KWI ebook "Before the RFP". Steps for new pos vendor relationship.

The KWI ebook "Before RFP Steps for New POS Vendor" provides a comprehensive guide for retailers preparing to select a new Point of Sale (POS) vendor1
. It outlines key steps to ensure a smooth transition and successful implementation, including:

Assessing Current Systems: Evaluating existing POS systems to identify gaps and needs.

Defining Requirements: Clearly outlining the functional and technical requirements for the new POS system.

Vendor Evaluation: Establishing criteria for selecting a vendor and conducting thorough evaluations.

Implementation Planning: Develop a detailed plan for the implementation process to minimize disruptions.

This guide aims to help retailers make informed decisions and achieve a seamless integration of new POS technology.

Transcript

1. Before the RFP 4 Steps to Get Ready For a New POS Vendor Relationship
2. Actually, let’s say that differently—your business is ready for a new POS (and probably has been for several years now), but chances are good that you and your team haven’t thought through all the implications of that switch just yet. You see, your POS is a massive, complex, integral part of your retail operations. It’s deeply integrated into your systems and processes, probably more so than anybody really consciously realizes. As a result, it isn’t something you change very often. (Nor should you.) Here’s the reality: because you don’t change it often, there are a lot of key factors that you might not be considering. There are strategic decisions you may not have made. You have teams who aren’t even aware that they’ll be involved, let alone that their input is critical. In short, you don’t know what you don’t know.  At KWI, we’ve been doing this for over 38 years, and we do know what you don’t know. That’s why this guide exists—to help equip you with the thought starters, strategic insight, and encouragement it takes to set you and your new POS up for success for years to come. You’re not ready for a new POS. “57% of Tier I retailers, with sales over $1b annually, are planning to make a new mPOS decision in 2024…” —IHL Group, 2024 BEFORE THE RFP
3. BEFORE THE RFP Knowing that you need a new car is only the starting point of the conversation. Do you want a sedan or a truck? Minivan or smart car? As we all know, what you go looking for is highly dependent on knowing what your needs and wants are. Your POS is no different. Ultimately, your POS is your system. It should work for you, not the other way around. Unfortunately, all too many retailers don’t plan for their wants and needs ahead of time, and end up changing their business to match the system. “What do you want?” Know Your Must Haves 1
4. BEFORE THE RFP As a result, the starting point for a POS system change is doing the hard work of understanding exactly what you need from that new system by asking things like: What are our mandatories when it comes to rollout, uptime, support, and training? Are our needs covered by standard system features, or will we need custom development from a provider? How much of our current process exists because of our current POS? How does our current POS impact shopper experience? And do we want to improve that? What are the strengths of our current system that we want to preserve?  How will a POS system change impact our IT, operations, and store teams? These are the questions that everybody assumes they know the answers to, but likely haven’t really thought through well enough to spot potential issues.
5. BEFORE THE RFP Let’s start with the obvious: change is uncomfortable, regardless of the outcome.  Let’s say you have one wall in your bedroom that is damaged and needs repainted. You’ll have to take the furniture out of that room (or at least away from the wall), and paint it. There’s a financial cost of the materials, a time cost to do the task, and a personal cost of the mental/physical energy spent doing it, as well as the upheaval to your normal daily rhythms. Even though the outcome may be pleasant, that change will still bring some degree of chaos to your day. Aligning vision and expectations Get Ready for Change 2
6. BEFORE THE RFP The same is true for your business—the outcome of any given change (like a new POS system) could be good or bad, but either way, simply undergoing that change will bring some degree of disconnection and upheaval.  At home, you wouldn’t go through all that effort just to paint a single wall—it makes more sense to do the whole room while you’re at it. In the same way, a new POS system is an opportunity to transform processes, challenge the status quo, and set a bigger vision for where you’re headed in the future. Don’t settle for using the “simple solution” now and upgrading later—that often will cost you more in the long run via loss of momentum, delays, training costs, the complexity of new integrations, and more. Ask questions like: Are our current inventory/billing/shipping processes optimal for our business, or are they simply what our current POS is capable of?  If the constraints of our current POS didn’t exist, would we plan differently for improvements to shopper experience or growth and expansion? Do we have a true omnichannel experience, or are we faking it with siloed systems? Can you process returns, sales, and exchanges within a single transaction? Are the future plans for our brand experience designed around our audience, or are they being limited by our POS? Will the new POS accept your customers’ favorite ways to pay–ApplePay, PayPal, Venmo, Afterpay, and more? Will the POS devices be mobile so your associates can complete transactions from wherever they are in the store? Will the latest upgrades and updates be executed automatically on all your devices? In an ideal world, how (both in terms of method and frequency) would we engage with our customers? How does that compare to what we actually do, and why do those differences exist? Smart leaders plan to maximize the change, not just minimize the pain.
7. BEFORE THE RFP “I need a new pair of tennis shoes.” Sounds simple enough, but as with most things, the reality is more complex. What kind of shoe do you actually need? Running shoes? Cross-trainers? Do you have a color preference? Style? What retailer will you buy them from? Can you get a better deal online? Or is one on sale and available at a nearby store? It’s exhausting. You see, typically, there is an inherent imbalance in any sales relationship—the vendor knows far more about your needs and the product lineup than you do. As a result, questions become overwhelming, and we make decisions on impulse rather than careful consideration of the most important factors. Know them better than they know you Do Your Homework 3
8. BEFORE THE RFP When you’re dealing with shoes, the worst outcome might be a blister or two. When it comes to your business, you absolutely can’t afford to be unprepared. Savvy leaders understand this, and do the prep work necessary to equip their organization to have meaningful, strategic conversations with a new potential partner. Challenge your organization to answer questions like: Will this vendor be able to support our projected growth over the next five years, or will we be switching again at that point in order to scale?  Does this vendor bill per seat/user, or is their price inclusive of our entire team, regardless of size? How does this vendor handle merchant services? Are we responsible for those relationships, or do they have established partnerships? How are SaaS or hosting fees handled—do we pay an annual fee upfront, or do they bill in arrears based on actual usage? Is billing done as a flat fee, or as a percentage of sales? Does this vendor have a clear, established process for onboarding and support? Is this new system mature and does it integrate with industry standard systems and processes such as ERP, eCommerce and OMS solutions?  Will the POS devices arrive pre-configured, ready to be put to use by the stores? When support is needed, can store teams speak to tech experts based in the US, 24/7/365? Will the new solution be mobile, allowing associates to complete transactions from wherever they are in the store? Will associates be able to process returns, sales, and exchanges within a single transaction? When you know the answers to questions like these, it allows you to quickly and clearly determine what partner is a good fit; it also enables you to drive for a favorable deal and push for features and services that are particularly critical for your unique business needs.  Any vendor is doing their homework on you—beat them at their own game.
9. BEFORE THE RFP Input, authority, and accountability.  These three pieces are the core of any successful business decision or transition. There are entire systems built to help ensure these pieces are in place and that they’re functioning well.  But far too often, organizations try to make a massive move like onboarding a new POS without having all three in place. (Sometimes they try to do it without having any in place!) It isn’t difficult to predict how that sort of move typically goes—slow, frustrating, and not meeting expectations. Everybody is impacted, so get everybody involved Rally the Team 4
10. BEFORE THE RFP Before you submit an RFP or meet with a vendor, it’s critical for you and your team to understand exactly how each of these roles is getting fulfilled: Done correctly, a new POS system will have a massive impact on every part of the business. Don’t make the mistake of having only one team (or worse yet, individual) try to carry the weight of representing everyone’s needs, goals, and experience. Input Who is responsible for capturing needs, impacts, and desired product features from each of the key teams in the business–especially your IT, operations, and store associates? Who are the key stakeholders from each of these teams that will be responsible for giving feedback throughout the decision making process? Do the stakeholders have a clear format for how to garner input from their respective teams? accountability How will your IT and operation teams collaborate throughout the decision making process, as well as after the new implementation starts? What other departments should be involved— marketing, finance? Do those teams have scheduled, protected meeting times with the business stakeholders and key leaders? How long will it take to get store associates up to speed on the new system? authority Who is the key leader spearheading the decision and implementation process?  Who will be the final decision maker?  How are the other executive leaders engaging with the process? Who will be the main point of contact with a new POS vendor? Who is the primary point person responsible for owning the entire implementation process?
11. BEFORE THE RFP A getting-ready checklist What to Ask Before the RFP New POS Mandatories Current System Assessment What are our mandatories when it comes to rollout, uptime, support, and training? Are our needs covered by standard system features, or will we need custom development from a provider? How much of our current process exists because of our current POS? How does our current POS impact shopper experience? And do we want to improve that? What are the strengths of our current system that we want to preserve?  How will a POS system change impact our IT and store team? Are our current inventory/billing/shipping processes optimal for our business, or are they simply what our current POS is capable of?  If the constraints of our current POS didn’t exist, would we plan differently for improvements to shopper experience or growth and expansion? Do we have a true omnichannel experience, or are we faking it with siloed systems? Can you process returns, sales, and exchanges within a single transaction? Are the future plans for our brand experience designed around our audience, or are they being limited by our POS? Will the new POS accept your customers’ favorite ways to pay– ApplePay, PayPal, Venmo, Afterpay, and more? Will the POS devices be mobile so your associates can complete transactions from wherever they are in the store? Will the latest upgrades and updates be executed automatically on all your devices? In an ideal world, how (both in terms of method and frequency) would we engage with our customers? How does that compare to what we actually do, and why do those differences exist? Will this vendor be able to support our projected growth over the next five years, or will we be switching again at that point in order to scale?  Does this vendor bill per seat/user, or is their price inclusive of our entire team, regardless of size? How does this vendor handle merchant services? Are we responsible for those relationships, or do they have established partnerships? How are SaaS or hosting fees handled—do we pay an annual fee upfront, or do they bill in arrears based on actual usage? Is billing done as a flat fee, or as a percentage of sales?  Does this vendor have a clear, established process for onboarding and support? Is this new system mature and does it integrate with industry standard systems and processes such as ERP, eCommerce and OMS solutions?  Will the POS devices arrive pre-configured, ready to be put to use by the stores? When support is needed, can store teams speak to tech experts based in the US, 24/7/365? Partner Requirements Will the new solution be mobile, allowing associates to complete transactions from wherever they are in the store? Will associates be able to process returns, sales, and exchanges within a single transaction? Team Preparation Who is responsible for capturing needs, impacts, and desired product features from each of the key teams in the business– especially your IT, operations, and store associates? Who are the key stakeholders from each of these teams that will be responsible for giving feedback throughout the decision making process? Do the stakeholders have a clear format for how to garner input from their respective teams? Who is the key leader spearheading the decision and implementation process?  Who will be the final decision maker?  How are the other executive leaders engaging with the process? Who will be the main point of contact with a new POS vendor? Who is the primary point person responsible for owning the entire implementation process? How will your IT and operation teams collaborate throughout the decision making process, as well as after the new implementation starts? What other departments should be involved—marketing, finance? Do those teams have scheduled, protected meeting times with the business stakeholders and key leaders? How long will it take to get store associates up to speed on the new system?
12. BEFORE THE RFP We exist to help you succeed Ready to get started? KWI: Before, During, and After RFP Changing your POS is a difficult, complex undertaking. There’s a reason why over 42% of retailers in the US are operating on a POS that is at least 5 years old (RCP, 2023). Yet as a retail leader, you can’t afford to sit still—particularly not when the demand for omnichannel capabilities and fresh customer experiences is higher than ever.  We know this struggle, because we’ve been at the forefront of helping retailers of all sizes with their POS systems for decades. As we talked with brands and retailers over the past few months, we realized that many had the same critical gaps in their ability to prepare for a new POS system—and as a result, we made this guide to equip them (and you)!  At KWI, we’ve been at the cutting edge of “what’s next” in retail for 38 years. No matter what challenge, process, or system you need to navigate, we have the expertise to help your business move into the future. Whether you’ve already started the RFP, or you’re still exploring what you really need, we’re here to help. Email us at sales@kwi.com Call 1-800-873-5944 Schedule a consultation—let us show you one-on- one how KWI can help you address your unique needs and set your business up for future success.