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Furniture POS & Inventory Retail Software
OVERVIEW
Furniture and home decor stores face challenges on three fronts. First, there is the sheer size of the inventory, both in scope and in actual physical dimensions. Second, there are the options that the store has to pay for stock inventory. Third, there are the options that customers have to pay for purchases.
Furniture and decor items can range in size from sitting on a coffee table to filling an entire room. Often, inventory is delivered directly to the customer. The POS system must handle delivery scheduling and there should be a module for route planning for delivery. Inventory may be located on the showroom floor, in a storeroom, or in a separate warehouse. Items are generally one of three types; stock, special order, and customize to order. The POS should handle customization options and take deposits.
Expensive furniture, decor, and antique inventory is often floorplanned. The inventory system and the accounts payable system must share information to calculate floorplan amounts and payments.
Installment sales are the rule for furniture; stores either factor the sale or carry the paper. In the first case, the system needs to calculate the discount and notify the factoring company. In the second case, the POS and the accounts receivable system must calculate payments (including “no interested for X months” calculations) and generate coupon books, if required.
Payroll is standard, but most furniture and decor retailers need support for commissions and sales quotas. General ledger is standard, but there tend to be many corrective entries as accounts payable and receivables change; for example, if a customer takes longer to pay then 24 months, then the interest rate changes from zero percent to 22 percent. Most systems are run on-premises, but software as a service (SaaS) offerings are available and cloud-based systems are attractive alternatives for those upgrading existing computer systems or replacing paper-based systems.
Key Requirements for Furniture & Decor Retailers
In addition to core business functions, furniture and decor retailers should consider the following functions to meet their unique requirements:
| Floor planning | The system needs to track which inventory items are floorplanned and the due dates for payments. If a floorplanned item is sold, the system needs to post the transaction through to accounts payable for payment. |
| Suite sales | Furniture and decor items are often sold in suites, for example a dining room with a table, chairs, and buffet. The POS and inventory should properly price the sales of suites and individual items and reset inventory valuation as necessary. |
| Factoring | The system should support factoring accounts receivable. It should prepare factoring documentation as required and correctly update the accounts receivable system. |
| Credit sales | The POS and accounts receivable need to properly handle credit sales. It must handle variable terms and promotional terms. It must be able to handle a mix of store-held paper and factored credit. |
| Layaway | The POS system should allow customers to put products on layaway and identify the item as such in the inventory system. The layaway payments should be treated as deposits in the general ledger. |
| Promotional pricing | The system should allow sale and promotional pricing. The pricing should change in the POS and inventory automatically at a specified time and date, if desired. |
| Line management | Pieces of furniture and decor items are often produced as part of a line. The inventory system should track which other items are available in stock and which are available by special order. |
| Delivery scheduling | The POS system should be able to schedule deliveries at the time of purchase. Fulfillment systems should be able to plot delivery routes for each day. |
| Customizing/special order | Many items are available customized to order, a basic frame with a choice of finishes or upholstery. The POS system should be able to quote for customized-to-order goods, estimate finish dates, and schedule pick up or delivery. |
| Inventory tracking | The inventory system should be able to track the location of each item, whether it is on the floor, in the stockroom, or in the warehouse. For chain stores, the inventory system should track which showroom has the items and allow in store transfers or customer pick up at other locations. |
| Appointment management | Stores that have sales quotas or commission pay should have an appointment system to support the sales representatives. Customers can ask for availability and schedule appointments with specific sales reps if desired. Advanced systems will have self-service appointment systems available on-line. |
| Split tender | The system must be able to accept payment over several different methods. For example, a customer may want to pay with cash and two different credit cards. The system must properly apply the split payments to the correct ledger accounts. |
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Genesis Advantage
We recommend Genesis Advantage for small to medium-sized furniture store retailers, generally with upwards of 50 employees. Offers accounts receivable management for both installment and revolving credit. Also open-to-buy capable.
Iridium Retail Manager
Some of the features we like the most in Iridium Retail Manager are the repair management and the detailed inventory analysis modules. These are great tools for furniture retailers that maintain a warehouse and offer repairs.
Tylernet
Tylernet POS is an on-premise retail solution that we recommend for furniture store owners. Strong in accounting, point of sale, inventory management, e-commerce, and supply chain management. Tylernet also offers ASP deployment.
CounterPoint by Radiant Systems
Radiant Systems’ on-premise point of sale system, CounterPoint, is a good choice for furniture store owners that need help organizing their inventory, improving their customer marketing, and streamlining customer purchase histor
Fishbowl Inventory
Fishbowl Inventory retail management software is a best-of-breed inventory management solution with POS and warehouse management features. Offers inventory tracking, custom orders, multi-vendor and mutli-inventory features.
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Visual Retail Plus
We like that Visual Retail Plus includes integrated POS, inventory management, and CRM features within its retail application. Furniture store retailers can use the service module to help with furniture maintenance and delivery.
LightSpeed
Inventory functionality is essential for furniture retailers. In LightSpeed POS, users have access to purchase orders, multiple inventory matrices, and inventory reports. Retail CRM and e-commerce functionality also included.
Retail Anywhere
Accounting, inventory reporting, stock management, marketing, and point of sale modules are included in the Retail Anywhere software application. This on-premise system also offers merchandising tools and warehouse management.
Microsoft Dynamics GP
Retailers looking for an ERP suite with a focus on accounting and inventory management should look at Microsoft Dynamics GP. Provides point of sale, CRM, and warehouse management features, in addition to a large financials focus.
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