What is a suite in software terminology?
In software terminology, a ‘suite’ refers to a bundled set of software applications. It offers comprehensive functionalities to handle different systems or processes in one package. A common example is any office suite where users get different applications – each designed for a unique task. The user interface tends to remain similar in suites. This helps users quickly pick up several fundamental actions common to all the applications within a suite. Interoperability is another important feature with suites that allows processing of data across applications. Suites are also more economical as purchasing each application separately often costs more.
What is a retail store management suite?
From the concept of suites, it is not difficult to gauge the idea of retail store management suites. A retail store management suite is a comprehensive package of software applications designed to digitally manage retail business processes and operations. Managing a business from one unified platform offers many benefits in functional and process integration, data migration, information sharing, real-time updates, quick learning (common interface), cross-functional analytics, etc. Some of the common modules that come with retail store management suites are:
· Inventory Management
· Sales Management (POS)
· Customer Relationship Management (CRM)
· Reporting and Analytics
· Staff Management
· Financial Management
Significance of retail store management suite
Emphasis on Improving Efficiency and Decision-Making
For Improving Efficiency
Process Automation
By digitisation of operational information, store management suites offer automation of many tasks which otherwise have to be done manually. Billing serves as a typical example here. In the billing counter, after products are scanned using a barcode scanner (integrated with the POS module), the software identifies the products and generates the invoices (with a few clicks and certain data pre-fed into the system). The billing process is significantly optimised with the infusion of automation into it. The same benefits also apply to inventory management as well. Reconciling incoming stock with purchase orders becomes more accurate and much easier for employees using scanners and software.
Streamlining of Operations
With all processes and operational information integrated into one unified platform, it becomes convenient for business owners and store managers to simplify and organise different processes and operations and the flow of work in stores. For example, if an employee applies for leave, it will show in the retail operations software suite. Therefrom, the store manager can accept the leave application and depute another available for the concerned shift. Essentially, it becomes easier for retail store managers to manage the operational affairs from one central interface. This is comparable to the utility of smartphones in managing the routine operational activities of our lives.
Accuracy in Maintaining Stock
Since retail suites integrate data from all corners in real-time and make it available to concerned stakeholders in their respective functions, it improves the quality of decisions. This applies to decisions pertaining to inventory management as well. When making procurement decisions, store managers have access to real-time data on inventory. With triggers and analytics, store managers are in a much better position to make more accurate purchase decisions with the use of retail store management suites. This ability plays a big role in avoiding situations of overstocking and understocking. With advanced capabilities, these suites can deliver much more.
Faster Checkouts
Retail store management suites are empowered with capabilities to process barcode scanning, data retrieval, bill generation, and digital payment mediums. The entire process of billing gets significantly faster resulting in lesser waiting time for customers in checkout queues. Also, the digitisation of the billing process makes it more accurate as compared to manual billing. Although these suites do not automate the billing process in its entirety it is one step shy of automated checkouts which can be achieved with the integration of a few other technological improvisations like RFID, computer vision, AI, IoT, etc. Improving the speed and accuracy of checkout invariably boosts customer experience and always helps slow down fatigue which is inherent when working in retail.
Seamless integration of channels
Retail suites make the management of omnichannel or multichannel operations much easier by bringing information from both worlds into one application. Most of the modern-day suites come with the capability to handle both offline and online channels. For example, store managers need not collate data from online and offline channels separately for making decisions like stock replenishment or generating daily sales reports. For CRM purposes also, data consolidation is also automated. This makes it easier for store managers to use analytics to improve customer experience and come up with better personalisation solutions. Store management information systems also make it easier to maintain consistency in pricing across channels.
For Improving Decision-Making
Real-time information
Suite applications are network-friendly meaning they can be connected locally or over the internet via cloud. Each suite account operates from the same source (call it a server or database). Any information from any module of a suite account gets immediately stored in one centralised place. Such information becomes immediately accessible to the users of that suite account. So, information punched into a module gets concurrently updated in real time. This is subject to the quality of network connectivity but that becoming a concern is rare. With real-time information, retailers can make more informed decisions on replenishment, logistics, staff management, order management, demand forecasting, etc. The access to real-time information is a boon for multi-store retail management.
360 Degree Insights and Control
Since suites are integrated across functions, data from all corners of an enterprise get assimilated in one place. This helps retail store managers in overseeing and controlling store operations from one unified interface. For example, if there are scheduled promotional campaigns on certain dates, the software application can issue alerts if any leave application coincides with those dates. Since running promotional campaigns is an additional duty, before sanctioning any leave application of an employee who is deputed for a campaign, store managers have to find a replacement first. Doing this manually exposes it to human errors.
Better Personalisation Strategies
Data-driven retail management provides a sharp edge in coming up with more effective strategies for personalisation in retail. Understanding consumer behaviour is not easy and getting good at it takes experience. It requires an understanding of past purchase behaviour in terms of products, brands, timing and frequency of buying, ticket sizes, etc. Further segmentation is possible when the factors of demographics and psychographics are considered. The presence of online sales channels brings additional factors into play. For example, user activities within a shopping website provide meaningful insights into products of interest. Having all these data available in a digested format within a suite makes it easier to make quality analytics for better personalisation.
More Accurate Demand Forecasting
As retail suites process data from multiple sources like inventory, sales, promotions, and returns, they offer a comprehensive field of data to work on for assessing trends and forecasting demand. This makes demand forecasting decisions more informed. There is lesser reliance on intuitions and the scope of uncertainty stands alleviated. Micro and small retail stores that do not use retail suites are denied this opportunity and they have to rely on their subjective judgement every single time before placing an order for stock replenishment or adding new products to their assortment mix. This is not to say data can replace business acumen or experience but it can be used to support or explore subjective judgements.
Quick Recap
Managing a retail store or chain of stores from a suite offers many benefits like functional and process integration, real-time information sharing, quick adaptability, cross-functional analytics, and consistency in the implementation of decisions.
Store management suites offer full or partial automation of many tasks which otherwise have to be done manually. It reduces the scope of human errors while giving speed to operations.
With all processes and operational information integrated into one single application, it becomes convenient for retail businesses to simplify and organise processes and operations. It helps retail store managers in overseeing and controlling store operations from one unified interface.
Retail suites improve the quality of decisions by integrating data from all corners in real time and making it available to concerned stakeholders in their respective domains. This ability plays a big role in maintaining the desired stock levels both in terms of quantity and assortment. Having more relevant data to analyse helps make demand forecasting more accurate. With real-time information, retailers can make more informed decisions in other areas also like logistics, compliance, staff management, order management, etc.
Empowered with capabilities to handle barcode scanning, data retrieval, bill generation, and digital payment mediums, retail suites help increase the speed and accuracy of checkout leading to not just efficient operations but also enhanced customer experience. Data-driven retail management also provides a sharp edge in coming up with more effective strategies for personalisation.
Retail suites make the management of omnichannel or multichannel operations much easier by bringing information from both worlds into one application.
Given the potential leverage that can be obtained using retail suites or store management software for retailers, the question is no longer about whether to use one or not. The focus should be finding a best-fit solution that could accurately meet the business requirements and help achieve retail chain operational excellence for retail chain brands.
About Your Retail Coach
YRC is a retail and eCommerce consulting undertaking specialising in establishment, management and growth solutions for startups and existing businesses. With more than 10 years of experience, YRC has worked with over 500 clients in more than 25 industries with a success ratio of 95%.
To learn more about how we help our clients embrace digital transformation with retail store management suites, feel free to drop us a message and one of our retail consultants will shortly reach out to you.