How A Furniture Store Improved Sales With An Apt ERP Solution?
A leading furniture manufacturing and trading company with multiple franchises and retail
outlets wanted a comprehensive solution that could manage their remote operations,
inventory, customers thus improving their sales. Delving into this challenge right away,
Coruscate came up with an ERP system that helped the furniture client overcome all their challenges.
The Broad Requirements
They manufacture furniture pieces. They have franchises of their retail outlets that sell the manufactured goods to the end customers.
- Inventory Management: The company had a manufacturing unit from where they would send over the finished goods to the retail outlet. The retail outlets would then sell the goods to the end customers. Tracking the inventory between the manufacturing outlet and retail outlet was increasingly difficult for the client. They were not able to keep a track of the items sent vs the items sold. In some cases, there was a mismatch between the total items sent and the total items received at the retail outlet. The system should be able to resolve the inventory management issue.
- Remote Operation: Certain stores were located in areas where the Internet connection was nothing to boast about. This meant working in offline mode. The sales people and the retail outlet operators had to maintain their sales records as well as other details such as billing, invoicing etc. in the offline mode, without delay. The system should be able to carry out remote operations with ease and total convenience.
- Non-movable Stock: There was no count of the non-movable stock in the company. If some of the products had not been sold in a long time, they are not accounted for. If there is a demand for the product in another store, they would not be able to send it in time, as there is no record of existence of such product. The system should account for the non-movable stock.
- Stock Management: In certain areas there was a particular kind of product that was popular while, the others hardly received any attention. The manufacturer needs such details so that they can send products that will be sold immediately to the retail outlet. This data was unavailable, which meant all the retail stores had all the goods, irrespective of their need and popularity. Managing the stocks between the different stores and retail outlets should be done by the system.
- Customer data: There was no database of the customers. The insights on the customers can help the company manufacture the right product and deliver it to the retail outlet. However, there is no such record available for the manufacturer. The system should collect customer insights and propose it to the furniture manufacturer.
How ERP Helped HM Furniture Improve Sales?
Based on our market research, study of HM furniture and the segment as well as a detailed understanding of the requirements, we developed an ERP system that would help the client manage all aspects of manufacturing. The system controls inventory, manages the order, and helps improve the products based on the insights developed for the customer.
- The manufacturer can add the stock available at their outlet. They can add the number of furniture pieces along with the type they are moving to another retail outlet.
- The retail outlet can add the inventory available with them at present. They can keep update the system with the inventory that they have received as well as sold.
- The system has an 8-hour lag.
- We have devised a desktop-based application which allows for offline management.
- The product is synced in offline mode. The main store stock as well as the retail store stock is managed and can be availed in offline mode.
- The retailers can get invoices and PO in offline mode.
- The system can give you details on the actual available stock vs the locked stock.
- Once an order has been placed and the PO generated, the stock is locked.
- The system also gives a deliver date for the product. The retail outlet would know when it is likely to receive the product.
Non-movable Stock Management
- The retail outlets are a nexus. So, each retail outlet can see the inventory available at the other retail outlets through this application.
- If there is an order that requires more pieces of certain furniture. The retail outlet can not only place order at the main store but also to the other retail outlets.
- This helps in selling the non-movable stock.
Customer Data Management
- The sales person at the retail outlet were given iPads with a webview form.
- This form allowed the sales person to add details about the customer ranging form general details to their specific buying behavior.
- This would help the company manufacture the products needed.
Apart from that, the system also kept a record of the barcode series for the products as well as the products that had no barcode. The solution is a basic ERP. It also includes accounting and sales modules. There is a three level approval for PO and new sales generated
- The overall management of the multiple outlets and retail stores became easy for the client.
- The communication between the outlets improved, and the inventory was moved instantly thus improving sales
- Insights available on the customers helped improve the products accordingly, and offer the right products to the right markets.