For the B2B retail executive, operations manager, and IT director, the introduction of a digital price tag system is a key benchmarking decision for modernizing the facility. The advantages offered by Electronic Shelf (ESL) technology, including price flexibility and reduced labor expenditures, are improvements, but not the most important aspect of the overall undertaking. More important is the decision of choosing the right digital price tag supplier.
That choice is a major contributor to your operational efficiencies, overall cost of ownership, system scalability and more, for years to come. A vendor is more than a provider of hardware but rather a technology partner for the long haul. This document describes the most important aspects of considering possible suppliers, which will enable a smart investment decision and ensure peace of mind for the future.
Integration and Backend Integration Limitations
Integration capabilities are predicated upon internal and external integrations. Internal integrations are those within a single form of technology. External integrations are those across many technologies.
Because a digital price tag system is siloed, meaning it cannot integrate with external technologies, if such a price tag system is cutting-edge, it is rather more of a liability than an asset. Effective digital price tag suppliers will have strong and proven integrations with core retail technologies like the Point-of-Sale system (POS), Enterprise Resource Planning (ERP) and/or inventory systems, Product Information Management (PIM) system, and promotion or pricing optimization software.
You should be clear and specific about the integrations and expect a well-documented API (Application Programming Interface) and/or middleware to provide adequate functionality. The supplier’s technology should be a trusted middleware for seamless bi-directional system synchronization, where a pricing update made in the central system is automatically updated on the shelf, and shelf-level information can be used to update the central system. The true test will be an integrated electronic price labels and backend management system.
Evaluating the Durability of the Hardware, Type of Displays, and Form Factors
The physical tags are the main and most accessible component and must withstand the perils of the retail environment. When considering hardware, you need more than the basic specifications. Consider the construction and overall impact resistance and moisture resistance, as well as scuff and abrasion resistance. For display technology, you cannot compromise clarity, legibility as the light conditions change, and the angle of view.
E Ink (electronic ink) technology is the most popular for its the most paper-like, draws almost no power and is legible in sunlight. In addition, top suppliers have a wide range of products with different shapes and sizes, from small shelf-edge labels to big displays for promotional messages or to fit along shelf dividers. This wide range lets you efficiently display different product types, from tiny grocery staples to big tags for clothes, all with a cohesive and professional look. The hardware needs to serve as an enhancement to the brand, not an annoyance.
Importance of the Software’s Versatility and User-Friendliness
A state-of-the-art central management system should serve each customer and each store without effort, and adaptability and usability of the system at each level is essential. In the central management system, the customer should have the ability to determine their own functionality level. Features should include the convenience of navigating the system, managing multiple store links in one user account, modifying store account user roles access, defining user account templates, etc.
Without the need for programming or IT intervention. Also, the central management system should have the ability to seamlessly set, manage, and withdraw subscriptions and should enable the user to configure promotions and store user automated workflows. Every store management system relies on management to establish and review the hierarchy in the past, and the central management system should allow additional approvals and differentiate between simultaneous requests. Employees should not be able to participate in promotions and campaigns without the approval of the appropriate manager.
As a basis, a promotional manager should allow the user to configure multiple system-based promotional campaigns. In the promotional campaigns, primary indicators should include start, end, delay, hierarchical level, groups, etc. In this respect, to remove ambiguity, a promotional manager works with a set of hierarchically structured campaigns to form an overall automated promotional plan, and the ability should be available to campaign one or a set of promotional campaigns.
Overall, the system should place primary emphasis on ease of use, having at its center the adaptability of the entire system configured by the user on their own.
Analysis of Service Agreements, Implementation Assistance, and Scalability
Moving to a digital labeling system is a major undertaking. Therefore, a supplier’s tech is just as crucial as their implementation support. What are their methodologies on project management, onboarding, and training for your IT and store teams? Post-launch, their support structure is your lifeline. What are their Service Level Agreements (SLAs) for response and resolution times, and is 24/7 support guaranteed, particularly during critical peak retail periods?
Most importantly, what does scalability look like for them? Your chosen partner needs the infrastructure and demonstrated ability to support your expansion from a pilot program to dozens, hundreds, or thousands of stores. How seamless is their network architecture and system updates, and what are their backend systems like in terms of consistent performance and support as you grow?
Performing a Total Cost of Ownership and Strategic Partnership Analysis
Although initial hardware expenses are an important variable to consider, the decision should focus more on a comprehensive model of Total Cost of Ownership (TCO). A transparent supplier should be able to help assist this analysis and provide the required information on the initial expense (tags, gateways, software licenses), installation and integration, ongoing support service fees, and future upgrade expense). Compare this TCO with the expected ROI from the savings in labor, reduction in errors, and better management of margins with dynamic pricing.
Finally, consider the supplier as a potential strategic partner. Are they forward-thinking with an innovative product roadmap? Are they planning to invest in R&D? A partner focused on future integrations—like IoT sensors, AI pricing models, or improved in-store analytics—ensures the continued, adaptable usability of your investment to the changing environment in retail, safeguarding your investment long-term.
Conclusion: Building a Partnership for Long-Term Operational Excellence
Choosing a digital price tag supplier is a strategic process that goes beyond a simple purchasing decision. It is the selection of a technology partner who aligns with your business objectives of reliability and innovative service with agility, precision, and efficiency. Analyzing candidates on the ability to integrate, durability of the hardware, software sophistication, system support and maintenance, and long-term value transforms a cost of capital into a genuine investment for modernization of the store.
A capable partner does more than provide electronic price labels with a management system. It is a long-term, adaptive, and innovative system that makes your pricing responsive to strategies, thus transforming your business to excel on multiple fronts.
