Large-scale retail chains
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Large-scale retail chains

SAM ERP2 can be used to focus on processes and other specific procedures for companies that work with large-scale retail chains.

Companies and large-scale retail chains

Companies that work with MMR (Mass Market Retailers) or that work mainly on large-scale retail markets work with a large quantity of counterparties, both independent ones and commercial organizations. In this case, it is necessary to manage different operational aspects:

  • Complex commercial conditions (prices, discounts, commissions, bonuses, etc.) both in invoices (1st level of negotiation) and extra (2nd level of negotiation);
  • Numerous and frequent commercial transactions (orders, delivery notes, invoices).
  • Important logistic processes (warehouse, freight).
  • Role of middlemen

The specific operational and organizational needs of this sector are also common across many other types of companies of different sectors, in particular those of the food industry, as well as businesses that work in retailing.

ORGANIZATION AND OTHER RETAIL CHANNELS

For many companies working with MMR, large-scale retail trade represents the main retail channel, which has a great impact both on the organization of the company and the management of production, logistics and sale processes. However, these businesses are also active on other channels:

  • Wholesale (or vendors)
  • Retail trade (or traditional/local shops)
  • Foodservice (or Horeca)

BEST ERP SOFTWARE

SAM ERP2 is specifically developed for companies working with large-scale retail chains. SAM ERP2 is the most technologically advanced and most complete ERP system in terms of functionality, as it offers functions for managing all processes in a perfectly integrated way: purchases, supply chain, logistics (handling and storage of goods, labeling, barcodes), quality control, CRM, operational portals for interacting with the production and commercial chain, integrated e-commerce, production, MRP, MES, real-time connection with production plants in compliance with Industry 4.0 principles, administration, cash management, financial management, management control system, etc.

LARGE-SCALE RETAIL TRADE HIERARCHIES

SAM ERP2 allows to map the entire large-scale retail trade channels and attach complex commercial conditions (prices, promotions, discounts, extra and regular invoice contributions) to every hierarchical node.

The connections between hierarchies can be defined by validity date: the mapping provides a dynamic overview of changes in commercial groups, starting from the purchase centers to each single goods destination.

CENTRAL AND PERIPHERAL NEGOTIATIONS

When defining commercial conditions, many factors are taken into account both on a central and a peripheral level: sales management, area manager, key account, agents that interact with national and local buyers or with store managers.

The commercial conditions act as general framework accounts, local agreements, supplementary agreements, and promotion plans and can be easily managed through SAM ERP2.

PRICE LISTS AND PRICING POLICIES

Companies that work with large-scale retail trade and mass markets have variable pricing policies. Companies working in this sector often need customized price lists that can be applied to a high number of clients whose differences are mirrored by different configurations in the discount scales.

These price lists are often applied according to different validity dates which depend on negotiations carried out with each client or sales team.

Through SAM ERP2 it is possible to easily manage general and customized price lists. SAM ERP2 allows to set different application dates even within the same price list, in order to apply prices to single clients or hierarchy nodes.

PRICE LISTS

Distribution and naming of different discount types can be fully configured depending on each company, for example:

  • Sale channel discounts or contract discounts
  • Additional, compensatory or canvass discounts
  • Logistics discounts
  • Conditional or unconditional complementary merchandise
  • Promotion discounts with sell-in and sell-out dates

Each type can be customized according to needs in terms of operational and management control.

Any type of discount or promotional plan can be completely customized: for each hierarchy node (client, brand, group, center), for the entire product range, for specific ranges based on client or hierarchy, for single items, product families, product types or lists, even if miscellaneous or temporary.

It is also possible to define application models which will make it easier to manage commercial conditions and to enter orders automatically. For example:

  • Discounts on the entire product range except for one item or a group of items
  • Discounts on all clients of a group except for one single client or one destination
  • Generic or specific additional discounts for a limited time
  • Recurrent exceptions for some items (or clients) with differentiation of “Private Label”, “First Price” or “Net Price” products.

General or specific discounts can be managed according to completely configurable application priorities.

It is also possible to define, both on a general level and for specific orders, if the application of the commercial conditions must refer to the “Order Date” or to the “Delivery Date”.

COMMISSIONS

SAM ERP2 can manage hierarchical relations between agents and head agents through simple, multiple and cascading commissions.

Through the Agent WEB Portal, internal and external sales force can view the products catalogue, issue orders or offers, read documents, view statistical data, portfolio, and planner.

Commissions can also be defined in a similar way to discounts for products, product type, client or client category, thereby identifying specific or recurrent commission terms along with general commission profiles. Through the promotional agreement module, it is also possible to define and control periodic canvass, bonuses for agents, conditioned and unconditioned discounts, depending on targets that can be specifically defined (quantity, volume, turnover, etc.)

PROMOTIONAL AGREEMENTS

The fundamental importance of final prices and contributions of periods (namely “extra invoice” or “2nd level negotiation”) for companies that work with MMR has led Centro Software to develop a specific SAM ERP2 module that has three main major targets integrated in one general management process:

  • Commercial target
    One of the targets of this module is to ensure the correct and detailed formalization of contractual conditions, providing the sales department with total transparency of sales terms both inside invoices and outside and making sure that they apply to the turnover. It also aims to manage expenditure forecasts not yet formalized in order to control in advance their potential impact.
  • Administrative target
    The module aims to manage extra-invoice contributions and bonuses (calculation and payment) from an administrative point of view, by providing an up-to-date progress status (accrued bonuses vs paid bonuses), which can be viewed and checked when registering the invoices that have been registered and the credit notes that have to be issued.
  • Management Control target
    The purpose of this function is to allow to automatically enter costs resulting from agreements with clients in the invoice lines, which in turn represent the basic prerequisite, in order to calculate margins for each line.
    It is also possible to develop assumptions (configurations) based on turnover and/or predictive agreements (budgets or forecasts) to extend the use of the module to simulations and projections.

By defining customizable Categories, Bonus Types, Measurements and Calculation methods, it is possible to adapt the module to the company’s every need thereby complying with every commercial condition, even the most complex ones.

EXAMPLES

The promotional agreement module allows to manage the following functions:

  • Unconditioned bonuses
  • Unconditioned bonuses (%)
    • Group bonus payable to hierarchy
    • Pro-rata group bonus payable to each single invoicing client (or other hierarchy level)
    • Bonus payable to single hierarchy / client
  • Fixed-sum bonuses
    Single or multiple fixed amount
  • Bonuses conditioned by reaching of following targets
    • Absolute turnover
    • Absolute turnover by group
    • Absolute turnover by incremental group
    • Percentage increase of turnover
    • Product range
    • Number of acquired references
    • Store activities (preferential exposure, flyers, operations, etc.)
    • Group (assessed according to turnover, volume, product range, etc.)

Targets can be expressed in numerical value, units, kg, liters, pallets, etc. and in any unit of measurement that can be found in the database, thus ensuring maximum configurability.

PRICES WITH RESTRICTIONS (FILTERS)

Restrictions can be applied both to unconditioned and conditioned bonuses. They allow to reduce the base on which the bonus is calculated

  • Client/hierarchy filters
    • Bonuses according to the turnover of one hierarchy
    • Bonuses according to the turnover of two or more hierarchies
    • Bonuses to all hierarchies EXCEPT one or more than one
  • Item filters
    • Bonuses according to the turnover of one item code (or related)
    • Bonuses according to the turnover of two or more item codes (or related)
    • Bonuses on the entire turnover except one or more item codes
    • >Bonuses for entering of new references (Entry target)
  • Special bonuses
    • Conditioned bonuses with target value different from the bonus value
    • Group bonuses except for specific client-item combinations
    • Royalties

FAST ENTRY OF SALE ORDERS AND PRODUCT RANGE TABLES

Thanks to the function for entering sale orders in a fast way, it is possible to view the list of items that have been recently purchased by clients and to create a new order.

The product range table function allows to define a default list of items by client or hierarchy that speeds up the searching and issuing of orders while also preventing errors when entering orders, especially for agents that work directly from web portals. This function is especially useful when the same item is sold in more than one format and with different packaging, and therefore its item code is not perfectly clear within clients’ orders.

Tables define lists of items that clients can purchase according to the contract and that impose restrictions to those who collect and enter sale orders in the system (both from web portals and SAM ERP2).

Thanks to this SAM ERP2 function, users are provided with a valid structure for efficient management and maintenance of data tables. It also allows to set whether the restrictions of the item tables are valid for WEB portals only or for the ERP system too.

Product ranges can be defined by setting the start and end of validity dates. Restrictive or extensive exceptions can also be defined for single clients within groups.

SAM ERP2 is a fully-fledged system that allows to manage all company processes in a completely integrated way: purchases, production, contract work processings (for incoming and outgoing goods), industry 4.0, quality controls, goods handling and storage, consignment, CRM, e-commerce, online connections with the productive and commercial chain, administration, cash management, financial management, management control systems, etc.

The perfect integration with laboratories and technical departments is the fundamental factor for making processes leaner and to completely remove unproductive “lead time”. Thanks to PLM and PDM functions, it is possible to “describe” raw materials, components, and products through the definition of “versions” and “reviews” of pictures, recipes, formulas, bills of materials, and processing cycles.

Security, traceability and tracking on the entire productive and commercial chain, management of sale and sale attempt processes, handling of lots and expiration dates, organization of warehouses, internal and external logistics, labeling, barcodes, picking, freight, calculation of net contribution margins… These are only some of the functions that make SAM ERP2 a perfectly adaptable product for every production or commercial business that work with large-scale retailers.