Over the years, we have found that the vast majority of convenience and petroleum wholesalers are not using their various software programs to their fullest capabilities. To be blunt, this is costing you a lot of money, both in terms of revenue growth and also expenditure controls.
This is the first of what will be a quarterly column exclusively in CSP on how to maximize your software. Today’s column offers critical questions and quick thoughts to help you identify if you could be getting a better return on your software investments. As the year goes on, we’ll focus on specific areas of opportunities for you and your business.
Asking the Right Questions
Better software use can equate to at least 10% less on-hand inventory per store, a 2% increase in profitability and a 10% or more reduction in labor time for multiple aspects of your business. But to realize these gains, you must ask the right questions:
When did you purchase your software? Many of our clients say they purchased software anywhere from five to 15 years ago. Instead of telling you my opinion on that, let me ask you a simple question: When did you last upgrade your cellphone or your laptop? Need I say more?
When did you last upgrade your software? It may not be necessary to purchase brand-new software on a regular basis, but you certainly need to make sure what you have is up to date to ensure full integration and capabilities with your POS, as well as new functions and features that can truly make a difference when it comes to control and profitability.
How has your business changed since you purchased and installed the software? We regularly talk to operators who have doubled their retail footprint, added wholesale or bulk to their portfolio and/or evolved their business products and processes since they initially purchased their software. The car you owned when you were single probably is not the best one for when you have a family, and in many ways this applies to your software as well.
Is your software fully integrated, or do you operate multiple software programs? Going back to how your business has changed, you should consider if one software is the best option for managing the different aspects of your business, or if you need to find multiple software programs that are the best for each aspect of your business.
Are you using all of the software’s functions and reporting capabilities? How do you know this to be 100% true? Rarely, if ever, have we found that anyone actually uses all of the capabilities within their software.
When did you last meet with the software vendor to see if you are fully using the software? Have new software features or new modules been released that you could use? One way to ensure you have the most recent software and that you are using it to its fullest capabilities is to meet with your software vendor annually. Consider it your annual software physical.
When was the baseline setup of the software (pricebook, zone structure, terminals, etc.) reviewed, and what (if any) changes were made based on this review? If your pricebook was set up a decade ago, for instance, you most likely have poor descriptions, items that are no longer for sale, and many other configuration issues that would not be the case if you were to reset your pricebook. This could be the most control-oriented and profitable thing you can do.
Three Action Items
It’s time for you to review your software needs, assess your existing software and analyze your training procedures. Look at your business needs and how your software helps address these needs on a regular basis. Consider bringing in a third-party consultant to comprehensively evaluate your business processes, software setup and software use.
Technology changes rapidly, and it is imperative that you stay in front of the curve. Make sure you have the most current version of your software and that you are fully taking advantage of all its features. Participate in software symposiums and vendor meetings, and/or use an outside consulting firm to ensure you are maximizing your data tools.
Make sure the staff using the software has been trained to operate it for maximum ROI. The cost of thorough training is far less than the lost control and profitability of software that’s not fully maximized.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.