Client Background
A leading international retailer of clothing, foods, wines, homewares and accessories with 718 locations across 34 countries. In Hong Kong, they run 11 department stores with over six hundreds staffs employed and is undoubtedly one of the biggest retailers in the region.
A leading international retailer of clothing, foods, wines, homewares and accessories with 718 locations across 34 countries. In Hong Kong, they run 11 department stores with over six hundreds staffs employed and is undoubtedly one of the biggest retailers in the region.
Business Challenge
Retailing is a very challenging industry where price competition, product trend, market situation and customers' purchasing behavior are the crucial factors for the formulation of retailing strategy. Most of this information can be extracted by systematic analyze of the data captured from the POS and inventory system. However, for a considerable long period of time, the sales and stock data of each store are sent manually to the central administration where the accountants used to spend more than a month to do the analysis work using spread sheets (with some macro programs) and calculators, producing reports that far beyond the management's satisfaction. The drawbacks are: there is no timely reports reflecting the front store sales result, reports can normally be available with weeks delay; some of the data is ignored due to the complex calculation and analytical processes such as spoil food, stolen items... etc.; there are no sales forecasts available; data comparison for special events, such as marketing campaign, held is not available. Client starts to look for a solution that can automatically capture the data from the front desks and translates them into meaningful dynamic reports in timely manner. These reports shall not only reflect the stores results but also provide analyzed information for supporting of management decisions on retailing strategy.
The Company is running a barcode laser reader Point of Sales (POS) system in the front stores as well as a computerized accounting and inventory system to support the backend operation of the stores. Both systems are backup by Databases.
Retailing is a very challenging industry where price competition, product trend, market situation and customers' purchasing behavior are the crucial factors for the formulation of retailing strategy. Most of this information can be extracted by systematic analyze of the data captured from the POS and inventory system. However, for a considerable long period of time, the sales and stock data of each store are sent manually to the central administration where the accountants used to spend more than a month to do the analysis work using spread sheets (with some macro programs) and calculators, producing reports that far beyond the management's satisfaction. The drawbacks are: there is no timely reports reflecting the front store sales result, reports can normally be available with weeks delay; some of the data is ignored due to the complex calculation and analytical processes such as spoil food, stolen items... etc.; there are no sales forecasts available; data comparison for special events, such as marketing campaign, held is not available. Client starts to look for a solution that can automatically capture the data from the front desks and translates them into meaningful dynamic reports in timely manner. These reports shall not only reflect the stores results but also provide analyzed information for supporting of management decisions on retailing strategy.
The Company is running a barcode laser reader Point of Sales (POS) system in the front stores as well as a computerized accounting and inventory system to support the backend operation of the stores. Both systems are backup by Databases.
Solutions
Future Solutions introduced the Web based Store Stock Accounting System (SSA) to tackle the problems. After 3 months detail requirements study and design, the system was suggested to be implemented in 3 phases: first phase provided all the system functions and the sales related reports; 2nd phase generated all the stocks and inventory movement reports; phase 3 produced all the data comparison reports including forecasts and key performance indexes (KPI).
The system is based on the MS SQL Server database, special scheduler program was developed to automatically download data from all the 11 department stores' POS, the accounting and inventory system to the central administration unit after department stores closed. Then the data were combined and "massaged" to form meaningful data cubes for facilitating the generation of reports. At 8:00 a.m. every morning, more than 60 types of pre-defined reports with data up to the day before were ready on the internal Portal for management review. Typical reports include the Daily Taking Report, Sales Reports in daily, weekly and monthly basis, the Stock Movement Report, the Spoil and Damage Report, the KPI Best Achiever, the Bulk Theft Report, the Stock Record... etc. The analysts can further manipulate the data cube by using the OLAP tools for business analysis and data mining if they want.
Special data comparison report can also be generated according to a period, products, store location and region. Sales comparison of a particular product or product line by this week with last week, this week this year with this week last year were also available at just a button click. Comparison of sales performance of special events which not necessary related to the chronological calendar were also provided by the special user defined business calendar feature. Client can enter the marketing campaign like Bordeaux Wines Festival or Chinese New Year Crazy Sales into the business calendar and choose the comparison to be based on the event rather than the calendar date.
Future Solutions introduced the Web based Store Stock Accounting System (SSA) to tackle the problems. After 3 months detail requirements study and design, the system was suggested to be implemented in 3 phases: first phase provided all the system functions and the sales related reports; 2nd phase generated all the stocks and inventory movement reports; phase 3 produced all the data comparison reports including forecasts and key performance indexes (KPI).
The system is based on the MS SQL Server database, special scheduler program was developed to automatically download data from all the 11 department stores' POS, the accounting and inventory system to the central administration unit after department stores closed. Then the data were combined and "massaged" to form meaningful data cubes for facilitating the generation of reports. At 8:00 a.m. every morning, more than 60 types of pre-defined reports with data up to the day before were ready on the internal Portal for management review. Typical reports include the Daily Taking Report, Sales Reports in daily, weekly and monthly basis, the Stock Movement Report, the Spoil and Damage Report, the KPI Best Achiever, the Bulk Theft Report, the Stock Record... etc. The analysts can further manipulate the data cube by using the OLAP tools for business analysis and data mining if they want.
Special data comparison report can also be generated according to a period, products, store location and region. Sales comparison of a particular product or product line by this week with last week, this week this year with this week last year were also available at just a button click. Comparison of sales performance of special events which not necessary related to the chronological calendar were also provided by the special user defined business calendar feature. Client can enter the marketing campaign like Bordeaux Wines Festival or Chinese New Year Crazy Sales into the business calendar and choose the comparison to be based on the event rather than the calendar date.
Benefits
- Timely available of the data in meaningful format for management decision supporting
- Direct cost saving for manpower of the accounting department in producing reports from human calculation
- The breadth and depth of the information provided is highly increased
- Elimination of human errors
- With secure login, users can access the system from either headquarters or any department stores
- Every store manager knows their performance and they can adjust their retailing plan such as position of the goods, price reduction items and marketing campaign immediately
- In the macro view, the system helps the Client to have fast response to the customer feedback and provide valuable information for formulating short and long term marketing and retailing strategy
Solutions