Report on Inventory Control - Superior Value

Description
Independent operator needs to reduce costs and improve customer service. He needs a point-of-sale and retail management system that can handle his inventory and vendors so that he and his employees can handle their customers.

How savvy retailers leverage Microsoft solutions
Retail Management System
Solutions in Action
Microsoft
®
Business Solutions
Nothing proves the adaptability and resilience of a retail information system like
demanding, everyday use in optimizing and reporting stock levels, guiding purchases,
and speeding through lines of customers. In growing stores and chains, every dollar
saved can be spent where it’s needed most.
Today’s customers want lower prices and fast information. Inventory managers want
accurate stock levels, rates of sale, and next arrival dates. Accountants watch cash
and shrinkage. A retail management system must automate all these areas, yet be
easy to operate and economical to maintain.
Certified Microsoft Great Plains Partners can help you define which products will
serve you best and what retail hardware you really need. They can provide and set up
hardware and software to meet your business rules and expedite once-tedious tasks.
The examples in this brochure represent a cross-section of stores, franchises
and chains where Microsoft Business Solution’s Retail Management System has
conquered the real-life challenges that face every retailer.
Brendan O’Meara
Product Unit Manager, Retail,
Microsoft Business Solutions
“Microsoft Retail
Management
System (MRMS)
enabled these
retailers to break
out of unprofitable
business modes
and achieve
success in a
tough economy.
Sometimes hard
work is simply not
enough. Today,
retailers need
powerful and
flexible tools to hit
their potential.”
How savvy retailers leverage Microsoft solutions
In Retail There Are No Instant Replays
Solution Overview
Industry
Retail – sports memorabilia
store and Web site
Scenario
Selling sports-related
collectibles, autographed
items, clothing and even
miniature Zambonis to
enthusiastic but fickle fans
proves to be an inventory
control nightmare.
Company Profile
Sports Gallery sells sports
and racing memorabilia in
Toledo, Ohio and online.
Situation
With the popularity of
merchandise changing as
quickly as the next edition
of the newspaper’s sports
section, The Sports Gallery
needed a system to quickly
and accurately track inventory
and customer preferences.
Software Used
Microsoft
®
Business Solutions
QuickSell 2000
Microsoft
®
Windows
®
2000
Microsoft
®
Windows
®
98
LapLink
®
The Sports Gallery, Inc. sells sports memo-
rabilia. “Athletes are good merchandise for
us, and we’re good publicity for them,”
explains Kevin Rieck, President. Kevin
hires pro athletes to come in, talk to cus-
tomers and autograph merchandise.
“When pro athletes visit, we assign each
one an SKU number. Then we serialize
every autograph.” The Sports Gallery uses
QuickSell 2000, part of Microsoft
Business Solutions’ Retail Management
System, to manage all its point-of-sale and
inventory control functions. “We sell serial-
ized tickets in advance and track the buy-
ers. Yet fans lose those tickets and then
call us up moaning. We just verify it in
QuickSell 2000 and print a replacement.
No sweat.”
Kevin ticks off the reasons he’s happy
with QuickSell 2000: “Flexibility, real time
inventory control, security features and
less time in the store. My store is 550
miles from my office, but I synchronize my
database with the store’s daily. I’m in the
store once or twice a month, but with
QuickSell 2000 it’s like being on site.
“QuickSell 2000 is so logical. You tailor
it to your needs and it works just like you’d
expect. Retail is too unpredictable to toler-
ate inflexible software. When our industry
had supply line upheavals, a lot of stores
couldn’t keep up. QuickSell 2000’s tools
and flexibility helped us not only stay
apace, but exploit those changes.”
Tools for growth
Having on-site autograph sessions is one of
many improvements QuickSell 2000 has
made possible. Five years ago The Sports
Gallery sold almost exclusively trading cards
and had no POS system. Kevin says, “It was
miserable trying to track trading cards with-
out a good inventory system. So we could
never have expanded beyond cards without
QuickSell 2000’s real-time inventory.
“Memorabilia are fickle items,” Kevin
says. “You better know one weekend to the
next—maybe one curve ball to the next—
which team will be hot and which card
packs won’t sell. Bad guesses and lucky
ones are part of the collectibles game, but
QuickSell 2000 gives us the edge.
QuickSell 2000 tells us what’s worth
reordering and what’s sitting on the
shelves. I’ll take QuickSell 2000 reports
over lucky guesses any day.”
Shrinkage and security
“Theft is a fact of retail life,” Kevin
observes. “Sports memorabilia is as attrac-
tive to new staff as it is to customers,” he
went on. Coordinating merchandise levels
against employee sign-ins led to targeted
dismissals that cut product loss by 85%.
Just as importantly, an honest employee
was cleared of suspicion using QuickSell
2000’s receipt-tracking capability.
System selection
“I researched POS software two years
before going with QuickSell,” Kevin
recounts. “If it wasn’t Windows-based, it
didn’t make the first cut.
“My checklist said it had to be easy to
troubleshoot, and support had to be
competent. QuickSell 2000 went in so
smoothly we never got to check on
troubleshooting!”
You're only as good as the last game in the sports memorabilia
business. Inventory value rises and falls with athlete and team
fortunes. Working from an office over 500 miles from the store,
owner Kevin Rieck needed inventory control that was accurate and
up to the minute. QuickSell 2000 scores the winning touchdown.
“QuickSell 2000 is so logical. You tailor it to your needs and it works just like
you'd expect. Retail is too unpredictable to tolerate inflexible software.”
— Kevin Reick, The Sports Gallery
The Sports Gallery
Inventory Control and Superior Value
Help Guppy Take on Sharks
Solution Overview
Industry
Retail – pet supply store
Scenario
Roy Wood operates an
independent pet store where
superior customer service
and knowledgeable
employees allow him to
thrive in the midst of much
larger competitors.
Company Profile
Based in Annapolis,
Maryland, APet is a service-
oriented pet supply store that
exploits Web, email and
targeted marketing.
Situation
Inventory was out of control.
Replenishment was based on
distributor recommendations
and “holes” in store displays.
Receiving was manually
checked against purchase
orders and error prone.
Before Microsoft Business
Solutions’ Store Operations,
Roy found himself spending
hours managing inventory
instead of taking care of
customers.
Software Used
Microsoft
®
Business Solutions
Store Operations
Windows
®
XP Pro
Windows
®
2000 Server
(For telephone PBX VPN
server between stores)
QuickBooks
®
Pro 2001
“It takes a feisty guppy to swim with the
sharks!” laughs Roy Wood, President of
APet. “When you move your pet store to a
bigger location within three miles of each
of the two national chains, everyone
expects you to go belly-up.”
Inventory Out of Control
Instead of floundering, APet has been flour-
ishing, thanks to Roy’s value-added philoso-
phy and Store Opertations, part of Microsoft
Business Solutions’ Retail Management
System. Roy explains, “I had a disaster soft-
ware package before Store Operations. It
had nothing but bugs and wouldn’t import or
export to anything. Instead of running my
business, I was talking to tech support every
single day—and I have an extensive comput-
er science background!
“Before Store Operations, there was no
inventory management to speak of. A
distributor would come into the store and
we’d look for holes in the shelves and
order whatever was missing. With Store
Opertations, I can efficiently check inventory,
print out a purchase order, and fax it off to
our suppliers. When we receive stock, we
know whether we got the full order, if the
wrong thing was sent, or if nothing was
sent at all.”
Buying Costs Slashed
Roy now has a superb negotiating tool that
so far has slashed his buying costs by eight
percent. “All we do is tell suppliers that
Store Operations can automatically order
from the lowest-cost vendor. Suddenly
they’re scrambling to undercut each other.
My costs are spiraling downward.”
By tracking purchase orders against
receipts, Store Opertations saves even
more. “On a weekly basis, we’re getting
hundreds of dollars in credits from our
suppliers for products that we ordered
and paid for, but weren’t delivered.”
That Extra Touch
With all of his savings, however, Roy is still
acutely aware that the buying power of the
big chains will always beat him in a price-
only competition. With the help of Store
Opertations, Roy is able to offer the
superior customer service that keeps his
customers coming back.
“The difference between the nationals
and [APet] is that we supply a ‘value
added’ they can’t get close to. Our employ-
ees are interested and knowledgeable—this
is their career. To spread that knowledge,
Store Operations lets me write notes about
a specific animal or product. These display
when you ring that item up on the computer.
We can give the customer that extra bit of
information to help him take care of
his new pet.”
Now that Roy Wood has the time and
wherewithal to commit his enthusiasm to
unparalleled customer service, APet’s
expansion shows no sign of slowing. “We
just keep getting better and better. Our
costs continue to go down and our mer-
chandise moves faster and faster.
“Okay, so we’re not an 800-pound
gorilla yet,” Roy grins, “but who’s to say
we can’t be?”
Independent operator needs to reduce costs and improve customer
service. He needs a point-of-sale and retail management system that
can handle his inventory and vendors so that he and his employees can
handle their customers. Microsoft Business Solutions’ Store Operations
to the rescue.
“All we do is tell suppliers that Microsoft Business Solutions’ Store Operations can
automatically order from the lowest-cost vendor. Suddenly they’re scrambling to
undercut each other. My costs are spiraling downward” — Roy Wood, APet
APet
Franchisor’s System Unites a Flock of
Different Inventories
Solution Overview
Industry
Retail – franchised stores
Scenario
Franchisees’ flexibility and
responsiveness to local needs
helped the company grow, but
also made it difficult to
implement basic retailing
chainwide. No two stores
shared the same inventory
mix and owners’ technological
proficiency ran the gamut.
Company Profile
Wild Birds Unlimited, Inc.,
founded in 1981, operates 280
franchised stores in the U.S.
and Canada, serving the $4.5
billion bird feeding and bird
watching market. In addition,
the company funds conservation
grants through its Pathways to
Nature
®
program.
Situation
Wild Birds Unlimited
implemented an easy-to-use
Store Operations system run-
ning Microsoft SQL Server™.
The robust, full-featured POS
and retail management
system allows franchisees to
automate as much of their
operations as they want while
keeping total cost of
ownership low.
Software Used
Microsoft
®
Business Solutions
Store Operations
Microsoft
®
Windows
®
2000
Microsoft SQL Server™ 2000
Three years ago Wild Birds Unlimited faced apparent contradictions
between their winning sales and marketing strategies and corporate’s
need for uniformity. Their far-seeing choices have helped sustain
growth, even in today’s tough economy.
“We chose Microsoft Business Solutions’ Store Operations because it gives storeowners
proven POS features that please customers and shorten tasks. Its ease of use commands a
very robust feature set. It saves us money and steps every day.” — Ed Balda, Wild Birds Unlimited
Wild Birds Unlimited
Inventory problems came home to roost
after Wild Birds Unlimited gave its fran-
chisees freedom to carry up to 4,500 local
inventory items. While all stores order from
a central inventory of about 500 core items,
no two have the same overall inventory. This
autonomy helps Wild Birds Unlimited excel
in the $4.5 billion bird feeding and bird
watching market, but franchisees’ computer
savvy spans every level and each one auto-
mates as much or as little as he likes.
Any misstep in buying can generate an
out-of-stock emergency or tie up cash
unnecessarily. Wild Birds standardized on a
flexible POS and retail management system
that improves efficiency, leverages buying
power and paves the way for growth.
Selecting the POS System
“I reviewed at least 50 off-the-shelf retail
systems,” says Ed Balda, Director of MIS.
“We compared feature sets, ease of use,
reporting and retailing logic. … Store own-
ers tried out packages, but they lacked
structure or were hard to learn. … Most
wouldn’t adapt to different stores’ needs
or to a changing economy.
“We chose Store Opertations, part of
Microsoft Business Solutions’ Retail
Management System, because it gives store-
owners proven POS features that please cus-
tomers and shorten tasks,” says Balda. “Its
ease of use commands a very robust feature
set. It saves us money and steps every day.
“Total cost of ownership was a big
factor,” Balda continues. “New franchise
buyers need a highly cost-effective start-
up solution, and converting existing stores
had to be economical. Store Operations’
compatibility to industry standards opens
doors to new hardware, software and
expansion. Reports don’t require program-
mers and are extremely flexible.”
Spending Less and Selling More
“Everything for an expanding, full-sized store
is included—register functions, customer
profiling, inventory management, accounts
receivable and built-in Web access for the
POS and back office,” says Balda.
Flexible security empowers different
employees for specific privileges. Fast
transaction speed handles more customers
with fewer terminals. Inventory analyses
define reorder quantities from historical
turn data, cash flow and seasonal needs.
Reports weed out slow moving products.
“Our best ROI comes from Store
Operations’ customer profiling and history
mining. Customers get newsletters, birth-
day cards, new customer cards, product-
specific mailings, loyal customer
incentives and reminders if they stop
coming.” Their typical franchise saves 25%
in mailing costs using Store Operations for
customer lists.
Wild Birds has cut credit card processing
to 3-5 seconds per transaction by exploiting
Store Operations’ Web-based Electronic Data
Capture to eliminate input errors, save counter
space and simplify day-end reconciliation.
“Everything about Store Operations
helps get chores done in seconds. It lets
all of us spend more time really listening
to and satisfying customers,” says Balda.
“Because,” he says, “chores don’t write
checks. Customers write checks.”
Faster Lap Times Shorten Lines and Rev Up Sales
Action Performance is the industry leader in
licensed motor sports merchandise. One
vital distribution channel is its roving fleet of
33 tractor-trailer rigs. Action serves 38
NASCAR, Busch, and Winston Cup races
and handles 60% of top drivers.
“We had 33 stores that moved every
week. Their inventories were mutually exclu-
sive, demand changed constantly, and trust-
ed employees were our cash management
system,” says John Bickford Sr., Vice President.
Real Time or No Time
“In an industry where products go hot or
cold overnight and demand varies by city or
season, we guessed at inventory levels.
Every year brings new products, paint
schemes and sponsors. You knew a product
was successful because you were fresh out
when people had money in their hands!”
“We left money at every race,” says Chris
Williams, Action’s Trackside Director. “There
is a three-hour sales window before a race,
that’s it. … At peak times, customers bunch
up 15 across and 20 deep.”
Needed: Flexibility and Speed
The prime mandate was accurate, real-time,
fleet-wide stock level reporting on every
product from bumper stickers to $400
leather jackets. In addition, headquarters
needed the power to easily change prices
overnight on thousands of SKUs.
Williams further specified an eight-
second transaction time from tender to
sales slip. POS training could not exceed
five minutes. Communication must be
wireless, bulletproof and secure. Store
Opertations, part of Microsoft Business
Solutions’ Retail Management System was
put to the test.
Summer 2001 brought the first trials.
Transactions executed in eight seconds.
Learning to make cash sales meant trigger-
ing the scanner and pressing a button. Credit
cards required six seconds and two buttons.
Reports matched revenues to items scanned
and could be sorted by any set of fields.
“After three races, we knew we’d picked a
winner,” says Bickford. Action signed off.
Today, every trailer runs Store Operations,
Windows 2000 and SQL Server 2000
Personal Edition. A wireless network securely
communicates with “hub trailers” that modem-
connect to corporate. If a link goes down, Store
Operations keeps selling goods and storing
data. After every sales day, information is fed
to HeadQuarters, the multistore management
solution installed in Charlotte. HeadQuarters
runs on Windows 2000 Server utilizing
Microsoft SQL Server 2000 Server Edition.
In the Winner’s Circle
“We’re all business behind the scenes,”
reports Bickford. “Now there’s no way a box
can ‘fall off a truck’ and not be traced back.
Our stockholders and CPAs love our new
accountability.” Action is able to check item
sales by month and racetrack to predict what
to stock and when to hire extra help. Its sales
stats help get favorable deals with teams and
drivers. Because trailer staff have sales
incentives, hourly totals spur them on.
“We used to have a paperwork night-
mare,” says Bickford. “You were always
uneasy that you’d overlooked something.
I sleep better now.”
With mobile “stores,” a three-hour daily sales window, huge crowds
and no point-of-sale, communications or inventory control
systems, Action Performance was spinning its wheels and leaving
money on the pavement.
“Now there’s no way a box can ‘fall off a truck’ and not be traced back. Our stockholders
and CPAs love our new accountability.” — John Bickford, Action Performance Companies, Inc.
Action Performance
Solution Overview
Industry
Retail - specialty merchandise
Scenario
Thirty-three roving trucks sell
merchandise at NASCAR,
Busch and Winston Cup races.
Revenues were high, but cash
and merchandise manage-
ment was unverifiable.
Customers demanded faster
transactions. Headquarters
required sales visibility, fleet-
wide stock levels on every prod-
uct, and highly flexible reports.
Company Profile
Action Performance
Companies, Inc. of Charlotte,
North Carolina is the industry
leader in design, marketing,
and distribution of licensed
motor sports merchandise
including apparel, die-cast car
replica collectibles, and
memorabilia. The company
recently went public with an
initial market capitalization in
excess of $750 million.
Situation
Inventory was total guesswork.
Long lines drove away business.
After installing Store Operations
in each trailer, and using
HeadQuarters to manage
revenues and complex pur-
chasing in Charlotte, results
include sales increases, excel-
lent management reporting
and just-in-time replenishment.
Software Used
Microsoft
®
Business Solutions
Store Operations
Microsoft
®
Business Solutions
HeadQuarters
Microsoft
®
Windows
®
2000
Microsoft SQL Server™ 2000
Stock Management Was No Party at Fiesta
Solution Overview
Industry
Retail – grocery chain
Scenario
Fiesta Plaza’s 13 stores
accept only California WIC
(Women, Infants, and
Children) vouchers. They
ensure compliance with state
guidelines and help stretch
tax dollars.
Company Profile
With dignity, economy and
efficiency, Fiesta Plaza
Nutritional Products serves
the needs of welfare mothers.
Situation
Slow-moving items crowded
shelves, and expansion was
restricted due to onerous
inventory demands. QuickSell
2000 now ensures managers
order only what each store
can effectively sell. It shortens
tasks and cuts payroll costs.
Software Used
Microsoft
®
Business Solutions
QuickSell 2000
Microsoft
®
Windows
®
98
A friend’s casual observation launched
Steve Brown, now owner of Fiesta Plaza
Nutritional Products, into a successful 13-
store business that provides a public serv-
ice while it cuts welfare costs. Quicksell
2000, part of Microsoft Business Solutions’
Retail Management System helps him grow
and stay profitable in the face of strict
governmental price controls.
Serving Women, Infants and Children
Steve’s stores serve the “WIC” clientele,
shorthand for a “Women, Infants and
Children” program funded by the U.S.
Department of Agriculture and adminis-
tered by the State of California. The pro-
gram saves money by reducing health
costs of low-income families with children.
“Every dollar spent on WIC saves taxpayers
four dollars in downstream public health
care,” points out Steve.
WIC vouchers can’t buy such things as
alcoholic beverages, cigarettes or cosmetics.
“We carry authorized, nutritional food items
and take only WIC vouchers in payment.
One WIC voucher buys one or more items—
say, one size of one brand of cereal—period.
You need a different voucher for a different
size or brand,” explains Steve.
“Essentially, every voucher is a separate
check. That’s a lot of hassle unless you are
set up for it. We scan each item into
QuickSell 2000 for immediate inventory
update that needs no manual follow-up.
“Large grocery chains have trouble
handling WIC vouchers. Sometimes moth-
ers pick up the 18-oz. size when the
voucher only covers the 28-oz. size. That
slows supermarket lines and embarrasses
WIC mothers. We treat these mothers with
dignity and respect so they come back,”
explains Steve.
Accurate Inventory Ensures the Right Mix
Fiesta staff once did inventory on tally
sheets, but QuickSell 2000 now manages
inventory automatically. “I know QuickSell
2000 has helped me get along with fewer
staff and gives me more accurate invento-
ries,” he says. Steve uses QuickSell
2000’s comprehensive inventory manage-
ment reports to handle their fast-moving
stock and purchase orders.
“Dealing with governmental controls is
sometimes hard,” Steve admits. “That’s
where QuickSell 2000 helps us manage our
inventory smarter. Some items on the
approved list may not be in demand. I get
no guarantees. Without QuickSell 2000, I
might buy approved items that no one
comes in for. Now I know what sold last
month, last season,” he explains, “and I
order accordingly.
“I’ve taught QuickSell 2000 to my staff,
one of whom used to be computer-phobic,
but it’s easy to learn—maybe five minutes.
Soon all my managers will use it. The
inventory and reports help me get away
with hiring less help.
“It’s fun to do something useful and be
nice to people to earn a living,” says Steve,
“but there’s no law that says you can’t
make a profit. That’s where QuickSell
2000 comes in.”
Carrying only approved inventory items and accepting only government
vouchers for payment, Fiesta Plaza must know exactly which store
sells which items during which seasons. Careful stock management
serves welfare mothers and children while still returning a profit.
“Essentially, every voucher is a separate check. That’s a lot of hassle unless you
are set up for it. We scan each item into QuickSell 2000 for immediate inventory
update that needs no manual follow-up.” — Steve Brown, Fiesta Plaza Nutritional Products
Fiesta Plaza
Nutritional Products
© 2002 Microsoft Corporation. All rights reserved. Microsoft, Great Plains, Windows, Windows NT and the Windows Start logo are either registered trademarks or trademarks of Microsoft
Corporation or Great Plains Software, Inc., in the United States and/or other countries. Great Plains Software, Inc., is a wholly-owned subsidiary of Microsoft Corporation. The names of actual
companies and products mentioned herein may be the trademarks of their respective owners. This document is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR
IMPLIED, IN THIS SUMMARY.
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Business Software for Retail Chains and Stores
It’s all here, it’s all integrated and it can grow with your business.
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