Controlling inventory
Reporting and inventory control are two of the main elements that allow specialty retailers to grow and become more profitable. By focusing on the products and brands that sell, business owners can target their efforts. This is important when specialty retailers are competing against big box stores and online retailers.
For instance, a company’s inventory purchasing department needs accurate information with regards to what product is in stock as well as the quantity of product required to fulfil both customer orders and general inventory needs. By centralizing orders and implementing an integrated software system, businesses can save money each year by tightly controlling the inventory replenishment process and ultimately reducing inventory on hand. There is little worse than sitting on $100,000 worth of product that is not moving or is not needed and should have never been ordered.
By incorporating the right software system, specialty retail stores can better determine what products are selling, which in turn will save time to allow managers to focus on expanding the business and finding new opportunities.
“The business management software I use enables instant access to every detail of my company’s operations,” says Jason Miller of A-1 Pool Inc., in West Bend, Wis. “It also allows me to maximize the follow-up of every lead, provide the highest level of customer service, as well as creating various other efficiencies which save time and money.”
Expanding the business without fear
Once specialty retailers have better control over their current inventory, they can easily consider expanding their product and service offerings—even into new markets.
For example, Capital City Appliance and BBQ has more than 15,000 items available in its database, and according to Shabsove, the company stocks 3,000 of them. Prior to implementing business management software, his staff had to flip through various manufacturers’ catalogues and price lists to get the products they wanted to sell.
“Now, not only does the software program make product and price searches quick and easy, it also makes the addition of new items and product lines a breeze,” Shabsove adds. “The software we use also allows us to create ‘kits’ within the program, which enables us to pre-populate the sales process. When you are busy, in part to the short season, the sales team can sometimes forget the specifics of a recently added product, so these ‘kits’ make it easier to maximize the sales potential by listing product add-ons, accessories and even options for up-selling.”
Emerald Pool & Patio is another example. When the company first opened in the 1970s it sold only above-ground swimming pools and chemicals; however, it now offers everything from inground and above-ground swimming pools to hot tubs, custom outdoor kitchens, barbeques, and fireplaces.
“Being able to offer new products and services has enabled us to smooth out much of the seasonality in our business,” says Neely.
How to achieve integration
Business integration can be a difficult process requiring considerable research and dedication; however, the rewards are more than worth it. The place to start developing internal integration is the business owner. If the owner believes in the principles of integration and sells the benefits to employees, then the process of integration is substantially easier. The next step is identifying and understanding the information that is required for each department to be successful.
Businesses should not limit themselves by what tools are currently available in the organization. Owners/operators need to think outside the box and imagine what could be accomplished in having access to information that is not currently available.
What is that information? How can it be used? Why is it important?
Once the inner workings of each department are realized and the information requirements of each group is understood, owners/operators should research the various business management software packages available and select one that best suits the company’s needs.
This decision should not be made lightly and it is important that research is thorough. It is also a good idea to create a list of ‘must have’ and ‘nice to have’ features that are important to the business. Ask software companies to review the list and indicate which features they provide. Also, use any business connections as an advantage. For example, ask fellow dealers or industry vendors for software recommendations and always obtain a list of referrals from the software companies being considered. The road to business integration can be long, but its infinite benefits will be the ultimate reward.
Christina Braks is the vice-president of software products for Evosus Business Management Software, a software package designed specifically for the pool and spa industry. Braks can be reached via e-mail at cbraks@evosus.com or by visiting www.evosus.com.
