Retail Management Solutions. Essence, Functions, Benefits

There are lots of business benefits provided by digital retail management systems implementation. Instead of covering each of them (as some were already mentioned in the previous part), we divide them into three larger groups.

Better organisation

A term that can be referred to almost any side of retail.

Using retail store management software, you have the capability of getting better efficiency from orders and inventory management.

The digital system will make you always aware of what is available in stock (what types of goods, in what amounts, etc.) and how, where and when the products could be transferred from location A to location B.

Furthermore, better organization implies better performance and higher productivity for employees. If the supply and purchase processes are properly managed, the company’s specialists have a clear vision and see the range of their responsibilities for a particular time. Sales and supply managers always get the latest purchase and procurement requests; support specialists are notified of the most urgent downfalls, while drivers and delivery specialists have clear routes and all the necessary info on the destination point.

Finally, better organization through a retail management system, program or software means improved knowledge management within the retail store and the whole company.

All the vital information regarding products, customer policies and internal organization is stored within the retail management system.

Through that, customer support specialists can quickly and efficiently solve customer queries, while new employees spend less time for onboarding and demonstrate high self-learning and organization qualities (as they don't have to apply to their supervisors or more experienced co-workers).

Improved Planning

Here is the field where predictive analytics capabilities of some retail store management software solutions play a crucial role.

Sales histories, seasonal trends and market shifts that naturally occur with certain periods between them – all this historical data can be intelligently processed and analyzed. No matter how these processing and analysis go, manually or automatically with the usage of AI, the result becomes a firm basis for further decision-making.

Moreover, the benefit of improved planning is inevitably connected with the previous benefit of improved internal corporate organization. Better organization means quick, efficient, and convenient data gathering, so the processing, summarization and analysis can be performed at an increased speed and quality.

For the business, improved planning and decision-making via retail management system means the following:

• Minimized ‘out-of-stock' and overstocking situations, as the customer demand and market needs forecasts are performed with increased accuracy.
• Improved workforce management, as employees' working shifts are properly aligned with the peak purchasing and ordering hours.
• Optimized goods and services promotion, as it is based on data from real-time inventory and customer behavior analysis.

Costs Optimization and Resources Transition

Implementing a retail management system goes beyond simple streamlining of operations – it directly impacts a retailer’s spending through automation of costly processes and strategic reallocation of resources. Here’s how an RMS transforms financial efficiency.

• Labor optimization. Smart scheduling aligns staff shifts with foot traffic data, cutting overtime costs, so the number of consultants and sales managers always adequately responds to current needs. At the same time, self-checkout machines, being part of retail management systems, reduce cashier staffing consequently reducing employment costs.
• Automated inventory control. Implemented AI tools predict demand to prevent overordering, while real-time alerts for stockouts minimize lost sales.
• Shift from routine tasks to strategy. The automation provided by digital retail systems in general, and by AI-based tools in particular, relieves employees of monotonous manual operations. Specialists spend less time counting stock or fixing errors – now they have more time to work on better customer engagement.

The first thing that you should understand when trying to compare the benefits of obtaining an RSMS or a CRM is that the comparison isn't entirely relevant. The reason is that they serve different (though complimentary) purposes.

As we defined before, retail management system is software or program tailored to perform inventory control, employee supervising (new workers onboarding and performance metrics tracking) and sales analytics (primarily, the number of successful sales performed for a certain time period).

At the same time, the main purpose of CRM is to focus on customer and partners interactions. Therefore, customer relationship management systems typically provide the following:

• Contact management (with clients, business partners and suppliers).
• Lead and sales workflow tracking (seeing on what stage departments’ and employees’ work is and what difficulties they face).
• Customer support and feedback (communication with customers from different channels united in one place).
• Marketing automation (through loyalty and affiliate programs management).

Through that, CRM and RSMS are likely to have different functions, so the development of both solutions can differ as well.

From the point of costs and time spent, CRM building also depends on various factors.

Let’s say that you need a system that will unite a few databases with a customized view, so that your employees can easily filter, sort and simply organize tasks. In addition, the final solution should look like a Kanban board with convenient manipulation feature.

If you apply to digital ‘helpers’, for example, Microsoft’s Power Apps or Dynamics’ 365, the result can be delivered in less than 2 months with no more than 15-20 thousand USD spent.

However, such a solution is rather primitive with the basic range of functions. Factors like additional integrations, workflow automation functions implementation, automated analytics and complex UI can raise the price up to 150 thousand USD or even more.

Regarding the retail management system development, you should also consider lots of factors, such as:

• The development approach (in-house team’s work, onshore, nearshore or offshore outsourcing).
• The complexity and the variety of features.
• The amount of data the system should process (which directly depends on the retail company scales).

From such point of view, a primitive management system for a small enterprise (less than 50 employees in total) outsourced in South America or India (where the rates are the lowest) will hardly cost more than 30 thousand USD.

At the same time, A complex solution for a company with at least a few hundred employees, dozens of real stores and thousands of data pieces transferred every day can easily exceed 150 thousand USD and take many months to develop.

There are two considerations important to remember in choosing between an RSMS and a CRM.

First, even the solution with ‘perfectly’ planned structure and features, specifically tailored for your business will sooner or later face problems and tasks lying beyond its capabilities. That’s why any software, program, or platform should be treated merely as a tool. People, marketing, retail, supply and management specialists remain the core of every successful retail business.

Second, the large-scale retail platforms (like Shopify) combine the capabilities of both digital solutions. Obtaining both CRM software and a digital retail management system provides operational efficiency combined with the strong customer relationships ecosystem. However, the complexity and cost of such an integrated approach mean it is typically feasible only for large-scale retail companies.

The choice between a custom-built retail management system and a ready-to-use solution is a decision that may become one more challenge for business owners. In most cases, it hinges on the trade-offs between cost, efficiency, and features.

Costs

First, the most obvious and decisive differentiator. Ready-to-use systems, such as Shopify Plus or Lightspeed, operate on predictable subscription models. This includes licensing, support, and updates covered by a single subscription or one-time purchase fee, resulting in a low initial investment. However, this becomes an ongoing operational expense that can grow with your business.

In contrast, a custom system demands a significant initial investment required for planning, design and testing. While its long-term ownership costs may be lower, the initial financial barrier is high and requires a substantial commitment.

Efficiency

One of the key benefits of any ready-to-use solution is that it offers rapid deployment – a business can start working with such a system within days. Moreover, the efficiency here is provided through standardization (though the most advanced solutions are extremely flexible and can easily align with a company’s needs).

A custom system is designed around the business's exact processes from the ground up. For example, a grocery store with a unique subscription-and-delivery model would likely find a pre-built system inefficient. A custom solution would automate that unique workflow perfectly, creating profound long-term operational efficiency at the expense of a much longer development timeline.

The Range of Features Available

Finally, we should consider flexibility. Ready-to-use systems offer a wide array of built-in features, including inventory management and e-commerce integration. These features are reliable and well-tested. Their ecosystems often include app stores for added functionality, but you are still limited to what is available and must adapt to it.

A custom system has no such constraints. It is primarily defined by business requirements and resources available. You can build what you need, avoiding feature bloat, but, on the other hand, you become fully responsible for maintaining, updating, and securing every single component.

To sum up, the right choice depends entirely on whether a business prioritizes immediate, cost-effective operation or long-term, tailored strategic control. Ready-to-use solutions offer affordability, speed of deployment and reliability for businesses with standard models. Custom systems, however, provide unmatched flexibility, perfect process alignment and potential long-term value for businesses where unique operations are a key competitive advantage.