Technology for Growth

GoFrugal has more than 12,000 customers including 10,000 plus independent retailers and 300 plus retail chains across India with sales offices in 30 locations. GoFrugal has international presence in Australia, Africa and Middle East. The list of company’s clients includes the names like Asian Paints, Ample, Modern Computers, Pizza Corner, Outlook, Witco, US Pizza, Gandhi Bakery, IshaLife, Laptop Clinic, Wood Pecker, Namdhari Fresh and New Horizon Media. 

CASE STUDY

Bangalore-based Tamanna is an exclusive designer wear store started by Dhanya and Lokesh Pandya in 1997. Tamanna has now grown into a one-stop fashion store for men and women. Today, the firm has spread its wings overseas to USA, Canada, the Middle East and the United Kingdom with a yearly turnover of Rs 5 crore. With expansion, the company felt the necessity to achieve inventory control, finance and accounts management, ie, management information system, which is crucial for growth.

THE REQUIREMENT

The company needed software to manage both inventory control and the finance and accounting function. Tamanna did not have good experience with technology vendors, in terms of services, “We enjoyed good service in the first year; however, service declined in subsequent years. We wanted a vendor who would act immediately if we stumbled upon problems, since issues aren’t treated immediately, can grow in magnitude causing significant losses,” says Hari Shankar Bhatt, Business Manager, Tamanna

THE SOLUTION ADOPTED

In 2009, the company adopted a complete retail software solution from GoFrugal Technologies for its two retail outlets and warehouse. The solution included RayMedi HQ (a Web-based software to manage the store chain), RayMedi RPOS (for trading, inventory management, accounts and business intelligence) and RayMedi NetTrade (enabling secure electronic trade and data interchange among trade partners, customers and peer groups).

“The company needed a complete solution that would match its growth aspirations. Our solution complements Tamanna’s growth vision and will allow it to expand the reach of its business and dream big as it grows the business,” says Kumar Vembu, CEO, GoFrugal Technologies.

Benefits received

The retail solution helped the company improve the efficiency of day-to-day operations, provide timely information, reduce manpower, etc, steering it ahead on the growth track.

Cost savings: The total cost savings due to the deployment of the retail solution is expected to be around Rs 10-12 lakh a year. The processing of an order to the supplier has now become faster and more accurate. Further, the billing is very quick, resulting in customers being happier because of the lower check-out time. The investments in RayMedi solutions paid off within six months.

Better inventory management:  With image mapping, a part of the retail solution, each outfit is attached to a barcode, making it very easy to identify an outfit.  It also gives the company flexibility to inform the supplier about specific demands the customer made, like a change in colour combination or sizes etc.  

Improved efficiency:  Through NetTrade, it is possible to get hourly update and back-up at the head office and also at the branches. Besides, the daybook (available in the software) has helped Tamanna monitor every penny spent.

Adding intelligence through reports: The retail solution also offers detailed and smart reports helping Tamanna take quick and timely decisions.

Better time and manpower management: The timely availability of information from the time of receipt to the time of dispatch has helped Tamanna save 70 per cent of the time taken at the warehouse level. Further, the firm has been able to save on labour costs with high level of automation.

The whole cycle beginning with processing an order to the supplier

is now faster and more accurate. Further, the billing is very quick, resulting in customers being happier because of the lower check-out time.

Hari Shankar Bhatt, Business Manager, Tamanna

We expect the growth in IT solutions and services to double the retail industry growth rate.

Kumar Vembu, CEO, GoFrugal Technologies