Why Top Retail Management Software is Good for Your Business

Many retailers are relying on top retail management software to help run their business. The software benefits both small and large businesses when it comes to store operation, including inventory control, supply management and point of sale (POS).  But how does it really work and how can it help your business?

According to a study by Plunkett Research, the estimated retail sale in the US alone is approximately $5.485 trillion. This figure shows how vast the scope of the retail industry is. Since you are in this industry as well, this means you have countless competitors who will gladly take your customers when the opportunity comes. With the tight competition, it is imperative to look for ways to improve the entirety of your business.

To be at par with other competing retailers, you need to adapt to the technological advancement used today which is the retail management software. Many are already using it but most have not explored all possibilities on how it can help with retail management. Therefore, it is important that you gain a concrete understanding of how retail management software works and how it can help your business.

Understanding How Retail Management Software Works

Retail management software, also known as the retail management system (RMS), is a collection of electronic applications integrated into the business system. Basically, the software assists with the overall operation of the store.

Some retailers who adopt the traditional retail management of cash use simple cash register-like operation in running the store. But over the years, several features are added to these machines until it evolved into a more sophisticated device which is integrated into the retail management software features.

We will take a closer look at the different areas of a business where the software can be incorporated. This will give us a better understanding of how it can help run the business without too much burden on the manager and the employees.

Tracking Inventory With Point of Sale Device (POS)

Many businesses that are just starting often choose traditional cash registers mainly because of the price. When you have a limited budget, you often end up compromising. But this should not be the case. A cash register only offers basic functions and reporting so you end up doing complicated reports and bookkeeping.

The moment you start to open a business, you should foresee your needs. If you plan on staying in the industry for a long time, it is wise to invest in advanced equipment like the point of sale (POS).

A POS often records every sale from the moment the payment is processed to make your inventory records up-to-date.  The device often comes with inventory software that enables you to record usage, display modifications in unit dollar cost, and analyze inventory level on each item available. Compared to a cash register, the POS can give comprehensive information on each sale. By running these reports from the POS, you can make better choices about ordering and retailing.

With the data you gather from the POS, you can now see which items in the shelves are selling. Hence, you can make the necessary adjustment to your purchases. In addition, you can also increase pricing accuracy with the use of a bar code scanner and credit card authorization.

Below are other advantages of using POS:

1. Easy to use

There are a number of POS devices available and some have complicated operations required. This can pose a challenge especially if you are not familiar with its operations. Good thing some software offer a user-friendly graphical interface.

2. Easy entry of sales information

The program will let you enter inventory codes either manually or automatically with the use of a bar-code scanner. When the codes are successfully entered into the system, it will do the automatic computation of multiple quantities then provide a running total.

3. Accurate pricing

With the POS, you have different ways of keeping track of product price including the percentage of cost, margin percentage, custom formula and add-on amounts. So, when you offer bulk discounts, you can arrange multiple prices for each product.

4. Timely update of product information

The moment the sale is entered and finalized, the system automatically fills in inventory and accounts receivable records.

5. Option to track sales

This feature is applicable to businesses that offer different payment selections, like installment and rent-to-own options. You just need to enter the formula into the software, and then it will have the ability to tabulate the amount you need.

6. Security

The majority of the system will give you audit trails, so you know where the cash flow problem is coming from. So, no more second guessing. This feature prevents theft since you have tight control of the cash flow.

There are many POS systems that allow add-on devices, like integrated accounting module, general ledger, retail inventory software with a scanner and a lot more. As your business grows, you can opt to add some of these features to enhance your retail management.

Enhanced Service Through Customer Relation Management (CRM)

Every company needs a strategy in dealing with interactions and relationship with customers and potential customers. This encompasses what customer relation management is all about. The CRM helps improve the company’s profitability. It also allows you to focus on your business relationship not just with customers but with colleagues and suppliers, as well.

When the CRM is integrated into your workforce management software for retail, you can keep track of all customer interaction history. It will show you who made the purchase and what other items the customer bought. With this system, you will have one place where you can store information about your customers, their preferences, conversation history, and requests.

Information gathered from the CRM can then be used to better understand the purchasing behavior of people who visit your store, so you can make your sales forecast simpler and more accurate.

Fast and Simple Sales Order Management Process

One thing that many business owners take for granted in the company is the effective order management system. Small business may still be able to get away with the inaccurate ordering process, but for large companies, this can lead to serious problems.

When many channels are involved in the order management, profit loss could result when inefficiently done. Hence, it is important that this feature is integrated into the retail management software so you can offer better order management strategy.

An effective sales order management process will let you accommodate client demand and orders via call, email or personal request using a single platform. The improved order organization process will enable you to deliver orders on time, which can lead to increased client satisfaction and eventually develop loyal customers.

There are several processes involved in order management and inputting customer orders is just a small part of the entire procedure. Included in the order management process is determining whether to ship the goods from a warehouse directly from the dealer or from a distribution center.

Just like with POS, sales order management combined with retail management software can also help with inventory organization. With a good replenishment system, you can deliver products at an accurate time and date.

Why Inventory Management is Critical to Business

Inventory management software for a retail store is important so you know what you have in your warehouse and where this can be found. Integrating this to your system will boost the benefits you get because with an accurate inventory, you are sure that asset value on your data matches what is physically in the store.

Major benefits of integrating inventory management to the software include inventory optimization, accurate financial reports, and supply chain visibility. We will take a closer look at each of these advantages and find out if it is applicable to your business.

Inventory optimization is when you have the right combination and amount of products in your inventory. The software makes sure that there are products available which ensure happy and satisfied customers. Moreover, you are assured that all products are bringing in money and not just stocked somewhere.

A precise level of inventory can be achieved when you use data such as sales order, purchase order, and planning scheme which results in actual inventory visibility.

Having accurate financial report is very crucial to guarantee that your annual reports and taxes are correct. This is needed by the government and future investors.

Supply chain visibility gives your back office access to real-time monitoring of supplies. For bigger companies that have supply chain partners, this feature will let their supplier know when to replenish products.

If you want top retail management software, you can opt to get a program which has all the features we talked about. With all these integrated into your company, you do not have to spend countless hours gathering and analyzing data. All these will be ready for your use when you want to. Everyone involved in your business, from customer to colleagues and suppliers, can also benefit from this investment.

Get the latest information on this software by visiting CrowdReviews.com where you can also find helpful retail management software reviews.