Wincor Nixdorf says its latest innovations are enhancing the shopping experience for both retailers and consumers.
February 3, 2009 by Tracy Kitten — Editor, AMC
Customer service and innovation in cash-management were the focus of Wincor World 2009. The annual banking and retail trade show, hosted by Wincor Nixdorf AG near its base in Paderborn, Germany, has evolved from a show focused on hardware to one that highlights software and services.
The company's ability to provide a combined solution portfolio was the message senior executives wanted to get out to their customers, who this year were more heavily represented from developing global markets such as Nigeria, China and parts of Latin America, than they have been in years past. Wincor made note to highlight its customer representation from Ghana, Nepal, Pakistan, Venezuela and the Philippines.
During his opening address, chief executive Eckard Heidloff said the global financial crisis is pushing retailers to change.
"Looking at the next three to four quarters, we will all have to focus more on customer service, and more than ever before, you will need to cope with your costs," Heidloff said.
Retail and service
Breaking into the retail market has been somewhat challenging for Wincor Nixdorf — a company that admittedly has strong and profitable ties to banking. But Wincor says its banking strength and expertise can benefit retailers, and the company is making strides toward getting that message heard.
In China, Wincor Nixdorf has signed outsourced servicing deals with retailers Best Buy and B & Q. Kerstin Zilla, head of Wincor Nixdorf's servicing business, says Wincor Nixdorf assisted both retailers during their openings in China — managing all of the IT implementations with their respective infrastructures.
"Three years ago was a turning point. It was a time when we put our business in place to provide services in markets throughout the world," Zilla said. "Today we have 34 customer care centers worldwide."
The global economic crunch may benefit the services side of the business, Zilla says.
"We cannot foresee all of the consequences of the economic crisis today, but it is critical for retailers and banks to reduce costs and improve efficiency," she said. "They really want to know what the cost reductions are, and that is really the task of the IT company."
Wincor Nixdorf's competitors are focusing on the servicing side of the business, too. NCR and Diebold are both advancing their cash-handling and servicing offers; Diebold last year announced the launch of a newly developed corporate division focused on service. What makes Wincor unique in its cash-management and servicing push is that it is not focusing solely on financial institutions — it's focusing quite a bit of its attention on retail.
In the United States, Wincor Nixdorf says the retail business is poised for great growth.
Globally, from a checkout and POS position, Wincor is the No. 3 retail supplier. To ascend, as it has in the ATM market, Heidloff says the company will provide retailers with solutions that include cash management, automated sales and marketing processes, checkout automation, and managed services and outsourcing.
Topping that list is cash management. As cash use increases, the need to manage it goes up. In fact, Heidloff says research shows that circulation and production of euros continually increases, despite notions that the European Union is moving toward a cashless society. He said the world has three times more euros now than it did when the euro was first issued.
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The solution Wincor Nixdorf built and designed for IKEA includes a paper bag option at self-checkout — a more environmentally sound option. |
Wincor has found a niche in automated checkout solutions, some of which include a teller, and some that separate payment from checkout all together.
"(During the fair) there was particular demand, for instance, for solutions to rationalize cash handling at stores and branches, as well as for the organization of cash logistics" said Andreas Bruck, head of corporate communication for Wincor Nixdorf.
During Wincor World, an expanded portfolio of automated checkout solutions was on display, with additional modules that offer technical enhancements as well as analysis, design and implementation offers. The modules were touted for their ability to improve processes at self-service terminals for customers.
"Self-service and automation are where we see retailers investing, so Wincor is working closely with retailers as they work through the change-over process," said Joachim Pinhammer, head of marketing for Wincor Nixdorf's retail business. "Our TP Application Suite can connect different platforms and services and our TP Loyalty module is one that really allows us to integrate loyalty solutions. But our automated checkout is where we are really making a big focus this year."
One innovation includes the linking the payment terminal with the exit gate. If the customer has paid the receipt amount, the barrier opens automatically. The customer experience is enhanced, since customers no longer have to identify themselves with paid receipts in order to open the barrier.
Another highlight comes from TPiSCAN, which allows Wincor Nixdorf to offer software product that can be tailored to a retailer's specific checkout needs, whether at the self-service checkout lane or the assisted checkout lane.
Wincor also touted its special consulting services for retailers, which comprise an analysis of the individual structures and processes at the checkout zone to create a precise picture of the status quo and identify the core problems. The analysis is rounded out by project management for planning and controlling a pilot before subsequent rollout.
Take the Real 360 Automatic Scanning solution. Josef Twiste, product marketing manager for Wincor Nixdorf's retail division, says the automated, tunnel checkout solution is still in pilot with a couple of large retailers in Europe, as Wincor works to ensure the customer experience is optimum.
The assisted automated checkout system allows shoppers to place their own items on a conveyer belt, which is monitored by an attendant or clerk. The items are scanned by a tunnel that can take up to 60 item pictures as the scanned items pass through. From there, the customer moves on to make his payment at a payment tower, which is separated from the checkout lane.
"This is a solution that scans the barcode and includes the assistance of a cashier," Twiste said. "We believe the use of RFID at the checkout is some five to 10 years away, because of the expense of RFID tags, which run between 10 cents and 20 cents euro apiece. So it is not cost-effective."
2009 also will be a year of "green" solutions, and Wincor was excited to show its self-service checkouts that can be operated with paper bags. The solution is being launched with Wincor partner GSD Verpackungen.