A fact of life for any business, especially brick and mortar chain and independent retail stores, is the importance of running a tight ship. Each must balance the consistent generation of sales revenue against the close monitoring of necessary operational efficiencies.
In addition to payroll and benefits, purchasing inventory, renting facilities, security and so many other capital expenditures, there is the problem of cash management at the store level – where money is counted down to the last penny and prepared for bank deposit.
Until recently, banknotes and coins were processed in one of three ways: 1) counting money by hand, the old-fashioned way, 2) using manual cash scales which are now becoming obsolete , and 3) installing fully automated scales. Return Office Recyclers (BOR) with every necessary functionality wrapped in very expensive and bulky packaging.
This gap between old manual methods and new electronic devices is driving retail chains to seek a more efficient way to deal with this vital problem.
One such popular brand name retailer with 2,000 locations nationwide and 10,000 employees traveled to the industry’s largest trade show, the National Retail Federation, where he met with a representative from Cassida Pro, a San Diego-based manufacturer and distributor of a wide variety of standard products and custom ATMs for banking, government, casinos and retail applications.
According to Matthew Holt, director of North American partnerships and operations for Cassida Pro, the discount department store could not justify the investment of around $150,000 for a BOR in all of its stores.
Holt learned that the retailer had an average annual turnover rate of 100% in its checkout rooms where employees spent about three hours a day in overtime, which took a heavy toll on payroll.
After hearing about the retailer’s cash counting issues, Holt explained how Cassida Pro’s Split Recycler system could solve them all while providing 80% of the functionality found in a Back Office Recycler at just 7% of its cost, or around $7,000.
After a year-long trial of the Cassida Pro Split Recycler in 25 stores, it was immediately apparent that the improvements made by Cassida’s solution were well received by employees who adapted to the step-by-step on-screen instructions and user-friendly process.
For management, the new system more than met their expectations by performing all the required tasks, including:
- Automatic Change Orders
- Automatic collection of deposits
- Data-Driven Cash Forecast
- Easy enterprise visibility into treasury operations
- Increased precision
- Counterfeit detection
- Reduced cash loss
- Remote monitoring and full cash transparency
- Enabling the distribution chain to process 10 million banknotes and five million coins every day
Another factor that sealed the deal for the management team was the system maintenance package. To minimize downtime and on-site maintenance costs, Cassida’s Depot service quickly replaces the module to be replaced the next day.
Holt said the purchase decision also considered cost factors surrounding relocations or store closures. Unlike Big Box stores like Costco or Walmart, for example, where 2,000-pound BORs are housed in purpose-built permanent checkout rooms and vault enclosures, its customers typically have stores in a retail space at the detail as rented.
The Split Recycler is lightweight, can be installed in upstairs offices, and does not require the costly process of equipment removal, delivery, installation, and security.
Following the successful trial in 25 stores, the retailer ordered the new Cassida solution for all of its 2,000 stores.