Over the past decade, many organisations have been making significant investments in the areas of business intelligence. A Singaporean firm, Pazzion, has benefitted from such technologies and continues to seize the greater value from its investments to support its ambitious international growth plans.
PAZZION, a ladies’ shoe designer from Singapore, was established in 2001 to cater to the needs of today’s confident and elegant woman. Each of the firm’s collection mirrors the latest looks, ensuring that their customers keep fashionably dressed at affordable prices. With unique shoes designed to marry sophisticated tastes with fashion trends, the company has made significant growth in both the local and international markets.
In just 13 years, Pazzion has grown significantly. In Singapore, Pazzion’s flagship stores are found at Wisma Atria and Marina Bay Sands while the company’s international presence includes countries such as Brunei, Cambodia, India, Indonesia, Japan, Mauritius, Sri Lanka, Thailand, Turkey, and Vietnam.
Growing with Technology
As the company has grown sustainably so has their requirement for a fully integrated retail management system. Pazzion wanted to implement an easy-to-use system that could simplify its increasingly complex retail environment—namely a diverse customer base, multiple languages, different countries, and time zones. The firm decided to implement a stock control system. It is a computer-based system that tracks inventory levels, orders, sales, and deliveries. Companies use inventory management software to avoid product overstock and outages. It is also a tool for organising inventory data that previously was generally stored in hard-copy form or in spreadsheets.
After evaluating several vendors, the company selected Eurostop. According to the merchandising team at Pazzion, Eurostop matched the company’s requirements perfectly. They provide fully automated, highly intelligent systems to facilitate stock control processes. Another deciding factor was Eurostop’s proven track record in the global clothing and footwear arena whilst their network of new offices in Asia served to underline their commitment to the region.
Pazzion deployed Eurostop’s e-rmis for its head office system in Singapore and E pos to support stock control and merchandising across the company’s eight stores in Singapore. With the e-rmis, Pazzion can now manage its stock and staff more effectively and process all sales using E-pos at the tills. Both systems link seamlessly together to create a highly efficient retail management framework that boosts productivity and ultimately improves customer service.
Mr Harris Muk, sales manager at Eurostop, says: “As our market leading head office stock control software, e-rmis provides single channel and multichannel retailers with operational efficiency, visibility and control of stock, powerful reporting, and extensive functionality. It comes with the eight fully integrated modules—merchandiser, purchasing, distribution, ticket printing, clerical, management, warehousing, and system function.”
Mr Harris Muk says that Eurostop’s e-rmis platform can provide single channel and multichannel retailers with operational efficiency. (H MUK)
He adds that the only constraint Eurostop faced when setting up the system for Pazzion was hardware-related. “Dealing with existing equipment can be a challenge because there are many variables which we cannot control. In order to make the process as efficient as possible for the client, we brought spares during the rollout. However, when we did face hardware problems, we simply replaced it and reported back to Pazzion later. This simplified the process.”
Over the last decade, many organisations have been making significant investments in the areas of business intelligence: data warehousing, performance management, enhanced reporting, and analytical solutions. While many enterprises have realised clear value from these initiatives, even more seek to continually identify new opportunities to seize the greater value from these investments and leverage the information going forward.
For Pazzion, one of the greatest benefits of using e-rmis and E-pos is the advanced reporting capabilities provided by the systems. Eurostop has managed to capture accurate sales data which Pazzion has been translating into meaningful statistics. According to Ms Eliza Tok, marketing and communication executive at Pazzion, the system has helped the company in its strategic decision-making and forward planning abilities.
She says: “Reliable and timely information has enabled us to place orders to meet demand, reduce dead stocks, and sell more of the popular hot selling lines. The system has allowed us to manage our stock better and reduce the amount of capital tied up in stock, which has improved our cash flow. The merchandising team now has visibility of sales from all stores, enabling them to get an up-to-the-minute view on what has been sold during the past week and this supports accurate merchandising decisions. The team uses the data for stock planning, forecasting, and reviewing how the new lines are selling.”
Fundamental to Pazzion’s overall sales and marketing process, the merchandising team has been using sales data reports from the system to identify product mixes that are successful in different stores. The information has also helped Pazzion to deliver highly targeted and impactful promotional campaigns that actively drive new revenues across stores. On top of this, the flexibility of e-rmis supports the company’s ability to extend its geographic footprint.
“With the reports, our marketing team has been able to maximise sales across the outlets. Stocks are automatically replenished by the system without having the store manager to put in the request. This is more efficient and saves the store manager time and the ability to track and trace stock enables us to react quickly to meet customer demands for specific items,” adds Ms Tok.
Dollars and Cents
Large corporations with huge amounts of data to proprocess are most likely to benefit significantly from business intelligence. It can help a company identify its most profitable customers, trouble spots within its organisation, or its return on investment for certain products. Although a company-wide business intelligence system can be complex, costly, and time-consuming to establish, its benefits can be significant.
Once a company-wide system is in place, management will be able to see detailed, current data on all aspects of the business—financial data, production data, and customer data. It can also be a valuable asset to a company’s sales force because it provides access to up to-the-minute reports that identify sales trends, product improvements or additions, current customer preferences, and unexplored markets.
Such systems can point out areas of waste or loss that may have previously gone unnoticed in a large organisation. Since a company-wide business intelligence system works as a unified whole, it can analyse transactions between subsidiaries and departments to identify areas of overlap or inefficiency. It helps decision-makers to act swiftly and correctly in response to opportunities; helps the company identify its most profitable customers, as well as potentially profitable customers; and assess the reasons for customer dissatisfaction before it begins to cost them sales.
According to Ms Tok, business intelligence systems can be cost effective for large organisations. She says: “Systems such as e-rmis do not need to come at a high price. We have found the system to be cost-effective while enabling us to improve productivity and support the business as it expands. The implementation of the new system for Pazzion was smooth with seamless data transfer, ensuring minimal disruption and downtime for operations.”
Copyright © 2014 Singapore Institute of Management