HomeMy WebLinkAboutJanuary 7, 2008 Work SessionCITY OF COLUMBIA HEIGHTS
DATE: JANUARY 4, 2008
TO: WALT FEHST
CITY MANAGER
FROM: WILLIAM ELRITE
FINANCE DIRECTOR
RE: PURCHASE OF NEW POINT OF SALE SOFTWARE, SHELVING, AND
CHECKOUTS FOR THE LIQUOR OPERATION
With the move to the new liquor store locations it is necessary to purchase new POS software.
This software operates and controls the cash register operation and provides historic sales and
inventory information. It is a very essential part of the purchasing process. Over the past few
years we have had significant problems with our current POS software. The company that sells
and supports this software has changed ownership and has had major management restructuring.
Along with this change their service and support has diminished greatly. The result of this is that
we frequently lose information from our historic files and experience significant down time
while attempting to gather sales and inventory-related information. This down time has impaired
Larry's ability to monitor sales, history, and project what needs to be purchased on a timely
basis. Subsequently, staff is recommending purchasing new software to coincide with the move
to the new stores. The new software will utilize most of our current equipment, although several
pieces are old and will need replacement in the near future. It is our plan to purchase only the
software at this time and upgrade equipment as needed in the future.
In preparation for this purchase staff has looked at the four major liquor store POS software
vendors and compared the features and functionality of the systems. Staff recommends
purchasing a Microsoft Retail Management system from Retail Information Technology
Enterprises in St. Cloud. This software package was developed by Microsoft and is used
nationwide in a variety of businesses. It works well in conjunction with other Microsoft software
products. Retail Information Technology Enterprises is the authorized distributor of the software
in this area. Their staff has a significant computer background and appears to be well qualified
to support the product. The basic cost for this software for all three liquor stores is $29,717.
Staff will also be requesting a change in vendor for the purchase of our wall gondola shelving
and checkouts. In November staff presented a recommendation to the City Council to purchase
these items from AA Equipment. Since that time staff has found a new vendor, Accent Store
Fixtures, in north Minneapolis. Accent has refurbished shelving that is in excellent condition.
Utilizing this shelving will save approximately $10,000. In addition to this, Accent has a
woodworking shop and can manufacture custom checkout counters equivalent in quality to the
ones we were proposing to buy from AA Equipment at an additional cost savings of $4,000. At
the next City Council meeting staff will be presenting a recommendation for the purchase of the
POS software from Retail Information Technology Enterprises and for the purchase of shelving
and checkout counters from Accent Store Fixtures.
WE:sms
oso ~ oa2cM