The hardgoods retail industry is one of the most competitive and one of the most difficult in which to succeed. High-ticket items require a significant capital investment, and failure to meet customer expectations with regard to selection or delivery can be disastrous for a retailer. The furniture industry is a prime example of hardgoods retailing (along with electronics retailing and appliances) and is characterized by small local retailers with one or two locations as well as by regional retailers selling from showrooms attached to warehouses. One of the largest retailers, Levitz, has written its own inventory control system, which encompasses nearly all aspects of the company's business, and which Levitz sells to other retailers. Other companies also sell software for this industry, which is a specialized niche. This research examines the computer systems available to the retail furniture industry and considers the challenges associated with implementation as well as the factors critical to the long-term success of the software and the company.
All inventory systems have the ability to identify the items that are in a company's inventory, and account for how many of each item are on hand. Inventory is typically one of the largest costs associated with any business, and this is particularly true in the retail sector. The furniture industry is a high-ticket industry, which means that companies have much of their capital tied up in their inventory. Companies who are able to increase their inventory turnover are able to better utilize their assets and are more likely to succeed than companies with small inventory turnover.
Managing inventory turnover begins with the inventory control system, and today's systems move far beyond merely identifying and counting items. Size and style are taken into account, as are the length that the item has been in stock, supplier information, cost information, and demand information. The...