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r a� <br />i <br />TAkitylk River <br />• <br />ITEM 6.2. <br />MEMORANDUM <br />TO: Mayor & City Council <br />FROM: Lori Johnson, Assistant City 6Z <br />Administrator <br />DATE: November 6, 1995 <br />SUBJECT: Consider Purchase of Updated <br />Computer /Cash Register System for <br />Liquor Store <br />Recently, Liquor Store Manager Fritz Dolejs discussed purchasing Physical <br />Inventory Scanners in an effort to reduce the time it takes to count the store's <br />inventory each January 1 and July 1; the scanners would also increase the <br />accuracy of the inventory count. Although this expense was not included in <br />the 1995 Budget, it appeared to be a worthwhile purchase. <br />After further exploring this purchase, it was discovered that the current <br />computer /cash register system would need to be updated to accommodate the <br />inventory scanners. The original system was purchased in 1986; at that time <br />it was one of the first computerized systems in the retail liquor business. It <br />provided inventory, ordering and sales information that was not available <br />before. This system was updated in 1991 to improve efficiency. This new <br />update would significantly increase efficiency by reducing staff hours needed <br />to perform certain functions and by providing improved inventory, pricing, <br />and sales reports. It is estimated that time spent on receiving merchandise, <br />pricing, price lookups, IPC entries, and other data entry will be reduced by <br />five hours per week or 260 hours per year. Inventory time will be reduced by <br />over 60 hours per year. The inventory time savings will result in a reduction <br />in wages paid to hourly employees. The reduction in other data entry will <br />not result in a reduction of pay because this work is completed by full time <br />employees. It will, however, allow more time for these employees to provide <br />additional customer service, review and better estimate ordering quantities, <br />and review and analyze sales data. <br />13065 Orono Parkway • P.O. Box 490 • Elk River, MN 55330 • (612) 441 -7420 • Fax: (612) 441 -7425 <br />