Specific automation tools are a necessary prerequisite for large chains of showrooms, so as to handle their sales, purchase and stocks in the most profitable way. ORNATE-NX supervises all this and much more, and helps the top management in developing processes that are not dependent on any specific person.
ORNATE-NX provides you a fully integrated system to manage your chain of retail showrooms, in the most integrated and professional way. ORNATE-NX helps the management develop almost person- independent processes, so that the management can focus on more crucial aspects like expanding the business further.
Generally, for a chain of showrooms, integrating the business processes of each showroom and getting the work done through staff is a challenge. The main concern areas are:
System should enable owners or the top management to control all the critical activities of business whether they are physically present or not in the showroom.
Since majority of issues are created due to simple or silly mistakes made by the operators and usually such issues cost very dearly to the organization, system should focus on the standard processes to be followed which can eliminate the possibility of almost all such errors.
In the world of fierce competition, the system should ensure that all the critical business secrets remain intact and staff perform all the routine tasks without requiring passwords / keys from the top management / owners.
Leveraging the stocks and inventory across the showrooms and purchasing only what is moving can dramatically improve the sales of the entire business, but usually this remains a big challenge for the chain of showrooms. ORNATE-NX can help you achieve this.
ORNATE-NX helps the management set-up the operations in such a manner that even though the entire operations are run by the lower level staff, the management will retain complete control on the business operations – even when the top management persons are not in the showroom.
Establishing a day-to-day management system through which owners involvement can be reduced by almost 50 %
Introducing management checkpoints to ensure security against frauds
Configuring workflow in such a way that every user performs in th best possible manner
Identifying parameters which can help in faster and better decision making
What is Inventory optimization?
In layman terms, Inventory optimization means - having the right inventory at the right time with practically no or minimum dead stock. Dictionary meaning of inventory optimization is the practice of having the right inventory to meet your target service levels while tying up a minimum amount of capital in inventory. To achieve this, you need to account for both supply and demand volatility.
In retail jewellery trade, inventory optimization is extremely important for the profitability of the business for the following reasons:
- In order to cater to larger segment, retail jewellers need to cater to different customers by offering different / wide range of items (in terms of variety, designs, sizes, purity etc.). This is required to ensure that there is increased footfall and increased sales conversion ratio. Now, in India, Jewellery is a seasonal business – where the different types of jewellery gets sold – depending on the festival and occasions. One wrong judgement can seriously affect the selling cycle and can have serious repercussion on cash flow and profitability. Besides, if the retail jewellers don’t change the inventory as per the changing times, then it would often result in inability to cater to the market requirements / preferences of their customers.
- The main earning for a retail jeweller comes from the making charges. Now, only if the stock turnover ratio is more, then the earning or profits will increase.
It is strongly recommended that retailers keep monitoring the supplier wise – fast moving and slow moving items and ensure that optimum level of inventory levels are maintained. Retail experts suggest:
1. Either to melt or offer discounts on slow moving or dead stock
2. Replace fast moving items on an ongoing basis
3. Enforce discipline in buying new items
4. Monitor re-order levels of each item – supplier wise, variety wise, weight range wise, size wise.
Now, the challenge for the retail jeweller is that out of say 5000+ items, which items should he focus on? Which items to buy and which items should be disposed off?
To address this challenge, Team Ornate has come up with Inventory Optimization services in which the following services will be offered:
- Broad level analytics
- Detailed analytics of individual items
With the above detailed analytics, retail jewellers can:
- Decrease stock turnover ratio;
- Defining item wise - weight range wise minimum and maximum levels
We believe that continuous monitoring of this on quarterly basis will help to stay fit and trim – in terms of having investment in stock. At the end of 24/36 months, we envisage following can be expected:
- Improvement in cash flow
- Improvement in GP