Retail Software Key Terms

Run a tight shop with top-notch retail software by knowing some valuable key terms

With thin margins and constant stress from both brick-and-mortar competitors across the street and virtual competitors across the country, you must shop carefully for software tools than can handle pressure of managing back office operations without breaking your bank. Note these key terms as you compare retail software vendors to understand how they define the concepts as well as how they position themselves as solution providers before settling on a retail software package.

 

Retail Management System (RMS)

The term Retail Management System (RMS) contains the definition: a software system that helps you manage your retail operations. Providers develop systems robust enough to handle the entire operation, from tracking inventory coming in to ringing product up at the register, plus marketing efforts and customer management.
Try: Advanced Retail Management Systems (ARMS) offers the Microsoft Retail Management System that can be scaled to work from a single mom-n-pop shop to a small chain of stores.

Inventory or replenishment

Inventory or replenishment involves both re-ordering stock as it depletes as well as projecting ahead what to order in the months ahead. Install and use software that helps you manage what's on hand as you run low, as well as anticipate what customers may want as the year progresses. Recognize that all business is seasonal; it's a matter of understanding the extent of your particular operation's sensitivity to seasonal changes, and preparing your inventory list accordingly.
Try: Forecasting and Inventory Consultants demonstrates with its FIRM (Forecasting and Inventory Replenishment Management) software how you can save money by reducing the error margin in forecasting how much stock you need to order.

Merchandising

Merchandising combines product location and price. If replenishment covers the location of your product mix up the supply chain, merchandising covers the mix between the stockroom and the store exit. Make your link between merchandising and replenishment as seamless as possible both to minimize losses due to carrying inventory on the floor too long because of poor planning or anticipating customer demand and also to curtail the frequency of markdowns, which depress your margin.
Try: Epicor Software expands on the details involved in merchandising, particularly when operating multiple locations.

Point of sale (POS)

Far more than just the cash register, a well-sorted point of sale (POS) system will feed your inventory management and sales tracking processes providing accurate, real-time information to more efficiently control your operations, as well as protect your customers' privacy by ensuring secure transactions.
Try: RetailSystems.com will walk you through the steps necessary in selecting and installing the POS system that best fits your store.

Customer relationship management (CRM)

Tightly control your Customer Relationship Management (CRM) process to distance yourself from competitor shops. The right CRM system moves you well beyond customer satisfaction snapshots, dovetailing satisfaction with purchase history to build customer loyalty programs tailored to maximize profits and increase sales, both in shopping frequency and per-visit purchasing.
Try: Salesforce contains a thorough list of customer relationship features to consider when developing your own CRM program.

Loss prevention

Loss prevention involves far more than shrinkage, a nice way of saying stock's walking out the back door. You can hemorrhage money from the cash register far more easily through fraudulent activity both by customers and employees.
Try: The loss prevention program provided by Celerant Technology includes a host of transaction-based fraud attempts, from falsified refunds, coupons and certificates to employees abusing discount programs.

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