stores and the corporate office regarding in-store inventory management functions. The SIM application can be deployed on a personal computer or a handheld wireless computer. 1
3 Case Studies/Proof Points Mark s Work Wearhouse, a wholly owned subsidiary of Canadian Tire Corporation specializing in ready-to-wear apparel and business casual attire, deployed Retek ISO on an Intel Itanium 2 processor-based system running Linux and reduced operating and maintenance costs up to 50 percent. For more details, see the case study at: Retek solutions comprise implementation strategies, technologies, services, software, and support designed to optimize retail business performance, maximize customer satisfaction, and minimize supply chain costs. Solutions are engineered based on the following three key principles: Value Software and services elements, such as custom modifications, configuration of software, implementation, conversion, and integration have been simplified, decreasing the total cost of ownership for retailers. The flexibility to select the hardware and operating system best suited for the job helps retailers minimize operating costs. Retek ISO applications enable retailers to improve the service provided to their customers with Intel Pentium 4 processor-based POS systems that speed checkout. Employees can make better decisions, faster anytime and anywhere in the store with real-time information that s consolidated, analyzed, and distributed through Intel Xeon processor-based and Itanium 2 processor-based servers. Handheld devices based on Intel XScale technology and laptop computers incorporating Intel Centrino mobile technology deliver untethered information to personnel through wireless connections. Innovation The Retek modular architecture allows retailers to build an end-toend solution using a phased approach. Retek integration architecture allows real-time communication of data, real-time coordination of decisions and simplified integration of Retek and third-party applications. Retek embeds advanced predictive and optimization technology into its applications to help retailers make smarter, better decisions. Simplicity Retek solutions are engineered to automate as much functionality as possible to hide the inherent complexity in business processes and to streamline deployment. The result is a more simplified user experience, increased productivity, better decisions, and faster return on investment. TECHNOLOGY The Retek ISO platform supports a wide range of architectures including the following: SOFTWARE Retek ISO Application server running Red Hat* Linux* Database server running Red Hat Linux with Oracle9i* Release 2 relational database management system (RDBMS) HARDWARE Application Server Three IBM xseries* 345 servers, each containing two Intel Xeon processors and 2GB RAM Database Server IBM xseries 450 server containing four Itanium 2 processors and 4GB RAM Storage IBM FAST 600 Fibre SAN 500GB DASDI hard drive Office and Store Desktop and Personal Computers Intel Pentium 4 processorbased systems with 1GB RAM Handheld Devices Handheld devices equipped with processors based on Intel XScale technology 2
4 Retek ISO is software independent and can be deployed on a wide variety of products including: Operating Systems Any platform that can run a Java Runtime Engine, including most versions of the Microsoft Windows* operating system (Windows NT* 3.5+, Windows 2000, Windows XP, Windows 9x and Pocket PC), Linux, and Palm* operating systems Application Servers Any J2EE* application server, such as the IBM WebSphere*, Oracle Internet Application Server and BEA WebLogic* application servers Database Servers Any database that can be connected with a JDBC connection, such as Oracle (on any platform), DB2* (on IBM z/os, IBM OS/400, IBM AIX and Microsoft Windows), IBM Informix* (on any platform), and Microsoft SQL Server* WHO THE SOLUTION WILL BENEFIT Retek ISO is designed for retailers with annual sales over $200 million. It will particularly appeal to retailers who are seeking store applications that provide rapid execution and greater personalization while enabling reduced operating costs and greater flexibility. Retek ISO applications provide specific benefits to several departments: Information Technology Department Systems that are easy to implement and maintain help increase the productivity of Information Technology (IT) resources. Sales Associates Increased access to inventory information enhances the efficiency of sales associates and helps them better serve their customers. Training Department Intuitive applications with online Help functions are easy to learn, helping to reduce training times dramatically. Help Desk Reliable and intuitive applications can significantly reduce Help Desk calls. SOLUTION BENEFITS Retek ISO offers retailers many benefits, including: Lower Total Cost of Technology Ownership The open, standards-based Java architecture of Retek ISO is designed to significantly increase the expected life of store systems. For example, while an internal loyalty card program may adequately support the business today, the Java architecture makes it easy to integrate to a third-party Web service at a later date to increase efficiency while utilizing the same store system. The Retek ISO architecture and its adherence to open standards easily allow for future modification and integration to third-party and custom applications. Reduced Hardware Expense Hardware and operating system independence and complete location transparency let retailers choose what s right for their business needs. For example, by centralizing non-mission-critical functions and taking full advantage of the Retek ISO distributed architecture, retailers can eliminate the in-store processor (ISP) in each store, reducing hardware costs while providing always-on availability. 3
5 Reduced Maintenance Expense POS, receiving room, markdown management, and promotions activities require current unit pricing and history. Rather than creating procedural logic for each discrete store function, Retek ISO uses an object-oriented architecture that allows a single price object to be created and used by all store functions requiring price information. When a merchant initiates a markdown on the single price object, the markdown is provided concurrently to the price look up (PLU) file, so that the price rings correctly at the POS and to the inventory management application, prompting the store employee to physically mark down the item. Simplified and Rapid Implementation The native tools shipped with Retek ISO and the configurability of Retek ISO enable retailers to quickly implement a solution. For example, the Mission Control management tool allows the system administrator to easily manage and maintain multiple application servers and back-end services locally or remotely, and make changes and adjustments in real time. Retek ISO applications have been deployed in as little as four months. Lower Training Costs Intuitive online Help features coupled with Retek ISO native tools allow the retailer to quickly customize the flow and behavior of the user interface. For example, users can click on an icon to get Web-based reminders that are customized for the screen rather than guessing or looking for printed documentation to determine how to use a feature. Increased Customer and Employee Service Levels Retek ISO ships with a set of application and network configuration and management tools implemented in Java. These tools enable store administrators to stay one step ahead. For example, using the Application Builder tool, business analysts can apply business rules to any of the Retek ISO applications and put those enhancements into immediate production. Business rules are used to modify the behavior of the application s functions to adapt them to the specific business needs of the retailer and the retailer s customers. Decreased Store Fraud and Shrink Online cash management, real-time inventory management and labor management, combined with biometric-based security for sign-on and authentication help stores minimize cash shortages, or cash shrink, due to theft, incorrect change, or mistakes. Cash shrink can occur in circumstances such as the following: During a busy season, sales associates in a hurry to close the store may not complete a count accurately. A rule can be created to force additional counts if the cash management activity is conducted after a specific time of day or in a particular season. During busy times, sales may also be recorded inaccurately. By providing electronic media for sales, such as merchant receipts, signature pages, item lists, or invoices, Retek ISO facilitates accurate media reconciliation. When cash in the drawer exceeds $400, the risk of shrink is increased. The configurable design rules feature provided in Retek ISO POS allows a rule to be created so that when the count exceeds $400, a biometric indicator such as a manager s thumbprint is required to verify the count. 4
6 FUNCTIONAL BUSINESS CONCEPT Retek offers a comprehensive end-to-end suite of integrated retail solutions. These solutions create value by providing innovative technology to help retailers efficiently create, manage, and fulfill consumer demand. Retek solutions can be deployed individually to meet specific business needs, or as part of a scalable and fully integrated end-to-end solution. The following diagram illustrates how ISO functions relate to the entire system infrastructure at retail organizations. ISO are the functional applications that are necessary to support store activities. These applications are typically integrated with other corporate applications such as merchandising operations management and supply chain execution systems. Real-Time Synchronization Retek ISO Functional Business Concept Demand Planning Merchandise Optimization & Planning Inventory Optimization & Planning Merchandise Operations Management Supply Chain Execution Integrated Store Operations Enterprise Infrastructure The Retek ISO applications include: Retek Point-of-Sale (POS) Allows retail customer interaction for sale or return of merchandise and provides store labor management tools. In addition to the basic capabilities for handling customer transactions expected from a POS system, Retek POS provides features to support store cash management, labor management, biometric-based security, dynamic online Help, deal pricing and coupons, tax exempt and value-added tax (VAT) support, foreign tender and multi-language support, and electronic signature capture. The labor management capabilities include clock-in and clock-out on any device, capture of store employees available-to-work days and time-off requests, calculation and management of overtime, online timecard auditing and editing, and generation of an optimal schedule based on required roles in the store and a model schedule. Retek Store Inventory Management (SIM) Provides store back-office inventory functions. Provides instantaneous data communications between stores and the corporate office regarding the availability, movement, and handling of inventory. Retek SIM functions include transfers, receiving, direct store delivery, item and return requests, stock counts and adjustments, pricing, ticketing, suggested store orders and a variety of item and supplier lookup capabilities. The SIM application can be deployed on a personal computer or a handheld wireless device. 5
7 USER EXPERIENCE Retek ISO applications are accessed through a Web browser running on any of a wide variety of standard devices, eliminating the need for high-cost custom hardware. Sales associates can access ISO, while store managers can access labor, inventory, and sales data from a desktop system, handheld wireless computer, or personal digital assistant (PDA). The following figures show the Retek SIM application user interface as it appears on a personal computer and on a wireless handheld device. The Store Inventory Management application activated by a Web browser on a personal computer The Store Inventory Management application deployed on a handheld wireless device 6
8 The following figures show the screens that appear during use of the Retek POS application: The POS Transaction screen showing a sale being recorded by a sales associate The POS Payment screen showing a payment being accepted by a sales associate 7
9 The POS Merchandise Return screen showing returned merchandise being accepted by a sales associate The POS Item Lookup screen 8
10 The Store Labor Management screen shown while a manager is checking the status of a sales associate 9
11 SOFTWARE ARCHITECTURE The Retek Web-architected, highly scalable, and modular solution provides retailers with a flexible technology that enables them to quickly respond to new opportunities, new challenges, or new growth. Retek solutions are specifically developed for deployment over the Web. Web architecture provides significant advantages such as scalability, platform independence, and rapid deployment. Retailers and their trading partners can access Retek applications from any desktop with a Web browser. Retek offers flexible solutions through the use of modular designs. Retek ISO applications all share a common object model and core business logic framework and can be deployed individually or together. For example, some customers have licensed the Retek integrated end-to-end solution, maximizing efficiencies and best practices. Others are applying Retek solutions stand-alone to address specific points-of-benefit as quickly as possible. Still others begin with one or two Retek systems and grow into an integrated end-to-end solution. In addition to flexibility, this approach provides a shorter time-to-bottom-line benefit. Customers can quickly maximize benefit, rather than waiting until an entire system is implemented. Retek ISO Software Architecture Presentation Layer Internet Explorer JavaScript* Handheld Java* Swing Desktop Java Swing Presentation Engine Java Swing/JavaScript Application Layer Store Inventory Management Objects Java Java Java Objects Java Objects Point-of-Sale Objects Java Java Java Objects Store Labor Management Objects Java Java Java Objects Common Objects Java Java Java Java Java Objects Object Services Java Java Java Java Java Objects JDBC JDBC JDBC Data Layer Integration Layer Data Storage Oracle9i * Release 2 RDBMS or Client Legacy Java/XML Documents Java/XML Documents 10
12 SYSTEMS ARCHITECTURE Headquarters Router Network (VPN, WAN, LAN) Retek ISO Systems Architecture Firewall Ethernet Data Center Router Firewall Desktop Desktop Intel Pentium 4 processor-based system Load Balancers Ethernet Load Balancers Store Point-of-Sale Terminal Handheld Device based on Intel XScale Technology Ethernet Application Servers (J2EE*) Linux* IBM xseries* Intel Xeon processors 2GB RAM Point-of-Sale Terminal Ethernet Desktop Intel Pentium 4 processorbased system Storage Device IBM FASTT GB DASDI Mainframe Client Legacy Database Server (Oracle Host) Linux- IBM xseries Itanium 2 processors 4GB RAM The Retek ISO solution is designed to provide the high availability, flexibility, and scalability required to support the mission-critical business needs of a company. HIGH AVAILABILITY Access to information is a critical component of business operations. A platform must have the ability to continuously deliver uninterrupted access to resources, services, and applications. A key goal of the Retek ISO platform is to provide high availability of mission-critical applications through redundancy, fault tolerance, and support for offline operations, so companies can avoid costly downtime. 11
13 A common method of increasing availability is creating a system with redundant components to eliminate any single point of failure. Hardware redundancy allows a failed component to fail over to another similar component without interrupting the operation of the system. Redundant capabilities can also be built in at the software level. The Retek platform provides the ability to run multiple instances of software components so that the load is distributed, and the failure of one instance does not interrupt the operation of the application. Two concurrent requests for a back-end service may go to two different instances of the service residing on two different application servers. A fault-tolerant system detects hardware and software failures and routes requests around the failure to allow users continual access to computer applications and services. The Retek ISO platform is designed as a fault-tolerant system with the ability to detect a wide range of application faults, seamlessly recover from an application fault, and continue operations without any downtime. No matter how redundant and fault-tolerant a mission-critical application is, network outages will occur. The ultimate level of high availability is the ability to operate a client without the presence of a network or any back-end services. Retek ISO applications are designed to provide network independence and persistence independence. SCALABILITY A scalable system can adapt to an increase in demands without a decrease in overall system performance. The Retek ISO platform is deployed on Intel Xeon processor-based systems and Intel Itanium 2 processor-based systems, which provide the scalability to support future growth and enable quick responses to a changing business environment. FLEXIBILITY Retek ISO applications are hardware- and operating system-independent to provide the flexibility to meet the needs of businesses with a wide range of client device, hardware, and operating system requirements. The Retek ISO platform is upward compatible to accommodate future changes. SUMMARY Engineered for value, innovation, and simplicity, the Retek ISO applications help retailers optimize retail business performance, maximize customer satisfaction, and minimize supply chain costs. When deployed on Intel processor-based systems, this open, standardsbased application delivers the high performance, flexibility, and reliability to meet a wide range of retail business requirements. LEARN MORE ABOUT THIS INNOVATIVE SOLUTION For general information about the products described in this solution blueprint, visit: If you have a specific question about implementing this solution within your organization, contact your Intel representative or us at: solutionblueprints@intel.com 12
14 Performance tests and ratings are measured using specific computer systems and/or components and reflect the approximate performance of Intel products as measured by those tests. Any difference in system hardware or software design or configuration may affect actual performance. Buyers should consult other sources of information to evaluate the performance of systems or components they are considering purchasing. For more information on performance tests and on the performance of Intel products, reference or call (U.S.) or
15 Copyright 2004 Retek Inc. All Rights Reserved. Intel, the Intel logo, Pentium, Itanium, Intel Centrino, Intel XScale, and Intel Xeon are trademarks or registered trademarks of Intel Corporation or its subsidiaries in the United States and other countries. Copyright 2004 Intel Corporation. All Rights Reserved. *Other names and brands may be claimed as the property of others. Information regarding third-party products is provided solely for educational purposes. Intel is not responsible for the performance or support of third-party products and does not make any representations or warranties whatsoever regarding quality, reliability, functionality, or compatibility of these devices or products. Wireless connectivity and some features may require you to purchase or download additional software, services, or external hardware. Availability of public wireless LAN access points limited. System performance measured by MobileMark* System performance, battery life, wireless performance, and functionality will vary depending on your specific hardware and software configurations. See for more information
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