Tuesday, June 16, 2009

Complete Retail Solution, What should a complete retail management software have?

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Point of Sale (POS) and Store Management module:

  • POS interface with Tag readers/Card readers/Printers/Cash Drawers

  • Automated change of SKU description, prices from POS server/SMS server (Info from HQ)

  • Day end/shift end Account consolidation functionality with Store front associate id

  • Trigger based Data transfer to POS server or SMS server and vice versa

  • Self Diagnostics and error warning system

  • POS or Till Training (simulation) software

  • Day end report generation with Cash reduction and irregular drawer openings monitoring

  • Module specific reports and Maintenance

Merchandise Management (MM):

  • Merchandise nomenclaturing, hierarchy generation/mapping, item maintenance and grouping tools

  • Category and Assortment Management, product mix optimization with private label initiative

  • Purchasing, vendor selection, management and contracts and ordering

  • Forecasting, channel’s requirement consolidation and merchandise allocation

  • Vendor Managed Inventory initiative, automated ordering and CPFR initiative

  • Merchandise financial tracking using SL interface with GL. Monitoring vis a vis purchasing budgets

  • Manage the lifecycle of promotions, store openings, new product introductions, and other special events to improve promotions planning and execution

  • Optimization for use of space—from a macro space level, and translating it into executable space plans for the highest possible return on inventory investment.

  • Optimization of markdowns to maximize revenue and profit

  • Create exception rules through a point and click interface for business issues like out–of–stock conditions, excessive forecast errors

  • Module specific reports and Maintenance

Finance and Accounting (F&A):

  • A standard Finance and Accounting Package/Application can be interfaced with the Retail Application modules delineated above. This F&A module needs the following capabilities

  • Interface with POS Sales, Store Overheads, Misc Account

  • AP,AR,GL and HO overheads

  • Functionality of Working Capital Mngt. (including –ve working capital), Advertisement Expenses, Capital Investment amortization, depreciation

  • Interface with HR (Human Resources) module for flow of HR and recruitment costs

  • Module specific reports and Maintenance

Supply Chain Management:

  • Third Party Logistics (TPL) vendor coordination and performance monitoring

  • Inventory tracking and receipts vis a vis purchase orders

  • Cross docking with mapping for supplier article interfacing

  • Warehouse management with Pallet inspection, assortment creation and tagging facility

  • Order – Receipt matching at Central Procurement office as well as channel/store level

  • Actual Lead time capture matrix

  • Create a network for receiving defective and excess products back from customers and supporting customers who have problems with delivered products

  • Module specific reports and Maintenance

Customer Relationship (CR)

  • Customer information capture for data analysis

  • Point of Sale (POS) information Analysis & campaign management

  • Point of Purchase Enhancement System

  • Customer Feedback/complaints capture and implementation

  • Loyalty Enhancement and Management system

  • Module specific reports and maintenance

Human Resource Management (HRM)

  • Time and labor management with scheduling and days of rotation

  • Multiple means of entering time of work

  • HR self services

  • Payroll, configurable validations and approvals

  • Learning management and advanced benefits

  • Module specific reports and maintenance

Real Estate (RE)

  • Decision Matrix for branch/store location and distribution center

  • Lease/Ownership contracts information

  • Amortization of Capital expenses and interface with Finance and Accounting module

  • Repairs and value preservation

  • Facilities Management

Data Warehouse and Business Intelligence
BI – Reporting Layer

  1. Financial KPI’s

    • GMROII

    • Turnover

    • Inventory Days

    • Working Capital

    • Cash Flow

    • Selling Cost

  2. Customer Performance

    • Total Spend

    • Average Transaction Value

    • Items per ticket

    • Frequency, Profitability

    • Market Basket

  3. Product Performance

    • Private Label v/s Branded

    • GM

    • Maintained GM

    • Balance of Business

  4. Store Performance

    • Sales per sq. ft.

    • Stock Coverage

    • Footfalls

    • Conversion rate

    • Average Transaction Value

    • Items per ticket

    • Shrinkage and Out of Stock


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  2. Wonderful blog & good post.Its really helpful for me, awaiting for more new post. Keep Blogging!

    Retail Management Software and Loyalty Marketing Solutions