System Overload

 Technology is playing an ever more influential role in retail success. Samantha Docherty reveals why it's vital to have a retail business system that adapts and grows with your company.

The days when a cash register, a good location and a great business idea were enough to guarantee retail success are now over.

Niche Fashion Technology director Peter Pakarinen says to become truly successful these days fashion business companies must learn how to connect with technology to ensure their stores are run efficiently.

According to the experts, changing the efficiency and effectiveness of retail operations by purchasing a comprehensive fully integrated retail business system that is both industry specific and cost effective can help retailers avoid dysfunctional systems, costly mistakes and gain assistance in reaching maximum profits.

The first and foremost point, according to QQQ Systems sales and marketing manager David Tyc is no matter what system is installed; retailers need to ensure they understand the capabilities and limitations of their new system.
Retailers, he says, also need to ask themselves whether they have the correct staff with the right skills utilising their systems.

"There is no point installing a multi-million dollar system, tool or application without having the right skill set to complement it. Also they should keep their systems up to date, that could be software, firmware, hardware, upgrades and/or releases. You need to always keep your system in peak performance to get the results you want."

A fully integrated system that grows with the businesses is high on the agenda for an increasing number of retailers.
Due to the cost involved in maintaining and staying abreast of the latest technology changes Mark Silver, managing director at Future Business Systems, says companies feel they need a fully integrated system that will allow them to expand their business.

"They have gone from systems that polled overnight to true online, real time systems. Every shop and head office knows what their current stock levels are and prices can be changed across all shops instantly. This means decisions can be made quickly and reporting is up to date."

Retail Directions managing director Andrew Gorecki says the biggest retailers make is to experiment with their IT as this can be a costly nightmare if not handled by experienced professionals.

"Retail Directions has been called upon many times to rescue retailers from situations where money has been spent on the wrong technology and the end result has stifled the business."

Adding the specific needs of fashion retailing cannot be properly addressed by generic systems, Gorecki says businesses need to ensure they use a fully integrated, proven system specifically designed and developed for fashion retailers.

"Once the right system is in place, it needs to be used to its full extent. Cotton On grew from 50 to 320 stores in just two years and they also opened three additional brands, all done using a single system."

One retailer who learnt the hard way was Sam Im, managing director of special occasion wear retailer Rosemin. Im says the main problem initially was that he tried to install a system himself.

"I thought that I was saving the cost because I tried everything myself. This is why most retailers [have] difficulties [when installing] a new system. But one day I got a phone call and had an 'obligation-free' meeting with professional technicians. That meeting opened my eyes. Now my advice is to ask specialists and get their help.

There are so many stores and so many choices for customers these days, retailers are becoming busier and busier because we have to generate better ideas to attract customers all the time. If you have a simple and powerful system that works well itself then you [will] have more time to do other things which will make your store look [unique].

"I believe a system [alone won't] make your business grow; but it gives you more freedom to be creative to [expand] your business."

Apparel 21 general manager Luke Haites advises retailers to look at systems as an investment, not an expense. He suggests retailers should consider initiating a five to 10 year business plan before selecting a system. 

"Look for systems that provide full integration across the in-store and back-office functions and that provide real-time information in-store and at back-office through continual communication with the stores rather than overnight poling. Look for system providers that are committed to on-going development," Haites says.

Pakarinen argues that if retailers are in a position to have data content controlled and administered at the same time as they handle their backend system this will allow them to manage product, customers, stock entries and sold out items more efficiently.

"If information changes are automatic it instantly takes away duplication of data entry and streamlines your business."
With a clear vision of where she wanted her company to go long term, Gabrielle Manning, director of womenswear label Manning Cartell, invested in a system that would adapt and grow with the company into the future.

"When we set up Manning Cartell we knew retail was in our plan so we looked for a system that covered both manufacture and retail. I have worked for companies in the past that had separate systems and it was a nightmare to work with. A lot more manual spreadsheets need to be done when they have separate systems, and you have to deal with corrupt files."

Unable to imagine not working with a computer system, Manning feels retailers have no real stock control when running a store manually.

"I can see what our stores are selling within half an hour of the sale. We don't like to over buy and with this system the stores can look at each other's stock level and even look at what we have in head office. Whether it's 10 units or 1000 units it goes through the same process. If we open another store the inventory is already in the system you just have to turn it on."

Owner of mature ladies retailer Kings Park Fashions, Karen Wardrop says when planning her second store she realised she could no longer operate manually. Now with four stores across Perth, Wardrop upgraded to a wireless system six months ago.

"It enables me to tap into the stores trading and stock levels at real time. Also I am able to transfer stock and input inventory to receive stock within half an hour. It's a fantastic sales tool - [instantly finding] stock so you don't lose a sale. It was a natural progression for us as our stock is in such high demand."

Incorporating a senior's card discount, Wardrop says the system also helps her look at busy times for staffing.
Replacing four disparate systems with one integrated system, it gave plus size label My Size a solution that handled its POS, accounting, customer relations, payroll, inventory control and manufacturing requirements.

Allowing My Size to grow by concentrating on fashion and not the computer system, William Roy, My Size IT manager says the company has almost doubled its stores since installing the integrated system.

"With four disparate systems it was extremely difficult with lots of double work and many points of failure. It's vital to have a system that can adapt and grow with the company."

By Samantha Docherty