Nostico | 23th October, 2024.
Point of Sale (POS), e-commerce, CRM, inventory management... many retailers employ patchwork of disconnected business applications to run their business. These software systems are often connected through custom-made integrations, and consequently, they cannot communicate information seamlessly with each other. Retailers who use many disconnected applications are often unable to deliver the personalized, consistent experiences customers expect when they shop.
Today’s retailers are collecting an unprecedented amount of data throughout their various touchpoints, from their e-commerce site to loyalty programs, Point of Sale, and more. To be able to deliver tailored communications and offers, retailers need software systems that keep this data in a structured manner, so they can then analyze the information and transform it into meaningful insights. This can only happen if retailers move away from using disconnected business applications and adopt instead unified retail management systems.
What is unified, modular retail software?
Unified retail software combines POS, e-commerce, order fulfillment, inventory management, customer relationship management, and much more in one platform. This centralizes all the business information into a single database, offering retailers clear visibility over their entire operation while eliminating the risks and uncertainties that come with managing multiple applications.
However, no two retailers are identical – which is where a modular approach to unified software becomes the key to success. Modular retail management solutions empower businesses to use only the functionalities that best suit their needs, while still providing them with the flexibility to incorporate additional features later on.
Benefits of unified, modular retail software
Here are eight ways unified, modular retail software will support your business growth and make your life easier.
1. You don’t need to spend time and money on integrations
When you use a separate system to manage your sales, another one to handle vendors, a third one for the e-commerce site – and so on, you need to set up (and maintain!) real-time communication between the different platforms. And that can be complex. You need to find experts who are familiar with all the software solutions involved, which isn't easy. Often, you will end up having to hire multiple people, each an expert in one of the systems, and hope that they can figure out a solution. The hard part starts when you have to upgrade, or if something breaks down - call the experts, hope they are free and that they figure out what's wrong. Needless to say, these processes can be lengthy and expensive.
Using a unified system with a modular approach, like LS Central, limits the need for integrations because most of the functionality you need is already packaged in one platform. This reduces costs (and time) involved across all the phases, from implementation to maintenance to upgrades. And the best part is the system allows you to effortlessly add or remove modules to scale alongside your business, ensuring you only pay for what you need, when you need it. You can easily add more industry-specific functionalities—such as advanced analytics, self-service, replenishment, and more—as your requirements expand, so you get the full benefit of the software while pivoting quickly to meet future demands.
2. You reduce the risk of errors
When you are using separate systems, any delay in communication and your data can get out of sync. And then, you may end up selling an item on your website when you don't have it in stock anymore or advertising the wrong price. Classic mistakes which may lose you revenue, or even customers. When you use a single system for your whole business, all your prices, product availability, item descriptions, etc. are maintained in a single database, and then distributed to different touchpoints. This way, you avoid the risk of discrepancies or mismatches across channels, ensuring your information is always accurate and consistent everywhere.
3. You get a single version of the truth
When the entire enterprise – distribution centers, e-commerce sites, stores, HQ - runs on one platform, all departments can access, and operate on, the same data. A centralized database that stores information in a consistent and non-redundant form is the best way to gain a single version of the truth for your business. And when you have reliable figures, your financial reporting is easier, you can track KPIs more accurately , you can see performance of products and promotions, and make decisions that will benefit the business faster and more confidently.
4. Staff training is quicker
When you train new employees on many software systems, onboarding new staff can take a lot of time and effort. And if you are using different software solutions in each department, you can’t easily move employees across tasks, as they'll need extra training. This used to be a big problem at Blue Mountain, the largest ski resort in Ontario, Canada. To run its operations, which range from catering to retail stores, to rentals, restaurants, hotels and more, Blue Mountain used to run 26 different systems. Every type of operation had its own system. As a result, when employees were moved from one role to another, even just to substitute for a colleague on leave, they had to be re-trained. This meant that a temporary change of functions was impractical and unprofitable for the company. That’s when Blue Mountain decided to get rid of its 26 systems and implement unified retail management software– LS Central. Now, employees only have to train on one system and because of that, Blue Mountain has reduced its training costs, and the company can now move people across stations as quickly as needed.
5. Management gets real-time, accurate information
When the business is run on a single platform, HQ gets a holistic overview of its processes, from sales to purchasing, to allocation, pricing and warehouse management. This real-time visibility gives management the ability to act quickly if needed. So, if you are running a big sale, you can track the progress in real time for all your store locations. Say that one of your locations is starting to sell out of some product categories - from HQ, or wherever you are, you can see exactly which products are out of stock, or close to it, and can call the warehouse, order the items you need, and get an emergency next-day delivery to that store.
Take for example Danish grocery chain Løvbjerg. After implementing LS Central, they now enjoy real-time access to all their business information, including their inventory, which makes monitoring performance much easier. “Before, we didn’t have any overview of which products we had in stores and in which quantities,” says Rikke Klausen, IT and Project Manager for Løvbjerg, “By getting more detailed knowledge of our product sales and consumption, we can calculate our gross profit more accurately and manage our business more efficiently.”
6. You can offer a consistent customer experience
Customers come back again and again when you give them great shopping experiences and accurate, consistent information and services. Online and in-person shopping are two sides of the same medal: customers visit your website to check inventory availability in your stores. They buy online, but then decide to pick up the item in one of your store locations. They visit a store, order an out-of-stock item, and ask for it to be delivered at home. They want the freedom to return in-store what they bought online. A unified retail software platform enables you to offer all of this, and more. By managing all channels within the same platform, you can not only keep track of everything that is going on in your business; you can also allow customers to shop as and where they prefer, with no hitches or disconnects in their shopping journey.
adidas for example, uses LS Central in over 1200 stores across 30 countries. The solution provides them with the ability to connect their eCommerce and physical stores, allowing customers to view in-store inventory online before deciding to visit one of their locations. With access to accurate, real-time stock availability, customers don’t have to waste time going to the store only to realize the item they wanted is out-of-stock when they get there. Instead, they can leave happy knowing they can get their desired items at their preferred location, ensuring a seamless and reliable shopping journey.
7. You get a 360-degree view of your customers
In a traditional retail chain, each store location uploads files to the head office at the end of day. With this kind of setup, you often end up missing or incomplete customer information. To make things worse, some companies don’t maintain a single customer database. With client records (sales per client, payments, etc.) stored across separate systems, these companies often end up with duplicate records and missing information. By storing all customer information in one database and allowing associates in different locations to access it in real time, retailers can get greater value from their data. For example, they can understand what their customer base is buying and where, and what promotions and prices they are receiving. Once analyzed with intelligence tools, this information can be used to create more effective loyalty programs – in other words, to design more effective and engaging customer experiences.
For leading health club Total Fitness , which has over 96,000 members across Northern England and Wales, having access to reliable data is key for serving their customers effectively. To do this, they use LS Central unified software, which stores data from all their channels centrally on one platform. “We hold monthly meetings with front-of-house managers and general managers when we feedback on what bestsellers they've got, how stocks should be adjusted,” says Jonathan Gatehouse, Food, Beverage, and Retail Support Manager. “I think the best part about LS Central for us is the reporting we can do at the back of it and how we can track all different elements.”
8. You only need to work with one vendor
When you use multiple systems, you will inevitably have to deal with several vendors. Selecting a unified platform means that you can take care of the whole process with a single vendor. Assuming you have chosen the right company (someone who knows your industry, understands your needs, and communicates effectively with you), dealing with one vendor instead of many can decrease complexity and overall costs. Make sure you select a trustworthy technology vendor with a wide network of support, who will provide you with assistance and updates when and where you need them.
Unified retail management software will help you overcome today’s challenges to deliver the shopping experiences that customers expect, eliminating the complexities of multiple software solutions. Not sure how to get started? Contact us. To discover how a unified, modular platform like LS Central can create a more profitable future for your business.
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