Unit 4 Draft

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Feb 20, 2024

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Benefits of an Additional POS Station Marcia Kazmer President Kazco Inc Prepared by Jessica Hall Manager Sole Perfection October 12, 2023

Sole Perfection Memorandum To: Marcia Kazmer, President From: Jessica Hall, Manager Date: October 12 th , 2023 Subject: Additional POS Attached is my proposal for adding an additional point of sale station for Sole Perfection. We strive to be the best option in town to get quality shoes and I believe that we have proved that to the community. As we grow our needs grow as well. Gone are the days where one pc and point of sale program would suffice. I have been with Sole Perfection since its inception in 2007. I was there on day one entering every single product into the point-of-sale system. I started out as just a sales associate and over the years have been promoted into the manager position and over the years, I have observed how various things have worked or not worked. I think that the point-of-sale program that we have now works fine but I think that it is time to expand and have two registers. As we continue to grow we are seeing more people each day and it would be nice to not have a line of people waiting to check out which can be achieved by adding another register. Thank you for taking time to review this proposal and for considering it. I have scheduled a follow up on Wednesday October 18 th , 2023 at 2:00pm to discuss any questions you have and to outline the next steps. If you have any questions or concerns please contact me at jessica.hall@kazco.biz or by phone at (605)559-0359.

Executive Summary The following proposal plans to outline and present the need for an additional point-of sale terminal and program. The store can benefit from adding another station to help with various things. We are continuing to grow, and we will need to make these changes in order to keep up with that growth. As of right now we are currently running a single pc to take care of everything that we do in the store. We use this computer to check out customers, order new inventory, check stock, and enter new inventory when it comes in. There are times that one computer just isn’t enough. This will benefit Sole Perfection in many ways. We will be more efficient when it comes to new stock arriving. There will be less stress because we won’t have to feel like we have to hurry to finish putting in new items or processing an invoice because we need that computer to ring up a customer. I suggest we implement this in a very quick and easy three step process. Once fully implemented we can reap the benefits of having the second computer with the point-of-sale system.

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TABLE OF CONTENTS MEMORANDUM ………………………………………………………………………………………………………………………..ii EXECUTATIVE SUMMARY ………………………………………………………………………………………………………….iii I. BACKGROUND OF CURRENT SYSTEM/STORE…………………………………………………………….5 II. STATEMENT OF NEEDS ……………………………………………………………………………………………..5 III. DESCRIPTION OF PROJECT ……………………………………………………………………………………….5 III.1 Description of current problem …………………………………………………………………………5 III.2 Implementation…………………………………………………………………………………………………6 III.3 Statement of Objectives…………………………………………………………………………………….6 III.4 Methodology or Techniques………………………………………………………………………………6 III.5 Evaluation Measures………………………………………………………………………………………….6 IV. BUDGET……………………………………………………………………………………………………………………6 IV.1 New System…………………………………………………………………………………………………….6-7 IV.2 Previous System…………………………………………………………………………………………………7 IV.3 Additional Costs…………………………………………………………………………………………………7 V. COUNTER-ARGUMENT……………………………………………………………………………………………..7 VI. CONCLUSION…………………………………………………………………………………………………………….8 VII. REFERENCES……………………………………………………………………………………………………………..9 LIST OF ILLUSTRATIONS Figure 1.1 ………………………………………………………………………………………………………………………………….8

I.BACKGROUND OF CURRENT SYSTEM/STORE Sole Perfection was founded in September of 2007 and I have been there from the beginning. Year after year we have sine an increase in sales and our clientele has grown as well. We are still a mom-and-pop kind of store in a small town so our staff of three is small, but we are always busy. Since its inception we have used MicroBiz for our point-of-sale system. Now MicroBiz was not made specifically for shoe stores but over all the years it has proved to work very well for us. The system has an unlimited number of SKUs that can be entered. MicroBiz also works very will with our credit card processing system. II. STATEMENT OF NEEDS Sole Perfection continues to grow as I have said before and with that comes the need for an additional computer and point-of-sale system. We need to be able to have one computer handling customers while the other is putting in new items. On our busier days it would be so beneficial having two computers that would allow us to ring up two customers at the same time. The current program, when processing an invoice, you can’t leave that screen until you are finished. This isn’t a problem if we aren’t busy, but on the days that we are busy you either have to process half an invoice and then hope that everything was put in or scrap it and start all over again. III.DESCRIPTION OF PROJECT III.1 Current Problem The beauty of our current problem comes from the fact that the business has been successful. The current set up of one computer has been wonderful for the first sixteen years of the business but there are times we could use an improvement in the flow of everything. The biggest issue we have with the one computer is that it is limiting us in what we can get done each day. When we are trying to put in new stock, we have to make sure that we are working on it when we don’t have customers because we only have one computer to do all of our day- to-day activities. When we receive the new stock, we need to enter each part number in and when we have a lot of customers, we have to set that aside to use the computer and point-of- sale to help them. That also leaves all of the product to sit in the way until we can get back to it. The worst part of the single computer set up is once all the new items are entered, we then have to process the invoice to let the computer know how much stock we have of each item, and that function of the point-of-sale system does not allow you to minimize or take a break in that to ring up a customer. That means that we either have to process half of the invoice and hope that the prices were entered correctly, or we have to stop the whole thing and start over again. Processing half of the invoice isn’t a viable option because there is just too much room for error. The addition of a second computer would decrease the possibility of errors and would just help the overall flow of business.

III.2 Implementation Adding the second computer would be a very simple process. We already have a second counterspace that could be used. We just need to order the software and equipment and once those arrive, we will start with the setting up of the computer. We would then install all the drivers necessary to run the cash drawer and receipt printer. The next step would be to install the point-of-sale program, followed by the importing of all current skus. This should be a fairly simple process and take only a few hours. This process could be completed on a Sunday so as not to interfere with our normal day. III.3 Statement of Objectives Adding an second computer and point-of-sale system will create an environment that breeds efficiency. By removing obstacles that one computer create we will have a stress-free smooth running daily business. Sole Perfection will be able to continue to focus on growing and reaching more clientele. III.4 Methodology or Techniques Our goal is to make our day-to-day operations run seamlessly and efficient. Adding another computer and point-of-sale system will make our operations run smoothly each and every day. Constantly checking to make sure that the current program and computer count is in line with our business will continue to ensure the growth of the business. III.5 Evaluation Measures I believe that this will be a solution that will sustain us for years to come, but on a yearly basis or bi-annual basis we will evaluate the current point-of-sale and computer count to make sure we don’t need to make any changes or continue to add. IV BUDGET Of course one of the biggest questions will be, what will this cost us? This proposal shouldn’t cost us a ton to implement. There are a couple different routes that we could choose to complete this. The first one that I will go with is going with a completely different point-of-sale system. IV.1 New System I came across a program that is called RunIt. It is a cloud-based point-of-sale system. The beauty of having it being cloud-based is that you don’t have to worry about your computer crashing and losing all your data. Obviously, if their system were to crash you could run into issues, but usually larger companies have a lot of safeguards specifically to combat that. Runit has a whole implementation procedure, and they are there with you every step of the way ( Intelligent Real-Time Cloud POS Software | Runit , n.d.). This is helpful because with it being a

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new software having their support will be key. They have plans starting at $274 a month ( Intelligent Real-Time Cloud POS Software | Runit , n.d.). IV.2 Previous System Our next option would be to stay with our existing system and purchase an additional license. Purchasing an additional license would cost a one time fee of $495 ( Prices of Software and Support | MicroBiz for Windows - Microbiz Cloud POS , 2017). That cost is a one time fee and then we own that additional license. The only time we would be looking at any more costs with MicroBiz is if they updated and made a new program and we wanted to change to it. This option of adding the second license is more appealing to me because it is more cost effective and the process of importing all the information will be quick and simple. IV.3 Additional Costs Regardless of which route we would choose there would be some additional costs for the extra peripherals. We would need to purchase a new computer, monitor, cash drawer, barcode scanner and receipt printer. There is a company that makes bundles that you can purchase to make sure you have everything you need to be up and running. POS Guys has this bundle that gives us the cash drawer, receipt printer and barcode scanner for $598.84 (POS Guys, n.d.). The computer and monitor can just be purchased from BestBuy. I have found a computer that has more than enough processing power to handle the program and all our other needs. The computer would run us $649.99 ( HP Desktop AMD Ryzen 5 12GB Memory 512GB SSD Dark Black M01-F3224 , n.d.), and should not need to be updated for quite some time. The monitor doesn’t need to be anything special just something very basic would suffice. We can get an Acer 21.5” monitor for $69.99 ( Acer EK220Q E3bi 21.5" IPS LCD FHD 100Hz 1ms FreeSync Monitor (HDMI, VGA) Black EK220Q E3bi , n.d.). The last cost that we would have for getting this all set is paying myself or someone else to come in on their day off to get it all setup. The process should take approximately four hours and at $24 an hour, you would be looking at $96 in hourly pay to have me set up the new system. V.COUNTER-ARGUMENT The only counterargument I can imagine would be about the costs of doing this. I know that spending more money can sometimes be a scary thing, but when you look at the fact that the business is doing well and doing so well that spending this extra money is a necessity in order for that pattern to continue.

Purchase new equipment and software Setup workspace Install Software Import Data Back to day- to-day VI.CONCLUSION In conclusion, I think there are good options to think about as far as what system or point-of- sale to go with. I think that the overall benefits of seeing this proposal through will outweigh the costs in the long run. I believe that removing the stress of having a single computer will help with employee morale and I think that having the second computer will help the business continue to grow. Below is a recap of the implementation process. Implementation Process Figure 1.1

References Acer EK220Q E3bi 21.5" IPS LCD FHD 100Hz 1ms FreeSync Monitor (HDMI, VGA) Black EK220Q E3bi . (n.d.). Best Buy. Retrieved October 17, 2023, from https://www.bestbuy.com/site/acer-ek220q-e3bi-21-5-ips-lcd-fhd-100hz-1ms-freesync- monitor-hdmi-vga-black/6555711.p?skuId=6555711 HP Desktop AMD Ryzen 5 12GB Memory 512GB SSD Dark Black M01-F3224 . (n.d.). Best Buy. Retrieved October 17, 2023, from https://www.bestbuy.com/site/hp-desktop-amd-ryzen- 5-12gb-memory-512gb-ssd-dark-black/6516373.p?skuId=6516373 Intelligent Real-time Cloud POS Software | Runit . (n.d.). Cloud Retail Management System - Runit. Retrieved October 12, 2023, from https://www.runit.com/#pricing POS Guys. (n.d.). MicroBiz . POS Guys. Retrieved October 12, 2023, from https://posguys.com/MicroBiz.asp Prices of Software and Support | MicroBiz for Windows - Microbiz Cloud POS . (2017, May 14). MicroBiz. https://microbiz.com/prices/

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