Managing merchandise : Retailer Research Bureau

Merchandise Management System (MMS) is a highly informative system, which helps in keeping track of the inventory in a warehouse or store. It enhances back office control and point of sale effectiveness. No matter whether it is competing with traditional market players or starting a new venture, MMS plays a vital role by providing seamless purchasing options to customers. IT companies have software catering to varied retail formats. Says Sam Caltabiano, Senior Director, Demand Chain Strategy & Solutions, Japan and Asia Pacific, JDA, “A merchandise management system is the heart of any retailer IT systems.  It not only manages and keeps a track of all the base and foundation data (such as item information, vendors/suppliers and organisation hierarchies), but also manages and records every movement of every item both in and out of the business so as to maintain perpetual inventory.  This means keeping records of sales, purchases, inventory receipts and transfers as well as the correct purchase costs including deals and rebates.  It also manages every aspect of pricing throughout the entire life cycle of each SKU.  Essentially, it is the system of record for every merchandise and inventory transaction”.  The success of the business depends largely on speedy and efficient point of sale of products. Merchandise Management System can be termed as a backbone of retail sector as it is the first step for retailers to bring the entire inventory under one system or control. With Indian retail sector getting organised and entry of major foreign retail players in this sector bringing in more advanced, efficient and easy-to-use technology, retailers would be enabled to keep track of flow of goods and keep a check on consumer behaviour. Other than this, the system helps retailers in data management, price management and execution, purchasing management, inventory management and valuation and integration to POS applications. As supermarkets offer plenty of products to customers, it’s not easy to maintain stock of every item manually. Merchandise management system helps buyers by offering various options (to retailers) to make quick decisions. Says Deepak Marwah, Marketing Manager, Protocol Solution Pvt. Ltd, “Specialised softwares keep track of the stock going out via purchases and the quantity that remains on shelves and in warehouses, thus giving managers a real-time picture of what is happening. The software also analyses the data and makes recommendations for re-ordering strategies.”

It’s not just that this system helps retailers in the outlets only for this help them even in web-based sales. It keeps a track of what customers are buying online and which articles are being searched by them the most, giving thus detailed report of which products are picking up in sales and which ones are not. Mr Caltabiano opines, “Every movement of inventory, regardless of where it physically or systematically occurs, must be relayed into or via the merchandise system.  This will ensure that it has the most current and accurate version of the company's inventory position.” MMS gives retailers an added advantage. Mr Marwah says, “MMS combined with customer relationship management (CRM) gives retailers the opportunity to offer products that customers actually require and not just promote brands. It also helps them plan various discount schemes and track progress on an hourly, daily and weekly basis to increase sales and keep inventory under control.”

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