Customer: IKEA, India
IKEA, the world’s largest furniture retailer, is known for its reasonably priced functional furniture that incorporates minimalist Swedish design. After in-depth research and market study, IKEA decided to launch its stores across India. While the potential for over 1 billion new customers is attractive, there are serious challenges that IKEA needs to overcome.
IKEA opened its first store in Hyderabad on 9th August 2018. One of the major concerns was on the best possible method for managing cash and the security of its daily cash operations. The store receives cash through its core furniture product sales, cafeteria services and the sales from other retail products that IKEA offers. Therefore, there is a need for a solution to manage cash and reconcile it at the end of each day. Managing such huge amounts of cash manually, and that too on daily basis, would not only be a tedious affair, but was also susceptible to frauds and misuse. To address this issue, MAXIMUS together with its partner CMS Infosystems delivered a solution to streamline Cash Management in a secure and efficient way for all IKEA stores across India.
CMS Infosystems provided cash recycler machines from Nautilus Hyosung. MAXIMUS delivered a customized software solution specially tailored for IKEA. Every day, the cash collected by the IKEA staff at different departments is deposited in the recycler machine. Similarly, if an IKEA staff requires cash to be provided to a customer or a vendor, they withdraw the cash from the cash recycler machine by entering their employee ID and password / PIN. This enables the cash paid to be offset by the cash collected within the same premises.
The machine is configured for lower valued denominations like INR 100, 50, 20 and 10. The Maximus application security module provides a facility for the IKEA administration team to create various roles and assign rights to different modules. Only authorized staff of IKEA stores can access the recycler machines and the back-end application portal. The application provides real-time reports that reflect the cash position in each of the recycler machines, the whole store, and the transactions carried out by the IKEA staff. Through the backend portal, a secret PIN / password is generated and the same is provided to the staff in a secure way. All actions of the IKEA staff, whether through the backend portal or at the recycler machine, are stored as audit trail.
The IKEA staff can also monitor and control the status of each physical terminal or the entire store. At the end of the day, the cash and transactions are reconciled. Extensive reports are available on Reconciliation, Analysis and Control. These enable the IKEA management to undertake decisions in a proactive and timely manner on a daily basis.
For IKEA and other mega-retailers, the Maximus solution is a unique and novel way to secure and streamline their Retail Cash Management Operations.