Overview

Furniture retail suits many types of businesses

1. Sofa and soft chair, beds and mattresses

2. Tables, chairs, lamps

3. Kitchen or sideboard items

4. General retail

5. Multi-store and central supply warehouses

Business processes include

1. Floor stock sold to walk in customers

   1. much like any retail store with barcoded products and replenishment from warehouse

2. Configure to order from components

   1. Price calculated by system

   2. Components can be

      1. From the retail store

      2. From a warehouse

      3. Require assembly at a warehouse

      4. From a Supplier

3. Design to order

   1. Custom pricing required - otherwise as configure to order

Furniture is typically customised for customers

Sizes, material choices, colours, fixtures and fittings are commonly choices of interest to customers, some have known pricing impact and some require sourcing or calculations.

It is common to quote a bundle of products instead of individual pieces

A configurator may be required to guide the process with the customer

Changes may require modified drawings

Alternatives are commonly offered and accepted orders need to follow the entire process

Conversions and closing sales

See if customers are visiting their quotes frequently and respond to questions they have asked

Only see the proposals that need action and create planned touch points

Customers can pay deposits online or send in payment details

Open

External Supplier Management

When a supplier makes the furniture for you they may need to quote, be waiting on materials from you or simply need to keep you up to date with progress.

• In a franchise group the supplier dashboard is used by the Franchisor

Open

Business Flow Overview

Start in the Retail Store on LHS

High Level Order flow

1. With Customer

   1. Order configuration wizard

   2. Copy to configure variants (eg different materials)

   3. Configured products with known configurations price immediately

   4. Configurations require custom quotes when:

      1. Never before used components

      2. Custom Dimensions

      3. Customer supplied components

      4. Fabricator enforces quotes

2. Anytime

   1. Send customer links to portal information where they can inform you of:

      1. Decisions maked (colours / other choices) that are still outstanding

      2. Preferred order variant

      3. Track their visits to online quote, answer questions asked online, send emails using templates, track calls made and keep notes

      4. Deposit can be taken online (CC) or customer can email deposit information

3. Sourcing once order confirmed

   1. Internal Fabrication Process

      1. Source required components (eg material )

      2. A build job is created and run through the work stations

   2. External Supplier Fabrications

      1. Any components to supply to them will be on the sourcing dashboard

      2. The product will be ordered from the supplier

         1. confirmed by receipt of invoice and making deposit payment

      3. The supplier will indicate expected dates on their portal

         1. These show directly on the order lines

      4. The supplier will upload completed images

4. QA test (normally photos for fabrications) captured and approved

   1. Required before delivery arranged

   2. Commonly required before Final Payment

5. Delivery arranged

   1. The delivery photos can then be attached

RRP

Customers pay RRP.

RRP for a configurable product is AFTER the configuration changes and material choice - ie material is not broken out as a separate price.

Configuring a Configurable Product

Select the Category of product to configure

Categories flagged as “Featured” appear in the list - image is held on the product category

Then Select the Range

Set as the “Range” within The Brand on the SKU - image is held on the Range.

Then select the Item to configure

Only configurable items are available

Then select from available options

Here is an example of the seat cushion fill

Note: The fill does NOT Have an RRP

1. so any change in fill will trigger a supplier (external or internal manufacturing ) quote requirement

Options

• If a fill qty and RRP per qty can be defined then RRP would be updated by changes of fill

• Fill Qty may be different for each type of fill hence a default quantity may not be accurate and a scaling may be required instead

Here is an example selecting material

Material codes change frequently and there are thousands of them - so they are captured at the time of the order as information to provide to the supplier

1. Material is normally sourced by the fabricator

2. Material may be sourced by the customer - the details still get entered - however the source will be “Customer”

   1. The supplier quote will not include material

   2. The RRP will not include material

   3. The supplier portal indicates that material is expected

3. Material may be sourced directly from the material supplier with a direction to send it to the fabricator

   1. iThe order number to the supplier will be the same as the one to the fabricator making it easy to match up.

   2. The supplier portal indicates that material is expected

Here is an example selecting legs (and adding another leg)

Legs have a qty and and an RRP in this example - so the change can calculate the change in RRP

Images on Options

General Options - eg “Split” of a large sofa to facilitate delivery or “Gas Lift” of a bed

Custom Dimensions

Custom dimensions for the overall item when only a change to the Length Depth or Height

• Note that when entering custom dimensions you must enter all related dimensions even if the same as the standard dimensions

More Detailed Customisations

Customisations that require a few words can be added to the customisations area

• Default customisation text can be added as Text Snippets

  • Admin > Sales > Text Snippets > Type = Customisations

Later a detailed drawing can be attached to the item if required for the supplier to quote on

• A detailed drawing will take time so it is commonly added after the initial configuration proess

Quantity of this Configuration

If multiple of this configuration are required then enter the Quantity

Add other configured items to the quote

Use the “I want to add another item” to build up the total order eg:

1. 3 seater Sofa

2. 2 seater Sofa

3. Queen bed

4. etc

Until all items configured

Note that later the order can be re-opened in the configurator and other items added in the same way if in “Unsubmitted” status. Orders in Submitted or Plan status can be moved back to Unsubmitted Status

As items are added they will show in a list

Can remove or navigate back to re-configure any item

Customer Information

After adding all the items - find (or enter ) the customer details

1. Can also enter order header notes

2. Can also go directly to the page to attach images to the header items - or do this later

The order with a summary of the current prices will be presented

Some of these items need to be quoted before the RRP is confirmed.

Supplier Quotes

When a customer is close to a decision and needs a firm price - if there is any quotes required then mark as ready for supplier quote

• Status will change to Submitted

• Status comment will be “review if ready for supplier”

The person managing suppliers (commonly in the Franchisor) then reviews before submitting for supplier quote

• Requires secure feature “Is Purchase Manager”

• Status remains Submitted - Status Comment will move to “Awaiting Supplier Quote”

Only the configuration items that REQUIRE a quote will be listed in the suppliers portal - so on an order of items where only 2 require a quote - only two items will be listed

Suppliers Portal view of items to be quoted

The supplier order number is the same as the customers order number to make it easy to relate them.

Only the items requiring a quote are listed - the supplier needs to enter quote details and Save

As they are saved (or marked unable to quote) they are removed from the suppliers list

• The item on the order has a supplier white price added - visible only by persons managing purchasing

• The RRP is calculated for the white price

  • The Franchisor Margin is added to calculate a Franchisee Buy Price

  • The default Markup from the Franchisee is added to calculate the end customer price (RRP)

The order is then in the Store Sales Dashboard with status “Quoted” - and requiring action again

Discounts

Discounting is a normal part of the sales process

• Only top level Order lines may be discounted

  • Cannot discount component items - only the overall configured item

  • Enter either the $ value or the %

  • If a customer is setup with “Invoice Discount” then every line will be discounted by that amount

• The overall Order may be discounted

  • Order discounts will be applied after line discounts

  • Enter the discount amount $ and will be shown the final amount

Customer Deposit %

The default deposit % may be adjusted on the order and becomes the amount to be paid before the order is Authorised and Actioned.

• Default % is set at Admin > Finance > GL Control Accounts > Sales > Default Deposit %

Submit the order to Plan Status

Once the order has no outstanding supplier quotes required - the store can submit for a customer deposit

• Order Status will change to Plan, Status comment will have the person who submitted and the date/time

Deposit Sighted in Bank

Customer may deposit direct to the bank account and the store mark when it is received

• This option will

  • Create the full customer invoice for the order

  • Create a payment matched to the invoice for the deposit amount

Deposit paid via CC on the Portal

Customer can be asked to pay the deposit in the portal

• This option will

  • Create the full customer invoice for the order

  • Create a payment matched to the invoice for the deposit amount and added to the credit card batch for the day for later matching when the bank deposits the days credit card amount

Customer Portal Quote and Deposit Payment view

The customer must agree to the terms and conditions in order to proceed to make payment.

Deposit Paid

Once the deposit has been paid:

1. The order will move to

   1. Order Status “Authorised” + Billing Status “Deposit Paid”

2. A Customer invoice for the full value of the order has been created

   1. A Customer payment for the Deposit has been created and matched to the invoice

   2. A creditor invoice to the Franchisor (matching debtor invoice in franchisor) has been created for % of the deposit

      1. % setup is on host company

3. The order will no longer require action by the store

4. The WIP dashboard will list all items as “lines not yet confirmed”

   1. If the supplier is listed as “Customer” on any item - then this item will not require a supplier order

   2. If the supplier is not the default supplier - a supplier will need to be nominated

   3. One Sales Order may result in multiple supplier orders

5. Fin

Supplier Confirming start and price

The supplier/s will be sent order/s and the WIP dashboard indicates those fabrications that are still waiting confirmation from the supplier.

1. Because each item could come from separate suppliers - the WIP dashboard lists each item individually

Once the supplier has confirmed (normally by sending an invoice)

1. a supplier invoice is created

2. A deposit payment is made to the supplier

3. The ordered item then moves to awaiting supplier completion

4. Once all ordered lines on and order move to awaiting supplier completion

Fabrication dates can be entered by the supplier (start, eta) and

RRP and configuration options

The price (RRP) of a piece of furniture is made up of

1. White Price = fabrication price

2. Material Price = $ / m x meters

3. RRP = White price + Material Price

Generally only the final price is shared with the customer

Configuration changes the items that are included

1. each configuration option may or may not have a default option

   1. eg Material normally does not have a default, legs may have a default

Choices in the configuration change the RRP as follows

All items selected do have an RRP

then the RRP for the overall item will be calculated

1. eg a sofa with 8m material and RRP per m

2. eg a bed with 4 legs and RRP per leg

One or more items selected DOES NOT have an RRP

A quote will be required by the fabricator

Item supplied by the customer

it will have a zero RRP

Item not supplied by the fabricator

It needs to be sourced by the business

1. Any on system item can be sourced by the business instead of the fabricator

   1. If the item has an RRP it will be used

2. Unknown items can be sourced by the business instead of the fabricator (eg customer chosen legs never before used, or special leather covering)

   1. Item code will be mandatory

   2. Price is the price the store will pay the supplier per item or m - the system marks this up to get RRP

Items that need additional information - eg Material

Material is an example where colour codes are frequently changed by manufacturers and samples have the code on them - so Item code is mandatory

Here is a view of the configuration screen

Quote Required

Where a quote is required normally a specialist or the manufacturer will need to provide a cost price.

The cost price is then marked up by the system to result in an RRP to the customer

The customer details are then entered (or found if they are a returning customer)

Customers may be individuals or companies

If attaching drawings

It is common with custom furniture that the drawings are relied on for the supplier to quote

Select from the list of items on the order which item the image should be attached to

Attach the document and determine if any external persons can view it on the portals

The order when the wizard is completed

The order can be reopened in the wizard to make changes anytime (Edit > Open in Wizard)

The attachments can be viewed or added to anytime from the attachments page

1. Select the order line to attach the image to on the RHS if adding a new image

2. Indicate visibility

   1. customer - will show on the customers quotes and orders in their portal

   2. supplier - will show on the suppliers portal

   3. both of the above

   4. or internal only

Material Samples

It is common that a customer would like to have some samples sent to them from the supplier

1. Material Line MUST be ticked “This is not my final choice, please follow up”

2. Right click on the line > open email template

Right click on the order line to open an email template and enter the samples required

1. Note - where samples from multiple suppliers is required - simply change the supplier on the order line then email to the other supplier

Order Variations

Customer supplied items

Items may be supplied by the customer or by your business > example fabric

1. Choose the source as “Customer” for any option on the order

2. If this is chosen for any item included in the white price > a quote will be required

Supplied to the Fabricator by you items

Items may be sourced separately and provided to the fabricator (item supplier)

1. Choose the source as “my company” for any option on the order

2. If this is chosen for any item included in the white price > a quote will be required

Dimension Changes or items with no RRP for change calculations

Supplier may be required to quote on customisations (different dimensions, non standard fillings, etc)

1. Flag the component that has triggered a quote requirement and enter notes

2. If it is the overall dimensions or other items for the top level item then tick for top level item and enter dimensions / other items required

If Images (Drawings etc) are required they can be attached to the order so they can be sent to the supplier as part of the quote.

The dashboard shows any quotes in “Not Submitted” status as next step “Decisions Required”

When ready > submit the order for Supplier quote

The order MUST be submitted for supplier quote if any of the order lines are flagged as “Quote Required”

Status moves to “Submitted (Review if ready for supplier)”

The dashboard will show this as

• action by others

• Next Step: Supplier Quote

Head Office will review and determine if the quote is ready for supplier

If not > the status will be moved back to “Not Submitted”

The dashboard will show this as action by others “Supplier Quote”

Quotes are obtained, Reviewed and Updated on the order by head office

Simple list to manage and action of orders that require a head office review before being passed to the supplier

Open the order to review the quote details

View also the attached documents

If not ready - Return status to Un-submitted and add a note about what is missing

If ready - submit for quote by supplier

The supplier logs in to review all quotes that are ready for pricing

Alternatively Head Office can enter the supplier price details directly

After a quote has been received the pricing is ready for the customer

Email the online quote with ability to pay the deposit online as per above

The Customer payment of the deposit will put the order ready to manufacture in the supplier WIP portal

Supplier

WIP Portal - manage WIP dates and upload final photos

Awarded work appears in the supplier portal. The supplier can

1. Have a view of parts or material expected to them as part of the job with ETA visible.

   1. ie if the customer is sending special legs, or if the supplier is not responsible for getting the covering material

2. Update expected start and end dates of each item

3. Put comments visible to their customer (but not the end customer)

4. Upload photos when completed

   1. When photos are uploaded the supplier is prompted to ask if the job is now ready for review

   2. Photos must be accepted before the customer is notified to pay the final amount

Shipping Portal - print packing slips

Once the job

1. Has Photos loaded for review

2. AND the photos have been accepted

3. AND the customer has paid the final amount

4. THEN the job will be able to be dispatched

   1. print the packing slips (they will include the end customers address) and await the couriers visit

      1. Normally the courier is NOT booked by the supplier

Managing Orders Detailed Flow

When a product is not standard then the supplier will need to provide a quote - otherwise this step is skipped.

Managing the supplier interaction is the WIP Dashboard

Configurations

Sales Reps

Sales reps are employees in the store host company with “Sales Rep” ticked

Customer Deposit Requirement

Default % to

1. Authorise the order

2. Pick the Order

The default is configured on each host company.

• Can be over-ridden on any individual debtor

• Email merge field to the customer of a portal view of the quote for payment https://Company.saasplications.com.au/Login?login=[LoginCode]&token=[LoginToken]&orderId=[PersistentId]&alias=[QuoteActivityAlias]

Supplier Deposit Requirement

Default % deposit to pay

Configured on each supplier

Default Quote Expiry and expected close

Set for all companies in one place

1. Number of days from the date the quote is moved to PLAN status (only if empty)

2. Default quote expiry date set when moved to PLAN status

3. Default % chance of closing when moved to PLAN status

Pricing

RRP

RRP can be set on any item. If an RRP is not set on an item then a quote is required

If the item is configurable - then RRP for an item will include the default options

Where a configuration option has no default item - the RRP will be increased by the RRP of the chosen item (Material in the example above)

Where options are changed from the default - RRP is recalculated

1. RRP is reduced by the default item removed and increased by the replacement

   1. A supplier quote will be required if no RRP

2. Options from a category

   1. Where a configured item is linked to a product category AND there is no default item

      1. RRP is increased by the chosen item RRP by quantity

White price and RRP

Note that a sofa final price consists of

1. White price (price without material)

   1. Default white price is indicated as RRP on the Top level SKU (Sofa)

2. Components not included in the white price (commonly Material )

The pricing is indicated on the order lines

1. Included in the white price is indicated (inc Y)

White price recalculation

If the included item default has an RRP and the alternative has an RRP then the white price will be adjusted

Triggers for a custom White price required

Different Dimensions / custom drawings

Changes in overall dimensions, adding or removing arms, lifting or lowering backs and other changes vary

1. The amount of fill required

2. The work in framing, filling, stitching, covering

In this case the system will not calculate a new price

• When dimensions are the only change - the system will show the same SKU RRP with similar dimensions.

Different Choice of Legs where choice does not have RRP

Default legs normally have an RRP

Normally there are multiple choices for legs and a default quantity

1. If the default quantity is adjusted - the white price will adjust

2. if a alternative leg is used - the difference in RRP will adjust the white price

Different Fill Choices

Each sofa has a different volume of fill and this may vary depending on the fill used. In this case it is normal for a manual calculation to be used to come to a new RRP

Different included

Standard default item has an RRP - selected item does not

RRP calculated from Supplier Quotes

Where the product has a preferred supplier AND the product is NOT flagged as “Internal Production”.

A supplier quote may be triggered by a change in an item configuration

1. A change where the original item or replacement item has no RRP, is supplied by the customer

2. Dimension changes (where not similar quote was selected)

Custom Products - RRP calculated in the store and entered

When the store is confident to calculate the RRP of the modified product they can enter the RRP directly into the screen

1. This calculates the supplier buy price using the markups - but does not display that to them

Off System Sourced Products - example material

Known Customers and their agreed discounts

1. Customers discounts for known customers are setup on the individual customer

   1. Order discount %

      1. Discounts every line on the order - so clearly visible to the customer

         1. Can indicate items that do not discount

         2. Order line discounts may be adjusted manually by line

   2. Orders may have an overall discount added at the order level

2. Trading term discounts are setup on the individual customer

   1. When an invoice is created a credit note is created reducing the open amount of the invoice

Bundle Pricing

Adding new configured items

The configurator uses a hierarchy to find the items

1. Product Category (eg Sofa)

2. Range (eg Mosman)

3. Style (eg 3 seater)

4. Items

The images are stored at each level for navigation

Then the item when displayed shows all the options that can be configured - with the default options at the top

Markups

Pricing is set in the following way

1. The Franchisor pays a supplier a price

2. The franchisor has a standard markup % for the stores to pay

   1. GL Control Accounts > GL (Advanced) > Franchisor Commission Rate

3. The franchisor has a standard markup for other customers to pay

   1. Host company > Extended Attributes > Sales / Credits / Stop Supply > Target Markup %

4. The Franchisee has a standard markup for customers to pay

   1. Host company > Extended Attributes > Sales / Credits / Stop Supply > Target Markup %

So if the Franchisor pays $1 (exGST)

1. Franchisee pays = $1 x (1 + Franchisor Commission Rate) + GST

2. Customer of the Franchisee pays = Franchisee Cost x ( 1 + Franchisee Target Markup % ) + GST