Maria B. (A leading designer and retail brand of garments) achieves dead stock reduction of 80% in 3 months by using LumenSoft Candela Retail Management System
Maria B is the leading designer and retail brand for ladies bridal, formal and casual wear. The brand is more than 10 years old and has retail outlets across of Pakistan.
The Need and Business Challenge
Maria B. was initially using a software solution to handle its retail operations but it was not capable of effectively handling multi-location (chain store) retail business. The head-office and shops were running different modules which were not fully integrated. This resulted in “information silos” due to which timely and accurate business decisions could not be made.
Also operations were cumbersome resulting in reduced productivity. Stocks had gradually increased to alarming levels due to lack of required information. To make matters worse, inventory could not be moved to outlets in time thus resulting in loss of sales and customer dissatisfaction. Stock audits became a huge task requiring several people from the head office to go to the store and take up to 2 full days to complete a thorough audit. Understandably due to the effort, stock checks were delayed during peak season.
Like any traditional entrepreneurial venture, the business was people oriented with lack of processes and management systems. The business required a software solution which could not only be used to control and automate the operations but also have capability of implementing industry best practices, and robust business processes.
Choice of Solution
Maria B. looked for different available retail software solutions in the market. It was an easy decision to select Candela RMS for management of their retail operations. Candela had the largest customer base for retail chain stores in Pakistan and many top brands of the country were using this solution. Amongst the customer list, many were engaged in a similar type of business. LumenSoft Technologies engineers had required experience and expertise to provide training and implementation support.
The best part of the deal was it promised to implement industry best practices and put the business under the control of processes.
Only in first three months of operations Maria B. was able to boost sales for certain brands by 50%. Also dead stocks were reduced by 80% in some outlets. During the same period the ROI was 100% and the investment break-even was achieved within two quarters of implementation. Therefore this proved to be one of the best investments for the business.
This became possible by integrating all the retail outlets with head-office. The information flow between the head-office and outlets was seamless (both ways). In the head office the information was rolled-up to create a complete business picture. Analysis was available on different designs, categories, and groups which helped in optimizing the stocks at different retail outlets. After system implementation accurate inventory was reflected in the system which enabled the management to take timely decisions. Stocks were shuffled between outlets according to shops sales trends.
Reconciliation of cash and stocks between head-office and retail outlets became very effective and leakages and pilferage was greatly reduced. Shop staff, instead of preparing reports, was able to pay more attention of customer and thus their productivity was increased.
Mr. Fazal Ashfaq, head of retail operations at Maria B., says
“We were surprised to see the results produced by LumenSoft Candela RMS in such a short time. We are in total control of our business. We know what are the best sellers and at which outlets. We have instant information about our retail outlets as profit centers and also we can go deep down and analyze on design levels”
Maria B. the founder and owner of the business says
“… I have never been a technology person but I knew enough to see that there existed tremendous room for growth by implementing a retail software solution. We were pleased to see that Lumensoft had a ready to implement product that needed barely any modification to run on our business. A few months after implementation I can get a current bird’s eye view of my business and can alter direction to focus on items that are selling well. I would definitely recommend Lumensoft to any retailer….“