6.2. SR 11-06-1995r a�
i
TAkitylk River
•
ITEM 6.2.
MEMORANDUM
TO: Mayor & City Council
FROM: Lori Johnson, Assistant City 6Z
Administrator
DATE: November 6, 1995
SUBJECT: Consider Purchase of Updated
Computer /Cash Register System for
Liquor Store
Recently, Liquor Store Manager Fritz Dolejs discussed purchasing Physical
Inventory Scanners in an effort to reduce the time it takes to count the store's
inventory each January 1 and July 1; the scanners would also increase the
accuracy of the inventory count. Although this expense was not included in
the 1995 Budget, it appeared to be a worthwhile purchase.
After further exploring this purchase, it was discovered that the current
computer /cash register system would need to be updated to accommodate the
inventory scanners. The original system was purchased in 1986; at that time
it was one of the first computerized systems in the retail liquor business. It
provided inventory, ordering and sales information that was not available
before. This system was updated in 1991 to improve efficiency. This new
update would significantly increase efficiency by reducing staff hours needed
to perform certain functions and by providing improved inventory, pricing,
and sales reports. It is estimated that time spent on receiving merchandise,
pricing, price lookups, IPC entries, and other data entry will be reduced by
five hours per week or 260 hours per year. Inventory time will be reduced by
over 60 hours per year. The inventory time savings will result in a reduction
in wages paid to hourly employees. The reduction in other data entry will
not result in a reduction of pay because this work is completed by full time
employees. It will, however, allow more time for these employees to provide
additional customer service, review and better estimate ordering quantities,
and review and analyze sales data.
13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441 -7420 • Fax: (612) 441 -7425
Attached is a quote for the new system and some information about what the
• software will provide. All of the registers would be updated to 486 processors
which will increase speed. The Physical Inventory Scanners would be
purchased to increase speed and accuracy of the inventory count. The total
software and hardware upgrade cost is $10,884.00 plus tax. Because the
store has used the Total Register Systems, Inc., (TRS) software for almost ten
years and it has worked well, no additional quotes were received. TRS
has installed systems in over 120 liquor stores. Several of those have
already converted to the new software and others are making plans to
upgrade.
Instead of planning to upgrade in 1996 and including this expense in the
1996 Budget, it was decided that the cost savings that would be realized in
completing the January 1, 1996, inventory would warrant making the
purchase in 1995 so the system would be up and running before the
December rush. It is estimated that system will pay for itself in three to four
years because of the significant staff hours saved and the more detailed
information it provides.
If you have additional questions on this request, please contact either Fritz or
me.
• Action Requested
The Council is asked to consider the purchased of an ARS Version 4
Inventory Management and Cash Register System from Total Register
Systems, Inc., as outlined on the attached quote.
•
MANAGE FOR THE FUTURE
Total Register Systems (TRS ) can assist you in obtaining a complete turn -ke y point-of-sale
system. Everything you need to operate your business is included. The
TRS Retail System gives you immediate access to detailed information from the origination of a purchase order through to the final sale of the product.
0
TRAINING AND
TECHNICAL SUPPORT
If you need help or advice, day or night, our trained
technicians are available to answer your questions quickly and
professionally. In addition, Total Register Systems offers a one year
commitment for training and support on all software as well as a one
Wear parts and labor warranty on all hardware. Extended service
ontracts are also available for a nominal fee.
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L.- 5
MANAGEMENT
DECISIONS
The up -to -date financial and management information
provided by the TRS Retail System will not only save you time and make
routine tasks easier, but will assist you in identifying potential problem
areas such as slow moving items, inventory turns, low profit margins
and theft.
C LIV1NU
The TRS Retail System allows merchandise to be entered into
the system either through a previously generated purchase
order, input directly from a packing list, electronically via
modem from the vendor's computer, or by scanning the
merchandise.
0
REPORTING
The TRS Retail System is designed to take inventory control
far beyond the limitations of cash registers. A unique report
generator allows you to specify the data and the organization of
that data on each report. In addition to daily sales and current
quantity on hand reports, PTD, MTD, & YTD reports for both
sales and profits are available.
12 1
U
PRICING
Once the merchandise is received, a report will be
generated to identify those items with cost changes. This will allow you
to adjust the retail price if needed and maintain profit margins. In
addition, price labels can be generated for both new merchandise and
items whose retail price has changed.
The most important part of inventory management is the
point -of -sale system. Experience has shown that between one and four
percent of a retail store's yekr y gross income is lost due to mislabeled
items and incorrect price entry at the cash register. The best way to
insure price accuracy and eliminate honest mistakes is through
scanning.
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The goal of any inventory system should be to provide you with detailed .-- formation at the time you need it.
The TRS Retail System is being used by over 200 stores nationwide. We at Total Register Systems are proud of this accomplishment!
Ask your sales representative for a referral list of customers in your area and find out for yourself how Total Register Systems can help you manage for the future.
Total
Register
Systems, Inc.
4215 LOUISIANA AVENUE NORTH • NEW HOPE, MINNESOTA 55428 • TELEPHONE (612) 537 -1906 • FAX (612) 537 -1504
PROPOSAL
City of Elk River
Northbound Liquor
October 31st, 1995
The following is a list and pricing information needed to upgrade to
the ARS Version 4 Inventory Management and cash register System.
----------------------------------------------------------------------
Quantity Description Price
---------------------------------------------------------------- - - - - --
1 ARS Version 4 IMS Software Upgrades ........... $ 2495.00
1 ARS Version 4 Promotions ......................$ 169.00
1 5 Station Lantastic 6.0 Network Software ...... $ 499.00
0 3 Ethernet Adapter Boards .......................$ 380.00
3 486 Computer Upgrades (Cash Registers)
........ $
4500.00
Included: 486 -80 Mhz with 4 Meg Ram
1 Network Cable ... ..............................s
195.00
1 Network Communication Hub .....................$
249.00
2 AM3000 Physical Inventory Scanners ............
$
1998.00
1 TRS Phone Link. Includes 9600 Modem &
Closeup.$
399.00
Total $ 10,884.00
------------------------------------------------------------ - - - - --
This price includes upgrading your current computers at the registers
to the 486 -66's with 4 meg of Ram, the installation of the network,
and training on the new version of software.
Sincerely,
• Brian Anderson